Philadelphia Retail Market Report
High-Credit Tenants Stoke Tight Conditions in Parts of Philadelphia Proper;
Suburban Outlook Positive
Urban absorption stimulates job gains near the core. Leasing in Philadelphia proper is punctuated by multiple high-credit tenants this year. Among 2022's new big-box anchors are Target, Lowe's, Acme Markets and Whole Foods Market, each taking on leases from 40,000 to 130,000 square feet. Furthermore, mid-size leasing is highlighted by a number of national brands, including Family Dollar and Planet Fitness, establishing multiple storefronts as they expand in southeastern Pennsylvania. A plethora of move-ins in the CBD and adjacent zones should support elevated rent growth here, as well as stoke hiring velocity. While just 70 percent of jobs lost within the Philadelphia city limits have been recouped as of February 2022, new employers should bring job gains closer to parity with the greater metropolitan area, where 84 percent of jobs have been recovered.