This quarter, and moving forward, King of Prussia District will report commercial data by separating office and flex properties in Renaissance Park and Discovery Labs from the broader Upper Merion Township/King of Prussia (UMT/KOP) market. Renaissance Park is undergoing a significant transformation, shifting from traditional office and flex uses toward information technology infrastructure, with a number of proposed data centers replacing historically office and flex properties. This transition has artificially elevated vacancy rates across the overall UMT/KOP office and flex markets. Discovery Labs, while currently targeted for life sciences uses, may undergo a similar transformation in the future. Over the next 5-10 years, approximately 650K SF of office and flex space could be converted to data centers and other uses. As these vacancies are concentrated within Renaissance Park and Discovery Labs rather than distributed across the township, this reporting approach will best reflect underlying market conditions.

Across the UMT/KOP market excluding Renaissance Park and Discovery Labs, office fundamentals remain stable. Class A office vacancy stands at 11.4%, while Class B and Class C offices report vacancy rates of 14.1% and 13.1% respectively. Overall office vacancy is 13.5% for leasable space over 10K SF and 11.3% when including owner-occupied properties, reflecting a balanced and steady office market.

Industrial properties continue to perform strongly with a low vacancy rate of 3.5%, indicating sustained demand. Flex spaces recorded a moderate vacancy rate of 7.5%, while the medical sector remains relatively tight at 10.1%. Life sciences vacancy increased to 23.2% this quarter, in line with nationwide trends as new supply from the pandemic period continues to be delivered and leasing activity slows.

In the first quarter of 2026, UMT/KOP continued to see strong visitation. Out-of-market visitors reached 3.7M, a 7.7% increase year-over-year, reinforcing UMT/KOP's position as a leading regional destination and supporting overall commercial activity.



Overall, as 2026 begins, stable fundamentals and adjusted reporting highlight a resilient and active UMT/KOP commercial market.

Qi Guo

Manager of Research & Data Analytics

King of Prussia District

Commercial Properties in UMT/KOP

Excluding Renaissance Park & Discovery Labs

Commercial Properties

in Renaissance Park & Discovery Labs

Featured Business

Rivian Arrives in King of Prussia

UMT/KOP is becoming a regional hub for electric vehicle retail and service. Following the arrival of leading brands including Tesla, Porsche Studio, Lucid and Polestar, Rivian has joined the market at King of Prussia Mall. This growing cluster reflects strong consumer demand and the area’s ability to support showroom, delivery and service operations in one location.

Located on the lower level of the Plaza near Eataly, Rivian introduces a modern, low-pressure showroom designed for exploration and education. Visitors can engage with the brand, learn about electric driving and experience its vehicles up close in a more flexible, customer-focused environment.

Founded in 2009, Rivian is known for its all-electric R1T pickup and R1S SUV, with the more accessible R2 set to expand its lineup. Its arrival further strengthens UMT/KOP’s EV ecosystem, supported by more than 100 public charging ports and continued investment in mobility infrastructure.

rivian.com

160 N Gulph Rd.

135-year-old Cunningham Piano Co. selling Philadelphia HQ, moving to King of Prussia

King of Prussia launches monthlong fundraiser to support CHOP

Event Review

Takeaways from King of Prussia District's Q1 2026 Commercial Properties Webinar

On April 21st, King of Prussia District hosted our third commercial webinar, offering a preview of findings from the Q1 2026 Commercial Property Quarterly and a closer look at the housing market in our community.

We were joined by industry experts Lea Anne Welsh, COO of Korman Communities and President of AVE, who shared insights on the UMT/KOP rental housing market and Melanie Mickie, Vice President of Sales at Toll Brothers, who provided perspective on the for-sale housing market in this region.

Both speakers highlighted the continued strength of UMT/KOP’s housing market, supported by its central location, strong employment base and vibrant live-work-play community. Lea Anne Welsh highlighted the strength of UMT/KOP’s rental market, noting its competitive position compared to other submarkets, with communities like The Village at Valley Forge achieving rent premiums. She also mentioned AVE’s early entry into the market and the factors behind its success. Looking ahead, she noted a continued shift toward larger floor plans in the rental market.

From the for-sale housing market perspective, Melanie Mickie emphasized Toll Brothers’ investment in the area, delivering more than 625 luxury residences across communities including the Brownstones at The Village at Valley Forge, 575 South, Overlook at Town Center and Stonebrook at Upper Merion. UMT/KOP continues to attract a wide range of homebuyers, including first time homeowners, downsizers and those relocating to the region.

Check out the full recording below!

Not a complete listing. All 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.

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