For the first time in two years, the industrial vacancy rate in the Philadelphia region has declined, dropping from 7% to 6.5% in the third quarter, per Colliers. This shift reflects increased tenant demand, particularly from third-party logistics companies, many based in Asia, that were previously priced out of the Northeast. These companies accounted for nearly 80% of the region’s leasing activity in Q3, according to CBRE.

The current vacancy rate resembles levels from 2016–2019, moving away from the record lows of around 2% seen during the pandemic. A surge in new industrial developments, driven by e-commerce and pandemic-fueled demand, has significantly expanded the region’s industrial space in recent years.

*Article courtesy of Philadelphia Business Journal

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