Philadelphia I-81/78 Corridor Industrial Market
Sublease inventory in the market has continued to rise, notably accelerating in the first quarter of the year. The Corridor now has approximately 6.5M square feet available for sublease, accounting for 1.4% of total market inventory. This marks an increase of 2.5M square feet and a 60 basis point rise compared to the fourth quarter of 2023. Notably, spaces made available by Broad Range Logistics, All-Ways Forwarding, and Kohler accounted for 62% of the market’s new sublease availabilities. Total leasing in the first quarter of 2024 was 4.0M square feet, 42% less than the quarter prior. Despite a decrease in demand, tenants are still actively targeting Class A industrial space. High-quality assets captured 72.9% of leasing volume this quarter, which is in line with 2023 averages.