In the second quarter of 2024, we adjusted our properties database to better reflect the commercial real estate market in Upper Merion Township. We removed 57 properties that are less than 2K SF to exclude single-family houses used as small office spaces. However, this adjustment does not significantly impact the average vacancy rate since most of these properties are owner-occupied and not currently available for lease. Additionally, we introduced two new categories this quarter: Medical and Life Science Properties. To avoid double-counting, we removed all medical offices from the other categories, resulting in a 400K SF inventory decrease. However, some properties in the Life Science category have dual uses and will continue to be counted under flex, industrial, etc.

Available Class A vacancy increased by 1.9 points to 9.9%, with an inventory of 4.4M SF. However, Class A office vacancies remain low, at 8.3 points below the highest vacancy rate back in 2019 (18.2%). Class B offices continue to perform well, with a 1.2-point decrease, in 2.0M SF. Class C vacancy slightly increased by half a point to 9.8%. Compared to other classes, Class C office has a small percentage of space representing only 4.0% of the total office inventory.



Industrial properties remained strong this quarter, with a one-point decrease in the vacancy rate to 2.0% and an inventory of 6.5M SF. Flex and retail space remained steady since the last quarter. Flex properties have a 4.0% vacancy rate in 3.8M SF, while retail properties show a 2.8% vacancy rate in 5.9M SF.

Medical Properties also remained strong, with an 11.1% vacancy rate across 492K SF spanning 17 properties. The vacancy rate dramatically decreased from 21.0% in 2019, reaching the lowest rate of 7.8% at the beginning of 2023. Life science is a significant economic driver for King of Prussia, with 2.5M total SF across 19 properties. It has hit the lowest vacancy rate of 4.3% in the past five years, marking a substantial decrease of 32.2 points compared to the highest vacancy rate of 36.7% in 2019.

Qi Guo

Manager of Research & Data Analytics

King of Prussia District

Spotlight

Employee Visits in Upper Merion Continue to Increase

The strong performance of commercial and industrial properties in Upper Merion shows that this community continues to attract more employees. According to data from Placer.ai, a total of 78.4K employees work in Upper Merion in 2023, marking an 11.8% increase compared to the pre-pandemic period in 2019. In addition to the total number of employees, visit frequency also provides insights into employees' behavior and preferences. Although more employees are coming to work here, Upper Merion has seen an 18.8% decrease in visit frequency per year for employees since the pandemic. This decrease is mainly driven by the hybrid working model, resulting in a 27.5% decrease in weekday employee visit frequency. However, weekend retail and entertainment markets remain strong, almost returning to 2019 numbers.

Looking at the home locations of employees who live outside of Upper Merion, the top 5 hometowns are Philadelphia (15.57%), Norristown (10.70%), Phoenixville (2.83%), Wayne (2.61%), and Pottstown (2.35%). Additionally, 7.5K employees reside in Upper Merion, accounting for 9.52%.

The total population in Upper Merion also grew from 30.3K in 2019 to 33.7K in 2022, according to the American Community Survey Census data, marking an 11.2% total increase.



• Among the population age 16 or over, 72.8% are in the labor market.

• Regarding commuting methods, most people chose to drive alone (66.5%), followed by working from home (24.8%).

• In terms of occupation, the top two categories are management, business, science, and arts (61.7%) and sales and office (19.3%).

• The leading industry is healthcare, accounting for 24.0% of the workforce.

David's Bridal Moving HQ to King of Prussia

King of Prussia Hotel Heads to Auction with Starting Bid of $3.5M

King of Prussia Office Occupancy Hits New High, Even as Center City Buildings Struggle to Attract Tenants

Featured Company

Bark U Makes the Move to Larger KOP Facility

As suburban Philadelphia's largest employment center and with over 34,000 people who call KOP home, Bark U, an animal care service business, is a welcome addition to our community for dog owners. The need for dog daycare, boarding, training and grooming services is so great in the area, in fact, that the business recently upgraded their 4,000 SF facility, which opened in King of Prussia in 2018, to a whopping 19,500 SF doggy paradise just down the road from their old location. The brand new facility opened last March and features 45,000 SF of outdoor space, which includes a dog water park. The bustling business boasts specialized and certified staff onsite 24/7, a Wellness Coordinator to create customized care plans for each dog and a 2024 Best of the Main Line dog trainer.

In an interview for King of Prussia District’s KOP Insiders series, founder Christine Egbert credits her team of professionals for Bark U’s success, and its positioning in King of Prussia for taking it to the next level.

“If we were not in KOP, we would not be able to do nearly the type of business we do and run this type of facility,” she said. “It just would not be sustainable. In our old location, our clients used us not necessarily because we had the fanciest facility, but because we really care about the animals, and we are great at what we do. Now the combination of being in an area that can sustain such a huge space coupled with the experts that we work with; it is really creating this amazing facility that this area has never seen before.”

Bark U sees about 150-200 dogs daily who enjoy their array of services and employs an incredible 39-person staff that truly cares about each and every one. Book your private tour today to see for yourself!

barku.net | info@barku.net | 333 S Henderson Rd. | 215-486-2200

Website Feature

Available Commercial Space in King of Prussia

King of Prussia District's website now showcases available commercial space to fit any need, from retail to medical and industrial. Featuring existing buildings and up-and-coming construction, our business-friendly community is ready to welcome you.

If you have available commercial space you would like us to features on this page, please reach out to Qi Guo.

Not a complete listing. Retail leases submitted to King of Prussia District for Q2 2024 as of 7/25/24. All other sales and leasing info from CoStar.

King of Prussia District is a 501(c)3 that accelerates economic growth by making King of Prussia vibrant, attractive and prosperous. This mission and our core values –progressive, determined and fun – drive the work that we do every day across five programs. 

Learn more at visitKOP.com

DISCLAIMER

All information obtained using CoStar Analytics and field checked for accuracy by King of Prussia District. Vacancy rates are calculated using existing, non-owner occupied commercial buildings in Upper Merion Township only, over 10,000 SF, Class A, B, and C plus retail, industrial and flex. King of Prussia District uses "Direct % Vacant Available" in its vacancy reporting. All industrial and flex statistics are NNN.

234 Mall Boulevard, Suite 150, King of Prussia PA 19406 

484.681.9452 | Info@kopbid.com

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