Q1 2026 Update-Office,Industrial, Multifamily, Retail

Office: Split market, owner-user opportunity

Stabilized assets with strong tenancy and clean presentation are still trading within a reasonable range. On the other side, anything with vacancy, functional issues, or an unclear story is seeing pricing pressure and longer timelines.

Bucks and Montgomery Counties are holding up better in the small-to-mid-size range, where demand is being driven by local users.

There is a real opportunity right now for owner-users. Pricing has come in, inventory has opened up, and users can lock in occupancy at a lower basis while controlling their long-term costs. SBA financing continues to be a key driver in this segment.

Industrial: Consistent demand.

Northeast Philadelphia, Lower Bucks, and the primary Montgomery County corridors remain active due to strong demand from logistics, light manufacturing, and service-based users. Location and functionality still drive everything—clear height, loading, and access matter.

Well-located, usable product continues to attract strong interest. New supply exists, but demand is keeping pace in the majority of submarkets.

Multifamily: Steady performance, tighter underwriting

Occupancy is strong, and rent growth, while not aggressive, continues to trend upward. Philadelphia is seeing the most volume, while Bucks and Montgomery Counties continue to attract steady investor demand due to stable tenant bases and less landlord oversight.

The shift is in underwriting. Buyers are more conservative across the board—expenses, reserves, and rent assumptions are all being scrutinized.

Retail assets are not disappearing—it’s changing.

More deals are being driven by alternative use. Medical, mixed-use, multifamily, and even industrial conversions are all in play. Value is increasingly tied to flexibility and underlying land, not just existing tenancy.

Operating costs remain elevated—taxes, insurance, and general expenses are all part of the conversation.

Final Thoughts

This is a thinking market. Buyers are underwriting every deal, not chasing them. Philadelphia, Bucks, and Montgomery Counties all have active demand, but it’s focused. Deals are getting done where pricing aligns with reality and the path forward is clear.

Interested in Buying or Selling Real Estate or Business?  Submit a request for valuation online www.phillyandsubsurbscre.com or call 215-778-8610