{"id":1004759550,"date":"2025-06-09T01:05:00","date_gmt":"2025-06-09T09:05:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004759550"},"modified":"2025-06-09T04:55:00","modified_gmt":"2025-06-09T12:55:00","slug":"philadelphia-industrial-market-surges-ahead-despite-slower-starts","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-surges-ahead-despite-slower-starts\/","title":{"rendered":"Philadelphia Industrial Market Surges Ahead, Despite Slower Starts"},"content":{"rendered":"
\n
\"Aerial<\/a>
Aerial view of the transformation of the former refinery into The Bellwether District. Hilco Redevelopment Partners secured a $500 million loan provided by PCCP LLC for the redevelopment of the 15 million-square-foot mixed-use industrial park in South Philadelphia. Image courtesy of Hilco Redevelopment Partners<\/em><\/figcaption><\/figure><\/div>\n\n\n

Philadelphia\u2019s industrial pipeline remained active in April, with nearly 6.2 million square feet of space delivered and more than 8.3 million square feet underway.<\/p>\n\n\n\n

Still, the pace of new construction starts slowed notably, with just 1.2 million square feet breaking ground year-to-date through April\u2014down sharply from the 4.5 million square feet recorded during the same period last year. Meanwhile, pricing remained below national levels and vacancies stayed in line with U.S. averages.<\/p>\n\n\n\n

Sales volume rises, prices trail national average<\/h2>\n\n\n\n

Investors traded $193.2 million in industrial assets across the metro year-to-date through April, CommercialEdge data shows. A total of 23 properties totaling more than 2.2 million square feet of space changed hands, slightly up from the 1.5 million square feet recorded in the same period last year.<\/p>\n\n\n\n

The properties sold for an average of $110 per square foot\u2014below the national average of $131. Philadelphia prices lagged behind peer markets, such as New Jersey ($279 per square foot), Phoenix ($193) and Atlanta ($134).<\/p>\n\n\n\n

Philadelphia’s industrial pipeline keeps flowing<\/h2>\n\n\n\n

As of April, Philadelphia’s industrial pipeline comprised 8.3 million square feet of space underway across 25 properties, representing 1.8 percent of existing stock\u2014just above the 1.7 percent national benchmark.<\/p>\n\n\n

\n
\"I-76<\/a>
Located at 1130 Pottstown Pike, the I-76 Trade Center is near Interstate 76 and roughly 35 miles west of downtown Philadelphia. The facility will feature four drive-in doors, 110 dock doors, 146 trailer stalls and 508 parking spaces. Image courtesy of Portman Industrial<\/em><\/figcaption><\/figure><\/div>\n\n\n

Compared to similar markets, Philadelphia outpaced Atlanta (1.6 percent), Kansas City (1.4 percent) and New Jersey (1 percent), while Phoenix (3.8 percent) remained well ahead. New starts dropped notably: only five projects totaling 1.2 million square feet broke ground by the end of April, a significant decline from the 4.5 million square feet recorded during the same period last year.<\/p>\n\n\n\n

Major developments include The Bellwether District<\/a>, a $4 billion, 1,300-acre industrial hub in South Philadelphia. Hilco Redevelopment Partners began work on the first 326,000-square-foot building in 2023. The second phase\u2014currently under construction\u2014will total approximately 727,000 square feet and accommodate warehouse\/distribution, cold storage, light manufacturing, or a combination.<\/p>\n\n\n\n

Portman Industrial is also building I-76 Trade Center\u2019s Building B<\/a>, a 636,120-square-foot cross-dock facility in Exton, Pa. The $330 million speculative campus will ultimately include three buildings totaling 1.9 million square feet.<\/p>\n\n\n\n

Deliveries outpace peers<\/h2>\n\n\n\n

Philadelphia\u2019s industrial completions<\/a> totaled nearly 6.2 million square feet across 13 projects year-to-date through April, according to CommercialEdge. This marked 1.3 percent of the market\u2019s total inventory\u2014more than double the national average of 0.5 percent.<\/p>\n\n\n

\n
\"Tac-Pal<\/a>
Tac-Pal Logistics Center’s first phase consists of a 702,450-square-foot industrial building at 201 S. State Route 73. Image courtesy of Affinius Capital<\/em><\/figcaption><\/figure><\/div>\n\n\n

Only Phoenix (9.3 million square feet) and Kansas City (8.6 million square feet) delivered more space in the period, while Indianapolis (752,500 square feet), Atlanta (2.2 million square feet) and New Jersey (2.2 million square feet) trailed behind.<\/p>\n\n\n\n

Recent completions include Tac-Pal Logistics Center<\/a>\u2019s second phase, a 700,000-square-foot facility in Palmyra, N.J., developed by Crow Holdings Capital and Sansone. The duo secured a $102 million construction loan in 2023 for this phase.<\/p>\n\n\n\n

CT Realty and PGIM Real Estate also finalized Building B of Garden State Logistics Park<\/a> in Pennsville, N.J., a 512,442-square-foot distribution facility. The park comprises two buildings totaling 1.7 million square feet along the Delaware River.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO:<\/strong> E-Commerce Drives Industrial Demand Growth<\/a><\/p>\n\n\n\n

\n\n\n\n

Vacancy rate in line with national average<\/h2>\n\n\n
\n
\"Garden<\/a>
In March 2021, The New Jersey Department of Environmental Protection approved a permit for the remediation and redevelopment of the site of Garden State Logistics Park, which was formerly home to a coal-fired power plant operated by Calpine. Image courtesy of CT Realty<\/em><\/figcaption><\/figure><\/div>\n\n\n

Philadelphia\u2019s industrial vacancy rate reached 8.1 percent at the end of April, close to the national average of 8.2 percent, according to CommercialEdge. Compared to similar metros, Philadelphia stood in the middle of the pack.<\/p>\n\n\n\n

Chicago (10.9 percent), Indianapolis (10.2 percent), and New Jersey (9.5 percent) reported higher rates, while Kansas City posted the lowest vacancy at 5.1 percent.<\/p>\n\n\n\n

While vacancy rates remained steady, the volume of new space hitting the market could test absorption levels in the months ahead.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Deliveries are outpacing most other major markets, according to CommercialEdge data. <\/p>\n","protected":false},"author":3014,"featured_media":1004686080,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,21748,21783,52420,10,1494],"tags":[51047,50674],"class_list":["post-1004759550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-industrial","category-investment","category-market-updates","category-northeast","category-philadelphia","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nPhiladelphia Industrial Market Surges Ahead, Despite Slower Starts - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Philadelphia's industrial pipeline remained steady in early 2025, despite the pace of new construction starts slowing down.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-surges-ahead-despite-slower-starts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Philadelphia Industrial Market Surges Ahead, Despite Slower Starts\" \/>\n<meta property=\"og:description\" content=\"Philadelphia's industrial pipeline remained steady in early 2025, despite the pace of new construction starts slowing down.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-surges-ahead-despite-slower-starts\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-09T09:05:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-09T12:55:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/The-Bellwether-District-transformation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"793\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Firtea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-surges-ahead-despite-slower-starts\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-surges-ahead-despite-slower-starts\/\",\"name\":\"Philadelphia Industrial Market Surges Ahead, Despite Slower Starts - 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