{"id":1004787209,"date":"2026-02-26T05:06:00","date_gmt":"2026-02-26T13:06:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004787209"},"modified":"2026-02-26T05:06:02","modified_gmt":"2026-02-26T13:06:02","slug":"philadelphia-industrial-market-update","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-update\/","title":{"rendered":"Philadelphia\u2019s Industrial Market Saw Strong Deliveries in 2025"},"content":{"rendered":"
\n
\"Aerial<\/a>
The Savage Road industrial facility will be 357,840 when it comes online in 2026. Image courtesy of Hanover Co. <\/em><\/figcaption><\/figure><\/div>\n\n\n

Philadelphia\u2019s industrial market closed the year with a sharp uptick in new supply, as deliveries climbed to nearly 13.6 million square feet\u2014well above the national pace, according to Yardi Matrix.<\/p>\n\n\n\n

Development activity, however, told a more mixed story. While the construction pipeline expanded from last year to about 4.9 million square feet under construction, new starts slowed significantly from 2024 levels, signaling a more cautious approach from developers.<\/p>\n\n\n\n

Investment activity remained steady at close to $1.5 billion for the year, while vacancy stayed below the national average.<\/p>\n\n\n\n

Pipeline expands from last year, construction starts slow<\/h2>\n\n\n\n

Philadelphia had nearly 4.9 million square feet of industrial space under construction across 18 properties as of the end of December, accounting for 1 percent of total stock and trailing the 1.7 percent national average. The pipeline expanded from last year, when just 2.1 million square feet were underway.<\/p>\n\n\n\n

Among peer markets, Philadelphia was one of the metros with smaller under-construction pipelines, alongside Indianapolis (6.4 million square feet), the Inland Empire (6.8 million square feet) and Kansas City (3 million square feet). Phoenix (18 million square feet) and Chicago (12.4 million square feet) led development activity.<\/p>\n\n\n\n

Construction starts slowed notably, with 15 properties totaling 2.7 million square feet breaking ground in 2025. This marked a steep decline from 2024, when 11.5 million square feet of industrial space began construction.<\/p>\n\n\n

\n
\"Rendering<\/a>
Crossroads 95 Logistics Center is on track to debut in the third quarter of 2026. Rendering courtesy of Logistics Property Co. <\/em><\/figcaption><\/figure><\/div>\n\n\n

In June, Texas-based Hanover Co. broke ground on Savage Road<\/a>, a 357,840-square-foot Class A industrial development in Northampton, Pa., marking the firm\u2019s entry into the Lehigh Valley submarket. Scheduled for completion in June this year, the facility will feature 36-foot clear heights and 51 dock doors.<\/p>\n\n\n\n

Logistics Property Co. also acquired a 43-acre site in Newark, Del., where it plans to develop a 442,530-square-foot industrial facility<\/a>\u2014its second in the state. The project at 205 Stanton Christiana Road is slated for delivery in the second half of 2026.<\/p>\n\n\n\n

Deliveries jump well above national pace<\/h2>\n\n\n
\n
\"Aerial<\/a>
I-76 Trade Center includes Happy Days Park, a greenspace featuring several historic farm structures. Image courtesy of Portman Holdings<\/em><\/figcaption><\/figure><\/div>\n\n\n

In Philadelphia, developers delivered nearly 13.6 million square feet of industrial space across 37 properties in 2025, accounting for 2.8 percent of total stock\u2014well above the 1.5 percent national average. Industrial deliveries<\/a> rose sharply from the same period in 2024, when 13 properties totaling 4.2 million square feet came online.<\/p>\n\n\n\n

Among peer markets, only in Phoenix (18 million square feet) and Kansas City (13.6 million square feet) came online more space, while Atlanta (6 million square feet) and Indianapolis (2 million square feet) trailed.<\/p>\n\n\n\n

In June, Portman Holdings completed a 636,121-square-foot Class A logistics facility<\/a> in Exton, Pa., marking the first phase of I-76 Trade Center. The $330 million industrial development is planned to total 1.9 million square feet at full buildout.<\/p>\n\n\n\n

Investment activity remains steady<\/h2>\n\n\n\n

Philadelphia\u2019s industrial investment volume added up to nearly $1.5 billion in 2025, according to Yardi Matrix, with 110 facilities totaling about 12 million square feet trading during the period.<\/p>\n\n\n

\n
\"Exterior<\/a>
Link Logistics sold the warehouses in Boulden Interchange Park (left) for $41.4 million, while the facilities in Interchange Business Park (bottom right) traded for $40.5 million and the buildings in Pencader Corporate Center (top right) went for $38.8 million. Images courtesy of Yardi Matrix<\/em><\/figcaption><\/figure><\/div>\n\n\n

Sales volume remained broadly consistent with last year, when the metro recorded $1.1 billion in industrial transactions across 122 properties totaling 11.2 million square feet.<\/p>\n\n\n\n

Average pricing reached $128.93 per square foot. The Inland Empire ($225.68 per square foot), Phoenix ($179.03 per square foot) and Atlanta ($130.21 per square foot) posted higher averages, while Chicago office space<\/a> ($90.36 per square foot), Indianapolis ($90.41 per square foot) and Kansas City ($85 per square foot) recorded lower prices.<\/p>\n\n\n\n

In October, Blackstone\u2019s Link Logistics sold an 849,203-square-foot industrial portfolio<\/a> in metro Philadelphia for $120.7 million, according to Yardi Matrix. Investcorp acquired the assets with the backing of an $87.2 million loan from OCBC. The portfolio included seven warehouses across three Delaware industrial parks.<\/p>\n\n\n\n

More recently, an EQT Real Estate fund acquired I-78 Commerce Center<\/a>, an 809,000-square-foot cross-dock distribution facility in Bernville, Pa., from Core5 Industrial Partners.<\/p>\n\n\n

\n
\"Aerial<\/a>
I-78 Commerce Center, a recently developed logistics facility in Central Pennsylvania. Image courtesy of EQT Real Estate<\/em><\/figcaption><\/figure><\/div>\n\n\n

Vacancy remains below national average<\/h2>\n\n\n\n

Philadelphia\u2019s industrial vacancy rate stood at 8 percent at the end of December, below the 9.2 percent national average, according to Yardi Matrix.<\/p>\n\n\n\n

Chicago (12.4 percent), Phoenix (9.7 percent), Indianapolis (8.7 percent) and the Inland Empire (8.4 percent) posted higher vacancy rates, while Kansas City recorded the lowest at 4.8 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"

While the under-construction pipeline expanded year-over-year, construction starts slowed, according to Yardi Matrix data.<\/p>\n","protected":false},"author":3014,"featured_media":1004762962,"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":[51047,32785],"class_list":["post-1004787209","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-yardi-matrix"],"acf":[],"yoast_head":"\nPhiladelphia\u2019s Industrial Market Saw Strong Deliveries in 2025 - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Philadelphia\u2019s industrial market new supply volumes increased, while construction starts moderated, according to Yardi Matrix data.\" \/>\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-update\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Philadelphia\u2019s Industrial Market Saw Strong Deliveries in 2025\" \/>\n<meta property=\"og:description\" content=\"Philadelphia\u2019s industrial market new supply volumes increased, while construction starts moderated, according to Yardi Matrix data.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-update\/\" \/>\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=\"2026-02-26T13:06:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-26T13:06:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/HanoverCompnay_GroundBreaking-edited.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\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-update\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/philadelphia-industrial-market-update\/\",\"name\":\"Philadelphia\u2019s Industrial Market Saw Strong Deliveries in 2025 - 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