Eastern Pennsylvania was a poster child for the unprecedented pandemic industrial boom that caused a flurry of leasing and construction in Philadelphia and its suburbs.
But as the sector’s hot streak continues to cool off five years later, analysts aren’t expecting a repeat when the next upcycle rolls around.
“It was probably a once-in-a lifetime event,” Cresa Managing Principal Eric Zahniser told Bisnow of the Covid logistics boom. “I don’t think ‘If you build it, they will come’ works through every cycle.”
In fact, Philadelphia and some of its immediate neighbors are more likely to be facing a reality check when it comes to asking rents, especially for top-flight properties.