Average under construction building size has fallen 25.3% over the past five years across the Philadelphia industrial market

In the last five years, the quarterly average under construction building size has decreased 25.3%, falling from 443K SF where it stood in Q1 2019, to 331K SF at the close of Q3 24’. A leading cause for this has been a decrease in the size of tenant's space requirements, with the Q3 24’ average lease size of 145K SF in Q3 24’, equating to a -4.3% decrease from the Q2 24’ average lease size of 151K SF.

Many developers of large format buildings have opted not to fully scrap plans to build these large format sites, but instead just delay the groundbreaking for development of additional large format buildings, and in some instances change the size of the proposed development to meet the demand of the market.

December 17, 2024

Additional resources

US-PA-PHL Philadelphia