Tuesday, March 31, 2026
Monday, March 30, 2026
High Street Logistics Properties completes work on warehouse in Florence, New Jersey
By Ryan Cashion Costar
Construction has been completed at 900 Richards Run, marking the delivery of a 249,600-square-foot warehouse within the Richards Run corridor near Florence, New Jersey and the I-95/Route 130 interchange.
The fully-available building was developed by High Street Logistics Properties, a private equity real estate investment management firm founded in 2002 by former senior executives of Trammell Crow Co. and based in Oakbrook Terrace, Illinois.
According to CoStar's latest report on the Philadelphia industrial market, demand has returned this spring after a weak performance last year. Recent net absorption, the net change in occupancy, was a positive 2.3 million square feet, after falling into negative territory last year.
Burlington County in Southern New Jersey continues to lead as the region's strongest industrial submarket, accounting for 3 million square feet of positive absorption over the past year. The regional vacancy rate is expected to peak near 9.3% by mid-2026 before easing as new deliveries taper sharply and demand stabilizes.
Friday, March 27, 2026
Philadelphia’s medical office market hits a soft patch
By Brenda Nguyen CoStar Analytics
Philadelphia's medical office market has entered a cooling period following several years of sustained expansion. Characterized by reduced demand, rising vacancy and decelerating rent growth, the changes signal a transitional phase for the local healthcare real estate sector.
The most visible sign of this shift is the return of negative net absorption in the fourth quarter of last year, a period in which more tenants moved out of medical office space than moved in. At the end of 2025, Philadelphia's medical office market recorded negative quarterly absorption of 260,000 square feet, bringing the trailing-four-quarter total to negative 323,660 square feet, one of the weakest performances in decades. Vacancy climbed from 8.3% in the third quarter to 9% by year-end.
Preliminary data suggests the medical-office performance is also in slightly negative or neutral territory in the first quarter of this year.
Leasing activity tells a similar story. Although approximately 757,000 square feet of medical office leases were signed over the past year, the signings have not translated into net gains in occupancy. The number of new leases fell to 80 from 100 in the prior period, and the average amount of space leased dropped 38% to 2,625 square feet. Rather than expanding, medical office tenants are prioritizing renewals, consolidations and reductions.
Major health systems, which anchored demand throughout the previous cycle, have largely suspended new commitments, removing the market's most reliable source of absorption.
What makes this shift notable is its disconnection from otherwise strong employment trends. The "eds and meds" sectors—which together account for roughly one-quarter of local jobs in the Philadelphia region—increased by 2.5%, adding 28,500 new employees over the past year. The divergence reflects a broader restructuring underway across the healthcare industry, as providers rationalize and reconfigure their real estate footprints.
Despite recent hiccups, the pullback remains limited in scale, and the sector's underlying fundamentals point toward continued long-term growth. As major health systems complete their operational restructuring, the region's medical office demand should stabilize and begin to strengthen.
The region's aging population and continued healthcare employment growth together form a durable, long-term demand base—one that positions Philadelphia's medical office market well for the cycle ahead, after it gets through this soft patch.
Thursday, March 26, 2026
Luxury apartments inject new life into struggling Center City commercial area
By Dion Haynes, Emily Damus
Like many urban commercial areas across the country, Center City in Philadelphia struggled in the COVID and hybrid work eras when large portions of its customer base worked from home. Office vacancies reached record highs as tenants relocated to smaller quarters to save money.
By converting a vacant 18-story office into luxury apartments, Alterra Property Group created a new customer base with hundreds of new residents for shops and restaurants in the area that largely had been governed by a 9-to-5 culture.
The development 17 Market West is Philadelphia’s largest post-pandemic office-to-residential conversion, transforming a 305,000-square-foot landmark from 1957 into a 299-unit luxury residential property.
The transformation was recognized as redevelopment of the year in Philadelphia as part of the 2026 CoStar Impact Awards, which were judged by real estate professionals familiar with the market.
The project "reflects the important role adaptive reuse can play in the future of cities, particularly in Center City Philadelphia and along the Market West corridor," Connor Burke, principal of Alterra Property Group, said in an email. "By thoughtfully transforming an empty office building into housing, we are bringing new residents, retailers, energy, and activity to the area while supporting the long-term vibrancy of the neighborhood."
Property management is provided by APG Living, an affiliate of Alterra Property Group. Preleasing strategy involved internet listing services, social media, video content and paid search advertising.
About the project: 17 Market West is a luxury apartment building in Center City Philadelphia with one- and two-bedroom units ranging from 553 square feet to 1,390 square feet. The building is connected to SEPTA's Suburban Station, a regional underground commuter rail line, and nearby office buildings.
What the judges said: "Beautiful adaptive reuse for an aging office building," said Gina Lavery, executive vice president of Econsult Solutions.
"The transformation of 1701 Market Street, a formerly struggling office building is now bringing a post 9-5 life to the CBD and Market Street corridor, as the site is transformed into a luxury apartment building," said Nadia Bilynsky, principal at MPN Realty.
