The 29-story, 668,335-square-foot office tower at 2000 Market St. is officially for sale — a move that could serve as a bellwether for post-pandemic office valuations in Philadelphia’s central business district. New York-based owner Nahla Capital has listed the property, which is currently 68% leased. According to CBRE listing agent Jerry Kranzel, early interest suggests that buyers believe the building can remain viable as an office asset in the heart of Center City.

Nahla Capital acquired the tower in 2018 for $126.4 million. Occupancy had hovered around 90% in recent years but dropped significantly after law firm Fox Rothschild vacated 133,537 square feet last fall, relocating across the street to Two Commerce Square at 2001 Market St. While Kranzel declined to disclose a target sale price, he acknowledged the property is expected to sell at a “significant discount” compared to its 2018 valuation.

The building’s largest tenant is law firm Marshall Dennehey, which renewed its lease in January while reducing its footprint by 10%, and now occupies 120,462 square feet. The second-largest tenant is the Board of Pensions of the Presbyterian Church, leasing 77,000 square feet.

*Article courtesy of Philadelphia Business Journal

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