While industrial vacancy has declined in Eastern Pennsylvania’s hottest industrial markets over the past year, Philadelphia and some of its suburbs have not been able to tap into that recovery.
An onslaught of new supply, stubbornly high asking rents and a slightly less advantageous geographic position left the city and its Pennsylvania collar counties with notably higher vacancy than much of the surrounding region last quarter.
“Greater Philadelphia had never really been, until the Covid years, a spec market for Class-A space,” Colliers Executive Vice President Michael Golarz said.
“Those buildings delivered, and the demand that had been anticipated to be there had also softened,” he added….