Philadelphia I-81/78 Corridor Industrial Market
Absorption in the third quarter totaled 505,795 square feet, which brought year-to-date absorption up to 2.4M square feet. This is just over 20% of year-to-date absorption in the third quarter of 2022. Fourteen buildings totaling 5.5M square feet delivered in the third quarter. The construction pipeline is 17.4M square feet, 22.7% less than the pipeline in the third quarter of 2023. Vacancy and rents both increased year over year. Vacancy grew to 5.5% as deliveries outpaced absorption. Higher-priced deliveries caused rents to rise slightly, as the $11.34/SF average rate was 1.2% higher than last year’s average.