With each passing day of 2025, the storylines in commercial real estate continue to develop. From national policy to local market dynamics, we are monitoring the landscape for opportunities and risks. This month, we will focus on the Philadelphia suburban market. Sparked by high caliber institutional investment and continued strong tenant demand, select markets have been a safe haven for investors seeking stability and upside.

With our focus on multifamily and mixed use investment sales, we are encouraged to see multifamily rents consistently achieving $3 to $4 per square foot, creating investment opportunities that overcome high construction costs and soft leasing that are afflicting other geographies.

No area exemplifies these trends more than the area surrounding Suburban Square, one of the the premiere retail and transit oriented hubs in the region. Today we will dive deeper into the state of this dynamic Live-Work-Play hub as an example of the potential for suburban neighborhoods across the region.

Suburban Square & Ardmore: A Future-Forward Renaissance

Suburban Square and the greater Ardmore area continue to captivate commercial real estate observers, blending historic character with modern redevelopment. As local vacancy rates remain competitive and rent growth trends upward, these evolving projects offer prime opportunities for investors looking to tap into the Main Line’s robust suburban market.

A Strategic Intersection of Heritage and Innovation

Suburban Square remains a centerpiece of Ardmore, benefiting from convenient access to the Ardmore SEPTA station, a walkable environment, and a variety of local amenities. This presents an optimal example of the type of suburban Live Work Play dynamic that is driving demand in our region. Recent and upcoming developments in the area emphasize the gravitation toward:

• Transit-Oriented Projects: Leveraging Ardmore’s excellent rail connectivity to attract residents and shoppers
• Adaptive Reuse & Mixed-Use Conversions: Breathing new life into historic architecture, creating modern lofts, co-working spaces, and ground-floor retail
• Office Upgrades & Corporate Campus Projects: Turning legacy offices into flexible, amenity-rich workspaces; establishing new campus-style sites that appeal to innovative tech and professional service tenants
• Upscale Residential Builds: Offering amenity-laden projects such as One Ardmore, designed for discerning urban-suburban dwellers
• Healthcare Expansion: The Ardmore Medical Center Outpatient Expansion is set to improve access to medical services and stimulate ancillary commercial development

We have been closely monitoring these trends and engaging with local stakeholders to understand how these initiatives will shape Ardmore’s commercial real estate landscape and what it means for the region.

By the Numbers: Local Market Insights

To better illustrate Ardmore’s growing appeal, here are a few key metrics that mirror other sought after suburbs and shape investor interest:

• Multifamily Vacancy: Ardmore’s multifamily vacancy rate hovers around 4–5%, outpacing the Greater Philadelphia average of 6-8%. This tight vacancy reflects sustained demand for quality rentals near transit.
• Rent Growth: Upscale properties throughout the Main Line, including Ardmore, have posted year-over-year rent increases in the mid-single-digit range and achievement of rents that justify increasing costs of construction.
• Office Market: While select suburban corridors face rising vacancies, Ardmore’s emphasis on modernized office spaces and local amenities has helped maintain comparatively stable occupancy rates.

In comparison, nearby towns like Bryn Mawr and Wayne also perform well and have their own commercial hubs driving demand for housing. The right combination of upscale shopping, proximity to Philadelphia, and historically significant architecture seem to insulate these towns from the economic challenges facing many other markets.

Development Headlines

1. Anchor Commercial Developments like Suburban Square
   • Recent Activity: Mixed-use hub undergoing multi-phase upgrades.
   • Advantage: Steps from the SEPTA station, driving foot traffic and tenant demand.
2. Downtown Ardmore Adaptive Reuse
   • Recent Activity: Conversion of historic structures into lofts, co-working, and ground-floor retail.
   • Advantage: Lifestyle-driven rentals and creative office suites can increase occupancy and command premium rents
3. High End, Amenity Loaded Residences
   • Recent Activity: Upscale developments like One Ardmore and Cricket Flats.
   • Advantage: Combining high end finishes and amenities with strong locations are achieving rent levels that can drive returns with today’s construction costs.
4. Ardmore Corporate Campuses
   • Recent Activity: New corporate campus with green infrastructure.
   • Advantage: Large-scale facilities capable of attracting major corporate tenants.
5. Ardmore Medical Center Outpatient Expansion
   • Recent Activity: Modern outpatient facilities with supportive commercial uses.
   • Long-Term Outlook: Healthcare foot traffic boosts adjacent retail and food service demand.

Key Investor Takeaways

Resilience from continued high tenant demand and low vacancy, top regional rent rates, adaptive reuse opportunities across asset classes, Live-Work-Play lifestyle and future-proof proximity of markets like this are attracting new levels of investor attention for good reason. The flagship developments mentioned above pave the way for smaller and value add centric projects to benefit from the momentum and contribute to the bright future of the Philadelphia suburbs.

Seizing the Opportunity

While rising construction costs and municipal permitting can introduce challenges, Ardmore’s demographic strength and ongoing infrastructure improvements mitigate many typical development risks. The consistent appeal of Suburban Square—paired with thoughtful, high-quality projects—underpins the potential for sustained returns in both the commercial and multifamily sectors. We, as a commercial real estate brokerage and advisory team, remain confident in the trajectory of Ardmore and other suburbs like it. Our local relationships and long-standing experience across Philadelphia’s suburban markets enable us to guide investors through feasibility studies, acquisition strategies, and asset repositioning. For deeper insights into these projects or to discuss tailored investment strategies, please contact our team or visit our project briefs for comprehensive market data and feasibility analyses. We look forward to helping you navigate our region’s bright future in commercial real estate.

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