Philadelphia Retail Market Report
Strong Suburban Performance and Limited Construction Lift the Overall Retail Outlook in 2021
Suburban neighborhoods see positive demand factors. As with the country overall, Philadelphia retail sales fell drastically in the second quarter of last year, down over 12 percent annually. By the start of 2021, however, retail spending had nearly recovered to the pre-pandemic benchmark. Moving forward, the outlook for retailers varies by location. Temporary office closures and shifting residential preferences aided occupancy last year in some of the metro’s most well-populated suburban submarkets, including Norristown-Valley Forge, King of Prussia-Wayne and Bala Cynwyd-Narberth. New residents relocating from other nearby metros may have also contributed to the added tenant demand. Consumer activity in established suburban areas will continue to improve this year as business restrictions abate.