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King of Prussia’s commercial market continued its momentum in the second quarter of 2025, with notable changes across several sectors. This quarter, we adjusted the life sciences category to include all property types related to life science uses, not just R&D spaces. This expanded definition now covers office, industrial and flex properties occupied by life sciences companies. As a result, vacancy and inventory figures for life sciences and other categories shifted slightly.
Class A office vacancy rose to 12.8%, ending a seven-quarter streak below 10%, while total inventory held steady at 4.4M SF across 45 properties. Class B vacancy increased to 14.3% and Class C rose to 12%. Overall, the combined office vacancy rate for spaces over 10K SF increased to 13.3%. The total office vacancy rate, which includes owner-occupied spaces but excludes properties under 2K SF, increased to 11.8%, encompassing 8M SF across 171 properties.
The industrial sector remained strong, with vacancy rising slightly to 3.7% across 7.6M SF. Flex vacancy increased to 12.8% across 2M SF, reflecting consistent demand for spaces that blend office, light industrial and showroom functions. Retail continued to perform well with a stable vacancy rate of 2.3%, supported by a diverse mix of shopping, dining and entertainment options.
The medical sector experienced an increase in vacancy to 19.7% across 495K SF. Life sciences, under the new broader definition, recorded a vacancy rate of 7.7% across 2.3M SF. With 2.8M SF total, the King of Prussia/Valley Forge submarket continues to lead as a premier hub for life sciences activity in the region.
King of Prussia’s commercial real estate market continues to attract investment and new opportunities, reinforcing its position as a top-performing submarket in the Philadelphia region.
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