Lower North, PA Industrial Market Report Q3 2026

Vacancy tightens 350 bps to 12.1% as rent growth accelerates to +3.0%

Demand

Lower North Philly absorbed 132,894 SF in Q3 2026, against -660,774 in the same quarter last year. Vacancy is 12.1%, 350 bps tighter than Q3 2025.

Supply

Lower North Philly recorded 0 SF of completions in Q3 and 41,000 over the trailing twelve months. SF under construction equal 0.0% of inventory. Annual completions peaked at 137,651 SF in 2018.

Investment Market

Lower North Philly recorded $22M in sales over the trailing twelve months, -13% against the prior TTM period; Q3 accounted for $4.1M. The high-water mark in this series is $142M in 2021. Deal-volume figures are directional; cap rate and price per SF are reported values.

Philadelphia MSA cap rates average 7.89%, up for 3 straight quarters. Philadelphia MSA pricing sits at $93 per SF, higher for 10 consecutive years.