Conshohocken office building has new owner

 Conshohocken | Business News , Local News| By Kevin Tierney

The 40,373-square-foot office building at 125 East Elm Street in Conshohocken has been sold for $11,100,000, according to Montgomery County property records. The office building, which was branded SORA East, was owned by an entity associated with Keystone Development + Investment. It was sold to an entity associated with Patriot Financial Partners, a private equity firm focused on investing in community banks, thrifts, and financial services-related companies in the United States, which is currently based in Radnor.

According to sources, Patriot plans to utilize the building as its headquarters and will lease a limited amount of space. Patriot did not respond to an email seeking more details on their move to Conshohocken.

The building is located at the corner of East Elm and Harry streets, and is adjacent to the not-yet-opened The Garden by Pieri Winery.

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Renderings offer first look at proposed Philadelphia sports arena

 By Jonathan Lehrfeld CoStar News

The first exterior renderings of a sports arena planned for Philadelphia reveal what the proposed landmark venue may look like.

The city's NBA team, the Philadelphia 76ers, and the NHL's Philadelphia Flyers unveiled images this week of their proposed future home that's expected to also host the city's upcoming yet-to-be-named WNBA team. The teams' owners plan to pay for the development with their own money.

Scheduled to break ground in early 2027 and open in 2030 — pending necessary approvals — the planned arena marks the largest entirely privately funded project in the city’s history. An estimated cost was not revealed, but it is anticipated to create nearly 15,000 jobs and generate nearly $6 billion in economic activity over the next 10 years, plus hundreds of millions in new tax revenue.

Sports and entertainment remain key drivers of Philly's economy. This past summer, the city hosted the MLB All-Star Game and several soccer matches as part of the 2026 FIFA World Cup. Other cities around the country, such as Washington, D.C., are doubling down on making professional athletics a centerpiece of their economic mission.

The 76ers, who recently snagged expected Hall-of-Famer LeBron James, scrapped plans last year to put a proposed stadium in Philly's Chinatown neighborhood. By staying in South Philadelphia, it will remain in an area that also hosts the city's separate baseball stadium and football stadium. The state of New Jersey attempted to woo the teams from across the Delaware River and build a stadium in Camden, but that effort fizzled.

"This privately funded arena will be the home to moments and memories that define this city for generations,” said Josh Harris, co-founder of Harris Blitzer Sports & Entertainment and managing partner of the Philadelphia 76ers, in a statement.

Comcast owns the naming rights to the new arena that is set to be formally named at a later date. Global design firm Populous and architecture firm Moody Nolan were selected to bring the arena to life at the site of the former Spectrum stadium. That arena was razed starting in 2010 and became a parking lot, according to local media.

The upcoming arena’s architecture draws inspiration from the shape of that Spectrum venue that hosted the 76ers and the Flyers for nearly three decades. Both teams currently play at Xfinity Mobile Arena, the nearby facility that previously was named as the Wachovia Center and Wells Fargo Center. That venue recently completed a $400 million renovation.

At the proposed stadium, a half-acre of outdoor space and food-and-beverage pavilions are expected to add options for visitors that complement the adjacent dining and entertainment complex Stateside Live! that was previously known as Xfinity Live!. That hospitality venue received a $20 million renovation earlier this year.

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Philadelphia office building lands loan to upgrade to attract tenants

 By Jonathan Lehrfeld CoStar News

One of the Philadelphia region's largest credit unions closed the biggest loan in its history, marking an expansion of its commercial lending abilities and helping an office tower owner upgrade the building as occupiers seek higher-quality workspaces.

Citadel Credit Union closed a $50 million commercial real estate loan for the 29-story building at 2000 Market St. in Philadelphia, the company said Wednesday.

The record-setting transaction for the not-for-profit institution demonstrates its ability to go beyond traditional consumer banking and community partnerships to source, originate and lead larger, more complex commercial real estate deals, it said. Closing the deal "demonstrated that we can close complex opportunities at greater scale," Michael Desimone, chief lending officer at Citadel Credit Union, said in a statement.

The funding will enable the building's new ownership group to continue tenant improvements to increase the property's occupancy rate. The 2000 Market St. tower is about 70% leased, CoStar data shows.

A joint venture between New York-based CSB Holdings and Baltimore-based Tide Realty Capital purchased the roughly 665,000-square-foot Center Center tower about a year ago for $45.5 million. Law firm Marshall Dennehey anchors the building, with other tenants including the Board of Pensions of the Presbyterian Church and CMI Media Group, according to CoStar data.

"Since acquiring 2000 Market Street, the ownership group has upgraded the building’s gym, added a pickleball court, and created modern shared and hoteling spaces throughout the property," a Citadel spokesperson told CoStar News via email.

Office tenants nationwide have sought higher-quality space. Some law firms in Washington, D.C., are willing to wait years to move into big-box trophy office space in the city.

The credit union's financing includes a future-funding component that enables the 2000 Market ownership group to build customized spaces for long-term anchor tenants, the spokesperson said. The scope of those improvements is set to be tailored to each tenant’s specifications.

In addition to its work on the Market Street office building, Citadel Credit Union is expanding its physical presence in Philadelphia proper. Last month, it signed a lease for its third city branch. That location, at 133 W. Hunting Park Ave., is slated to open next year.

Its first branch in Philadelphia opened in the Overbrook Park neighborhood earlier this year, and a second location is slated to open in the Cedar Park neighborhood in the coming months.

For the record

Chris Hansen led the transaction for Citadel, working with the ownership group and the lender’s agent, Rhyze Solutions. Two50 Capital Group, led by Adrian Edery and Sara Frankel, served as the commercial financing broker.

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Discount clothing retailer Burlington to move headquarters to Philadelphia

 By Jonathan Lehrfeld CoStar News

Burlington Stores plans to relocate its headquarters from its namesake city in New Jersey to a building it acquired in Philadelphia in one of the market's biggest recent economic development wins.

The national off-price retailer agreed to purchase 3151 Market St. in West Philadelphia's Schuylkill Yards development, a few minutes' walk from the city's main train station, to serve as its new corporate office.

Burlington will pay Philly-based real estate investment trust Brandywine Realty Trust $240 million for the new 13-story, 441,000-square-foot building, according to a Securities and Exchange Commission filing Thursday. The deal, subject to customary adjustments, is expected to close at the end of this month.

"Burlington will take a phased approach to moving teams to the new space beginning no earlier than the end of 2028 or early 2029," a Burlington spokesperson said in a statement to CoStar News.

Burlington operates 1,300 stores in 47 states as of last month, including 43 shops around Philadelphia. 

Overall, Burlington is set to invest $370 million into its relocation. The move is expected to create at least 2,000 new jobs over the next five years, according to Pennsylvania economic development officials.

The deal signifies "the largest headquarters relocation to the city in years," Gov. Josh Shapiro said in a statement.

One New Jersey business group said Burlington's planned move is a blow to the Garden State.

"While corporations make these decisions for a myriad of reasons, we cannot and should not ignore the impact our state’s tax policies and anti-business policies have on our overall competitiveness," said Michele Siekerka, president and CEO of the New Jersey Business & Industry Association, in a statement. "Nor should we diminish the loss of executive presence in our state, the number of new jobs that New Jersey will not have, and the amount of property tax lost."

Burlington to convert Jersey offices to industrial

The retail chain has called Burlington, New Jersey, home since 1972. But it said it's outgrown its headquarters there.

"Burlington is rezoning its current HQ buildings in New Jersey to warehouse space and plans to dedicate some of the space to farmland," the Burlington spokesperson said. "In addition, the company will continue to operate warehouse and distribution centers in the towns of Burlington, Florence, Edgewater Park and Logan Township in New Jersey."

Once known as Burlington Coat Factory, the company rebranded about a decade ago. It expects to open nearly 150 net new stores in fiscal year 2026, a spokesperson said.

“We are one of the fastest growing retailers in America, and as we evaluated different options for our new corporate home, we were strongly attracted to the energy, talent, and infrastructure that Philadelphia has to offer," Burlington Stores CEO Michael O’Sullivan said in a statement.

