Construction starts slow amid sluggish tenant demand
Fewer properties broke ground as tenant demand slowed, and many newly built properties remain unleased. Currently, 10.0 million square feet (msf) are under construction across the PA I-81/78 Corridor market, 3.5 msfless compared to Q3 2023. The Northeast PA submarket, at 5.3 msf, has the most warehouse/distribution space under construction. Overall, deliveries across the region totaled 5.0 msfin the third quarter. Notable among them are 251 Westwood Hill –Building 2, located in Northeast PA, and 3363 Gun Club Road, located in Lehigh Valley.