New apartments turn aging parking structure into $1 million boost for Easton, Pennsylvania
By Dion Haynes, Emily Damus
The challenge for city officials in Easton, Pennsylvania, was to figure out what to do with an aging parking structure in downtown that was sitting on valuable land yet generating nothing in revenue.
They came up with the Marquis Apartments, a seven-story luxury residential building featuring 264 units, room for three ground-floor retail shops and 308 on-site parking spaces.
The project by City Center Group, a real estate investment and development firm, was recognized as multifamily development of the year in Philadelphia as part of the 2026 CoStar Impact Awards, which were judged by real estate professionals familiar with the market.
“The Marquis was an exciting project for both our team and the City of Easton. It transformed an obsolete parking garage that generated little to no tax revenue into a vibrant residential community that is already contributing to the vitality of downtown,” Zack Sienicki, chief operating officer at City Center Group, said in an email.
The project also sparked more apartment development in the neighborhood.
Construction of the project "supported more than 700 jobs and created a dozen permanent positions, while adding 258 much-needed apartments that leased in just five months, demonstrating the strong demand for quality housing in downtown Easton," Sienicki added. "Its success gave us the confidence to move forward with the Confluence just a few blocks away, which is now leasing for May move-ins.”
About the project: The Marquis is the largest apartment property in Easton’s history. Studio, one- and two-bedroom units range from about 500 square feet to 1,300 square feet. It is projected to generate more than $1 million in taxes and fees for the city, county and school district.
What the judges said: "I absolutely love the architecture and the way the project blends into the existing downtown fabric," said Eric Goldstein, president and chief executive officer of King of Prussia Business Improvement District. "The transformation of an under-performing asset into a project like this is a big win for the city of Easton and its residents/employees!"
New shopping center spurs retail boom in growing Delaware city
By Dion Haynes, Dominic Capocelli
In less than two years, Northside Shopping Center has become a retail magnet in Middletown, Delaware, drawing national brands and dining options to a growing area that had limited shopping options.
Demand for more retail was strong. Middletown's population grew from 6,600 in 2000 to 25,000 in 2023, according to the U.S. Census Bureau.
The shopping center opened in October 2024 with its first retailer — a 147,000-square-foot Target. Since then, the development has drawn anchors Sprouts Farmers Market, PetSmart, Hobby Lobby as well as a bank. More than a dozen restaurants and shops have opened or announced plans to do so within a two-mile stretch of the development.
The transformation was recognized as the commercial development of the year for Philadelphia, as part of the 2026 CoStar Impact Awards, which were judged by real estate professionals familiar with the market.
"We are very proud to bring more retail options — especially grocery options — along with jobs, and tax rateables to the already booming Middletown market," Lou Ramunno, president of Lenape Properties Management, said in an email.
About the project: The shopping center will have 230,000 square feet of retail space when fully built out. The shopping center serves a growing area with several new housing developments. Newer tenants include Honeygrow, Qdoba, First Watch, Paris Baguette, Citizens Bank and Tropical Smoothie Café.
The project means "growth and development" for the South New Castle County submarket."
Tuesday, March 24, 2026
Monday, March 23, 2026
Friday, March 13, 2026
Thursday, March 12, 2026
Tuesday, March 10, 2026
Exol Signs a 900,000+ SF Leasing in Bucks County, PA
By Paul Schwedelson – Reporter, Philadelphia Business Journal
Automated warehouse company Exol has signed a 973,200-square-foot lease to fully occupy a Bucks County building, one of the largest industrial leases in the Philadelphia region in recent years and the biggest so far in 2026.
Chicago-based Logistics Property Co. completed the South Penn Logistics Center at 2300 S. Pennsylvania Ave. in Morrisville last year. Logistics Property Co. announced the lease Wednesday and industry sources told the Business Journal the tenant is Exol.
The South Penn Logistics Center sits along the Delaware River across from Trenton. The site is also just north of the Keystone Trade Center, another major Bucks County industrial site.
Menlo Park, California-based Exol was founded in 2023 and was previously known as GreenBox. Exol specializes in automated fulfillment using artificial intelligence.
The South Penn Logistics Center will be the firm’s sixth location and first in the Philadelphia region.The Morrisville lease is the firm’s first since changing its name.
Exol's lease is the fourth largest industrial deal in the Philadelphia market since the start of 2024. Beverage manufacturer DrinkPak’s signed a 1.4 million-square-foot lease last year for a build-to-suit building at South Philadelphia’s Bellwether District. Also in 2025, Performance Team took 1.2 million square feet at the Box Park Logistics Center in Cinnaminson, New Jersey, a project developed by Logistics Property Co.
In 2024, third-party logistics company Cirro initially leased 518,000 square feet for half of a building at the Keystone Trade Center and later expanded into the full 1 million-square-foot building.
Those were the only three single-building industrial leases in the Philadelphia region larger than Exol’s since the start of 2024.
Full story: bit.ly/4aWfyQ7
Monday, March 9, 2026
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