6 — September 2025 — Fall Preview — M id A tlantic Real Estate Journal
www.marej.com
M arket O utlook
By Andrew Koller, WCRE | CORFAC International Philadelphia CRE Market Balances Recovery, Shifts, and Future Growth
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completion are set to intro- duce state-of-the-art life sci- ence facilities, and large-scale commitments from users such as Chubb are reshaping the market landscape. After a period of record expansion, the multifamily sector is expected to moderate as the pipeline of new proj - ects winds down. Occupancy remains strong and should strengthen further as sup- ply growth slows. Demand for housing will benefit from the delivery of Chubb’s new headquarters, major lease activity in University City,
and the addition of life science campuses. Notably, suburban submarkets—including South Jersey and the Main Line— have experienced the most pronounced rent growth. Industrial fundamentals remain solid, with rents con- tinuing to climb amid a slow- down in new deliveries. The Bellwether District project is progressing steadily and will be a key driver of future supply. At the same time, sublease availability in South Jersey has inched higher, creating new opportunities for tenants evaluating the
broader Philadelphia region. Philadelphia’s retail market continues to thrive as cre- ative and immersive concepts complement the progress of the traditional retail sector. Entertainment-driven retail is at the forefront, with ex- periential venues such as F1 Arcade and Flight Club mak - ing their debut in Center City and testing consumer demand. Suburban markets are also active, highlighted by Alo’s opening at Cherry Hill Mall in New Jersey and Vuori’s de- but at King of Prussia Mall in Pennsylvania. The restaurant
he Philadelphia office market showed signs of recovery through
sector is poised to play a ma- jor role in the retail economy, with Center City District data projecting 25 newly opened or soon-to-open restaurants across the city. In totality there should be excitement surrounding the Philadelphia commercial real estate market. Office leasing is up as em - ployers continue to enforce return to office commitments, Multifamily is poised to make up the ground lost in net ab- sorption given the upcoming drop off in deliveries, and emerging retail plays to shift- ing consumer demand. Andrew Koller is a Re- search Analyst & Advisor with WCRE | CORFAC International. MAREJ
early 2025, though activ- ity still trails the five-year average. Fi- nancing chal- lenges and upcoming loan maturi- ties continue
to limit landlord flexibility, constraining their ability to finalize new leases or retain top-tier tenants. Meanwhile, major developments nearing Andrew Koller
By Marcus & Millichap
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