Commercial Real Estate Market in Philadelphia, PA
Updated monthly: sale, lease, property records, location trend, and more… · Last update: September 30
6,465 active listings and 46,693 off-market properties in Philadelphia, PA. Commercial property asks $169/SF to buy and $22.96/SF/Yr to lease. Office vacancy runs 19.7%, the loosest of the segments tracked here.
Market Trends
Philadelphia, PA spans 138.2 square miles in Philadelphia County, Pennsylvania. Figures below refresh monthly; last updated 30 September 2026.
Office
Office vacancy in Philadelphia, PA runs 19.7% in 2025, up from 14.2% in 2019. Nearly 1.4x the 2020 low of 14.1%.
Vacancy Rate %
Retail
Retail vacancy in Philadelphia, PA runs 5.6% in 2025, down from 6.7% in 2019. Down from a 2020 peak of 8.2%.
Vacancy Rate %
Industrial
Industrial vacancy in Philadelphia, PA runs 11.2% in 2025, up from 4.3% in 2019. Nearly 7x the 2021 low of 1.6%.
Vacancy Rate %
Multifamily
Multifamily vacancy in Philadelphia, PA runs 5.6% across the Northeast region in 2025, up from 4% in 2022.
Vacancy Rate % in Northeast region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 48.2%
- Industrial 21.4%
- Civic 15.9%
- Mixed use 10.3%
- Commercial 2.6%
- Special 1.4%
- Open space 0.4%
Largest Zones share of zoned land by district
Residential Single Family Attached
Special Purpose Active Parks And Open Space
Medium Industrial
Residential Single Family Attached
Heavy Industrial
Philadelphia, PA zones 69,259 acres across 39 districts. Commercial zoning covers 2.6% of zoned land, residential 48.2%, open space 0.4% and industrial 21.4%. The largest single district is Residential Single Family Attached at 15.4%. For commercial buyers the practical constraint is that only 23.9% of land carries a commercial or industrial designation.
Special Purpose Active Parks And Open Space (SPPOA)
Conversion Table Map Symbol District Name "Previously Known As" SP-INS Institutional (Special Purpose) District IDD SP-ENT Entertainment (Special Purpose) District CED SP-STA Sports Stadium (Special Purpose) District SS SP-PO-A Parks and Open Space (Special Purpose) District - Active REC, REC-A SP-PO-P Parks and Open Space (Special Purpose) District - Passiv…
Market overview
Demographics & Economy
Philadelphia, PA has 1,604,167 residents in 739,785 households. Density runs 11,611 people per square mile. Median household income here is $62,240 and median gross rent $1,321 a month.
1,604,167
Population
739,785
Households
2.2
Avg Household Size
35
Median Age
34%
College-Educated
87%
High-School Grad
138.2 sq mi
ZIP Area
11,611
Density / Sq Mi
$62,240
Median Household Income
$43,714
Median Earnings
$1,321
Median Rent
$251,628
Median Home Value
Tools
Lease vs Buy Breakeven
At $22.96/SF/Yr lease vs $169/SF buy → buying wins if held > 0.8 years.
At a 13.6% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Haddon Township | — | — |
| Camden | — | $15.99 |
| Gloucester City | — | — |
| Collingswood | — | $18.14 |
Commercial property in Philadelphia, PA asks $169/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Philadelphia?
Commercial property in Philadelphia, PA asks an average of $169 per square foot. The 7 most recent recorded sales traded at a median of $236/SF.
How much does it cost to lease commercial space in Philadelphia?
Asking lease rates in Philadelphia, PA average $22.96 per square foot per year.
What is the office vacancy rate in Philadelphia?
Office vacancy in Philadelphia, PA is 19.7% as of 2025, up from 14.2% in 2019. Retail vacancy is 5.6%, below Office vacancy.
Which property type has the lowest vacancy in Philadelphia?
Retail has the lowest vacancy in Philadelphia, PA at 5.6%, inside a 5.5–8.2% band since 2019. For comparison: office 19.7%, industrial 11.2% and multifamily 5.6% (Northeast).
Is it cheaper to lease or buy commercial space in Philadelphia?
Buying beats leasing in Philadelphia, PA if the property is held longer than 0.8 years, comparing $22.96/SF/Yr asking rent with $169/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
What zoning applies to commercial property in Philadelphia?
Philadelphia, PA zones 69,259 acres across 39 districts, of which 2.6% is commercial and 21.4% industrial. The largest single district is Residential Single Family Attached at 15.4% of zoned land. Residential zoning covers 48.2% and open space 0.4%.
Where does Realmo's Philadelphia market data come from?
Realmo compiles Philadelphia, PA figures from 8 recent recorded sales, 5,033 active sale listings, 1,432 active lease listings, 46,693 tracked off-market properties, the current Philadelphia zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 30 September 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 5,033 active for-sale and 1,432 active for-lease listings in Philadelphia, PA. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 69,259 zoned acres across 39 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 30 September 2026 — not today — is the honest last update.
- Known limitations
- multifamily vacancy is reported at Northeast region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 30 September 2026 · How Realmo checks market page data · Report a data issue
