University City in Philadelphia recognized as a leading area in the U.S. for growth in life sciences real estate.
In recent years, Philadelphia’s University City has emerged as a significant player in the life sciences real estate sector, showcasing remarkable growth in this specialized field. Over the past decade, the area has successfully added approximately 1.09 million square feet of life sciences space, positioning it as the ninth largest market for this type of real estate in the United States, as per a recent report by CommercialEdge, a comprehensive commercial real estate leasing platform.
The report highlighted that University City ranks prominently among notable regions—such as Boston, Seattle, and San Francisco—that are experiencing expansion in life sciences properties. Currently, there is another 1.02 million square feet of life sciences space under construction in University City, placing it seventh nationally in terms of new projects in the development pipeline. Notable competitors include areas in Boston, San Diego, San Francisco, and Houston, where construction efforts are significantly advanced.
Cambridge, Massachusetts, leads the country’s life sciences development with 2.13 million square feet underway, more than double the square footage being developed in Philadelphia. Overall, the report evaluated life sciences real estate projects exceeding 25,000 square feet that were completed between January 2015 and December 2024, while classifying projects anticipated for completion in 2025 as under construction.
As of September 2024, University City’s life sciences office vacancy rate stands at 16%, a relatively healthy statistic when compared with other leading life sciences markets. For instance, Cambridge has an 18% vacancy rate, while South San Francisco’s rate is notably higher, at 27%.
Recent developments are enhancing University City’s status as a hub for life sciences enterprises. A prime example is the 12-story building located at 3151 Market Street, which offers 417,000 rentable square feet and was completed in October 2024. Another significant project is the new life sciences facility at 3201 Cuthbert Street, set to span 11 stories and nearly 520,000 square feet, with completion targeted for fall 2024.
This ongoing investment in life sciences infrastructure is partly supported by initiatives from local institutions such as Drexel University and real estate developers like Brandywine Realty Trust. This collaboration is enhancing the city’s reputation as an emerging global destination for life sciences, with officials emphasizing the potential for job creation and economic growth as these projects come to fruition.
As Philadelphia continues to cultivate its life sciences ecosystem, observers anticipate that these developments will not only bolster the city’s real estate market but also contribute meaningfully to its broader economic landscape.
