Leasing demand rises for smaller buildings across the Philadelphia industrial market
Leasing demand rises for smaller buildings across the Philadelphia industrial market
- Tenant demand continued to shift toward smaller size buildings in 1Q25. A total of 1.3 msf was leased in buildings 100k-249k sf making up 35.2% of the total leasing activity in the market.
- Although demand for smaller buildings has increased, vacancy continues to face upward pressure due to significant amounts of new large format product continuing to enter the market.
- Leasing volume across the Philadelphia industrial market decreased for the second quarter in a row, with a total of 3.8 msf leased in the first quarter of 2025. This equates to a 45% decrease from the 6.8 msf of leased space in 4Q24, and is 66.5% below the 5-year 1Q leasing average, currently sitting at 11.3 msf.
May 5, 2025
Additional resources
US-PA-PHL Philadelphia