New product deliveries continue to place upward pressure on space availability throughout the Philadelphia industrial market

Graph showing rising industrial space availability in the Philadelphia market, driven by new product deliveries. Philadelphia County leads with 8.9 million square feet of direct space and 308,000 square feet of sublease space. Areas with traditionally low Class A inventory are seeing sharp increases in vacancy due to slow leasing. Salem County shows a 45% vacancy rate after significant new deliveries, totaling over 7.1 million square feet of available space

At the submarket level, Philadelphia county recorded the greatest amount of direct space availability at quarter end, with 8.9 msf of direct space available and 308 ksf of sublease space available.

New product deliveries specifically in submarkets with historically low amounts of Class A inventory are causing significant spikes in availability due to much lower leasing velocity.

By way of example, after more than 2.3 msf of new product deliveries in 2024, and another 956 ksf in Q1 25’, the Salem county total vacancy rate now sits at 45%, with just over 7.1msf of direct space available.

June 18, 2025

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Zachary Cutler

- Senior Analyst, Northeast Industrial, Market Intelligence
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US-PA-PHL Philadelphia