Active development continues to decrease across the Philadelphia industrial market as demand for new product softens
- Increases in vacancy coupled with declines in preleasing volume, continue to place downward pressure on demand for new developments. Total SF under construction decreased 58.4% over the past twelve months, from 29.7 MSF to now 12.4 MSF.
- At the close of Q2 2025 development preleasing measured just 13%, 200 bps below the 5-year preleasing average of 33%, with only 1.6 MSF of active developments preleased.
- Philadelphia County currently has the highest number of active developments, with 1.8 MSF under construction across six buildings but only 146K SF has been preleased.
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