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hiladelphia's industrial property values have surpassed those of multifamily properties, a first according to Costar. The city's industrial sector has made significant strides, but its dominance may be short-lived. As of the fourth quarter, Philadelphia's industrial properties are valued at $77.8 billion, with multifamily properties trailing closely behind at $75.9 billion.

    The gap between the two sectors has narrowed over time. Three years ago, multifamily led in values, with a significant $17 billion difference. Since the pandemic, forces have driven the multifamily and industrial sectors apart. Rising interest rates have hindered multifamily growth, causing values to decline by 14% since peaking at $88.3 billion in 2022.

    In contrast, Philadelphia's industrial sector has flourished, with values rising over $6 billion since 2022. Factors contributing to this growth include the city's strategic location and reshoring initiatives, as well as national trends like e-commerce and last-mile warehouse demand. While industrial owners celebrate their success, multifamily players may see a turnaround in their favor as interest rates continue to decline.