Industrial development across Philadelphia feels downward pressure as interest rates continue to climb

  • Developers are pumping the breaks on new industrial ground breakings, as interest rates continue to trend upward, with the U.S. 10-year Treasury at 4.59% quarter end.


  • In the past twelve months total SF under construction across Philadelphia has decreased nearly 50% from its high of 55 msf in Q3 2022 to 27.5 msf in Q3 2023.  


  • With the current financing environment to build industrial buildings on speculation, a developer is realizing they may have negative leverage. This is the primary reason why ground breakings and construction starts are down.

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