Philadelphia Retail Market Report

Urban vacancy still holds up well amid economic pressures. In June, retail vacancy in the central business district was 2.3 percent — up 50 basis points from 2023 but still 230 basis points below the marketwide rate. Despite closures from West Elm, Rite Aid and Express, the retail sector has remained resilient. University City noted an exceptionally tight vacancy rate of 0.3 percent, bolstered by multiple educational institutions that cultivate a vibrant retail environment. Vacancy rates below 3 percent were also noted in Northwest and South Philadelphia, as well as in Market Street East. Weekend pedestrian counts in the urban core now exceed 2019 levels, providing crucial support for local retailers — even as weekday foot traffic lags behind due to the persistence of hybrid work schedules.