The average sale price per square foot growth in the Philadelphia industrial market has reached an inflection point
- After experiencing five consecutive years of double-digit annual growth, Philadelphia's industrial market has reached a turning point regarding the average sale price per square foot (PSF). In 2023, there was a 0.9% decrease in the average sale price PSF, dropping from $107.25 PSF to $106.25 PSF.
- Over the past six years, the average sale price PSF across the Philadelphia industrial market has seen a significant 103% increase, rising from $52.39 PSF in 2018 to $106.25 PSF in 2023.
- The downward pressure on pricing can be attributed mainly to a high-interest rate environment, leading to a less competitive transaction landscape. However, with strong industrial market fundamentals and the potential for the Federal Reserve to cut rates in the second half of the year, there is a possibility of an increase in the average sale price per square foot.
February 26, 2024
US-PA-PHL Philadelphia