King of Prussia is approaching its highest commercial/industrial/retail occupancy since 2010. 

In the most recent quarter, available vacant Class A office space (4.5M SF) dropped to 10.0% and now sits at one of the lowest vacancy rates since 2010, when King of Prussia District first began tracking this information. So far, King of Prussia appears to be an extremely desirable post-pandemic location for office tenants renewing leases or seeking to relocate.

Class B office space (2.1M SF) dropped by more than 4 points since last quarter, to 11.5%. This represents a drop of nearly 10 points since 2013. Class C office space (283K SF) remained the same at 7.6% since the last quarter, also representing a 10 point drop since Q2 2013.

When all office classes are combined, the available vacancy rate in Q2 2023 dropped over a point to 10.3%. This represents a 6.5-point decrease compared to the 16.8% of available space in Q2 2013.

Industrial (6.5M SF) remains relatively hot with a 2.7% vacancy rate in Q2 2023. Flex space (4.2M SF) vacancy ticked up slightly to 3.6%.

Commercial retail space (6.3M SF) also remains incredibly desirable in King of Prussia with CoStar reporting a 3.2% vacancy rate over 191 properties. 

Eric T. Goldstein

President & CEO

King of Prussia District

Highlight

KOP Weekday Employee Visits Nearing Pre-pandemic Levels, While Weekends Exceed

As we continue to monitor King of Prussia’s recovery from the COVID-19 pandemic, one of the most revealing data points are employee trips into the district. A recent review of data from Placer.ai indicates that weekday employee trips show a significant return to the office compared to 2019, while weekend visits by employees now exceed pre-pandemic levels.

According to King of Prussia District’s analysis of Placer.ai mobile phone data, Monday and Friday employee visits climbed steadily over the last 3 years and are now at 80% and 78% of 2019 levels, respectively. Mid-week visits are slightly stronger, with Tuesday at 85% of pre-pandemic numbers, Wednesday at 83% and Thursday at 81%.

Saturday and Sunday visits in 2023 are 8% and 15% higher, respectively, than 2019 numbers for the same 6-month period. The strong weekend showing is likely a reflection of the continually growing retail, hospitality, entertainment and dining scene in King of Prussia.

King of Prussia wireless vehicle charging company raises $19M, brings on new executives

Spark Therapeutics Signs 63K SF Lease At King Of Prussia's Discovery Labs

UGI Corp. moving King of Prussia headquarters as flight to quality continues

Featured Company

Medical Co-Working Space Opens in King of Prussia

MedCoShare joins KOP’s thriving healthcare community with its 3^rd location.



In 2018, Ronak Vyas, CEO of MedCoShare, and his fellow co-founders, Greg Goldmacher, Anthony Khan and Amit Mundade, set out to tackle the three biggest problems that they believe doctors experience when starting a private practice: The cost and commitment of buying or leasing a building; the expense of hiring full-time staff; and marketing. Two years later, driven to lower barriers for doctors and patients and inspired by the tech co-working trend, the team opened MedCoShare, a medical co-working space, in Philadelphia. Their second space opened in 2021 in New Jersey and in June 2022, MedCoShare joined KOP’s already robust medical community, opening their third location at 170 N. Henderson Road.

MedCoShare King of Prussia boasts 3,400 square feet of turnkey medical space that was built with flexibility and convenience in mind. Medical professionals can opt to lease month-to-month or longer, and all exam rooms include sinks and basic medical equipment, including exam tables. With MedCoShare, doctors can also access additional services like marketing and billing support and medical assistants.

With their sights set on going national, the MedCoShare team had their eyes on King of Prussia for a number of years. “My background is in commercial real estate, so I’ve been following the growth of KOP over the years and watching all the great things happening in the district,” Vyas told us in his KOP Insiders interview. “The reason we wanted to open a location in KOP was not only because other companies and new people moving to the area but because we wanted to become a part of the growth and success story of this region.”

170 N. Henderson Rd. # 310, King of Prussia, PA 19406 | medcoshare.com

Not a complete listing. Retail leases submitted to King of Prussia District for Q2 2023 as of 7/18/23. All other sales and leasing info from CoStar.

King of Prussia District is a 501(c)(3), not-for-profit, business improvement district that engages public and private partners to collaboratively improve the economic environment in King of Prussia by making it more 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 

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