Philadelphia industrial real estate market reports

The Philadelphia industrial market witnessed another record high to close the year, with over 47 msf of new product delivered, equating to 4.8% of total existing inventory. Active new development is down 63% since its last peak of 56 ms fin Q2 2022, with 20.8 msf now actively under construction, as the market returns to pre-pandemic levels of new development.

Net absorption as a percentage of total existing inventory remains positive, but the rate of growth has decreased dramatically, down 42% YoY from 48 msf at the end of 2022, compared to 27.8 msf at the close of 2023. Over the last 10 years the market has averaged 25.7 msf in net absorption annually.

Although investment sales continue to face headwinds driven in large part by a high interest rate environment, deals continue to get done. There were a total of $1.9B in industrial sales volume transacted across the Philadelphia industrial market in 2023, with an average weighted price per square foot of $110 psf.