King of Prussia District Q2 2023 Report Shows Strong Post-Pandemic Recovery

KOP is approaching its highest occupancy of commercial office, industrial and retail space since 2010, while employee trips continue to rise to nearly or exceeding pre-pandemic levels.

King of Prussia, PA (July 27, 2023) – King of Prussia District’s Q2 2023 commercial report, released today, signals a strong post-pandemic recovery for Montgomery County’s economic engine. The report focused on occupancy of commercial office, industrial and retail space, as well as daily employee visits as key indicators of King of Prussia’s performance.

According to data from CoStar, King of Prussia is approaching its highest occupancy for commercial office, industrial and retail space since 2010. The District’s Q2 2023 report reveals that 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. Class B office space (2.1M SF) dropped to 11.5% vacancy, down nearly 10 points since Q2 2013. Class C office space (283K SF) remains at 7.6% since Q1 2023, also representing a 10-point drop since 2013. When all 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.

The demand for industrial space (6.5M SF) remains relatively high, 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. 

King of Prussia District’s report also reviewed data from Placer.ai’s mobile phone data, which 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. 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.

“Over these past few years, we’ve welcomed a number of new companies, restaurants and attractions to King of Prussia, and seen others expand their footprint here,” said Eric T. Goldstein, President and CEO of King of Prussia District. “This deep pipeline of development and leasing activity, along with these latest numbers, show that while we are still feeling the impacts of the pandemic, we are headed in the right direction.”

View King of Prussia District’s Q2 2023 Commercial Report here.

ABOUT KING OF PRUSSIA DISTRICT

King of Prussia District was founded through an Upper Merion Township Ordinance in 2010 as a not-for-profit, 501(c)3, business improvement district to serve as a catalyst for economic development and job growth. Within its 1,935-acre boundary, King of Prussia District partners with 431 commercial, industrial and multi-family property owners who collectively have over $2.3B in total assessed property value.

King of Prussia District’s mission is to engage 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 organization’s work across five programs: Land Use & Zoning; Marketing & Communications; Physical Improvements; Tax Policy; and Transportation.

More information is available at visitKOP.com | Facebook @KingofPrussiaDistrict | Instagram @visitKOP | LinkedIn @KingofPrussiaDistrict | Twitter @KOPBID