Industrial Market Fundamentals are Strong Going into 2020
Wayne, PA (January 17, 2020) — Newmark Knight Frank (NKF) released its fourth-quarter 2019 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. Both markets hit notable milestones in the final quarter of the decade. The I-81/78 Corridor realized 6.2 million square feet of positive net absorption, the single largest quarterly total in this economic cycle. In the Greater Philadelphia industrial market, 5.6 million square feet of new industrial product delivered, the largest quarterly addition to the inventory in the 21st century to date.
In the I-81/78 Corridor industrial market, the fourth quarter of 2019 had numerous large occupancies of recently-delivered speculative and build-to-suit warehouses, including DHL’s arrival at the 1.0 million-square-foot warehouse located at 84 Zions View Drive. This marked the region’s most significant fourth-quarter occupancy. The heightened activity brought the market’s vacancy rate below the 8.0 percent mark attained in the third quarter, to close the year at 7.8 percent.