Philadelphia’s Center City growth: New housing, retail, and office spaces in 2025

Center City Philadelphia continues its rapid transformation with 66 major development projects either completed, under construction, or in planning, according to the newly released 2025 Center City Real Estate Development Report. Spanning from Girard Avenue to Tasker Street, river to river, these projects highlight the city’s shift toward a dynamic, mixed-use downtown.

"The scale and diversity of development activity we're seeing demonstrate Center City's successful evolution into a truly mixed-use downtown ecosystem," said Prema Katari Gupta, President and CEO of the Center City District (CCD). "With 20 projects completed in 2024 and 33 more under construction, the transformation of our downtown continues at a remarkable pace."

Residential development remains a driving force in Center City’s growth, with 43 of the 53 completed or under-construction projects featuring residential components. More than 3,000 new residential units were completed in 2024, with an additional 4,000 currently under construction and another 2,000 in the proposal stage. This surge in housing supports Center City’s position as the fourth-largest residential downtown in the U.S., with a 20% population increase over the last decade.

    Jefferson Health has completed the Honickman Center, which will consolidate various clinical care units in one facility. The 19-story building includes examination rooms, operating rooms, imaging and lab services, a pharmacy, and underground parking. The project is part of Phase 3 of the multi-block East Market development.
   The commercial landscape is expanding alongside the residential boom. More than 805,000 square feet of new office and commercial space are being added, while retail development is thriving with 522,097 square feet of new retail space under construction. High-profile mixed-use projects continue to attract national retailers and restaurants, reinforcing Center City as a premier business and shopping destination.

Market East is undergoing a major transformation following two significant developments. Macy’s departure from the historic Wanamaker Building has led to a mixed-use redevelopment strategy, repurposing the space for retail, services, and entertainment. Meanwhile, the shelving of the proposed 76 Place arena has opened the door for new revitalization efforts along the corridor. Harris Blitzer Sports & Entertainment and Comcast Spectacor have announced plans to invest in Market East’s renewal, positioning it as a more vibrant, pedestrian-friendly district.

Philadelphia remains a national leader in office-to-residential conversions, having transformed over 9 million square feet of office space in the past 25 years. Notable conversions, such as 1701 Market Street, The Bellevue, and The Bourse, continue to repurpose underutilized commercial properties into thriving residential and mixed-use spaces.

The city’s arts and culture scene is evolving with both exciting additions and notable challenges. Calder Gardens on the Parkway and Philadelphia Ballet’s new home on North Broad Street are enhancing the cultural landscape. At the same time, the Pennsylvania Academy of the Fine Arts’ decision to end its degree programs and the closure of the University of the Arts have raised concerns about the future of arts education in the city.

   Designed by Herzog & de Meuron, the proposed Calder Gardens will showcase the art and ideas of Alexander Calder. Featuring galleries illuminated by natural light, including a landscape of native and flowering species, Calder Gardens will present a rotating selection of masterworks from the Calder Foundation, New York, including mobiles, stabiles, monumental sculptures, and paintings.
  

Retail and dining are also experiencing significant growth, with new mixed-use developments drawing premier national brands. Equinox Gym is opening its first Philadelphia location at The Laurel, while Schulson Collective is introducing a new dining concept. Acclaimed Austin-based restaurant Uchi is set to open at The Josephine, and supermarket chains like Giant, Aldi, Lidl, and Sprouts are expanding their presence to meet the demands of the growing residential population.

With unparalleled transit accessibility and flexible zoning, Center City’s momentum shows no signs of slowing. Gupta emphasized that Market East represents one of the city’s most significant opportunities for future development, highlighting its potential as Center City’s most dynamic mixed-use district.

"The coming transformation of Market East from City Hall to Independence Hall represents one of the most significant opportunities for Philadelphia's continued growth," Gupta said.

For a comprehensive breakdown of current projects and future plans, the full 42-page report and interactive map are available at centercityphila.org/developments.