Friday, August 21, 2026
Monday, August 17, 2026
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.
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.
Friday, August 14, 2026
Thursday, August 13, 2026
Monday, August 10, 2026
Tuesday, August 4, 2026
Monday, August 3, 2026
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
Wednesday, July 29, 2026
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.
Monday, July 27, 2026
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.
Tuesday, July 21, 2026
Monday, July 20, 2026
Thursday, July 16, 2026
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.
Wednesday, July 15, 2026
Tuesday, July 14, 2026
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.
Monday, July 13, 2026
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.
Friday, July 10, 2026
Thursday, July 9, 2026
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.
Wednesday, July 8, 2026
Tuesday, July 7, 2026
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.
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.
Monday, July 6, 2026
Monday, June 29, 2026
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.
Thursday, June 25, 2026
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.
Monday, June 22, 2026
Friday, June 19, 2026
Thursday, June 18, 2026
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.
Tuesday, June 16, 2026
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.
Monday, June 15, 2026
Thursday, June 11, 2026
Wednesday, June 10, 2026
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.
York emerges as South-Central Pennsylvania’s fastest-growing industrial hub
By Brenda Nguyen CoStar Analytics
Industrial development across South Central Pennsylvania has concentrated in three primary markets—York, Harrisburg, and Reading—driven largely by three factors: highway connectivity, proximity to major Northeast population centers, and access to Foreign Trade Zone 147, which spans all six markets in the region.
York leads by a meaningful margin, adding 12.5 million square feet of industrial space since 2020, with another 3.1 million square feet under construction. This sustained development pipeline reinforces York’s role as the region’s fastest-growing industrial hub, which has grown by 13% over the past five years, well ahead of the national average growth rate of 10.3%.
York also recorded the strongest population gain in Pennsylvania last year, supporting a deeper labor pool for companies expanding in the market. Combined with its position as a key logistics gateway to Philadelphia, Baltimore and Washington, D.C., York continues to attract large-scale distribution users.
Harrisburg and Reading follow closely behind, underscoring expansion patterns along major freight corridors. Harrisburg has added roughly 11.0 million square feet of industrial space since 2020, with 1.2 million square feet underway. About 9.9 million square feet was added in Reading in the same timeframe, making it the region’s largest active pipeline at 3.6 million square feet.
All three markets benefit from their exposure to FTZ 147, which allows companies to reduce or defer import duties and operate with greater flexibility across manufacturing, storage, and distribution.
Lancaster, Lebanon, and Gettysburg have seen comparatively limited industrial development since 2020, largely due to structural constraints rather than a lack of demand.
Lancaster and Lebanon each added just over 5 million square feet since 2020, but have minimal development underway. In Lancaster, agricultural land preservation limits the availability of large-scale sites. Meanwhile, Lebanon is constrained by limited water and wastewater infrastructure, aging sites that require costly redevelopment, and strong community resistance to large-scale projects that threaten agricultural land.
Gettysburg remains the smallest market, with about 1 million square feet of industrial space added and no active development projects. Together, these dynamics underscore how infrastructure, land availability, and labor access shape where industrial growth occurs.
These markets are also farther from key freight corridors, limiting their appeal to large distribution users. While they fall within the FTZ 147 service area and share its customs benefits, those advantages carry less weight without the infrastructure to support large-scale logistics operations.
As a result, tenant demand continues to concentrate in the infrastructure-rich hubs of York, Harrisburg, and Reading, while Lancaster, Lebanon, and Gettysburg support more localized, incremental growth.
Tuesday, June 9, 2026
Monday, June 8, 2026
Thursday, June 4, 2026
Vanguard deepens nationwide push to slash office space
By Katie Burke CoStar News
The Vanguard Group is cutting ties with one of its Philadelphia-area offices, the latest move by the global investment adviser to trim its corporate real estate portfolio.
The Malvern, Pennsylvania-based firm opted not to renew the lease on its nearly 88,000-square-foot space at 45 Liberty Blvd., one of several properties it occupies that comprise its headquarters. It is the latest in a string of cuts the company has made to consolidate its national office presence, echoing moves by other large tenants across the United States as they look to adjust to evolving post-pandemic needs.
“Vanguard continuously evaluates the effective use of workspace in our leased and owned properties,” a Vanguard representative said in a statement to CoStar News. “As part of this effort, we are exiting our leased space at 45 Liberty Blvd. to optimize our existing footprint.”
