WSFS Financial Corp. has signed a long-term lease extension at 1818 Market Street. As a result, stability is being provided to a challenged Center City office asset.

The Wilmington-based firm will maintain its 96,800-square-foot headquarters in the building. In addition, WSFS remains the tower’s largest tenant.

The nearly 1 million-square-foot property has faced financial pressure in recent years. Consequently, its valuation was reduced significantly and the asset was placed into receivership.

Like many office buildings in Philadelphia, occupancy has declined over time. The tower was more than 80 percent leased in 2021. However, occupancy fell to below 70 percent by early 2025.

This decline has impacted overall performance. Net cash flow was reduced as vacancy increased. As a result, income fell short of prior underwriting expectations.

The property was acquired by Shorenstein Properties more than a decade ago. Following the acquisition, substantial capital improvements were completed. These upgrades helped increase the building’s valuation and supported refinancing efforts in 2021.

Since then, market conditions have shifted. Tenants have reduced space needs, and leasing activity has slowed. Therefore, refinancing and asset performance have been challenged across the sector.

Even so, the WSFS lease extension provides a key anchor for the building. In turn, long-term occupancy is being reinforced at the property.

More broadly, the transaction reflects the importance of credit tenants in stabilizing office assets.