New product deliveries retreat to pre-pandemic levels across the Philadelphia industrial market

Following a record breaking three years, with an average of 42.5 msf in annual new product deliveries, 2024 saw a return to pre-pandemic levels of new deliveries. In 2024 the Philadelphia market added 17.9 msf of new inventory, a decrease of 63% from the 48.4 msf in new deliveries witnessed in 2023.  There was a noticeable shift in location for new deliveries, with Northampton, PA and Salem, NJ submarkets seeing the greatest amount of new product, at 2.5 msf and 2.3 msf respectively. The 4.8 msf of new product deliveries across Northampton, PA and Salem, NJ accounted for 26.7% of the 17.9 msf delivered in 2024. As a result in submarkets like Salem county, Class A space availability has spiked, due to an injection of new inventory and no absorption occurring at the newly delivered buildings.