The Market Street building was completed in the fourth quarter of 2024. Brandywine closed on $87.3 million in clean energy financing for the project earlier this year, marking the largest transaction of its kind in Pennsylvania.

The 3151 Market St. building is currently 4% leased and is subject to a $57.3 million mortgage that will be repaid at closing, according to the SEC filing. It's home to a Fine Wine & Good Spirits on the ground floor.

Brandywine anticipates net proceeds totaling about $168 million from the sale of the building, it said.

The state of Pennsylvania plans to invest $30 million in the project. The city of Philadelphia is supporting this investment with incentives, including a $7 million forgivable loan and a job creation tax credit award.

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Chobani plans record investment in Allentown, PA

By Jonathan Lehrfeld CoStar News

Yogurt maker Chobani is launching its next growth chapter via a pair of transactions with food and beverage giant Keurig Dr Pepper that could set up a record investment in Pennsylvania.

Chobani will pay $800 million to buy back an equity stake in its own company and another $125 million to take over the lease, equipment and operations of a manufacturing and warehouse campus in Allentown, it said Tuesday.

Chobani, a company that has seen revenue growth of 20% annually over the past three years, said it plans to invest about $1.2 billion over the next five years in the 1.5 million-square-foot property, creating more than 900 jobs.

"This $1.2 billion investment from Chobani is the largest private sector investment in the history of Pennsylvania's agriculture industry and will strengthen our dairy industry, support our farmers, and reinforce our position as a national leader in agriculture and food manufacturing," Gov. Josh Shapiro said in a statement.

That facility, about 60 miles northwest of Philadelphia, first opened for production in 2021. It's owned by global investment group Kohlberg Kravis Roberts & Co., CoStar data shows. KKR declined CoStar News' request for comment.

Chobani plans for it to have up to 10 production lines to scale new products. At full capacity, the Allentown facility is expected to source more than 3 billion pounds of Pennsylvania milk annually.

The deals are expected to close in the third quarter of this year, subject to customary closing conditions. Production under Chobani — known for its Greek yogurt — is expected to begin at the facility next year.

Keurig Dr Pepper, or KDP, and Chobani still intend to work with one another in a partnership that originated via a 2023 deal over coffee company La Colombe. KDP said it intends to use the net proceeds from the transactions to reduce debt as it positions its two future businesses, Beverage Co. and Global Coffee Co., for long-term success.

Meanwhile, Chobani said it is investing separately in a new dairy processing facility in Rome, New York; expanding its manufacturing operation in Twin Falls, Idaho; improving its original site in New Berlin, New York; and expanding its facility in Norton Shores, Michigan.

For the record

The commonwealth of Pennsylvania is set to provide $50 million in loans and grants to support infrastructure and site improvements for the project. Chobani may also be eligible for state tax credits.

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JPMorgan Chase to consolidate Philadelphia office hub with downtown deal

 By Katie Burke CoStar News

JPMorgan is preparing to fine-tune its Philadelphia office property through a deal that would consolidate its current patchwork under a more concentrated roof.

The New York financial heavyweight is in the final stages of negotiations to sublease some of Aramark's Center City headquarters space at 2400 Market St., according to people with knowledge of the talks. If realized, JPMorgan would fill about 63,000 square feet on the fifth floor of the property, enabling the bank to cut some of its ancillary office space across Philadelphia's urban core.

JPMorgan and its affiliates currently occupy space across several Center City buildings, including 1735 Market St., where its lease expires next year, as well as at the One Liberty Place tower and 1880 John F. Kennedy Blvd.

It isn't clear how or when the company's pending agreement for Aramark's space will impact the bank's existing footprint in the region, and JPMorgan representatives did not immediately respond to CoStar News' requests for comment. The amount of space the bank is weighing in the 2400 Market St. building is roughly equivalent to what it currently leases across its other Philadelphia offices.

The Philadelphia plans fit into a broader office rejiggering for the nation's largest bank as it doubles down on its commitment to physical space to accommodate a strict in-person policy for all employees. Over the past couple of years, it has signed several large renewal deals, expanded regional offices and spent heavily to acquire more property.

That ongoing investment has so far resulted in new and renewal agreements in Boston, Seattle, San Francisco, Dallas, New Jersey and Southern California, according to CoStar data. It also unveiled its new midtown Manhattan headquarters, a $4 billion supertall office development that now serves as JPMorgan's global headquarters.

In the aftermath of a deal to anchor the new South Station Tower in downtown Boston — another move that makes it possible for the bank to consolidate its regional presence in a single space — Chris McKenna, the company's managing director for global real estate, said JPMorgan would be looking to concentrate its footprint in other markets such as Miami, Atlanta, Philadelphia and some along the West Coast.

Willing takers

With those plans nearing fruition in Philadelphia, the pending JPMorgan deal is expected to provide a healthy boost to the city's recovering office market.

Similar to other markets nationwide, Philadelphia has benefited from stable employment growth, heightened office attendance mandates, a slowdown in large move-outs and downsizings, and a shrinking share of sublease space in recent years.

While demand remains at just a fraction of its pre-pandemic levels, the region's nearly 11% vacancy rate is well below the national average, according to CoStar data, and tenants such as JPMorgan Chase are increasingly willing to invest in their physical spaces. That has meant a gradual but steady uptick in deal momentum as companies lock down the type of spaces they want while it's still available.

That should bode well for Aramark as it pursues some real estate fine-tuning of its own.

The facilities and food services giant signed its original lease for the 2400 Market St. building about a decade ago, taking on just shy of 278,500 square feet for its corporate offices. Yet Aramark's space across the fifth through ninth floors of the 592,000-square-foot property proved excessive in the years following the pandemic's 2020 outbreak, prompting it to begin hunting for some subtenants.

“When the building was originally designed for Aramark, additional space was incorporated to support future flexibility," the company said in a statement to CoStar News. "As we continue to evolve our workplace strategy, we have determined that our teams can be fully supported within the building’s top four floors.”

The company confirmed that it would soon vacate its space on the fifth floor and relocate employees to its remaining floors in the property.

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Sales of Philadelphia multifamily properties lose momentum in 2026

By Brenda Nguyen CoStar Analytics

After rebounding strongly in 2024, sales of Philadelphia-area multifamily properties have increasingly lost momentum over the past two years. Apartment transactions totaled roughly $982 million through July, trailing the $1.15 billion recorded during the same period in 2025 and the even higher $1.8 billion completed in 2024.

Multifamily sales across the Philadelphia region have yet to surpass 2022 levels in the years since, and this year appears unlikely to change that.

Investors are responding not only to current interest rate levels but also to the changing outlook on where rates may move next. After beginning 2026 by pricing in multiple Fed rate cuts, investor expectations have become more cautious amid concerns about the budget deficit and persistent inflationary pressures, prompting speculation about a possible rate hike.

The investment slowdown is unfolding unevenly across property types.

Multifamily often moves earlier than other commercial real estate sectors, serving as a signal of what may be ahead. Apartment leases typically reset annually, so rents and values respond more quickly to economic shifts than office, industrial or retail assets do. This dynamic can draw investors into apartments earlier during a recovery, but it can also prompt them to pull back sooner when conditions change.

Sales of Philadelphia retail centers also declined from last year’s pace and are on track to finish with one of the lowest cumulative totals in recent years. Office sales remain structurally challenged and continue to trend lower, a pattern that has persisted for the past three years.

Industrial property investment posted its strongest first half in at least five years, though sales momentum slowed heading into summer.

With several months remaining in 2026, it remains unclear whether sales activity will stabilize or decline further. Either way, Philadelphia’s investment market is moving toward a more selective environment in which buyers are more cautious, pricing is under greater scrutiny, and fewer deals are closing.