The firm's looming exit is expected to spike the 155,000-square-foot building's vacancy rate to about 65% after years of being fully occupied. Vanguard's current lease is set to expire later this month.
The investment adviser's Malvern headquarters has long been spread across several properties in the Philadelphia suburb. The bulk of Vanguard's 20,000-person global workforce is based in the region, and despite its planned Liberty Boulevard exit, it still occupies just shy of 1.4 million square feet of office space there.
Yet similar to a cohort of tenants elsewhere across the country, Vanguard's decision to cut ties with some of its Malvern space is ultimately a result of reevaluating spatial needs and eliminating anything that has since become extraneous.
Vanguard is also letting go of one of its leases in Scottsdale, Arizona, where it is one of the region's largest employers. The firm had fully occupied the 123,340-square-foot building at 8501 E. Raintree Drive for the past two decades. In a sign of the national office market's strengthening recovery, the space is already set to be backfilled by mobile network provider Consumer Cellular.
Back in Malvern, the owner of 45 Liberty Blvd., FLD Group, is in talks with a prospective tenant to fill about 65,000 square feet of Vanguard's looming vacancy, according to a CMBS loan report.
Monday, June 1, 2026
Thursday, May 28, 2026
Tuesday, May 26, 2026
Wednesday, May 20, 2026
DrinkPak begins construction on massive East Coast manufacturing facility in South Philadelphia
By Margaret Sutherland
After signing the region's largest industrial lease since 2020 and one of the biggest industrial lease deals ever recorded in the Philadelphia market, California-based canned beverage maker DrinkPak has started construction on its new East Coast manufacturing facility spanning 1.4 million square feet.
The build-to-suit facility for the largest canned beverage contract manufacturer in North America will anchor the Bellwether District, a 1,300-acre commercial redevelopment project on a former refinery site in southwest Philadelphia.
Chicago-based real estate developer HRP Group, formerly Hilco Redevelopment Partners, bought the site located along the Schuylkill River near Interstates 95 and 76 out of bankruptcy in 2020 and rebranded it as the Bellwether District, a large master-planned industrial campus positioned to attract logistics and advanced manufacturing users.
The waterfront site provides access to the Port of Philadelphia and I-95, providing shipping connections to DrinkPak's brand customers in the Northeast, Mid-Atlantic and upper Midwest regions. The company's clients include such popular beverages as White Claw, High Noon, Monster Energy and Celsius.
DrinkPak plans to invest at least $195 million in the new facility, with the opening planned in 2027. The Philadelphia plant will join its two other U.S. locations, both also 1.4 million-square-foot facilities, one in the beverage firm's home city of Santa Clarita, California, and another in Fort Worth, Texas.
The large-scale beverage production and packaging plant will feature modern manufacturing operations to can energy drinks, sodas, teas, juices, waters, protein beverages, seltzers, beer, wine and spirits in a wide range of can sizes and packaging formats. The new plant will hum with four high-speed filling lines, each capable of producing up to 3,000 cans per minute. The facility will also include an automated variety repacking line to produce multi-flavor cartons and trays at speeds up to 2,000 cans per minute.
Additional building features include a 15,000-square-foot 40°F cooler, a 22,000-square-foot office and 40’ clear height. The facility shell will pursue Leed® Silver certification.
Arco National Construction is partnering with its repeat client to construct the beverage manufacturing facility. Arco also built DrinkPak's 1.4-million-square-foot facility in Fort Worth, Texas.
Monday, May 18, 2026
Thursday, May 14, 2026
Wednesday, May 13, 2026
Prologis sells Tastykake's headquarters in Philadelphia
By Jonathan Lehrfeld CoStar News
The Philadelphia headquarters and central production plant of snack maker Tastykake has been offloaded in a deal that comes as the market's industrial real estate sector shows signs of improvement.
San Francisco-based Prologis sold the South Philly facility at 4300 S. 26th St., the real estate investment trust confirmed with CoStar News via email. Prologis did not comment further on the deal.
An affiliate of Salt Lake City-based Bridge Investment Group bought the nearly 346,000-square-foot complex last month for $87 million, according to a city property record and CoStar data. Bridge did not respond to email and phone requests for comment.
Plans for the main hub of Tastykake — known for its creme-filled cupcakes and other pastries — remain to be seen. Neither the baked good group nor its Georgia-based parent company, Flowers Foods, immediately responded to a request to comment from CoStar News.
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 wrote in its latest Philadelphia industrial report.
