Q2 2024 Philadelphia Office Market Report

During the second quarter, Philadelphia is leading downtown revitalization, drawing new businesses, residents, and organizations to its core. Overall, Philadelphia rents remain stable at $35 per square foot, accompanied by a marginal 0.2 percent increase in vacancy rates. The city’s dedication to business growth and innovation has attracted new residents to its core. This transformation continues to position Center City as a prime destination for businesses looking to relocate and for individuals seeking employment opportunities.

This quarter, Philadelphia has forged ahead with several new project announcements, demonstrating resilience amidst an ongoing high-interest rate environment. Plans were unveiled for a $40 million marina and entertainment complex in Northeast Philadelphia. Additionally, the former John W. Hallahan Catholic Girls’ High School was sold for $15 million, and investment firm Hamilton Lane plans to open a Center City office at One Logan Square. Housing developments continue to make headlines, including a developer’s $3.1 million purchase of a Delaware Avenue site. Another milestone in ongoing growth was the completion of the first phase of Five on Canal, a five-building, 508-unit development.

However, signs of financial strain persist, with the former GSK building in the Navy Yard failing to sell at a sheriff’s sale to satisfy a foreclosure judgment. The building is one of several distressed office properties in Philadelphia.

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