Leasing activity falls in the shadow of rising economic uncertainty 

The uncertainty surrounding a possible national recession, high inflation and the continuance of hybrid work has prompted many tenants to re-evaluate their real estate footprint, right-sizing in the process. Leasing activity totaled 726,350 square feet (sf) for the Philadelphia region, or 44.7% less than the fourth quarter of 2022. The Philadelphia Central Business District (CBD) reported 197,256 sf of total transactions — or a 68.3% decrease compared to year-end 2022. Notable deals executed during the first quarter included: AmeriHealth Caritas’ 100,000-sf prelease at 203 Squire Drive in Media/Newtown Square, bioMerieux’s prelease of 32,000 sf at 1201 Normandy Place in the Navy Yard, Big Brothers and Big Sisters of America’s sublease of 20,700 sf at 100 North 20th Street in West Market and Launchpad’s 20,252-sf transaction at 801 Market Street.

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