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Market Report

Philadelphia Office Market Report

4Q 2022

Speculative Development Continues at a Notable
Pace as Center City Availability Remains Elevated

Bifurcated performance trends observed in the urban core. Some of the city's largest employers, including GSK plc and Comcast, have retained offices in the CBD, despite subleasing space elsewhere in the metro. Additionally, the latter called 8,000 employees back to the workplace in September, a welcome sign for office usage in this locale. Nevertheless, availability trends have been inconsistent among core submarkets. Market Street East and West both reported increases of at least 110 basis points during the 12-month period ending in June, while vacancy around Independence Hall declined 290 basis points as tenants pursued amenity-rich space here. On a brighter note, growing availability may be mitigated by biotech spillover from University City, as office-to-lab conversions in Center City and adjacent zones are capturing tenants at a notable rate.

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