In the heart of University City, a 200,000-square-foot lot on Market Street stands ready for its next chapter—only waiting for the right economic circumstances to unfold.
The site, located at 3838 Market St., is earmarked for a significant life sciences development, with plans that include a long-awaited grocery store on its ground floor.
However, the current economic climate has cast a shadow over such developments, as many developers struggle to secure necessary tenants and financing.
As a result, this shovel-ready project remains unoccupied, reflecting a broader trend of stagnation in dealmaking within Philadelphia’s biotechnology and life sciences sectors.
Pete Cramer, Wexford Science & Technology’s vice president of development, stated, “The project’s ready to go. We haven’t identified a tenant yet. The financing, the capital markets … there is money to be found.”
This project has been idle for over three years since it received the green light from Philadelphia’s civic design review committee, highlighting the difficulties faced by real estate developers in an evolving market.
Recent data from Philadelphia-based real estate agency Savills shows that life sciences-related venture capital deals in Philadelphia dwindled to merely 21 in the first four months of 2025, marking the lowest quarterly total in over a year despite a 25% increase in total capital invested year-over-year.
The life sciences sector is struggling with cash flow challenges, making it harder to attract investors, especially those who prefer less risky returns in an environment marked by high interest rates and federal policy uncertainty.
Cramer pointed out that there is a growing expectation for cell and gene therapy companies to produce reliable data from their research before investors feel compelled to make substantial financial commitments.
As developers grapple with these economic hurdles, community residents are left uncertain about the future of their neighborhoods.
The approval process for the 3838 Market St. facility was buoyed by community support from established organizations in the area, such as the West Powelton Saunders Park Registered Community Organization.
Pam Andrews, president of the organization, voiced concerns, stating, “I don’t believe anybody is going to turn a piece of dirt until Wexford secures an anchor tenant for the project.”
Cramer noted that developers usually prefer to lease more than 50% of a building before commencing construction, adding to the delays.
The community is particularly hopeful about the grocery store component of the development, recognizing a gap in the local market for organic options, such as a Sprouts or MOM’s Organic Market.
Current grocery options in University City include an ALDI, a Supremo, a Acme, a Grocery Outlet, a Mariposa Food Co-op, and a GIANT Heirloom Market, but community leaders like Andrews feel an organic market is still needed.
Reports indicate that while Wexford has received interest from several operators, neither Sprouts nor MOM’s has plans to expand their presence in Philadelphia at this time.
Construction of the new facility at 3838 Market St. is anticipated to take 22 months once an anchor tenant is secured, with the plan including two phases that involve creating a footprint that comprises five floors of parking, over 500,000 square feet designated for lab and office space, and 39,000 square feet for retail on the ground level.
Originally intended solely for life sciences, Cramer shared that the space is also being marketed for clinical uses, given its proximity to major healthcare facilities like the Penn Presbyterian Medical Center, which is currently under construction for a new proton therapy center.
The project’s future also rests on Wexford’s ability to attract a significant clinical office tenant, demonstrating flexibility that could mitigate the slowdowns in the current development landscape.
While the situation remains uncertain at 3838 Market St., Wexford has found some successes in other developments nearby, specifically at One uCity Square.
This property boasts a remarkable 96% occupancy of its lab and office spaces, hosting a variety of tenants including multiple University of Pennsylvania labs, Century Therapeutics, Inc., Integral Molecular, Exponent, Dispatch Bio, and Charles River Laboratories.
Retail components at One uCity Square are also gaining traction, with commitments to approximately one-third of the 12,000 square feet allocated for retail, and discussions underway for a potential restaurant on the property.
Meanwhile, the University City Science Center at 36th and Market streets will soon welcome a new Italian-inspired restaurant called Corio, which is currently awaiting necessary inspections before announcing its opening date.
Corio is spearheaded by industry professionals, including David Feola, a former executive chef at Ember & Ash, and former managers from Vernick Food & Drink.
While Wexford continues to invest in quality retail establishments in the area, community members like Debra McCarty have expressed a desire for greater business traffic at local venues, including the Black-owned brewery Two Locals that launched in 2024.
To further engage the community and enhance local business support, Wexford is expanding its uCity Square Perks program—a scheme that provides discounts for local businesses and free access to LUCY, the shuttle service funded by the University City District and SEPTA.
With collaborative efforts ongoing between Wexford and various community organizations, residents like Andrews express cautious optimism but remain vigilant about the economic realities facing development in University City.
As the community engages more with development plans, Andrews emphasizes the importance of timing and financial feasibility, cautioning against potentially detrimental projects that could lead to long-term vacancy issues.
“The community is left blighted — empty lots, empty lots, empty buildings,” she warned, underscoring the fragile balance between development and economic sustainability.
The future remains uncertain for the 3838 Market St. site, but the ongoing dialogue between developers and residents suggests a shared goal: a thriving University City that meets the needs of both its community and its economic landscape.
image source from：https://whyy.org/articles/philadelphia-life-sciences-buildings-delay-university-city/