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Logistics joint venture wraps construction on NJ two-building speculative warehouse project

 By Lauren Diggs CoStar Research

A joint venture between NFI Real Estate and Penwood Real Estate Investment Management has completed construction on the Exit 5 Industrial Park, a two-building speculative logistics development totaling 528,478 square feet at 800 Irick Road in Burlington County, New Jersey.

The project, also marketed as Turnpike 5 Logistics Park, consists of a 310,000-square-foot building in Burlington Township and a 218,478-square-foot facility in Westampton located off Exit 5 of the New Jersey Turnpike. Both buildings are fully available for lease following their July 2026 completion.

The single-side load facilities have 36-foot clear heights, extensive trailer parking, heavy power and functional building and site configurations designed to meet modern logistics requirements. Building A includes two drive-in bays and 286 standard parking spaces, while Building B has 26 dock doors and 120 car parking spaces.

The joint venture partnership between NFI Real Estate and Penwood secured $54 million in construction financing from Fifth Third Bancorp for the development.

NFI is a privately held supply chain services provider based in Camden, New Jersey, owned by the Brown family. Its development partner, Penwood Real Estate Investment Management, is a real estate investment advisory firm based in West Hartford, Connecticut.

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Apartment concessions in Philadelphia beginning to ease from winter highs

 By Brenda Nguyen CoStar Analytics

While rental concessions across Philadelphia's apartment sector remain well above historical levels, landlords across the city’s most in-demand neighborhoods are starting to dial back renter specials in 2026.

Over the past several years, developers added thousands of new units across such urban neighborhoods as Center City, Northern Liberties and Fishtown. As new units flooded into the market, landlords increasingly relied on incentives, such as free rent and move-in specials, to lease up their available units and maintain occupancy, rather than cutting rents outright.

Concession rates measure the discount off asking rent that renters receive through free rent and other incentives, such as gift cards or moving credits. The relationship between new supply, vacancy rates and concessions is particularly evident in Philadelphia's most heavily developed neighborhoods.

Citywide, the apartment vacancy rate stands at 8.5%, while the concession rate is 4.4%.

In Center City, where apartment vacancy is lower, at 7.7%, the concession rate is roughly 4%. Northern Liberties, the city's most actively developed neighborhood, reports the highest vacancy rate at 15.3% and a concession rate of 7.6%. Fishtown shows a similar pattern, with vacancy at 10.7% and concessions near 6.4%.

Those discounts have been shrinking since last winter. In Northern Liberties, concessions dropped from a winter peak of 11.2% to 7.6% this summer. Fishtown saw a similar decline, falling from 8.6% to 6.4% over the same period.

With renter demand still robust and apartment vacancy tightening across these neighborhoods, concession rates are expected to ease further in the coming year, building on the momentum already seen since winter. In the meantime, renters can still find specials in these neighborhoods, while they last.

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Grocer Uncle Giuseppe’s serves up Northeast expansion

 By Linda Moss CoStar News

Uncle Giuseppe’s Marketplace, a regional specialty grocer, is expanding its presence in New Jersey and venturing into Pennsylvania with two new stores next year.

The Melville, New York-based chain, a full-service supermarket specializing in Italian foods, on Tuesday said it will be opening locations at East Gate Square, 1311 Nixon Drive, Moorestown, New Jersey; and DeKalb Plaza, 320 W. DeKalb Pike, King of Prussia, Pennsylvania.

The two stores represent the next stage of Uncle Giuseppe’s Northeast expansion. Both locations are expected to open in late 2027.

Uncle Giuseppe’s has 13 locations now, including its newest store at Wheatley Plaza, 130 Wheatley Plaza, Greenvale, New York, which debuted earlier this month. The chain also plans to open a store at Levittown Plaza, 3284 Hempstead Turnpike in Levittown, New York, in the fourth quarter.

“King of Prussia and Moorestown are two markets we’ve been looking at for some time,” Carl DelPrete, Uncle Giuseppe’s CEO and co-founder, said in a statement. ”As we grow, we’re careful about where we go. We look for communities where we believe our stores will be a good fit and where customers are looking for fresh, quality food and good service.”

The Garden State remains crucial to Uncle Giuseppe’s, DelPrete said.

“New Jersey has been very good to us, and we continue to see opportunities there,” he said. “Moorestown gives us a chance to reach customers in South Jersey and continue growing in a market where people already know Uncle Giuseppe’s.”

Both stores are slated to feature the chain’s signature departments and fresh food, including fresh mozzarella made in-store, house-made pasta, full-service meat and seafood departments, an Italian deli, a made-from-scratch bakery, prepared foods, fresh produce, specialty cheeses, imported Italian products, catering and a complete selection of traditional grocery items.

Much of the Uncle Giuseppe’s shopping experience centers on food prepared fresh and in full view of customers, including watching pasta being made, according to the chain.

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Department of Aviation Acquires Vacant Office Building Near Philadelphia Airport

 By Rachel Whaley with CoStar AI CoStar Research

The Department of Aviation, an agency of the City of Philadelphia, finalized its purchase of a vacant, five-story office building at 8800 Tinicum Blvd. in Philadelphia from Office Properties Income Trust, a real estate investment trust externally managed by The RMR Group, for $42 million, or $95.24 per square foot.

The building sale was disclosed in Office Properties Income Trust's second-quarter earnings report. Formerly occupied by PNC Bank until early 2024, the 441,000-square-foot building occupies a 32-acre site just across I-95 from the Philadelphia International Airport.

The Department of Aviation has no immediate plans for the property and expects the building to remain vacant over the next three years as it finalizes a Master Plan Update for the airport. This strategic framework is focusing on plans to modernize airport facilities by projecting passenger demand through 2040 and outlining an associated 20-year capital improvement program.

The former bank operations center was the last office property Office Properties Income Trust owned in Philadelphia. The trust had previously hired a team of brokers with Avison Young to serve as the exclusive leasing agents for a planned redevelopment of the site into a new 477,500-square-foot logistics facility, but those plans never got off the ground.

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Comcast signs one of midtown Manhattan’s biggest leases of 2026

 By Andria Cheng CoStar News

Comcast Advertising is poised to become the largest tenant at a Times Square office tower undergoing a major renovation, the latest sign that companies continue to favor upgraded workplaces with robust amenities.

The advertising arm of Philadelphia-based Comcast, one of the nation's largest telecommunications and media companies, signed a 140,000-square-foot lease at 1540 Broadway, one of midtown Manhattan's largest office deals this year, according to landlords GFP Real Estate and BDT & MSD Partners.

The Real Deal reported earlier that Comcast is consolidating operations from nearby offices at 55 W. 46th St. and 1407 Broadway. The company occupies a combined 118,000 square feet at those properties, CoStar data shows, including space for its advertising technology unit, FreeWheel.

The lease would make Comcast the building's largest tenant, surpassing drug-discovery software company Schrödinger, which occupies nearly 130,000 square feet, according to CoStar.

Comcast did not respond to a request for comment. A spokesperson for the ownership group declined to comment.

Since unveiling plans in January for a $150 million renovation of the 44-story, 907,000-square-foot tower, ownership has signed more than 226,500 square feet of leases. Recent transactions include an expansion by jewelry brand Pandora, a headquarters lease with Woori Bank New York Agency, a 9,314-square-foot lease with Metalmark Capital and a 3,123-square-foot extension and relocation by Alight.

Signing more than 226,000 square feet of leases “in just a few months is a strong validation of the transformation underway at 1540 Broadway," Brian Steinwurtzel, chief executive of GFP Development, said in a statement. "The decision by Comcast and others to locate their employees here reflects what we're hearing throughout the market — companies continue to prioritize high-quality office environments that help attract talent, foster collaboration and support long-term growth.”

Ownership said the building, between Sixth Avenue and Broadway on West 45th Street, is expected to be nearly fully leased by year-end.

The renovation, designed by architecture and interior design firm Fogarty Finger, includes a 27,000-square-foot amenity hub on the eighth floor featuring a redesigned fitness center, new locker rooms, and social and collaborative spaces. An 18,500-square-foot tenant lounge on the 36th floor will offer skyline views, a bar and a dining area, along with a landscaped terrace spanning about 6,200 square feet.