The deal also underscores how Philadelphia's industrial market "has found its footing in early 2026 after a historically weak 2025, when demand fell to levels not seen in decades."
The cross-dock manufacturing and distribution facility was constructed in 2009 as a build-to-suit for Tastykake. The company had nearly 10 years remaining on its 26-year lease when JLL began marketing the property for sale in the fall.
Founded as Tasty Baking Co. in 1914, the company announced in 2010 it was selling its former bakery property, corporate offices and distribution center in Philadelphia for $6 million in connection with its relocation to its current address. It then merged with Flowers Foods in 2011.
Prologis acquired the building in 2020 through its merger with Liberty Property Trust.
Monday, May 11, 2026
Thursday, May 7, 2026
Tuesday, April 28, 2026
WSFS Financial Corp. renews Office Lease in Philadelphia
By Katie Burke CoStar News
The parent company of WSFS Bank signed a deal to keep its headquarters at a Philadelphia office tower in a welcome boost for the property since it had its valuation cut by more than 35% and was last year sent to receivership.
Wilmington, Delaware-based WSFS Financial Corp. earlier this month signed the long-term extension agreement for its 96,800-square-foot hub at 1818 Market St. where it is the tower's namesake and largest occupant.
The nearly 1 million-square-foot tower is one of many scattered across Philadelphia's urban core that have faced increasing financial distress over the past several years as a product of significant occupancy losses, a bleak leasing climate and declining valuations that have complicated refinancing efforts.
Landlord Shorenstein Properties acquired the Center City property more than a decade ago for $184.75 million, much of which was financed through a $174 million loan issued through Bank of America. The San Francisco-based real estate firm then pumped nearly $95 million into renovations, tenant improvements and leasing expenses, efforts that helped boost the tower's appraisal value beyond $282 million and helped Shorenstein secure a roughly $223 million refinancing package issued by Barclays Capital Real Estate in early 2021.
Fast forward a couple of years, however, and Shorenstein — similar to other landlords across the United States — faced a troublesome combination of fewer tenants and smaller spatial requirements that sent vacancy rates soaring to unprecedented highs.
The 1818 Market tower was more than 80% occupied in 2021, according to CMBS reports, a figure that fell in the following years before settling at less than 70% by March 2025. The refinancing loan was underwritten on the assumption that the property would generate about $16 million of annual net cash flow, but the declining occupancy rate meant the WSFS-anchored building only pulled in about $12.7 million in 2024.
By last summer, Shorenstein owed $239.5 million on the commercial mortgage-backed securities loan backed by the tower, according to Philadelphia court documents. The loan is still performing but remains held with a special servicer.
Center City presence
While financial turbulence has pushed some tenants across the U.S. to look for more stable alternatives, WSFS' decision to double down on its existing space points to companies' increasing willingness to commit to their physical real estate.
The WSFS Financial subsidiary, one of the nation's oldest banks, inherited the 1818 Market St. space in early 2019 as part of its acquisition of Beneficial Bancorp, the Philadelphia-based financial holding company for which the tower was previously named.
Yet WSFS has quickly settled in, growing its regional workforce to more than 250 employees and, in 2024, signing on for additional space on the ground floor to house a banking office and a publicly accessible lounge space to host meetings and events.
The bank's renewal "underscores our unwavering commitment to Philadelphia, a city that has been integral to our growth and success as an organization." WSFS CEO Rodger Levenson said in a statement, adding that Philadelphia is more than "just a key market for WSFS."
Monday, April 27, 2026
Sunday, April 26, 2026
Bimbo Bakery to Move HQ from Horsham, PA to Texas
By Candace Carlisle CoStar News
The U.S. subsidiary behind Mrs Baird’s and Sara Lee bread has decided to move its headquarters to Texas from Horsham, Pennsylvania.
Bimbo Bakeries USA has leased space within an office building in Irving, Texas, a city about 13 miles northwest of downtown Dallas. The move puts Bimbo USA closing to its parent company's Mexico City headquarters and is expected to strengthen collaboration and enable "faster, more integrated decision-making across operations," according to a statement.
Bimbo USA's parent company is Grupo Bimbo, the world's largest baking company with operations in 39 countries. Grupo Bimbo entered the U.S. market in 1998 when it bought Mrs Baird's Bakery, which was founded in Fort Worth, Texas, by Ninnie Baird in 1908.
“Texas was our first home and played a defining role in our early history," said Greg Koehrsen, president of Bimbo USA, in the statement. "We’ve built a strong presence here over the years, and this region remains central to who we are today."
