The Philadelphia Commercial Real Estate Market

Philadelphia, known as the City of Brotherly Love, is a thriving commercial real estate hub, blending historic significance with modern economic growth. As Pennsylvania’s largest metropolitan area, the city continues to attract investors and businesses with its diverse economy, strong infrastructure, and evolving development landscape.

In recent years, revitalization efforts and adaptive reuse projects have reshaped Philadelphia’s urban core, bringing new life to historic buildings and unlocking fresh investment opportunities. Crexi empowers investors, tenants, and brokers with the tools and insights needed to navigate Philadelphia’s commercial real estate market, providing access to thousands of properties and data-driven solutions for smarter transactions.

Philadelphia brokers and agents nationwide representing Philadelphia properties can leverage Crexi's platform and suite of sale and leasing tools to build their network and complete more deals. Crexi's CRE tools have helped brokers facilitate more than $660 billion in commercial property transactions, representing over $7 trillion in listings.

Crexi is proud to serve Philadelphia, Bensalem, Levittown, Langhorne, Fairless Hills, and the surrounding communities as the area's fastest-growing online CRE platform.

The State of Philadelphia Commercial Real Estate 

Philadelphia is a city where historic charm meets modern opportunity, creating a unique environment for businesses and residents alike. As Pennsylvania’s largest city and the nation’s sixth-most populous, it offers the energy of a major metropolitan area with the accessibility of a close-knit community. Lush parks, walkable neighborhoods, and a strong cultural identity make it an appealing place to live, work, and invest.

With a diverse economy spanning healthcare, education, finance, and technology, Philadelphia continues to experience steady job growth and economic expansion. Its strong entrepreneurial spirit, coupled with a business-friendly environment, attracts companies of all sizes, from innovative startups to Fortune 500 headquarters.

Beyond its economic strength, Philadelphia is renowned for its rich history, top-tier universities, and thriving food and arts scenes. This well-rounded appeal makes the city an exciting destination for investors seeking a dynamic commercial real estate market filled with long-term potential.

Philadelphia Regional Breakdown

Philadelphia is a city that melds its deep historical roots with the energy of modern urban life. As one of the largest metropolitan areas in the country, it continues to grow, attracting residents and businesses drawn to its rich culture, diverse economy, and strategic location along the East Coast. 

As a hub for education, healthcare, and commerce, the region has much to offer prospective residents, with population projections pointing to sustained long-term growth. Offering a competitive cost of living and strong economic opportunities, Philadelphia is a dynamic market for those looking to live, work, and invest in a thriving metropolitan area.

• Philadelphia is home to nearly 1.6 million in the city and over 6.2 million in the metropolitan area.
• The Greater Philadelphia Region comprises Bucks, Chester, Delaware, Montgomery, and Philadelphia counties.
• Major urban areas include Reading, Upper Darby Township, Chester, Atlantic City, and Wilmington.
• The combined population is projected to increase by nearly 15% by 2050, far outpacing the overall projections for Pennsylvania.
• The median age is 35.6, which is slightly lower than the figure for the state.
• Per capita income in the Philadelphia metro area is $48,276, about 10% higher than in Pennsylvania and the US.
• The metro area’s median household income is $86,687 about 10% higher than in the US.

Philadelphia Job Market

Philadelphia’s job market is a powerful mix of legacy industries and cutting-edge innovation, fueling steady economic expansion. With a strong presence in life sciences, finance, technology, and manufacturing, the city continues to attract top talent and major employers. 

Philadelphia has solidified its position as a leader in finance and insurance while also being recognized for its diversity in STEM and life sciences. Major corporations, world-class universities, and leading healthcare institutions drive employment, providing opportunities across various sectors. 

As new developments, government initiatives, and infrastructure projects take shape, the city remains a dynamic hub for businesses, entrepreneurs, and job seekers alike.

