Philadelphia Retail Market Report

Market continues solid post-pandemic leasing velocity. Greater Philadelphia’s employment base logged a swift recovery from the effects of the health crisis, recouping all losses by mid-2022. A majority of sectors noted a full recovery in the city proper by February 2023. This has facilitated solid consumer spending gains, prompting storefront expansions across the metro. Since the end of 2020, a net of more than 4.6 million square feet has been taken off the market. Despite some soft spots in urban corridors as downtown office occupancy remains suppressed, marketwide vacancy ended 2023’s first quarter at 4.9 percent, under the year-end 2019 rate.