Available retail space across Philadelphia remains near a multi-decade low after several years of strong demand. At the end of 2025, the market reported just 17.6 million square feet of available retail space. This figure reflects a 5.5 million-square-foot decline from the 23.1 million square feet recorded at the end of 2020. Despite several national retail closures over the past year, the local market remains stable heading into the new year. In fact, overall retail availability has stayed relatively flat since 2024.
However, supply constraints are most severe among newer properties. Of the 17.6 million square feet currently available, only 1.1 million square feet were built after 2009. This represents less than seven percent of total retail availability. As a result, expansion options for large-format users remain limited. Only nine spaces larger than 20,000 square feet exist in buildings constructed after 2010. Consequently, big-box retailers, grocery stores, and warehouse clubs often rely on proposed developments or pad site opportunities. The shortage of modern retail space stems from Philadelphia’s status as one of the nation’s oldest retail markets. Most retail properties were built before or during the mid-1990s.
Therefore, properties constructed before 1980 now account for 9.7 million square feet, or nearly 60 percent, of available retail space. Meanwhile, strong tenant demand for newer assets has created a bifurcated market. Competition for modern buildings remains intense, while older properties continue to struggle with obsolescence.
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