• The total GDP for the Philadelphia-Camden-Wilmington MSA is $557.6 billion, growing by more than 35% over the last ten years.
• The unemployment rate is at a stable 4.3%, according to data from the U.S. Bureau of Labor Statistics.
• Major industries in Greater Philadelphia include life sciences, financial services, technology, and manufacturing.
• Philadelphia has been ranked as the #1 top finance and insurance cluster in the country, among the best cities for diversity in STEM, and one of the country's top life science clusters.
• Aramark, Johnson & Johnson, Dupont, and Merck are among the many Fortune 500 companies in Philadelphia.
• Major local employers include the University of Pennsylvania and Penn Medicine, Thomas Jefferson University and Jefferson Health, Children's Hospital of Philadelphia, and The Giant Company.  
• Philadelphia's growth is marked by several significant real estate developments, including projects in Brewerytown, Grays Ferry, Ludlow, Port Richmond, and West Poplar under the Turn the Key construction initiative. 
• In 2024, nearly two dozen major projects were completed from Tasker Street to Girard Avenue, with more than 30 more planned for the near future. 
• Temple University, the University of Pennsylvania, and Drexel University are the three largest colleges in the Philadelphia metro area.
• Over 42% of residents hold a bachelor's degree or a post-grad degree, a rate about 15% higher than in the state and in the US.
• Transportation infrastructure includes major highways like Interstates 76 and 95, the Philadelphia International Airport (PHL), the bustling Port of Philadelphia, and an extensive public transit system encompassing buses, trains, subways, and trolleys managed by the Southeastern Pennsylvania Transportation Authority (SEPTA).

Philadelphia Industrial Market

Market overview (Cushman & Wakefield Q4 2024 Industrial Report)

• Inventory: 204,787,858 SF
• Vacancy rate: 9.5%
• Absorption:  2,829,767 SF (YTD)
• Key leases by tenant: HYTX Logistics (314,820 SF), Elogistics (275,955 SF), McLane Company (184,819 SF)
• Under construction:  11,583,766 SF 
• Largest submarkets: Burlington County, Gloucester County, Philadelphia County, Lower Bucks County

Crexi Insights

These are the most recent lease and sales trends from Crexi Insights (as of March 2025):

For Lease (active)

• Asking rate/SqFt (median): $14 per year
• Median SqFt/listing: 11,000
• Days on market: 177
• Total listings on Crexi: 124 spaces

For Sale (active)

• Median asking price: $1.7 million
• Price/SqFt: $100
• Median asking cap rate: 9.3%
• Days on market: 189
• Total listings on Crexi: 86

Sales Comps (past 12 months)

• Median sold price: $800,000
• Sold price/SqFt: $107
• Total sales volume: $331.6 million
• Median sold cap rate: 10.5%
• Median SqFt sold/transaction: 8,776
• Total SqFt sold: 2.9 million 
• Days on market (median): 116

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Philadelphia Office Market

Philadelphia’s office market continues to navigate shifting workplace dynamics, with elevated vacancy rates reflecting evolving tenant needs. While overall leasing activity remains below pre-pandemic levels, demand for high-quality office space is driving movement in the market. 

Companies are increasingly prioritizing prime locations and modern amenities to attract talent and encourage in-person collaboration. Despite ongoing adjustments, Philadelphia’s central business district and surrounding submarkets remain key hubs for business activity, offering long-term potential for investors.

Market overview (Cushman & Wakefield Q4 2024 Office Report)

• Inventory: 134,145,524 SF
• Vacancy rate: 20.1%
• Absorption:  -495,945 SF (YTD)
• Key leases by tenant: Polsinelli (40,790 SF), City of Philadelphia (30,663 SF), RBC Capital Markets (20,107 SF)
• Under construction: 544,698 SF
• Largest submarkets: CBD, West of Broad, King of Prussia/Valley Forge

Crexi Insights

For an up-to-date analysis of the Philadelphia office market, turn to the data from Crexi Insights. Here are the most recent lease and sales trends from Crexi Insights (as of March 2025):

