Center City still moving forward with new residential, creative development, report claims

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A new report offers some positive news on development in Philadelphia’s Center City District.

The 2026 Center City Real Estate Development Report shows more than $2.14 billion in major developments completed or under construction, including more than a half-million square feet of commercial real estate and more than 8,000 rental units either completed or in the pipeline.

The report highlights five key trends:

• Major construction projects are restarting after a lag in progress.
• Transformative public investments are reshaping the Center City landscape.
• Market East is poised for change with public-private partnerships.
• West Market is evolving into a vibrant mixed-use neighborhood.
• The Avenue of the Arts is rebounding with a creative reinvention after some major setbacks.

The report says that following a construction boom and subsequent slowdown tied to Philadelphia’s original tax abatement program, the city’s development pipeline is gaining momentum in 2026. Major projects are proceeding with financing in place, including Harper Square in Rittenhouse, set to become the city’s tallest rental building, and the Piazza Alta expansion in Northern Liberties.

Center City District officials say that, combined with strengthening apartment absorption across greater Center City, this signals healthy demand for high-quality residential development.

Clint Randall, vice president of economic development at Center City District, said more apartments are coming into Center City because of continuing demand.

“The multifamily rental apartment market is definitely what’s driving the majority of activity, and that’s been true for years, but I think what has surprised people is that they thought that there would be a limit to how many high-end apartments could be absorbed in Philadelphia, and we continue to see these units come online, and we continue to see them get leased,” he said.

The report cites a little more than 900 residential units actively in construction right now and another 1,400 teed up for construction in the near future.

The Avenue of the Arts is also in the development spotlight, according to the report, following the University of the Arts’ abrupt closure. Developers have plans to transform former campus buildings into new centers of creativity and commerce. Highlights include Temple University’s Center City campus at Terra Hall, Scout’s ambitious Village of Industry and Art at Hamilton and Furness halls, and the Bellevue’s evolution into luxury living complemented by high-end retail including Mr. Edison’s restaurant and the Bathhouse spa concept.

Randall said that doesn’t mean all commercial activity has ceased.

“And I think it’s a really big deal for Center City to see Chubb recommit to the Philadelphia market and to establish its headquarters in a new high rise on the Center City side of the Schuylkill River,” he said, referring to the insurance agency situated on Walnut Street.

Market East is also showing some signs of life, with 622 apartments planned for a redo of the Wanamaker Building, which closed its doors with the departure of Macy’s.

Demolition is also underway further up Market Street, as Harris Blitzer Sports Entertainment, in partnership with Comcast, has ownership of two major parcels — one on the 900 block and another on the 1000 block. Those are expected to be transformed from the older buildings that previously housed a collection of electronics and clothing retailers.

And there is still the issue of the Fashion District, which has struggled ever since the Sixers were planning to take over the space for their new arena. That project fell through, but team ownership has offered assistance to help revitalize the area.

Children’s Hospital of Philadelphia is also continuing to build on its University City campus.