by PIDC
May 20, 2025
Categories: Business Tips & Resources,
Acquiring commercial real estate in Philadelphia can be a powerful way to grow your business and build long-term wealth. Whether you’re planning to purchase the space your business already operates out of or you’re considering moving to a new neighborhood, owning your property puts you in control. And as one of the hottest real estate markets in the country, demand is only expected to rise.
At PIDC, we’re here to help you access the capital, guidance, and resources you need to make smart real estate decisions and invest in your business’s future.
Define Your Business Needs and Goals
Before purchasing commercial real estate, first you need to take a step back and clearly define what your business needs—both now and in the future. Are you looking for a storefront with high foot traffic? Office space that allows for team growth? Or maybe a warehouse to support expanded operations? Think about how the space will support your day-to-day workflow, customer experience, and potential for expansion.
You also need to consider your long-term goals: Is this a strategic investment to build equity? Are you trying to create a permanent home for your brand in a particular neighborhood? Defining your goals early helps ensure the property you choose aligns with your vision, supports your business needs, and sets you up for success in Philadelphia’s dynamic market.
Get to Know Philadelphia’s Real Estate Market
Getting familiar with Philadelphia’s commercial real estate market is an essential step for any small business looking to set down roots. Whether you’re searching for a storefront in a family-oriented neighborhood, office space with room to expand, or a warehouse in an industrial zone, Philly has a wide range of options to fit different needs and budgets. Here are just a few of the business districts the city has to offer:
Center City
Center City is the heart of Philadelphia’s business, retail, and cultural life, and the epicenter of the region’s jobs. With a dense mix of office space, storefronts, restaurants, and long-standing institutions, it’s a versatile district great for businesses seeking high foot traffic and visibility. It’s one of the more expensive areas in the city, but also a great opportunity to connect with locals, commuters, and tourists. PHOTO CAPTION: YOWIE HOTEL & SHOP OCCUPIES NEARLY 10,000 SQ FT IN THE CENTER CITY AREA ON SOUTH STREET.
University City
Home to major institutions like the University of Pennsylvania and Drexel University, University City is a growing hub for education, healthcare, tech, and life sciences. It’s a great choice for businesses looking to tap into academic and research talent and benefit from foot traffic generated by students and professionals. PHOTO CAPTION: SLA-MS IS 2-STORY 90,000 SQ FT SCHOOL BUILDING IN THE POWELTON SECTION OF UNIVERSITY CITY.
The Navy Yard
The Navy Yard, managed and developed by PIDC, has been transformed from a decommissioned naval base into a thriving business campus—with millions in new, mixed-use square feet being developed in the coming years. With a mix of modern office spaces, labs, and industrial facilities, it’s a great option for businesses large and small. Its open space, waterfront views, and planned development make it an appealing option for businesses that want room to grow in a dynamic environment. PHOTO CAPTION: URBN IS ONE OF MANY COMPANIES THAT HAS MADE THE NAVY YARD A HOME FOR THEIR HEADQUARTERS.
Fishtown & Northern Liberties
Creative, youthful, and quickly evolving, these neighborhoods are popular with startups, artists, and hospitality entrepreneurs. With former warehouses converted into offices, studios, and event spaces, this district blends industrial charm with modern energy. PHOTO CAPTION: WEXLER GALLERY ACQUIRED & RENOVATED A 9,040 SQ FT COMMERCIAL PROPERTY LOCATED IN THE FISHTOWN NEIGHBORHOOD.
West & Southwest Philadelphia
These areas offer increasing opportunities for commercial real estate investment, especially for industrial, light manufacturing, and distribution businesses. Affordable space, accessibility to major roadways, and ongoing public and private investment make these areas ripe for growth. PHOTO CAPTION: ACANA RECENTLY BROKE GROUND ON A 37,00 SQ FT LOCATION FOR THE AFRICA CENTER.
North & Northwest Philadelphia
This district is experiencing gradual revitalization and is ideal for businesses seeking affordable space and long-term investment opportunities. With new developments and improved infrastructure, North Philly is drawing interest from entrepreneurs committed to the community. PHOTO CAPTION: EATIBLE DELIGHTS IS LOCATED IN THE CEDARBROOK NEIGHBORHOOD OF NORTHWEST PHILADELPHIA.
Chestnut Hill & Manayunk
With historic charm, steady foot traffic, and strong neighborhood identities, these Northwest Philadelphia districts are ideal for small businesses. Chestnut Hill offers a well-established retail corridor along Germantown Avenue, while Manayunk features walkable storefronts, creative workspaces, and a lively commercial scene along Main Street. PHOTO CAPTION: KUTEST KIDS RELOCATED TO 8,800 SF OF NEWLY RENOVATED OFFICE & COMMERCIAL SPACE ON RIDGE AVE.
Northeast Philadelphia
If you’re looking for room to grow, Northeast Philadelphia may be a great fit. With industrial properties and larger parcels, the area is ideal for manufacturers, wholesalers, and businesses that need significant physical space. It’s also home to a vibrant and growing community of immigrants, making it one of the city’s most dynamic commercial corridors. PHOTO CAPTION: AL SALAM GRILL OPERATES FROM A ONE-STORY COMMERCIAL PROPERTY IN NORTHEAST PHILADELPHIA.
Historic Districts & Commercial Corridors
Neighborhoods like Germantown, Mount Airy, East Passyunk, and 52nd Street in West Philly boast strong community ties and vibrant commercial corridors. These areas are great for small businesses looking to be part of walkable, neighborhood-focused retail districts. PHOTO CAPTION: CUSTOM ARTS STUDIO ACQUIRED & RENOVATED A 2,423 SQ FT COMMERCIAL PROPERTY IN GERMANTOWN.
Secure Financing
Investing in commercial real estate can be a powerful strategy to grow your business and build long-term wealth. Owning your own property allows you to build equity over time, reduce dependency on landlords, and gain more control over your operating environment.
But before diving in, Carmel Deane, Senior Loan Officer at PIDC, says it’s important to consider all the moving parts. “What’s the asking price, and do you have the down payment available? Will the mortgage and operating expenses (like taxes, utilities, and insurance) be manageable compared to your current lease? If the property has extra units, can you rent them out to help cover costs? These are things you need to think about when looking at acquiring commercial real estate.”
There are a variety of financing options designed specifically to support small businesses and nonprofits looking to buy real estate. Look at many options and make sure to review the fine print. And be sure to keep a lookout for predatory lending practices.
“PIDC’s Commercial Mortgage Loan could be a great fit for business owners looking to acquire commercial real estate in Philadelphia,” said Deane. “It offers loans up to $1 million, with interest rates typically between 7–7.5%, and flexible terms. You’ll need at least 10% equity in the total project cost, and PIDC can also finance renovations or construction as part of your loan package. Plus, we’ll handle ordering necessary appraisals and environmental reports.”
Plan for the Future
Purchasing commercial property is a big step, but for many business owners, it can be a smart investment. From choosing the right neighborhood to understanding your financing options and planning for long-term growth, the process requires thoughtful preparation and a clear vision for your business’s future.
Philadelphia offers a wide range of real estate opportunities, whether you’re looking for a vibrant retail corridor, a flexible warehouse space, or a permanent home in a historic community. By defining your goals, finding the right neighborhood, and tapping into local resources like PIDC, you’ll be well-positioned to make a confident and informed decision.
Make Your Move with Confidence
PIDC offers flexible commercial real estate financing solutions tailored to the needs of Philadelphia’s businesses, nonprofits, and real estate developers.