Inizio Vacates One South Broad Office Space
The Philadelphia tower's occupancy has fallen to 46% as its loan remains in special servicing.
Updated on Nov. 4, 2026 in Commercial
Inizio vacated its 43,500 square feet at One South Broad when its lease expired at the end of July. DaVita also vacated its 153,700 square feet at Great Valley Commerce Center before its lease expired at the end of January.
Why it matters
The departures leave two large commercial properties significantly underused, with One South Broad now 46% occupied and Great Valley about 42% occupied. The One South Broad loan has been in special servicing since September 2022 and is now in bankruptcy proceedings, which could affect how the property is managed and sold.
Inizio's lease covered 43,500 SF, nearly 9% of One South Broad's gross leasable area, and DaVita's 153,700 SF made up more than 43% of Great Valley Commerce Center's gross leasable area. The One South Broad loan owes $34.8M against an original $46.5M from 2012, while the Great Valley loan stands at $17.8M, and the source does not indicate replacement tenants for either property.
The players
Inizio
Inizio is a life sciences services company that was the tenant occupying 43,500 square feet at One South Broad in Philadelphia.
DaVita
DaVita is a national kidney care provider that vacated 153,700 square feet at Great Valley Commerce Center in Malvern.
Rialto
Rialto is a commercial real estate investment firm that initiated bankruptcy proceedings on the One South Broad property and is now seeking a broker to sell it.
Aion
Aion is the party that consented to Rialto's bankruptcy proceedings on the One South Broad property.
The details
Inizio's lease at One South Broad expired at the end of July, leaving the building 46% occupied. Rialto has initiated bankruptcy proceedings on the One South Broad loan, which Aion consented to, and is now seeking a broker to market the property.
Timeline
- September 2022: The One South Broad loan entered special servicing.
- End of July 2025: Inizio's lease expired at One South Broad.
- Fall 2025: The One South Broad loan extension expired and bankruptcy proceedings began.
- End of January 2026: DaVita's lease at Great Valley Commerce Center was set to expire.
- August 2027: The Great Valley Commerce Center loan is set to mature.
Market Landscape
The departures at One South Broad and Great Valley fit a broader pattern of large office tenants downsizing or leaving, which has pushed many commercial properties into special servicing and bankruptcy. Both properties now compete against a crowded market of underused office space in their respective submarkets.
For office tenants and brokers in the Philadelphia area, the two vacancies show that large blocks of space are available, which can create negotiating leverage for companies seeking to lease. Property owners and lenders facing similar occupancy declines may need to reconsider renewal and refinancing options.
The takeaway
Large single-tenant departures can quickly push a commercial property's occupancy and loan terms into distress, so tracking lease expiration dates is important for anyone with exposure to office real estate. Monitoring the One South Broad bankruptcy and Great Valley's 2027 maturity will show how these properties are resolved.
What happens next
The Great Valley Commerce Center loan is set to mature in August 2027, and Rialto's broker search for One South Broad is ongoing.
Further reading
For more on the local office market, see Commercial real estate coverage for Philadelphia.
Source note: This article includes information reported by Bisnow.
