Q2 2022 Industrial Market Update
The Philadelphia Regional Industrial Market booked 10.7 MSF of net absorption for Q2’22, up from 9.9 MSF, still well ahead of new construction deliveries (9.3 MSF). Overall vacancy decreased by 12 bps to 1.99%.
Rolling construction levels increased to 56.1 MSF fueled by a combination of new starts and delivery delays tied to ongoing supply chain issues. Notably, more than 34 MSF is currently projected for delivery in the next 2 quarters, which could put modest upward pressure on vacancy rates. That said, Demand is strong at 39 MSF, with a majority of active requirements looking to occupy by COQ4’22. Land continues to price at near record levels, but growing construction costs, stubborn inflationary concerns, and steadily rising interest rates have re-balanced the equation somewhat. As a result, land pricing may hit a temporary plateau or even slip in some sub-markets as pricing discovery takes root.
Looking forward expect net absorption to remain strong through the end of the year, at levels more or less in line with the last two quarters. Overall vacancy rates may rise slightly, but rents should continue their upward trajectory and the overall market should remain decidedly Landlord-favorable for the foreseeable future.
Disclaimer: Q1’22 vacancy rate changed to 2.11% after several retroactive changes to the supply set.
Commercial Warehouses for Sale in Pennsylvania
The Philadelphia Region offers a wide range of vacant and occupied warehouses for sale or lease. Finding the right size warehouse or manufacturing facility to fit your needs within proximity to the labor force needed to run your operation is just one of the assets we look at during due diligence.
We save you time while you can feel confident that our experienced agents know how to find the best industrial warehouse for your needs.
Industrial Property Asset Management Services
Lee & Associates of Eastern Pennsylvania LLC offers top-notch Asset Management services for when you purchase your industrial real estate property.
Industrial Business Parks for Sale in Pennsylvania
If your goal is to own or lease industrial space within a business park, we can help you identify the top locations and benefits of each opportunity. Tax Incentives, neighboring businesses, and infrastructure supporting each park are just the start of finding the right fit for your business needs in Pennsylvania, and beyond.
We will assist you in identifying the needs and wants of your business location, financials, labor and more.
Cold Storage Property For Sale
Our properties include cold storage facilities for sale or lease. The unique attributes of these properties set them apart from other industrial assets in Pennsylvania.
We can advise you on the advantages and disadvantages of the property and potential upsides to buying vs. leasing. We understand cold storage and can identify any potential pitfalls for the property.
Lee & Associates of Eastern Pennsylvania LLC can help you find industrial buildings for sale or lease industrial real estate in Pennsylvania or sell the one you have now. Our skilled team knows the area and stays on top of new properties that become available. We keep in mind the most essential elements of real estate as we search on your behalf, and we use proven strategies to help you purchase, lease, or sell an industrial space, such as:
- Making personal sales calls.
- Engaging in strategic planning.
- Offering ongoing reporting on how properties are positioned.
- Preparing marketing materials.
Working together, we can identify commercial industrial real estate for sale where your business can grow and thrive. Trust the experienced team at Lee & Associates of Eastern Pennsylvania LLC to guide you through the process and help your organization thrive in your new location.
View Our Available Industrial Properties and Warehouses for Sale or Lease in PA
Take a look at our industrial properties for sale in Pennsylvania and the surrounding mid-Atlantic region. Contact us today to learn more. We look forward to assisting you.