Eastern PA / Southern NJ industrial real estate market reports

Q1 2026

aerial view of the inside of a warehouse in Philadeplhia
8.9% 

Total Vacancy Rate at the close of Q1 2026 

The total vacancy rate across the Eastern PA/Southern NJ industrial market declined 50 basis points quarter-over-quarter(QoQ), from 9.4% in Q4 2025 to 8.9% in Q1 2026, signaling a modest rebound after two softer quarters. The Harrisburg–York and Lehigh Valley submarkets account for 29.8% of the market’s 103 MSF of total direct available space. 
9.3MSF 

Total Leasing Volume in Q1 2026 

Leasing activity eased from Q4 2025 highs, in line with seasonal trends and slower tenant decision making. Despite a 30% QoQ decline, Q1 2026 leasing volume remained 18% above Q1 2025 levels. The quarter was led by Exol’s new 973 KSF lease in Bucks County, PA, which underscored continued demand for bulk distribution space. 

20.4MSF 

Total SF Under Construction in Q1 2026 

Active industrial construction totaled 20.4 MSF this quarter, representing a 6.2% decline from 21.8 MSF at the end of Q4 2025. Completions also slowed, with 2.1 MSF delivered in Q1 2026, down from 3.5 MSF in the prior quarter, as elevated interest rates and tighter lending standards continue to constrain development.

Your source for the latest Philadelphia industrial real estate reports

Stay on top of current trends affecting the industrial real estate sector in the Greater Philadelphia Area. Gain an overall better understanding of Greater Philadelphia's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in Greater Philadelphia.

Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of the Greater Philadelphia industrial real estate market.

Get the latest Philadelphia industrial market reports right in your inbox