The relocation of Bimbo USA's headquarters to Texas after 17 years of being based in the Philadelphia area "positions us to operate more efficiently as we continue to invest in our brands and our communities," Koehrsen added.
The company's other bakery brands include Arnold, Ball Park, Entenmann's, Little Bites, Oroweat, Thomas and Stroehmann. Bimbo USA has more than 20,000 workers in the United States as well as 50 manufacturing locations.
Bimbo USA's senior leadership team and other employees are already working at the new Dallas-area office, the company said, with recruiting underway to fill additional roles. According to CoStar data, the company moved into about 7,000 square feet in the building in December.
A spokesperson for the company confirmed to CoStar News that employees have relocated to Dallas over the "last few months" with the new office expected to be "completed in June." In all, the spokesperson said about 100 workers will be based at the Dallas headquarters.
Still, Bimbo USA said it remains committed to the greater Philadelphia area and will keep its sales center and regional operations in Conshohocken, Pennsylvania.
Dallas is "a significant market" for Bimbo USA with multiple bakeries, sales centers and distribution centers in North Texas, according to the statement.
State PA's office consolidation adds pressure on Local landlords
By Brenda Nguyen CoStar Analytics
Pennsylvania’s Space Optimization and Utilization Project, or SOUP, introduced in early 2025, is reshaping the Commonwealth’s office footprint in ways that carry implications for private‑sector office demand, particularly in Philadelphia and Harrisburg.
The multi‑year initiative represents the state’s first comprehensive review of its real estate portfolio. The cost-saving initiative is designed to reduce reliance on leased office space by consolidating agencies into modernized, state‑owned facilities through an implementation period extending to 2033.
The Keystone State began the lease-consolidation process in 2024 with 324 leases totaling 6.7 million square feet. The state has already shed 270,000 square feet of office space. At full execution, the Commonwealth expects to exit roughly 2 million square feet of leased office space across the state, achieving a 30% reduction, expected to generate nearly $180 million in cumulative lease savings through 2033, including approximately $14 million in Greater Philadelphia and roughly $166 million across 15 counties in Central Pennsylvania.
While these cost savings are fiscally meaningful for the state, they translate into an additional hit on office demand, particularly in markets where government occupancy has historically provided stable, long‑term demand.
Philadelphia is absorbing this shift amid challenging office conditions. In April, office availability across Center City hovered near 18%, while suburban office vacancy had settled around 16%, reflecting several years of negative absorption as tenants worked to right-size their office footprints.
Against this backdrop, the phased exit of state agencies from leased space introduces incremental availability into a market already contending with excess supply, particularly among Class B and C assets that have historically relied on public‑sector tenancy.
While trophy and top‑tier Class A buildings have demonstrated relative resilience amid a continued flight‑to‑quality, office properties favored by government tenants face greater concession pressure and longer timelines to secure replacement tenants, if any at all.
The implications of SOUP are even more acute in Harrisburg, where the state government has long played a stabilizing role in office demand. Office vacancy in the region remains comparatively low—generally in the high‑single‑digit range—but this stability is partially tied to the state’s outsized occupancy of office space in the region.
Pennsylvania’s move toward denser layouts, shared workspaces and hoteling occupancy patterns mirrors broader private‑sector trends, reinforcing the reality that fewer square feet per employee will be required going forward.
For Philadelphia and Harrisburg office landlords alike, the state’s consolidation strategy adds more pressure to already bifurcated office markets as the Commonwealth of Pennsylvania steadily contracts its leased office space through 2033.
Ace American Insurance Co. renews large office lease on New Jersey waterfront
By Linda Moss CoStar News
An anchor tenant at a Hudson River waterfront office tower owned by Manulife US Real Estate Investment Trust has extended the lease for its 117,280 square feet of space.
Philadelphia-based Ace American Insurance Co. signed a 65-month lease extension for 10 Exchange Place in Jersey City, New Jersey, according to landlord Manulife, a Singapore-listed real estate investment trust.
The deal will move back Ace's lease expiration from December 2029 to May 2035, Manulife said Thursday. The tenant will retain its entire 117,280 square feet of space at the same rental rate, the REIT said. Ace has been a major tenant at the 740,354-square-foot office high-rise, known as Exchange, since Manulife acquired the property in 2017. It paid $315.1 million for the building, according to CoStar data.