GFP Real Estate and BDT & MSD Partners own the office portion of the property, while Vornado Realty Trust and its partners own the retail portion.

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Top Commercial Real Estate Leasing & Sales Deals in the Philadelphia Market

Top Industrial Leases

8400 Industrial Blvd. W, Breinigsville, PA

Space Leased: 728,000 SF

Deal Type: New Lease

Size: 728,000 SF

Tenant: Amazon

Deal Commentary: Amazon inked a new full-building industrial lease in a Lehigh Valley distribution hub in a top second-quarter deal to support its fulfillment network. The Boulder Business Center building is one of several in the area developed by Liberty Property Trust, which Prologis acquired in 2020.

Bethel Industrial Center, 9141 Old Route 22, Bethel, PA

Space Leased: 587,100 SF

Deal Type: New Lease

Size: 587,100 SF

Tenant: OnTrac

Deal Commentary: OnTrac, a last-mile delivery provider serving major e-commerce retailers and operating a transcontinental U.S. network, leased the entire Bethel Industrial Center in a top second-quarter deal. Built in 2021, the distribution facility is owned by DWS Group, a Germany-based global asset manager with $31.5 billion in U.S. direct real estate assets.

861 Nestle Way, Breinigsville, PA

Space Leased: 550,000 SF

Deal Type: Sublease

Size: 822,500 SF

Tenant: BMS Logistics

Deal Commentary: BMS Logistics, a Missouri-based third-party logistics provider specializing in warehousing, contract packaging, and retail display services, took a large industrial sublease to expand its supply chain capabilities. The Breinigsville, Pennsylvania, warehouse is owned by Link Logistics, Blackstone's last-mile industrial real estate operator with a portfolio exceeding 460 million square feet across 3,000 properties.

2951 Orthodox St., Philadelphia, PA

 

Space Leased: 489,000 SF

Deal Type: New Lease

Size: 740,701 SF

Tenant: Mitsubishi Electric Trane US

Deal Commentary: In a clear sign that big-box leasing is picking up around the Philadelphia market, Mitsubishi Electric Trane US, a joint venture between Trane Technologies and Mitsubishi Electric focused on energy-efficient HVAC systems for residential and commercial markets, signed a new industrial lease to support distribution and operations in the Northeast. The recently built (2024) distribution building in Northeast Philadelphia is owned by Kurv Industrial, a privately held real estate firm specializing in Class A industrial development and acquisitions in core U.S. infill markets, with more than 76 million square feet of completed projects valued over $10 billion.

1775 Route 38, Lumberton, NJ

Space Leased: 429,200 SF

Deal Type: New Lease

Size: 429,200 SF

Tenant: Cirro Fulfillment

Deal Commentary: Cirro Fulfillment, a global e-commerce logistics provider with more than 80 fulfillment centers across 30 countries, committed to a full-building lease to expand its East Coast presence in the second quarter. The LogistiCenter at Lumberton was completed in 2024 and is one of two sites in southern New Jersey where it developed a pair of logistics facilities. The Reno, Nevada-based private equity investment and development firm has a portfolio exceeding 89 million square feet nationwide.

4406 Freight St., Camp Hill, PA

Space Leased: 413,867 SF

Deal Type: Renewal

Size: 413,867 SF

Tenant: GXO Logistics

Deal Commentary: GXO Logistics, a global logistics firm that manages outsourced supply chains and provides warehousing and e-commerce fulfillment for major brands, renewed the lease for the 413,867-square-foot warehouse it occupies at 4406 Freight St., also known as Industrial Park Road in Camp Hill, Pennsylvania. The 39-year-old industrial building is owned by HagerPacific Properties, a Newport Beach, California-based investor that specializes in acquiring and repositioning commercial real estate nationwide. The Camp Hill facility is one of several distribution centers GXO operates across central Pennsylvania, with additional locations in Middletown, Mechanicsburg and Carlisle.

8120 Sauerkraut Lane, Alburtis, PA

Space Leased: 338,287 SF

Deal Type: New Lease

Size: 338,287 SF

Tenant: Life Science Logistics

Deal Commentary: Life Science Logistics, a third-party healthcare logistics provider operating over 7 million square feet across 19 U.S. facilities, preleased a new industrial facility under construction in Alburtis, Pennsylvania, to support pharmaceutical and medical device distribution. The new building, expected to be completed in 2027, is owned by Prologis, a logistics real estate investment trust.

100 Capital Lane, Middletown, PA

Space Leased: 321,333 SF

Deal Type: Sublease

Size: 321,333 SF

Subtenant: Boxzooka Fulfillment & Global Ecommerce

Deal Commentary: Boxzooka Fulfillment & Global Ecommerce, a technology-driven third-party logistics provider specializing in direct-to-consumer and B2B e-commerce distribution, extended its sublease within the CBRE Investment Management-owned Capital Logistics Center in the second quarter.

1517 Route 38, Hainesport, NJ

Space Leased: 280,800 SF

Deal Type: New Lease

Size: 280,800 SF

Tenant: GoGoX

Deal Commentary: GoGoX, a Hong Kong-based logistics technology platform offering on-demand and same-day delivery services across Asia, expanded with a full-building lease of Building I in the Hainesport Logistics Center. Building I in Hainesport, New Jersey, was completed in 2025 and is owned by Ares Management LLC, a global alternative investment firm with $644 billion in assets under management. Building II in the complex was also leased in a second-quarter deal by BDK Logistics Intelligence.

905 Wheeler Way, Langhorne, PA

Space Leased: 228,247 SF

Deal Type: Sublease

Size: 228,247 SF

Tenant: Sojo Industries

Deal Commentary: Sojo Industries, a technology company specializing in robotics-driven mobile manufacturing and modular packaging for the food and beverage industry, signed an eight-month sublease for an industrial facility in Langhorne. The Bucks County warehouse features 34’ clear heights, heavy power, dock and drive-in loading, IOS/trailer parking and potential rail service and is owned by the Diane and Guilford Glazer Foundation.

Top property Sales for Philadelphia

Hamburg Commerce Park, Portfolio of 2 Properties

Sale Price: $192,500,000

Sale Date: May 15, 2026

Size: 1,240,013 SF

Buyer: Walmart, Bentonville, AR

Seller: Kiel Group, Bethlehem, PA and The Keith Corporation, Charlotte, NC

Deal Commentary: The nation’s largest retailer, with an expansive e-commerce and distribution operation, acquired a large vacancy distribution center and an adjoining development site in Shoemakersville's Hamburg Commerce Park, in the top sales deal of the second quarter for the Philadelphia region. The two assets were sold by a joint venture between The Keith Corp., a Charlotte-based industrial developer, and Kiel Group, which partnered to deliver large-scale logistics facilities in the region. The existing 1,240,013-square-foot industrial building at 29 Ludwig Court had previously been leased to 3PL logistics company Broadrange Logistics under a 2023 deal.

Tasty Baking Company, 4300 S. 26th St., Philadelphia, PA

Sale Price: $87,000,000

Sale Date: April 17, 2026

Size: 345,500 SF

Buyer: Bridge Net Lease, Arlington, VA

Seller: Prologis, San Francisco, CA

Deal Commentary: The Philadelphia headquarters and central production plant of snack maker Tastykake were offloaded in a second-quarter deal that came as the market's industrial real estate sector began to show signs of a turnaround. San Francisco-based Prologis sold the South Philly facility to an affiliate of Bridge Net Lease, an Arlington, Virginia-based investor specializing in single-tenant net lease assets. The Tastykake transaction "reflected premium pricing for infill industrial assets with strong functional utility, strategic access to regional transportation networks, and long‑term relevance for distribution or manufacturing users," CoStar noted in a recent industrial report.

