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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