Analyzing the Impact of 1701 Market’s Discounted Sale Price on Center City Office Properties

Analyzing the Impact of 1701 Market's Discounted Sale Price on Center City Office Properties

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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