Philadelphia Metro Industrial Figures Report Q1 2023

Vacancy ticked up slightly during the first quarter as construction completions outpaced supply. But a 4.4% vacancy rate continued to describe an under-supplied market leading rents to gain upward momentum. Occupancy grew near recent quarter averages, signaling the need for additional vacancy within the market although several factors led to two consecutive quarters of construction starts at levels well below pandemic-era norms. As such, occupiers will continue to compete for space.