Newer retail properties built since 2010 continue to show strong performance across the Philadelphia region. Occupancy rates increase each quarter, even as overall consumer demand slows. Meanwhile, retailers consistently favor modern, high-quality space. In contrast, older retail buildings struggle to retain tenants when market conditions soften. Although consumer spending has cooled in recent years, demand for newer retail space remains steady. Therefore, net absorption data clearly reflects this shift. Since mid-2023, Philadelphia retailers vacated 5.5 million square feet in older properties. However, they leased more than 10.2 million square feet in retail buildings constructed after 2010.

As a result, newer assets continue to capture the majority of market activity. When modern retail space becomes available, tenants move quickly. For example, Thirsty Turtle Tavern signed a lease in December to occupy a 7,860-square-foot restaurant built in 2017. The space had remained vacant for only one year after Chuck Lager Tavern exited. Consequently, vacancy periods for newer properties remain short. In addition, several retailers now choose redevelopment over renovation. Chick-fil-A recently leased a former Rite Aid at 2545 Aramingo Avenue in Philadelphia. The company plans to demolish the 5,190-square-foot building, originally built in 2000. Instead, it will construct a new drive-thru facility designed for modern traffic patterns.

Similarly, Flagship Carwash leased a former CVS at 1351 Wilmington Pike just three months after it closed. The operator plans to convert the 2002 property into a car wash, pending approvals. Overall, the data shows a clear trend. Retailers prioritize newer, adaptable space that supports evolving consumer behavior. Therefore, modern retail properties remain best positioned for long-term stability in the Philadelphia market.