Philadelphia Retail Market Report

Employment growth continues as construction slows. In a national labor market where gains have been largely driven by education and health services, Philadelphia stands out. Jobs in those sectors account for nearly a quarter of the market’s workforce, compared with less than a fifth nationally. Local employment growth is in turn bolstering retailers against headwinds. Meanwhile, construction has slowed, with this year’s retail pipeline dominated by redevelopment and conversion projects in the metro’s outermost suburbs and the broader tri-state area. Taken together, these dynamics point to a favorable long-term outlook for retail properties, even as near-term tenant consolidations weigh on property performance.