Philadelphia Retail Market Report

Downtown and surrounding urban neighborhoods shine. Conditions across the Greater Philadelphia metro area have seldom been tighter. The period from April through June 2023 marked the fourth consecutive quarter of sub-5 percent vacancy, the first time this has occurred since 2019. According to a July report from the Center City District, pedestrian counts in that month reached 92 percent of the 2019 equivalent, the highest level observed in the CBD since the onset of the health crisis. Submarkets across Philadelphia proper are seeing the benefits of this foot traffic. Both Market Street East and West Philadelphia boasted 2.1 percent vacancy rates entering July. University City, where foot traffic is also supported by multiple academic institutions and a prodigious biotech scene, noted the lowest midyear vacancy rate in the metro at just 0.7 percent.