Philadelphia Retail Market Report

Well-established retail settings sustaining momentum. A national leader in job creation last year, Philadelphia’s growing medical and white-collar labor force continues to benefit local retailers. Many of the metro’s prominent retail corridors continue to observe increased tenant demand, with vacancy in East Center City, in particular, dropping below 2 percent in 2025. This aligns with greater residential density, as the number of occupied apartments in the central business district has increased by more than 30 percent since 2019. Retail vacancy was also under 3 percent last year in established suburban retail hubs such as King of Prussia, as well as across North, West, and Southwest Philadelphia. Even so, the market is not immune to headwinds. Demand for multi-tenant space declined last year amid move-outs by Party City, JoAnn Fabrics, and Forever 21. Fewer local store closures are expected this year, and grocers such as Aldi, Lidl, and BJ’s Wholesale Club are planning to open stores.