Market Report
Philadelphia Retail Market Report
3Q 2026
Single-Tenant Properties Outperform
as Demand Broadens Across Vintages
Market moves past bankruptcy-related hurdles. Single-tenant demand remained intact entering the second half of 2026, as vacancy fell 10 basis points year-over-year to 4.2 percent. Meanwhile, multi-tenant vacancy rose 140 basis points to 7.3 percent, the sharpest annual increase among major markets. Yet, that rise was largely tied to a prior wave of select national retailer bankruptcies and related store closures — including Party City, Joann, Big Lots, Rite Aid, and Forever 21 — rather than a broad deterioration in tenant demand. Positive net absorption in the second quarter indicates that move-outs are subsiding. With backfilling by value-oriented, grocery, and fitness concepts already underway, the multi-tenant outlook should improve in the second half.
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