Metropolitan Philadelphia’s industrial market enjoyed the largest occupancy gains since 2006 as more than 7.1 million sq. ft. of positive absorption pushed vacancy down 210 basis points (bps.) to 5.5%. This pushed average asking rents up 8.8%, year-over-year, to $4.47 NNN. To understand how starkly the supply and demand imbalance grew during 2017, consider how much space has been absorbed in the past 12 months in relation to the amount of existing available supply now: Using 2017 net absorption levels, there is 4.0 years’ worth of supply in Southeast PA, 1.3 years in Northern DE and only 0.6 years in Southern NJ. While construction activity will relieve some supply pressure in Southern NJ where 2.7 million sq. ft. of space is being developed, nearly half of that space is already pre-leased. This imbalance across the market will continue to push rents higher in the metropolitan region.