In this months newsletter for the month of January 2026, we at WCRE discuss how in New Jersey, Lidl advances its plans in Somerdale, Club Studio Fitness comes to Cherry Hill, Salem Glassworks enters a new phase of redevelopment, and a major residential project is approved for Marlton. We also discuss happenings in PA where the Carpenters Union acquires a Navy Yard headquarters at a deep discount, DrinkPAK signs a historic 1.4 million-square-foot lease, modular housing is proposed for Logan Triangle, and Brandywine secures record financing, and we also discuss market shifts in New York where AI is fueling an office market recovery while major retail brands continue store closures.
New Jersey Market Updates
Lidl Advances Plans for Somerdale: Plans for a Lidl discount grocery store are moving forward along White Horse Pike and Evergreen Avenue with a revised plan for a 23,580-square-foot facility and a separate fast-food restaurant with a drive-thru.
Club Studio Fitness Expands: The high-end boutique fitness brand will open its first South Jersey location at the Ellisburg Shopping Center in Cherry Hill, taking over 30,240 square feet of space previously occupied by BuyBuy Baby.
Marlton Crossing Redevelopment: A new 325-unit residential development, including a mix of market-rate and affordable apartments, received unanimous approval to replace the former garden offices between Old Marlton Pike and Centre Boulevard.
Salem Glassworks Redevelopment: A real estate developer has acquired the long-vacant 28-acre former industrial landmark at 83 Griffith Street with plans to restore manufacturing operations at the site.
Affordable Housing Advances on RT 70: A long-vacant residential property along eastbound Route 70 in Cherry Hill has been demolished to make way for a new affordable housing development.
South Jersey Developer Files Lawsuit: A major mixed-use development is currently at the center of a legal dispute involving accusations of interference with municipal approvals and attempts to redirect the property to a competing firm.
Pennsylvania Market Updates
Carpenters Union Buys GSK Building: The Eastern Atlantic States Regional Council of Carpenters purchased the former GSK headquarters at 5 Crescent Drive for $52 million, marking a 60% discount from its previous sale price.
DrinkPAK Signs Historic Industrial Lease: Canned beverage manufacturer DrinkPAK has signed a 1.4 million-square-foot lease at The Bellwether District in South Philadelphia, marking one of the largest industrial deals in the city’s history.
Merion Health Partners Expansion: Merion Health is continuing its regional growth with the upcoming launch of its eighth urgent care center, set to open later this month at Roosevelt Mall.
Phoenixville Shopping Center Sells: A fully occupied 33,093-square-foot retail center located at 785 Starr Street recently sold for $7.35 million.
Center City Liberty Place For Sale: The Shops at Liberty Place, a 147,000-square-foot retail destination in the heart of Center City, has been listed for sale.
Former Rite Aid Set for Redevelopment: A local developer plans to break ground later this month on a new mixed-use project in the Fairmount neighborhood on the site of a former Rite Aid at 20th Street.
Market Street Office Tower For Sale: The office tower at 1700 Market Street is hitting the market as its foreclosure process approaches resolution.
RSM LLP Signed Long Lease: Accounting firm RSM US LLP signed a long-term lease to relocate its Philadelphia office to 22,340 square feet at 1735 Market Street.
Newer Retail Properties Outperform: Retail assets built since 2010 continue to show strong performance and increasing occupancy rates across the Philadelphia region even as overall consumer demand slows.
Atlas Restaurant Group Expands: The Baltimore-based hospitality group is introducing “The Ruxton” steakhouse at The Rittenhouse Hotel, replacing the former Scarpetta space following a multimillion-dollar renovation.
Club Studio Fitness Expands to Philly: The boutique fitness brand is opening a second regional location in Wynnewood, taking over 50,000 square feet at the Wynnewood Shopping Center.
Modular Housing at Logan Triangle: Philadelphia is exploring plans to transform the vacant 35-acre site in North Philadelphia into a major hub for modular housing manufacturing as part of a $2 billion initiative.
Hatboro Wawa Site Acquired: Altimari Properties purchased a newly built Wawa site at 412 South York Road for $7.4 million.
Amazon Fresh Stores Close: Amazon is closing its Fresh grocery stores nationwide, affecting six locations in the Philadelphia area including Northern Liberties, Warrington, and Willow Grove.
Brandywine Secures Record Financing: Brandywine Realty Trust obtained $87.3 million in C-PACE financing for its life sciences building at 3151 Market Street, the largest such loan in Pennsylvania history.
New York Market Updates
AI is Powering the Office Market: Artificial intelligence companies emerged as the clear catalyst behind the national office market’s recovery this year, reshaping leasing dynamics in New York City.
Manhattan Office Leasing Surges: Office leasing activity in Manhattan saw a significant increase in the final quarter of 2025, signaling a resurgence in tenant demand for high-quality Class A space.
Office Leasing Increases with NY Lead: Tenants signed approximately 410 million square feet of space nationally in 2025, marking a meaningful year-over-year increase led by New York.
NY Real Estate Leaders Optimistic: New York’s real estate industry entered 2026 with renewed confidence and positive momentum as market fundamentals continue to stabilize.
Office Investment Rebounds: Investors re-entered the office market in growing numbers throughout 2025 as pricing became more predictable and sales activity surged.
NY Retail Closures Continue: A new wave of store closures from brands like Francesca’s and GameStop has hit New York, as retail contraction continues to mirror national consolidation trends.
