Philadelphia Retail Overview December 2022

In the face of a strained economy many retailers are still looking to grow their brick-and-mortar footprints but the convergence of increased construction costs, supply chain disruptions, rising interest rates and inflation is impeding the flow of deal making and creating new hurdles for growing retailers. Philadelphia’s supply-constrained market is enabling landlords with prime retail space to wield stronger negotiating power than even well-established, national retailers. With minimal development on the horizon, this dynamic has and will continue to enable the Philadelphia Metro area to maintain healthy market fundaments as expanding retailers are finding ways to overcome these obstacles in order to enter or grow within the Philadelphia market.