Quarterly leasing activity climbs to a three-year high

Regional leasing activity totaled a robust 1.3 million square feet (msf) in Q3 2026, signaling that tenants continue to be decisive about their real estate plans. Financial services firm Vanguard executed the largest transaction of the quarter with a sale and leaseback of its 323,000-square-foot (sf) building at 1041 West Valley Road in the PA Turnpike / Route 202 Corridor, as part of a reorganization of its real estate footprint. Law firm Morris, Nichols, Arsht & Tunnell LLP renewed 82,549 sf at 1201 North Market Street in Wilmington. Hanwha Group leased 64,380 sf for new offices at 201 Rouse Boulevard in the Navy Yard. The South Korean shipbuilder announced last year that it was investing $5.0 billion in its Philadelphia shipyard. NASDAQ extended its 75,000-sf lease at FMC Tower in University City, with plans to add 100 jobs over three years. Healthy leasing activity trimmed availability in the Philadelphia Central Business District (CBD) by 10 basis points (bps) quarter over quarter to 22.7%. However, availability in suburban markets declined by 100 bps to 24.2%, its lowest level since Q1 2025.

Read the full report