Interstate Light Industrial Portfolio of 8 Properties

Sale Price: Not disclosed

Sale Date: April 27, 2026

Size: 488,936 SF

Buyer: Speed Bay Warehouse Solutions, Denver, CO

Seller: Berkeley Partners, Oakland, CA and The Seyon Group, Boston, MA

Deal Commentary: Speed Bay Warehouse Solutions, a newly launched Denver-based logistics and warehousing company, acquired a sizable industrial/flex portfolio known as the Interstate Light Industrial Portfolio for an undisclosed price in what was deemed a top second-quarter deal. The portfolio includes a mix of eight single-tenant and multi-tenant properties across the Philadelphia market area, sold by joint venture partners Berkeley Partners, a value-add industrial investor, and The Seyon Group, a Boston-based specialist in industrial real estate. Black Creek founders Evan Zucker and Jimmy Mulvihill launched Speed Bay Warehouse Solutions with $250 million in capital backing from BDT & MSD Partners. The company exclusively focuses on the shallow-bay industrial real estate sector that serves small- to medium-sized businesses with warehouse bays ranging from 5,000 to 25,000 square feet.

SpiriTrust Lutheran Portfolio of 7 Properties

Sale Price: $51,000,000

Sale Date: May 1, 2026

Size: 545,847 SF

Buyer: Concordia Lutheran Ministries, Cabot, PA

Seller: SpiriTrust Lutheran, York, PA

Deal Commentary: Concordia Lutheran Ministries, a nonprofit senior care provider with a multi-state network of retirement living and healthcare services, acquired a seven-property senior living portfolio in a top second-quarter deal and expand its faith-based mission into central Pennsylvania. The senior living properties are expected to serve approximately 1,050 residents, offering a full continuum of care, including independent/retirement living, personal care, memory support and skilled nursing and rehabilitation services.

Rancocas Pointe, 2315 Rancocas Road, Burlington, NJ

Sale Price: Not disclosed

Sale Date: April 17, 2026

Size: 150,011 SF

Buyer: Eminent Capital, Lakewood, NJ

Seller: D.R. Horton, Arlington, TX

Deal Commentary: Eminent Capital, a Lakewood-based multifamily investor, acquired Rancocas Pointe, a recently built 140-unit garden-style rental apartment complex in Burlington, New Jersey, last quarter. The seller, D.R. Horton, a leading U.S. homebuilder, sold the property as part of its merchant builder strategy following construction completion in 2025.

Shops at Crossroads, 3560 Route 611, Bartonsville, PA

Sale Price: $38,750,000

Sale Date: June 29, 2026

Size: 133,717 SF

Buyer: Post Ave Partners, Westbury, NY

Seller: DRA Advisors and KPR Centers, New York, NY

Deal Commentary:  Post Ave Partners, a New York-based real estate investment group, acquired the Shops at Crossroads, a grocery-anchored retail center near the interchange of I-80 and Route 33 in Bartonsville, to add to its holdings in the region. In 2023, Post Ave Partners acquired Larkin’s Corner, a 225,214-square-foot, grocery-anchored retail center located in Boothwyn, Pennsylvania.

840 Jamison Corner Road, Middletown, DE

Sale Price: $25,335,000

Sale Date: June 25, 2026

Size: 103 Acres

Buyer: Harvey Hanna & Associates, Wilmington, DE

Seller: EQT Real Estate, Radnor, PA

Deal Commentary: Harvey Hanna & Associates, a Wilmington-based developer specializing in industrial projects, purchased a 103-acre fully entitled development site in Middletown, Delaware, with plans to construct three warehouse buildings ranging from approximately 316,000 square feet to 600,000 square feet.

Wind Gap Plaza, 837 Male Road, Wind Gap, PA

Sale Price: $18,400,000

Sale Date: June 24, 2026

Size: 98,350 SF

Buyer: Marc Underberg Associates, East Norwich, NY

Seller: CenterPoint Properties, Inc, Atlanta, GA

Deal Commentary: Marc Underberg Associates, a privately held real estate investment firm based in New York, purchased the Wind Gap Plaza, a Giant-anchored community shopping center in Northampton County that included an adjoining outparcel at 856 S Broadway ground-leased to Fulton Bank.

Whitehall Plaza, 2001 MacArthur Blvd., Whitehall, PA

Sale Price: $18,000,000

Sale Date: April 20, 2026

Size: 365,071 SF

Buyer: Mishorim Investments, Bnei Brak and Mishorim Gold, Aventura, FL

Seller: Washington Prime Group, Indianapolis, IN

Deal Commentary: Mishorim Investments, an Israel-based firm, and Mishorim Gold, its U.S. partner, jointly acquired the Whitehall Plaza shopping center in Pennsylvania for $18 million in a value-add play. The seller, Washington Prime Group, an Indianapolis-based retail real estate owner, has been repositioning its portfolio of shopping centers across the U.S. Since purchasing the retail center, Mishorim has signed two tenants, Lululand Adventure Park and Forman Mills.

2722 Commerce Way, Philadelphia, PA

Sale Price: $16,400,000

Sale Date: April 2, 2026

Size: 100,000 SF

Buyer: RushOrderTees, Philadelphia, PA

Seller: NorthBridge, Wakefield, MA and Brookfield Asset Management, New York, NY

Deal Commentary: RushOrderTees, a Philadelphia-based custom apparel company that designs and prints six million to eight million shirts a year, purchased a 100,000-square-foot industrial building in Philadelphia's Byberry East Industrial Park in a top second-quarter deal. The distribution building is currently leased to United Natural Foods, under a lease that extends through 2030 but includes an opt-out option in 2027, which is expected to provide near-term occupancy for the new owner, which currently operates its primary printing facility at 2727 Commerce Way. NorthBridge and Brookfield acquired the warehouse in 2020 as part of a four-building portfolio.

Top Office leases recognized for Philadelphia

890 Forty Foot Road, Lansdale, PA

Space Leased: 167,000 SF

Deal Type: New Lease

Size: 167,000 SF

Tenant: Dorman Products

Deal Commentary: Auto part manufacturer Dorman Products struck a deal in the second quarter to relocate its corporate headquarters to the former SKF building on Forty Foot near Tomlinson Road in Towamencin. The converted former Penn Reels factory was once proposed as the site of a business center, then became the first LEED-platinum certified building in the state when it was expanded and reopened in 2010 by the Philadelphia Suburban Development Corp. or PSDC. The office building is part of a mixed-use development with numerous restaurants and retailers, including Planet Fitness, Whole Foods, Starbucks and Chipotle.

3 Executive Campus, Cherry Hill, NJ

Space Leased: 64,601 SF

Deal Type: New Lease

Size: 431,582 SF

Tenant: Camden County

Deal Commentary: Camden County, the governmental body serving Camden County, New Jersey, signed a new 15-year lease at 3 Executive Campus. Located within the Cherry Hill Executive Campus office park, the transaction establishes additional office space for county operations in one of South Jersey's primary suburban office corridors. Built in 1976 and owned by Brooklyn, New York-based Hager Management, the building is one of six in the Cherry Hill Executive Campus. The County becomes the second-largest tenant in the building, joining Lockheed Martin, Lassonde Pappas & Co., CDW Corp., and Prism Career Institute.

The Washington, 510-530 Walnut St., Philadelphia, PA

Space Leased: 34,749 SF

Deal Type: Renewal

Size: 986,960 SF

Tenant: Superior Court of Pennsylvania

Deal Commentary: The Superior Court of Pennsylvania, one of the state’s intermediate appellate courts with offices across Harrisburg, Philadelphia, and Pittsburgh, renewed the lease for its offices in The Washington, a 21-story office tower owned by Keystone Development & Investment, based in the Philadelphia suburb of Conshohocken.

Two Commerce Square, 2001 Market St., Philadelphia, PA

Space Leased: 33,572 SF

Deal Type: New Lease

Size: 953,276 SF

Tenant: HDR

Deal Commentary: HDR, a global architecture and engineering firm with more than 200 offices worldwide, signed a lease in the second quarter to open a new office at Two Commerce Square. The firm will occupy the 7th floor on a short-term basis until its 20,000-square-foot space on the 14th floor is built out. The 41-story office tower in downtown Philadelphia is owned by Brandywine Realty Trust, a publicly traded REIT focused on office-led and mixed-use assets in Philadelphia and Austin core markets.