Global insurer Ace contributed 5.4% of Manulife's total gross rental income as of Dec. 31 last year and is the landlord's fourth-largest tenant. E-commerce giant Amazon has also recently renewed its lease for office space at Exchange, according to Manulife.
“We remain focused on prioritizing high-quality tenants and executing accretive leasing strategies that strengthen portfolio fundamentals over the long term,” John Casasante, Manulife's CEO and chief investment officer, said in a statement.
The Hudson waterfront continues to attract major financial services and multinational tenants due to its proximity to Manhattan and lower rents. While the pace of leasing activity in the Hudson waterfront office market has moderated in the first quarter, asking rents have remained resilient year-on-year as total office inventory continues to hold steady
Tuesday, April 21, 2026
Fusion Gyms takes former H&M space at Shops at 69th Street
By Vivian Peregrino CoStar Research
Fusion Gyms, a popular, no-contract fitness chain with five locations across Philadelphia and Bucks County, has signed a lease to open a sixth location at 2 S. 69th St. in Upper Darby, Pennsylvania, where it will occupy just under 26,000 square feet across the ground, second, and third floors of The McClatchy Building.
The distinctive Art Deco structure is part of the Shops at 69th Street, an outdoor retail destination near the 69th Street transit hub owned by New York-based Ashkenazy Acquisition Corp. The shopping center spans multiple blocks and is home to a mix of national and local retailers. Fusion Gyms will be occupying space formerly occupied by fast-fashion clothing chain H&M.
Fusion Theaters, a related business owned by the same owner of Fusion Gyms, also leased space in the Shops at 69th Street for its debut location. The new movie theatre and arcade games concept leased a 41,000-square-foot space next to Five Below in the open-air shopping mall.
The new theater space will be located near the former Tower Theater concert venue, which remains available and slated for redevelopment.
Monday, April 20, 2026
Thursday, April 16, 2026
How AI is changing the office market
By Katie Burke CoStar News
While artificial intelligence could automate much of the workplace, leading to fewer workers and less office space, it's also prompting the creation of companies that are major users of real estate.
ChatGPT maker OpenAI, Anthropic, Nvidia, Databricks and other AI companies have collectively become the largest pursuers of space across the U.S. market, helping to lower record-high levels of office availability and leading a post-pandemic recovery. That is despite other major companies, such as tech giant Amazon, choosing to cut their expansive footprints.
Against this shifting landscape, no one knows whether AI will lead to a commercial real estate boom or bust — or both. Just as the technology is acting "as a catalyst for both growth and decline" in the job market, it can have differing effects on office property.
"AI brings augmentation of human capabilities to a new level, fostering significant productivity gains and creating new job functions. As the composition of office work changes, so too will space requirements, workplace design and tenant demand."
Seattle-based Amazon, for one, is allowing leases to expire, temporarily suspending, or "hibernating," activities at some offices, and subleasing or terminating deals for hubs that have become largely vacant, Senior Real Estate Manager Martha Schwarzkopf Doyle said at a Global Real Estate and Facilities team meeting earlier this year.
"As it relates to how AI companies are going to affect other companies in terms of their leasing, that's the million-dollar question."
But for now, office landlords are sharpening their focus on Class A offices — the nicest and newest properties with tenant perks you can't find online — as they say there will be winners and losers in the wake of this shift toward automation, just as there was during the pandemic.
AI industry's real estate growth
Among the country's largest cities, commercial leasing generated by AI and tech companies accounted for about 20% of the total volume last year, the most of any industry.
That has been especially pronounced in tech hubs such as the San Francisco Bay Area, where AI firms have accounted for half of the major leases signed since the start of 2026. The activity has boosted their collective footprint well beyond 5 million square feet of office space, a presence expected to surge to at least 15 million square feet over the next four years.
"In previous tech booms, most of the capital companies raised went to hiring and expanding their workforce, but the big difference this time around with the AI sector is that they're spending a large amount of funding on infrastructure. The AI industry is in the office five, six days a week, and many are already starting to open additional offices in cities like Seattle, Boston and London. It has so far led to a lot of economic growth."
While they may start with a small office between 3,000 square feet and 5,000 square feet, AI firms and startups have been quick to tack on additional space, often within a matter of months, said Mike McCarthy, a Transwestern broker who has worked on a number of deals with such tenants. Especially as companies close additional funding rounds and bulk up their workforces, those spatial requirements are accelerating to 20,000 square feet, 40,000 square feet or, in some recent cases, full-building deals.
