Philadelphia I-81/78 Corridor Industrial Market
Absorption year-to-date has measured 3.8M square feet, leading to a 40-basis-point decline in vacancy rates from the end of 2023. Major drivers of second-quarter absorption included Moran Logistics and S&S Activewear, which each occupied approximately 650,000-square-foot warehouse spaces in the Lehigh Valley. Year-to-date in 2024, just over 0.8M square feet of industrial space has been delivered, marking the lowest first-half volume of new deliveries since 2012. While leasing activity during the first half of 2024 was lower than historical averages, demand for Class A product remained strong, capturing 69.2% of total industrial leasing volume.