We’ve recently learned the purchase price Alterra Property Group paid for 1701 Market St. last month, and it serves as a stark indicator of the declining value of office buildings in Philadelphia’s central business district.

The building, located at 17th and Market streets and soon to be vacant, was sold for $26.25 million according to public records. This amount represents only about half of its most recent assessed value. The surge in remote and hybrid work arrangements has led to a surge in vacancy rates in Philadelphia office buildings, resulting in a significant decrease in their market values. Even for a property like 1701 Market, which has long been regarded as the prime candidate for an office-to-residential conversion in Center City, the sale price was substantially lower than what it would have fetched just a few years ago.

*Article courtesy of Philadelphia Business Journal

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