1080 N. Delaware Ave., Philadelphia, PA

Space Leased: 32,065 SF

Deal Type: New Lease

Size: 132,559 SF

Tenant: All American Homecare Agency

Deal Commentary: Core Realty added All American Homecare Agency as a tenant in its Waterview Corporate Center complex during the second quarter. The tenant is a New York-based provider of home care and fiscal intermediary services under the state’s CDPAP program. It joins AboluteCare and the Children's Crisis Treatment Center as tenants in the building.

250 Cetronia Road, Allentown, PA

Space Leased: 25,654 SF

Deal Type: Renewal

Size: 236,285 SF

Tenant: Surgery Center of Allentown

Deal Commentary: Surgery Center of Allentown renewed the lease for its ambulatory surgical center at the Integrated Health Campus. The medical office property is owned by Hammes, a national developer and investor in healthcare real estate.

480 E. Swedesford Road, Wayne, PA

Space Leased: 17,067 SF

Deal Type: New Lease

Size: 50,244 SF

Tenant: Tammac Financial

Deal Commentary: Tammac Financial Corp., a Pennsylvania-based financial services firm specializing in loans for buying manufactured homes, secured new office space at Valley Forge Office Center to support its operations. The two-building Swedesford Crossing suburban office complex is owned by Balashine Properties, a privately held commercial real estate firm founded by President Garett Shiner.

The Washington, 510-530 Walnut St., Philadelphia, PA

Space Leased: 16,315 SF

Deal Type: Renewal

Size: 986,960 SF

Tenant: Klick Health

Deal Commentary: Klick Health, an independent health marketing agency serving life sciences firms, renewed its office lease in another top second-quarter deal at The Washington in Philadelphia, a landmark, three-building office complex totaling roughly 857,308 square feet owned by Keystone Development & Investment. Originally known as the Penn Mutual Towers / One Washington Square, the office complex overlooks Independence Square and was constructed with sections dating from 1914, 1930 and 1972.

Quaker Crossing, 951-1001 E. Hector St., Conshohocken, PA

Space Leased: 15,195 SF

Deal Type: Renewal

Size: 129,200 SF

Tenant: Burns & McDonnell

Deal Commentary: In another top second-quarter deal, Burns & McDonnell, an employee-owned engineering, architecture, and construction firm with a staff of more than 13,500, renewed the lease for its offices in the Quaker Crossing building in Conshohocken, owned by Buccini/Pollin Group.

Two Liberty Place, 50 S. 16th St., Philadelphia, PA

Space Leased: 15,125 SF

Deal Type: Sublease

Size: 951,454 SF

Subtenant: Planisware USA

Deal Commentary: Planisware USA, a provider of project portfolio management and enterprise planning software, subleased a block of office space during the second quarter at Two Liberty Place in Center City Philadelphia, owned by Coretrust Management

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One Philadelphia corridor, four troubled office bets

 By Mark Heschmeyer CoStar News

This week’s CMBS Notebook looks at an office stress test playing out along Philadelphia's Market Street.

One Philadelphia corridor, four troubled office bets: Four prominent office properties along a four-block stretch of Philadelphia’s Market Street illustrate the ongoing pressure weighing on the sector in the central business district.

The buildings — 1818, 1700, 1500 and 1515 Market St. — sit within Philadelphia’s Market Street West corridor, where vacancy has risen to 24.3% and demand has weakened since the pandemic, according to CoStar analysis. Collectively, the four properties, totaling 3.7 million square feet of office space, back $836.1 million in commercial mortgage-backed debt.

Among them, 1818 Market is facing some of the steepest challenges. The property’s latest appraisal valued the tower at $158 million, down 44% from its $282.1 million valuation when its loan was originated in 2021, according to Morningstar Credit. The 37-story, roughly 1 million-square-foot office building transferred to special servicing in 2023 after the borrower sought a loan modification. The asset has since entered receivership, and servicers are evaluating liquidation options. Market observers, however, say any sale process could wait until nearby Market Street properties are resolved.

A few blocks east, 1700 Market also has seen its value erode, though its workout process appears further along. The building’s latest appraisal was $168 million, 31% below its value at loan origination, according to Morningstar Credit. The 850,000-square-foot office tower and parking garage transferred to special servicing in 2023 ahead of a looming maturity default. A court-appointed receiver has been marketing the property, and servicer commentary suggests a sale could take place before the end of 2026.

Both 1700 Market and 1818 Market are owned by Shorenstein Properties but are being operated by court-appointed receivers, according to CMBS servicer commentary. Shorenstein declined to comment.

Meanwhile, 1500 Market remains tied up in a lengthy foreclosure and sale process. A planned acquisition fell apart when winning bidder CSC Coliving withdrew its $80 million offer, citing concerns about the economics of Philadelphia’s tax-abatement program, according to a report from The Philadelphia Inquirer.

The two-tower, 1.8 million-square-foot complex has been under receivership since 2023 and was just 34.4% occupied as of March 2026, according to CMBS servicer commentary from Keycorp Real Estate Capital Markets. CBRE has served as the court-appointed receiver since May 2023. CBRE did not respond to a request for comment.

The relative bright spot is 1515 Market. The property recently received a loan modification that extended its debt maturity to 2027 and included a $7 million borrower equity contribution, according to Morningstar Credit. Even so, the 502,000-square-foot office building faces headwinds of its own, including Temple University’s planned departure in June 2027.

Building owner Accesso Partners did not respond to a request for comment.

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Pair of investment firms team up to acquire fully leased Lehigh Valley industrial building

By Margaret Sutherland

A partnership between Lancaster, Pennsylvania-based Benchmark Real Estate and Regal Ventures, a New York City-based real estate investment manager, acquired an 85,053-square-foot industrial building in Easton, Pennsylvania, that is fully occupied by Human Active Technology, a designer and manufacturer of ergonomic workspace products ranging from customizable workspace furniture and monitor arms to sit-stand workstations and point-of-sale systems.

The building traded for $7 million, or about $82 per square foot, according to Northampton County property records. The deed was recorded on June 8 under the entity RV Kuebler Road LLC. No brokers were reported to be involved in the transaction.

The buyers plan to expand the Lehigh Valley facility at 100 Kuebler Road by 70,000 square feet to accommodate Human Active Technology's plans to bring its distribution processes on-site. The addition would bring the building's total footprint to roughly 155,000 square feet.

The steel-framed building, constructed in 1972 and renovated in 1993, occupies a 12.4-acre parcel in Forks Industrial Park, a master-planned manufacturing and industrial development in Forks Township, located about 18 miles northeast of Allentown, about 75 miles northwest of Philadelphia, and about 75 miles west of Manhattan.

"By recognizing early that HAT's expanding operations had outgrown their existing footprint, we were able to work with HAT’s plans to present a solution to consolidate local, off-site operations and create meaningful value for both the tenant and the asset," said Mike Callahan, managing partner at Benchmark Real Estate, in a statement announcing the building purchase.

"The Lehigh Valley remains a compelling, small-bay industrial market in the Northeast. Demand stays robust, while vacancy in the 20,000-to-100,000-square-foot segment sits below four percent,” added David Lawrence, director of acquisitions at Regal Ventures. “100 Kuebler Road exemplifies the opportunity we target: a committed occupant, a well-located asset, and a clear path to value creation."

Regal Ventures was founded in 2019 by Alex Smith and Joey Cohen, who previously managed the Cohen family real estate portfolio. The firm focuses on necessity-anchored infill retail in dense urban submarkets and small-bay or flex-industrial assets in supply-constrained metropolitan areas. The Easton acquisition marks the partnership's second Pennsylvania industrial deal with Benchmark. In October 2024, the two firms jointly acquired Crownwood Industrial Estates, a three-building, 218,410-square-foot industrial complex with an adjoining development site at 805 North Wilson Avenue in Bristol, about 22 miles northeast of Philadelphia.

