The Philadelphia Commercial Real Estate Market

• Philadelphia’s CRE market combines long-term stability with steady growth across multiple sectors.
• Industrial demand remains active, driven by strong regional connectivity and access to major population centers.
• Office performance varies by building and location, with higher-quality spaces continuing to attract the most interest.
• Retail activity is led by experience-based tenants and well-located, grocery-anchored centers.
• Multifamily fundamentals remain solid, with strong suburban demand and steady absorption across the region.
• The broader metro area’s population growth, workforce, and infrastructure help sustain long-term investment potential.

Philadelphia is a city that balances a strong sense of history with a steady pace of change. Located between New York City and Washington, D.C., Philadelphia benefits from strong regional connectivity while maintaining its own distinct identity. 

From Center City office buildings to industrial assets along key transportation routes, Philadelphia offers a market where both established and emerging sectors play a role in shaping demand. Across several parts of the city, older buildings and corridors are being repositioned through adaptive reuse and targeted reinvestment, opening up new opportunities for investors.

Crexi supports CRE professionals across the Philadelphia region by bringing together active listings, market data, and research tools in one place. Brokers use the platform to manage listings and track engagement, while investors and tenants can evaluate opportunities with greater clarity. Across markets nationwide, Crexi has facilitated more than $902 billion in closed transactions and generated over 114 million leads for CRE professionals.

Within the greater Philadelphia area, Crexi serves investors and brokers across Philadelphia, Bensalem, Levittown, Langhorne, Fairless Hills, and surrounding communities.

Philadelphia Commercial Real Estate Overview

Philadelphia’s commercial real estate market reflects the city itself - layered, resilient, and evolving over time. Historic buildings sit alongside new development, and long-established neighborhoods continue to adapt as investment and activity shift across the metro.

The market is supported by a diverse mix of industries and a strong institutional presence. Demand comes from sectors like healthcare, education, logistics, and professional services, helping sustain activity across multiple property types. The region’s connectivity and infrastructure also support ongoing industrial and distribution use throughout the broader metro area.

Like many major markets, Philadelphia is working through a period of adjustment. Some property types are seeing changes in demand, while others remain steady in well-located buildings and mixed-use environments. Even with these shifts, overall activity remains consistent, supported by the city’s scale and diversity.

One of Philadelphia’s defining strengths is its balance. It offers the scale of a major city without the same cost pressures seen in nearby markets, which continues to attract businesses looking to grow while managing expenses. For investors, that balance supports a market where long-term fundamentals still guide thoughtful, strategic decisions.

Philadelphia Regional Context

Philadelphia’s regional footprint extends well beyond the city itself, forming a large and connected metro area with a strong economic base. Population growth, rising incomes, and a mix of urban and suburban communities continue to shape how people live and work across the region. Those factors also play an important role in commercial real estate, influencing everything from housing demand to business location decisions. 

That activity is supported by a well-developed transportation network that connects key population centers across state lines. It’s a market that is solidly established, but still has room to grow.

• Philadelphia’s population is nearing 1.6 million within the city, with more than 6.3 million people living across the broader metropolitan area.
• The greater region spans Bucks, Chester, Delaware, Montgomery, and Philadelphia counties, forming one of the most interconnected areas in the Northeast.
• Key population centers across the region include Reading, Upper Darby Township, Chester, Atlantic City, and Wilmington.
• The region’s population is expected to grow by nearly 15% by 2050, a pace that exceeds overall projections for Pennsylvania.
• In the Philadelphia metro area, per capita income is $50,684, and median household income is $90,850. Both figures are about 10% higher than in the US overall.
• The city has been recognized with awards for excellence in transportation, data-driven decision-making, arts and culture, and more.  
• The Philadelphia metro area is part of the Northeast Corridor, which connects more than 50 million people between Boston and Washington, D.C.

Philadelphia Job Market

Philadelphia’s job market is built on the size and diversity of the region, with a steady mix of industries supporting employment across the metro. Long-established sectors continue to anchor the local economy, while newer companies and emerging fields add to that momentum. 

The region’s universities and research institutions also play an essential role, supplying talent and driving ongoing business activity. Strong regional connections by road, rail, air, and port help employers easily operate across the Northeast and beyond. All of this contributes to a job market that remains stable, with steady growth supported by a broad economic foundation.

• The total GDP for the Philadelphia-Camden-Wilmington MSA exceeds $557.6 billion, growing by more than 35% over the last ten years.
• The unemployment rate is 4% (December 2025), nearly half a point lower than the national average. 
• Key industries in Greater Philadelphia include life sciences, financial services, technology, and manufacturing.
• There are several Fortune 500 companies located in Philadelphia, including Cencora, Comcast, Lincoln National Corp., and Aramark.
• The healthcare sector provides a significant number of jobs in Philadelphia, with major employers including the University of Pennsylvania and Penn Medicine, Thomas Jefferson University and Jefferson Health, and Children's Hospital of Philadelphia.
• Temple University, the University of Pennsylvania, and Drexel University are three of more than 100 colleges and universities in the Philadelphia metro area.
• Over 43% of residents hold a bachelor's degree or a post-grad degree, a rate about 20% higher than in the US overall.
• With its business-friendly climate and government initiatives, Philadelphia is a top-rated hub for startups and small businesses. In 2023 alone, businesses in the greater Philadelphia area raised $2.4 billion of venture capital funding. 
• Transportation infrastructure includes major highways like Interstates 76 and 95, the Philadelphia International Airport (PHL), the bustling Port of Philadelphia. Philadelphia also has 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 2025 Industrial Report)

• Inventory: 217,397,279 SF
• Vacancy rate: 11.2%
• Absorption:  5,905,856 SF (YTD)
• Key leases by tenant: DrinkPak (1.4 million SF), Elogistics (750,797 SF), Amazon (613,920 SF)
• Under construction: 3,300,958 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 2026):