For Lease (active)

• Asking rate/SqFt (median): $24 per year
• Median SqFt/listing: 2,205 SF
• Days on market: 215
• Total listings on Crexi: 536 spaces

For Sale (active)

• Median asking price: $1.3 million
• Price/SqFt: $153 
• Asking cap rate: 6%
• Days on market: 174
• Total listings on Crexi: 55

Sales Comps (past 12 months)

• Median sold price: $500,000
• Sold price/SqFt: $160
• Total sales volume: $85.8 million
• Median sold cap rate: 7.8%
• Median SqFt sold/transaction: 3,506 SF
• Days on market (median): 378

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Philadelphia Retail Market

Philadelphia’s retail market continues to evolve, driven by strong demand from grocery, experiential, and discount retailers seeking prime locations. While new construction remains limited, the repurposing of vacant spaces - especially in malls and former big-box locations - is reshaping the landscape. High occupancy rates in key shopping districts like Center City and King of Prussia reflect ongoing consumer demand, even as some retailers face challenges. 

Investor interest remains steady, particularly in grocery-anchored centers, though pricing expectations have led to a cautious approach. As retailers adapt to shifting consumer preferences, Philadelphia’s retail sector is well-positioned for continued activity and transformation.

Market overview (CBRE Retail Figures Report Q4 2024)

• Inventory:  127,181,517 SF
• Vacancy rate: 7.5%
• Key leases by tenant: Fusion Gyms (190,000 SF), Kohl’s Department Stores (95,879 SF), LA Fitness (42,533 SF)
• Under construction: 202,204 SF
• Largest submarkets: Montgomeryville, Bensalem, Oxford Valley, Plymouth Meeting

Crexi Insights

Here are the latest lease and sales trends from Crexi Intelligence (as of March 2025):

For Lease (active)

• Asking rate/SqFt (median): $22 per year
• Median SqFt/listing: 3,003 SF
• Days on market: 279
• Total listings on Crexi: 599 spaces

For Sale (active)

• Median asking price: $1.3 million
• Price/SqFt: $201
• Median asking cap rate: 7.3%
• Days on market: 141
• Total listings on Crexi: 149 

Sales Comps (past 12 months)

• Median sold price: $640,000
• Sold price/SqFt: $181
• Total sales volume: $154.8 million
• Median sold cap rate: 7.6%
• Median SqFt sold/transaction: 2,993 SF
• Days on market (median): 216

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Philadelphia Multifamily Market

Philadelphia’s multifamily market is experiencing a period of adjustment as new supply outpaces demand in certain areas, particularly downtown. While steady population growth continues to support rental housing, landlords are responding to increased competition by offering concessions to attract tenants. 

Investment activity is holding strong, particularly in suburban markets, where fundamentals are stable and institutional interest is high. Despite near-term challenges, long-term demographic trends and potential economic improvements point to a promising future for multifamily development and investment in the region.

Market overview (CBRE Multifamily Report Q3 2024)

• Multi-unit inventory: 345,313 units
• Vacancy rate: 4.6%
• Net absorption: -2,887 units (past quarter)
• Average rent per unit: $1,893
• Completed units: 2,628
• Largest sales transactions (by # of units): Brith Sholom House (360 units), Matson Mill (280 units), Petoni Apartments (221 units)

Crexi Insights

Here are the most recent multifamily Insights from Crexi (as of March 2025):

For Sale (active)

• Median asking price: $1.3 million
• Price/SqFt: $219
• Price/Unit: $251,900
• Median asking cap rate: 7.1%
• Days on market: 128
• Total listings on Crexi: 213

Sales Comps (past 12 months)

• Median sold price: $264,500
• Sold price/SqFt: $144
• Sold price/unit: $275,000
• Total sales volume: $469.6 million
• Median sold cap rate: 6.7%
• Total SqFt sold: 8.4 million
• Days on market (median): 129

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Get more in-depth Philadelphia market data with Crexi Intelligence.