There has been "a tremendous amount of new business formation and growth, much of which is coming on the back of what's happened with AI over the last few years," Kilory Realty CEO Angela Aman told analysts on the landlord's latest earnings call. "We have AI tenants we've signed deals with that are already talking about expansion and growth, and there are a lot of additional new companies in the market thinking about taking additional space."
The CEO went on to say the AI-fueled boost, while only one part of how the technology is changing real estate, is creating "an exciting dynamic" that extends far beyond the most concentrated tech hubs, as the demand has helped prop up the broader national office market.
Braced for impact
At the same time, companies outside of the AI industry are using the technology to streamline their workforces, making cuts that have office market stakeholders watching for any sign of a potential bust.
Layoffs among corporate giants such as Salesforce, Meta, Workday and Pinterest in recent months have cast a pall over the market, as companies have attributed the cuts to their growing use of AI and a broader push to automate more traditional office roles.
Payments company Block, for example, unveiled plans in February to slash its workforce by at least 40%, a move CEO Jack Dorsey attributed to technology that has improved to the point where it's possible to do more with far fewer people.
"Intelligence tools have changed what it means to build and run a company," Dorsey said in public remarks about the planned cuts. "A significantly smaller team using the tools we're building can do more and do it better."
Still, the link between AI-related efficiency gains, layoffs and potential office real estate cuts remains tenuous. Some have questioned whether AI is an excuse for some CEOs to make cuts when a business doesn't want to admit it isn't generating enough revenue to justify its current spending.
Yet some of the nation's largest landlords, including Kilroy, Cousins Properties, Vornado Realty Trust and BXP, have been watching for any sign that the link between AI and reduced workforces is beginning to solidify — and translate into smaller space requirements.
They've found that, at least for now, tenants appear willing to commit to space, just as long as it's at the highest end of the market.
Bifurcated future
A flight-to-quality shift that took off in the earlier years of the pandemic, when companies began turning to high-end space to help entice staff to give up remote work and return to the office, has become permanently embedded in the national leasing landscape. Demand for trophy and premium properties far outpaces the desire by firms for aging, older alternatives.
"What we've been articulating for a couple of years is that AI is going to create jobs and it's also going to disrupt jobs that are more back office and processing," BXP CEO Owen Thomas said at Citi's Miami Global Property CEO Conference last month. "Our portfolio is geared towards that first group of employees, and that's what we're seeing."
So far, preliminary data backs up the job-creation effect of AI. Across the country, AI-related job postings have outpaced those for traditional tech roles, a sign that the technology is becoming more integrated across a broadening range of services and industries, Avison Young's Thibault said.
Moreover, it's an early indicator of the types of positions that will be formed to accommodate the AI boom as more companies race to adopt the technology.
"At the end of the day we might see certain industries and jobs go away, but historically we've always seen those jobs get replaced by something that requires new skills," Thibault said. "Folks behind typewriters that used to fill entire floors in office buildings went away but then were replaced by folks behind computers. Don't see AI, especially looking back historically, replacing all of the workers we have in office buildings today."
Committed to space
In the wake of the pandemic, which sent office vacancy rates to record highs and valuations to near lows, some office investors pulled out of the property type to focus on more lucrative investments, such as multifamily or healthcare.
Others converted some outdated offices entirely. For the first time in years, the rate of office demolitions and conversions has overtaken new development, according to CBRE and CoStar research.
Now, AI holds the potential to further accelerate changes in the office market, creating sharper winners and losers.
Based on the leasing trajectory in BXP's own portfolio, Thomas said demand for premium office properties remains firmly on the upswing.
Average lease sizes have climbed as terms are extended, the executive said, the clearest indicator that the need for physical office space isn't at any immediate risk.
"If a company was worried about AI, why are they in 2025 signing 10-year leases with us?" Thomas said, adding that, with the deals BXP has signed so far this year, the average terms have been even longer. "These are major financial commitments, and they're signing long-term leases, so I don't think they're forecasting big impacts AI will have on their space demand."
The outcome for older, more commodity properties is expected to be far bleaker, however, with AI technology expected to eliminate the need for many back-office and support roles that typically occupy those types of buildings.
Yet the pandemic had already determined the fate of those properties, and the increased adoption of AI is simply expected to deliver one of the final blows.
That means BXP is honing its focus on "upping the portfolio quality even further and getting even bigger in the gateway markets where we operate," Thomas said. "So yes, AI will absolutely have an impact, but that's why our strategy is taking an even narrower path."
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