Philadelphia I-81/78 Corridor Industrial Market
Over 5M square feet was delivered in the fourth quarter of 2023, bringing year-to-date deliveries to 24.5M square feet; a new yearly record for deliveries. Over 75% of 2023’s deliveries were vacant at time of delivery, which increased the market’s vacancy rate. The onslaught of new product to the market brought the Corridor’s vacancy rate to 6.4%, a 60 and 240 basis point increase quarter-over-quarter and year-over-year, respectively. In the fourth quarter of 2023, asking rates in the market remained steady. The average rate of $9.49/SF was is 12% higher from a year ago. Annual rent growth in 2023 has been notably lower than the averages observed between 2020 and 2022, which consistently ranged between 20% to 25%.