Q1 2024 Philadelphia Office Market Report

Ranked as the ninth-largest office market in the United States, Philadelphia has surpassed many other major metropolitan areas despite challenging office market conditions. With an overall 15.4 percent availability rate, below the national index of 16.7 percent, Philadelphia demonstrates its resilience. This quarter, Philadelphia rose 130 places in the ranking of top-performing large U.S. cities, now standing at number 52, attributed to robust job and wage recovery, particularly in professional, business services, and high-tech sectors.

In older Class B properties, signs of financial strain persist. Iconic properties such as the Wanamaker Building, One South Broad Street, Center Square at 1500 Market Street, and 1700 Market Street are among those experiencing distress. Despite available funding, investors and opportunistic buyers have not fully re-entered the market.

Nevertheless, innovation continues to fuel new projects in Philadelphia. Within Center City, ten significant projects have been completed through 2024, extending from Fairmount Avenue to Washington Avenue. Presently, thirty-three projects are underway, totaling 12 million square feet, with an additional twenty-three projects in various stages of planning and permitting. 

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