Market Report
Philadelphia Multifamily Market Report
2025 Investment Forecast
Life Sciences’ Expansion Bolsters Rental Demand;
Investors Preparing to Re-Deploy Capital
Lower business costs fuel biotech growth. Philadelphia’s office-using labor sector has outpaced all major Northeast metros since 2022, with industry employment expanding by nearly 40,000 roles. The metro’s low average asking rent for office space — nearly 30 percent below Washington, D.C., and Boston — has attracted a wide range of companies, including tech, life sciences and gene therapy firms, helping keep office vacancy under the national average. Major investments in the urban core, such as Legend Biotech’s new facility and Spark Therapeutics’ $500 million Innovation Center, will further add to job creation in 2025. This will in turn draw young professionals to popular neighborhoods like Center City and Fishtown, where elevated home prices are steering many toward renting. Completions will stay concentrated in these areas this year as a result, likely translating into some localized supply-side pressure. Meanwhile, residents with more restricted budgets are being drawn to the close-in suburbs of Germantown and Oxford Circle. Limited new supply here is expected to help tighten vacancy, outweighing rising rates in the city center and supporting an overall vacancy compression this year.
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