Half-Empty Offices Strain Philadelphia Tower Loans
Owners and neighbors of One South Broad and Great Valley should watch for new tenants, sales, or conversions that change local foot traffic.
Updated on Nov. 4, 2026 in Commercial
Two large office tenants have left Pennsylvania properties, leaving One South Broad in Philadelphia 46% occupied and Great Valley Commerce Center in Malvern about 42% occupied. Inizio vacated 43,500 square feet at One South Broad when its lease expired at the end of July, and DaVita vacated 153,700 square feet at Great Valley before its lease ended in January.
Why it matters
Large vacancies reduce the income that supports a building's loan, which is why One South Broad's debt has been in special servicing since September 2022 and why its owner is now in bankruptcy proceedings. For Philadelphia households, sustained office emptiness in the Center City core can shape nearby retail, transit use and the commercial tax base that funds city services.
Inizio vacated 43,500 square feet at One South Broad, nearly 9% of the building's gross leasable area, which now sits 46% occupied. DaVita vacated 153,700 square feet at Great Valley Commerce Center, over 43% of its leasable area, leaving it roughly 42% occupied.
The players
Inizio
Life sciences services firm that vacated its 43,500 SF lease at One South Broad in Philadelphia when its lease expired in July 2025.
DaVita
Kidney care provider that vacated 153,700 SF at Great Valley Commerce Center in Malvern before its lease expired in January.
Rialto
Commercial real estate firm that initiated bankruptcy proceedings on One South Broad in fall 2025 and is now seeking a broker to market the property.
JPMorgan Chase
Major national bank that originated the $46.5M One South Broad loan in 2012.
Aion
Party that consented to Rialto's bankruptcy proceedings on One South Broad.
The details
One South Broad's loan has been in special servicing since September 2022, and the borrower secured an extension that expired in fall 2025, after which Rialto started bankruptcy proceedings that Aion consented to. The $46.5M loan JPMorgan Chase originated in 2012 now has $34.8M outstanding. At Great Valley, the $21.5M KeyBank loan has been paid down to $17.8M, and it is set to mature in August 2027 after DaVita's exit left the property largely empty.
Timeline
September 2022: One South Broad loan entered special servicing.
End of July 2025: Inizio's lease expired at One South Broad.
Fall 2025: One South Broad extension expired and bankruptcy proceedings began.
End of January 2026: DaVita's lease at Great Valley Commerce Center was set to expire.
August 2027: Great Valley Commerce Center loan is set to mature.
The Home Front
Office vacancies of this size fit a wider pattern in which loans on large commercial towers enter special servicing once anchor leases expire without replacement. For Philadelphia, the One South Broad case is one of several Center City office properties now testing how much demand remains for older large-format space as tenants reconsider their footprints.
If you own a home near Center City or rent in an office-heavy neighborhood, watch whether the vacated space at One South Broad leads to new retail or residential conversions, since that affects foot traffic and nearby property values. If you run a small business in the area, check your lease terms and local commercial demand before renewing, and consult a licensed commercial real estate broker or attorney on any lease decision.
The takeaway
Two large office vacancies show how a single anchor tenant's departure can ripple through a building's finances and its loan. Anyone tracking Philadelphia's commercial market should watch who signs the next lease at One South Broad.
Further reading
For broader context on how property sales and leasing shape the market, see Commercial real estate coverage in Philadelphia.
Source note: This article includes information reported by Bisnow.