For Lease (active)

• Asking rate/SqFt (median): $14 per year
• Median SqFt/listing: 8,000
• Days on market: 191
• Total listings on Crexi: 185 spaces

For Sale (active)

• Median asking price: $1.2 million
• Price/SqFt: $138
• Median asking cap rate: 7.5%
• Days on market: 209
• Total listings on Crexi: 117

Sales Comps (past 12 months)

• Median sold price: $767,800
• Sold price/SqFt: $127
• Total sales volume: $1.2 billion
• Median sold cap rate: 10.5%
• Median SqFt sold/transaction: 5,801
• Total SqFt sold: 4.3 million 
• Days on market (median): 322

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Philadelphia Office Market

Across the Philadelphia region, the office market is moving through a period of change, with performance varying widely by building and location. Demand has been strongest in well-located, higher-quality spaces, as many tenants continue to rethink how much space they need and how it functions day to day. 

Some older properties are being repositioned or explored for new uses as owners adjust to changing conditions. Even with these shifts, leasing activity continues in pockets of the market, especially in areas with strong access and amenities. Overall, it’s a market that is still working toward balance, with clear differences emerging across property types.

Market overview (Cushman & Wakefield Q4 2025 Philadelphia CBD Office Report)

• Inventory: 139,240,551 SF
• Vacancy rate: 19.7%
• Absorption:  -2,725,783 SF (YTD)
• Key leases by tenant: Cigna (165,000 SF), KPMG (97,448 SF), Community Legal Services (32,573 SF) 
• Under construction: 438,000 SF
• Largest submarkets: West of Broad, King of Prussia/Valley Forge, New Castle County (Non-CBD)

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 2026):

For Lease (active)

• Asking rate/SqFt (median): $26 per year
• Median SqFt/listing: 2,072 SF
• Days on market: 274
• Total listings on Crexi: 702 spaces

For Sale (active)

• Median asking price: $1.2 million
• Price/SqFt: $195 
• Asking cap rate: 6.9%
• Days on market: 140
• Total listings on Crexi: 70

Sales Comps (past 12 months)

• Median sold price: $782,500
• Sold price/SqFt: $161
• Total sales volume: $287.7 million
• Median sold cap rate: 6%
• Median SqFt sold/transaction: 5,406 SF
• Days on market (median): 376

Philadelphia Retail Market

The retail market in Philadelphia is staying active, with much of the momentum coming from food, fitness, and other experience-driven concepts. New openings point to a market that continues to adapt to how people spend time and money. In places like Fishtown and Manayunk, newer concepts have helped drive foot traffic, while grocery-anchored centers in suburban areas continue to attract both tenants and investors. 

Recent sales, including centers in Bucks and Montgomery counties, prove there is ongoing interest in well-located retail with strong anchors. While some parts of the market are still working through shifts in demand, overall activity suggests a retail landscape that remains engaged and evolving.

Market overview (CBRE Retail Figures Report Q4 2025)

• Inventory: 126,864,742 SF
• Vacancy rate: 8.3%
• Absorption: -695,900 SF (YTD)
• Key leases by tenant: Red White and Blue Thrift (46,855 SF), Liberty Ministries Thrift (31,673 SF), Ace Pickleball (25,000 SF)
• Under construction: 394,888 SF
• Largest submarkets: Montgomeryville, Bensalem, Oxford Valley, Exton/Downingtown

Crexi Insights

Here are the latest lease and sales trends from Crexi Intelligence (as of March 2026):

For Lease (active)

• Asking rate/SqFt (median): $25 per year
• Median SqFt/listing: 2,919 SF
• Days on market: 199
• Total listings on Crexi: 833 spaces

For Sale (active)

• Median asking price: $1.5 million
• Price/SqFt: $218
• Median asking cap rate: 6.5%
• Days on market: 156
• Total listings on Crexi: 214

Sales Comps (past 12 months)

• Median sold price: $667,800
• Sold price/SqFt: $159
• Total sales volume: $371.3 million
• Median sold cap rate: 9.1%
• Median SqFt sold/transaction: 3,664 SF
• Days on market (median): 314

Philadelphia Multifamily Market

Multifamily activity across the Philadelphia region has held steady, though performance can vary depending on location. Suburban properties have generally held strong, supported by consistent demand and a need for more attainable housing options, while some urban areas have seen more competition as newer projects lease up. 

In neighborhoods like Fishtown and Northern Liberties, added supply has led to more concessions as properties work to attract tenants. Even with those shifts, overall demand across the region remains healthy, and occupancy levels continue to reflect a relatively tight market. With new development slowing and long-term housing needs still in place, the market continues to move forward at a measured pace.

Market overview (CBRE Multifamily Report Q3 2025)

• Multi-unit inventory: 352,070 units
• Vacancy rate: 3.4%
• Net absorption: 12,601 units (YTD)
• Average rent per unit: $1,967
• Completed units: 8,530 (YTD)
• Largest submarkets: Center City Philadelphia, Northeast Philadelphia, North Montgomery County

Crexi Insights

Here are the most recent multifamily Insights from Crexi (as of March 2026):

For Sale (active)

• Median asking price: $1.1 million
• Price/SqFt: $237
• Price/Unit: $253,600
• Median asking cap rate: 7%
• Days on market: 148
• Total listings on Crexi: 287

Sales Comps (past 12 months)

• Median sold price: $248,500
• Sold price/SqFt: $180
• Sold price/unit: $234,200
• Total sales volume: $2.9 billion
• Median sold cap rate: 8.5%
• Total SqFt sold: 10.1 million
• Days on market (median): 319

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