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.
October 23, 2023