Philadelphia industrial real estate market reports
Q2 2024
27.9 msf
Total SF under construction is back on the rise
After decreasing slightly over the past two quarters, total SF under construction has increased this quarter up 6.1% from Q1 24’, now sitting at 27.9 MSF. Total new quarterly deliveries have remained relatively flat, with 2.3 MSF delivered in Q2 24’. When compared on a YoY basis, total new quarterly deliveries are down 80% from 12.2 MSF back in Q2 2023. Following a record breaking two years of new construction, the market has returned to pre-pandemic levels of development and delivery velocity.
10.7%
Total availability reaches a new record high
With record amounts of new supply being injected into the market, total availability across the market continues to face upward pressure, now at a record high of 10.7%. Two major components of this increase are from an increase in sublease availability, and a continuation of new product deliveries. Sublease availability saw a 35% QoQ increase up from 9.69 MSF in Q1 24’ to 13.1 MSF in Q2 24’, combined with 4.7 MSF of new product delivered in the first half of 2024
14.4 msf
Total SF leased in the first half of 2024
In the first half of 2024, 14.4 MSF was leased across the Philadelphia industrial market. While this is a YoY decrease of 33.8%, it is important to keep in mind the market is coming off two years of record-breaking amounts of leasing activity, with 39.5 MSF leased in 2023 alone. Of the 14.4 MSF space leased this past quarter, 67.5% was Class A space, equating to just over 9.7 MSF. 24.6% was Class B space with 3.5 MSF leased, with Class C accounting for the remaining 8%, at 1.1MSF of leased, respectively.
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