Pandemic Silver Lining: Philly's Office Market Is Closing The Gap With Other Cities
Office market in Philadelphia remains relatively stable compared to other US cities.
By Matthew Rothstein
The office market in Philadelphia has begun to stir after over a year of dormancy, and it finds itself in a better position relative to its neighbors than before the pandemic began.
As with nearly every other major city in the U.S., Philly has experienced occupancy losses in the past year, especially in its downtown core. But due to the lack of new office construction in the previous economic cycle, Class-A and trophy office buildings are relatively stable in terms of occupancy, while greater concessions have been able to prevent asking rents from cratering, panelists at Bisnow’s Philly State of Office event on Oct. 14 agreed.
“Compared to some of the markets we’ve been in, [rent and concessions] have been very, very controlled,” American Real Estate Partners Senior Vice President of Leasing Kerri Thomas said at the event. “We’re not overbuilt in Philadelphia. In Washington, D.C., for example, we’re going to be in this for another five years — there’s a lot of overbuilding all over the city, and it’s very, very tough.”