Benchmark Real Estate, established in 2018, maintains a mid-Atlantic investment portfolio spanning industrial, healthcare, senior living and multifamily assets. The firm is an affiliate of Benchmark Construction Company, a Lancaster-based general contractor founded in 1985 whose recent projects include a 50-acre mixed-use senior living development called Tapestrie in Manheim Township, Lancaster County, and the adaptive reuse of a historic Lancaster building into 22 residential loft units.

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Thomas Jefferson University to open regional medical college campus in Allentown

By CoStar News Staff

Thomas Jefferson University, a private research university based in Philadelphia formed in 2017 by the merger between the former Thomas Jefferson University and Philadelphia University, announced plans to establish a four-year regional campus of its Sidney Kimmel Medical College in Allentown, Pennsylvania.

The new regional medical campus will span more than 54,000 square feet, encompassing the majority of office space planned at One Center Square, an 87,000-square-foot office building under construction in downtown Allentown. The new building is part of the City Center Allentown mixed-use development led by City Center Investment Corp., a real estate development and management company.

The new regional campus is intended to build on the clinical education partnership between Sidney Kimmel Medical College and Jefferson Health, the clinical partner of Thomas Jefferson University. Jefferson Health operates as a non-profit, multi-state regional health system including 33 hospital campuses and over 700 care sites. During the 2025–2026 academic year, eight physician assistant students and more than 80 medical students completed clinical rotations at Jefferson Health – Lehigh Valley Region hospitals.

"Physicians are more likely to practice where they train. Establishing a four-year campus of Sidney Kimmel Medical College in the Lehigh Valley will expand opportunities for medical education, strengthen regional connections and build a pipeline of physicians who are committed to serving this community for generations," added Said Ibrahim, MD, MPH, MBA, Anthony F. and Gertrude M. DePalma Dean of the Sidney Kimmel Medical College, in a statement announcing the new medical campus in Allentown.

The new campus marks the latest milestone in Thomas Jefferson University's academic expansion and growth. In June 2026, the Sidney Kimmel Medical College was selected by Delaware Gov. Matt Meyer to establish the first four-year medical school in Delaware.

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Provident Data Centers developer buys Harrisburg-area golf course

 By Rachel Whaley with CoStar AI CoStar Research

Provident Data Centers closed on its purchase of the 228.4-acre Dauphin Highlands Golf Course in Harrisburg, Pennsylvania, from Dauphin County General Authority for $45.6 million, or approximately $199,616 per acre.

The golf course will close permanently on October 12, 2026, with the site to be redeveloped as a new data center.

The property at 650 S. Harrisburg St. spans land in both Swatara Township and Steelton in central Pennsylvania. The offer from the data center division of Dallas-based Provident Realty was selected from six proposals submitted through a request for proposals process. The purchase price represents approximately 10 times the recorded land value of the property, CoStar confirmed.

Dauphin County General Authority has owned the golf course since 1993. According to the Authority, the golf course has consistently operated at a deficit and was sold as a nonperforming asset. The Authority is expected to pay off the golf course's $13 million debt from the sale proceeds.

Earlier this year, Provident expanded its land holdings in Swatara Township, acquiring additional tracts totaling more than 150 acres on the east side of Route 283, according to county deed records. 

Provident Data Centers is led by Founder and CEO Leon Backes and President Jay Hawes. Provident entered the data center industry in 1999 by transforming the former Dallas Northtown Mall into a 140,000-square-foot data center leased to AT&T. The data center developer also has a site in Pennsylvania Furnace, Pennsylvania, where it is planning to build a data center.

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Meiya Warehousing takes 142,000 SF at DD1 Development's Pemberton, NJ Facility

By Samuel Murch CoStar Research

Meiya Warehousing, a New Jersey-based, family-owned logistics and warehousing provider, signed a new lease for 142,000 square feet of industrial space at 200 S. Pemberton Road in Pemberton, New Jersey.

The 462,345-square-foot distribution facility was built in 2022 and is owned by an entity affiliated with DD1 Development, a privately held, full-cycle real estate developer with industrial, commercial, and residential projects. The location provides direct access to Interstates 295 and 95, the NJ Turnpike, and Route 38.

Based in Edison, New Jersey, Meiya Logistics is an asset-based logistics provider offering drayage, warehousing, e-commerce fulfillment, Amazon FBA transloading, cross-docking, trucking, and last-mile delivery from several U.S. hubs.

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US office leasing holds steady at midyear

 By Phil Mobley CoStar Analytics

Office tenants signed new leases for an estimated 115 million square feet during the second quarter of 2026, roughly in line with revised first-quarter numbers but still slightly below the quarterly average from 2015 to 2019.

Since the middle of 2025, office leasing volume has climbed to within roughly 9% of the pre-pandemic norm for a 12-month period. Market vibrancy has made more than a full recovery, with the number of office lease transactions near the all-time high. However, the amount of space leased in a typical deal has settled about 15% below its historical norm, a level that has held steady for two years.

These findings are based on collected and estimated data from office leases executed through the end of the second quarter. As with previously reported leasing data, only new lease commitments are considered. Renewals, which tend to have little impact on overall occupancy, are excluded from this analysis.

The results suggest a market that is demonstrating a sustained recovery but is also bending to constraints imposed by supply and demand. Hiring has been slow and is expected to remain so, especially in traditional knowledge-oriented industries.

Despite this, organizations in some sectors have been actively committing to new space. Among them are financial service institutions, many of which have firmer expectations for frequent office attendance.

Alongside these big banks are a growing number of venture-backed technology companies, including those focused on artificial intelligence, that are seeking out space in anticipation of hiring. Some of these AI firms have joined the group of relatively small professional services firms in a trend of taking small spaces in highly desirable locations.

The distribution of occupiers signing new leases is skewed toward these smaller tenants, resulting in a smaller average deal size. Part of this, however, is because relocation options for the largest office occupiers are vanishing. With new construction activity constrained at a historically low level, few contiguous blocks of premium space remain available in major markets. This, in turn, is keeping overall leasing volume below its customary pre-2020 level despite a sustained surge in activity.

A few markets are bucking the small-lease trend, including such finance-heavy locations as Charlotte, North Carolina, Miami and New York. In San Francisco, office lease sizes have also returned to their historical average as the largest AI-oriented firms have become hungry for space. As a result, office leasing volume is well above its long-run average in all four markets.

The Dallas and Houston office markets have also seen overall leasing volume remain close to their pre-pandemic averages, with activity rising enough to offset the trend toward smaller deals. Elsewhere, though, leasing volume remains depressed, with deal counts struggling to recover in about half of the country’s 20 largest office markets.

Second-quarter new leasing performance, while roughly on par with a strong first quarter, could indicate a de facto ceiling on volume for the current cycle. High churn could help maintain office leasing volume near its current level. Smaller leases often have shorter terms, which can catalyze faster, higher deal flow that could keep volume steady as tenants sort themselves into and out of existing spaces.

On the other hand, the lack of relocation options is expected to force many large occupiers to renew in place, clogging up the market that would typically emerge to backfill their current spaces. This, coupled with near-stagnant growth in knowledge-industry jobs, suggests that office leasing volume is likely to decelerate in the quarters ahead.

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Philadelphia’s big-box industrial leasing activity climbs to a five-year high

By Brenda Nguyen CoStar Analytics

Big-box industrial leasing appears to be gaining momentum across the Philadelphia market, with the number of lease deals climbing steadily from the cyclical low seen in 2023.

The rebound in leasing signals an inflection point, as well-capitalized occupiers regain confidence in their business operations following a stretch of higher interest rates, recessionary fears and broader economic uncertainty that froze expansion plans.

After bottoming out at just two new leases above 500,000 square feet in 2023, Philadelphia recorded five such deals in 2024 and accelerated to eight in 2025. The pace has carried into 2026, with nine such leases signed over the trailing 12 months, matching the prior peak in 2021.

