Industrial groundbreakings continue facing downward pressure across the Philadelphia market
- After nearly two years of record-breaking amounts of new industrial development across the Philadelphia market, groundbreakings have significantly decreased, as developers continue to face a range of economic headwinds from elevated lending costs to ongoing supply chain delays.
- New industrial groundbreakings are down 66% YoY, from 3.9 msf across twelve buildings in Q2 23’, to now just 1.3 msf in groundbreakings, spread across just three projects. Of the 1.3 msf that has recently broken ground, 1.2 msf are properties slated to be 250K SF+.
- Across the market this slowdown in new groundbreakings will allow the current pipeline to lease up faster with less competing supply.
May 30, 2024
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