Market Highlights

• Overall vacancy rose to 5.8%, an increase of 90 basis points (bps) year over year. Direct vacancy climbed 50 bps quarter over quarter, while sublease vacancy stayed at 0.8%. Total available space held at 0.9%, down 10 bps from last year.
• Sublease blocks under 5,000 square feet represent the majority of listings, comprising 63.2% of all sublease space, and are found mostly in mid-tier buildings.
• Despite concerns over potential funding cuts, NIH funding in Philadelphia remains strong, totaling $1.3 billion in fiscal year 2025, slightly below the record high set in 2023.

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