Construction pipeline down two-thirds from Q2 2024

In Q2 2025, 4.6 million square feet (msf) of warehouse and distribution space was under construction within the Pennsylvania I- 81/78 Corridor, reflecting a 66.0% decrease compared to the same period last year. The Central PA submarket accounted for just over half (2.4 msf) of construction activity, followed by the Northeast PA submarket with 1.9 msf. In contrast, the Lehigh Valley submarket saw only 384,100 square feet (sf) under development, down from 3.2 msf in Q2 2024. This decline in construction starts is likely due to decreased leasing velocity, an oversupplied market, general economic uncertainty and sustained higher interest rates.

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