Recent deals highlight returning demand at the top of the market, particularly for first-generation and build-to-suit space. DrinkPAK's 1.4 million-square-foot lease at the Bellwether District in South Philadelphia ranks among the largest in the Philadelphia market's history, anchoring a major redevelopment and reinforcing the region's manufacturing and logistics appeal.

Other major bulk-industrial deals include Exol's lease of the South Penn Logistics Center, a 973,200-square-foot, newly built distribution facility in Bucks County, while Creative Innovation's 704,000-square-foot deal in Palmyra and SLM Warehousing's full-building, 610,183-square-foot lease in Mansfield further highlight continued leasing momentum across Southern New Jersey's logistics corridor.

These leases have considerably tightened conditions at the top end of the market, compressing big-box vacancy from a peak of 14.8% in mid-2025 to 11.2% in mid-2026. Small-bay industrial space, by contrast, has trended in the opposite direction, with a gradual increase in vacancy.

The divergence between big-box and small-bay performance suggests a bifurcated market.

Larger, well-capitalized occupiers of industrial space have the balance sheets to expand opportunistically, while smaller operators—working with thinner margins and less financial cushion—are struggling to absorb softer consumer spending, higher operating costs and elevated borrowing expenses. The result is a market moving at two distinct speeds—accelerating at the top end while smaller operators tread more cautiously.

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BNY makes more changes to its Philadelphia-area footprint with suburban office deal

 By Katie Burke CoStar News

BNY is making more changes to its Philadelphia-area office presence with plans to consolidate several of its regional offices under a single suburban roof.

After finalizing a full-floor deal, the oldest bank in the country is set to shift its suburban real estate presence to the building at 965 Chesterbrook Blvd. in Wayne, Pennsylvania, as part of plans to make its corporate office portfolio operate more efficiently.

It isn't yet clear which BNY offices will be impacted by the consolidation plans. The more than 41,650-square-foot lease is slated to house a new hub that is expected to open sometime next year, a BNY representative confirmed to CoStar News, extending a string of downsizings and lease terminations the bank has made in the Philadelphia area over the past several years.

The New York-based financial institution last year vacated its roughly 47,000-square-foot space in the BNY Mellon Center high-rise in Philadelphia's Center City. It downshifted its presence several blocks away to the One Logan Square building, where it opted to lease just 15,000 square feet.

The more than 1.3 million-square-foot Market Street tower had been named after BNY since it was developed in the 1990s. The bank, which once occupied as much as 180,000 square feet there, has steadily reduced its physical presence in recent years as it implemented widespread tweaks and changes to its office portfolio across the country.

The bank also cut more than 57,000 square feet from its regional footprint with the closure of another Pennsylvania office in 2023.

While the moves have softened BNY's Philadelphia presence, the Wayne lease is a welcome boost for the suburban property. It lands just a few months after owner Rubenstein Partners cemented a $124 million refinancing package for the broader 1.1 million-square-foot Chesterbrook office park, a campus that includes about 15 buildings that collectively average a bit more than 60% occupied.

Philadelphia-based Rubenstein paid $148.5 million for the campus the year before the pandemic's 2020 outbreak. While the firm has faced financial challenges as a result of COVID-19's wrath in recent years, about $55 million worth of renovations and upgrades at the Chesterbrook campus have helped it land 19 new leases over the past two years, activity that has helped to fill upward of 300,000 square feet.

Just a few months before BNY's lease, for example, Hartford Steam Boiler Insurance Co. signed a full-floor deal for the same building. Rubenstein now only has about 20,000 square feet left to fill.

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Six Tower Bridge office building on Conshohocken’s riverfront sold

 Six Tower Bridge, a 116,174-square-foot Class A office building at 161 Washington Street in Conshohocken, was recently sold by Brandywine Realty Trust to Six Tower Bridge, LLC, an entity associated with the New Jersey-based FDL Group and the New York-based Adjmi family’s A&H Acquisitions. The sale price was $21 million, according to Montgomery County property records.

The building sits on just under five acres along the riverfront and was developed in 1999 by the Oliver Tyrone Pulver Corp.

This is the partnership’s second acquisition in Conshohocken. In 2025, the pair acquired Eight Tower Bridge at 181 Washington Street. In 2024, they acquired the Plymouth Meeting Executive Campus in Plymouth Meeting.

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Costco renews lease for southern New Jersey distribution space

By Sam Bixler CoStar Research

Costco Wholesale, the Washington-based membership warehouse retailer that ranks among the largest retail operators in the world, renewed its lease for 100,134 square feet of industrial space at LogistiCenter at Logan in Logan Township, New Jersey.

Dermody Properties owns the 365,760-square-foot distribution building at 2100 Center Square Road in Gloucester County. The building, which was built in 2008 and renovated in 2022, is located within LogistiCenter Logan, a 1,100-acre, master-planned business park containing over 5.5 million square feet of warehouse, distribution and manufacturing space and is located at Exit 10 of I-295 and Exit 2 of the New Jersey Turnpike.

Dermody, a privately owned logistics real estate firm based in Reno, Nevada, acquired the Logan Township site in 2005 and crafted the master-planned campus, which has since attracted users including Kimberly Clark Corp., Freightliner and Amazon, the latter of which signed a 1 million-square-foot lease at the park.

Costco Wholesale operates more than 870 warehouse stores worldwide. Costco has maintained a growing distribution footprint in New Jersey, where it also leases warehouse space in Newark.

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GXO Logistics renews warehouse lease in central Pennsylvania

By Margaret Sutherland Costar

GXO Logistics, a global logistics firm that manages outsourced supply chains and provides warehousing and e-commerce fulfillment for major brands, renewed the lease for the 413,867-square-foot warehouse it occupies at 4406 Freight St., also known as Industrial Park Road in Camp Hill, Pennsylvania.

The 39-year-old industrial building is owned by HagerPacific Properties, a Newport Beach, California-based investor that specializes in acquiring and repositioning commercial real estate across the country.

Built in 1987, the facility sits within a well-established industrial corridor near Interstate 83 and the Pennsylvania Turnpike.

The Camp Hill facility is one of several distribution centers GXO operates across central Pennsylvania, with additional locations in Middletown, Mechanicsburg and Carlisle.

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How Stronger Hiring and Rising Inflation Could Shape CRE (Video)

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Medical Office Buildings Investment: Cap Rates & Trends (Video)

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Smaller lease deals drive Central Pennsylvania’s core industrial market

 By Brenda Nguyen CoStar Analytics

Industrial space availability trends across South Central Pennsylvania— spanning Harrisburg, Lancaster, York, Reading, Lebanon and Gettysburg—reveal a growing disconnect between development patterns and tenant demand.

Developers continue to build big facilities geared for single users, but tenants are leasing small-bay facilities, creating uneven market conditions across building size segments.

Small-bay industrial properties, those measuring under 50,000 square feet, remain the most in-demand segment, with availability holding near 3.5% in 2026. Industrial buildings measuring between 50,000 and 100,000 square feet also show tight conditions, with availability at 4.5%. Limited new construction in these two size categories, combined with steady demand from local and regional users, continues to support lower vacancy rates.

Over the past three years, approximately 530 industrial leases were signed in this six-county region, with 88%, or about 470 leases, signed for spaces smaller than 100,000 square feet. This sustained demand has kept vacancy compressed in smaller formats, even as overall supply has expanded.

Availability rises sharply with building size. Mid-sized industrial properties, those between 100,000 and 249,999 square feet, have availability above 10%, while availability in buildings between 250,000 and 499,999 square feet has reached approximately 12.3%.

Buildings larger than 500,000 square feet now have the most availability, at roughly 13.7% in mid-2026, surpassing the 250,000 to 499,999 square foot segment in recent quarters.

Although large leases often dominate headlines, they account for a small share of actual demand. Over the same three-year period, only 13 leases, about 2.5% of total transactions, exceeded 500,000 square feet. These large-block leases tend to occur irregularly, creating sharp swings in vacancy when they are signed or when a building in this size quotient is delivered vacant.

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