Philadelphia’s Retail Sector is the Sole Property Type Experiencing a Reduction in Vacancy

Between the first quarters of 2020 and 2024, the Philadelphia commercial real estate market exhibited diverse trends in its major sectors—retail, industrial, multifamily, and office. Retail defied expectations, experiencing consistent demand and decreasing vacancy, while the industrial and multifamily sectors encountered supply challenges due to a recent development boom.

Contrary to projections, the retail sector demonstrated resilience during the pandemic, with a declining vacancy rate since early 2020. Strong consumer spending, driven by stimulus checks and increasing wages, coupled with limited new retail construction, fueled demand for retail space. Favorable conditions, including low-interest rates and easy access to capital, facilitated retail expansions, resulting in improved absorption rates across the Philadelphia region.

Consequently, Philadelphia’s retail vacancy decreased by 0.4% to 4.2% in the first quarter of 2024, reaching the lowest level since CoStar began tracking data in 2006.

*Article courtesy CoStar

For more information about New Jersey, Pennsylvania or New York health care, industrial, retail, office, land or other commercial properties, please call 856-857-6300 or send an email to WCRE, is a leading New Jersey, Pennsylvania, and New York commercial real estate brokerage firm that specializes in healthcare, office, retail, land, industrial, and investment properties.

WCRE is a full-service CORFAC International brokerage, and advisory firm that provides a full range commercial real estate listings, services and property management services for landlords, owners, investors, tenants and more.

As experts in tri-state region, the WCRE team provides ongoing detailed information about commercial properties to our clients and prospects to help them achieve their commercial real estate goals.