Q2 Philadelphia CBD Report

The Philadelphia CBD continues to recover post-Covid, with new businesses opening and existing ones, particularly retailers, moving to new, expanded locations. During the second quarter, pedestrian volume in Center City reached 84% of pre-pandemic levels, the largest growth since 2019. 

Philadelphia employers continue to show strong demand for workers. From April to June 2022, employers posted 86,000+ positions, an increase of nearly 17,000 jobs compared to the previous quarter. Demand remains greatest for higher-skill occupations that usually require a bachelor’s degree or higher, particularly in the life sciences sector. Overall, this sector continues to innovate, expand, and attract top-notch experts to the area of medicine, technology, research, and higher education. 

Additionally, University City and the surrounding Philadelphia area are in demand for life science occupiers, with a specialized focus on lab and medical space use or conversion.  However, post-Covid return-to-work plans for the office CBD sector are still in flux, as organizations continue to adopt flexible work plans that incorporate remote and in-office work arrangements. However, across the area, tenants are realizing and taking advantage of spaces that offer negotiated rates, on-site amenities, and are move-in ready. The remainder of 2022 will allow companies to capitalize on the abundance of high-quality office space available in the region, as they finalize their post-Covid workplace strategies into 2023.