New York Life Insurance Co. is reducing its office footprint in Center City. As part of the move, the company will relocate a business unit from Two Liberty Place to Three Logan Square.

The insurer signed a lease for approximately 40,000 square feet at 1717 Arch Street. Specifically, the company will occupy space on the 44th and 45th floors of the office tower.

The relocation is scheduled for the third quarter of 2027. Once completed, New York Life will occupy roughly half the space it currently uses in Philadelphia.

Currently, the company subleases approximately 82,000 square feet at Two Liberty Place. That space supports New York Life’s group benefit solutions division.

The move reflects a broader trend across the office sector. In recent years, many occupiers have reevaluated their space needs and consolidated operations into smaller footprints.

At the same time, demand for high-quality office space remains steady. Consequently, well-located buildings with modern amenities continue attracting tenants despite ongoing market challenges.

Three Logan Square remains one of Center City’s premier office assets. Its location along the Benjamin Franklin Parkway provides convenient access to transit, dining, and nearby corporate employers.

Meanwhile, office users continue prioritizing efficiency as workplace strategies evolve. As a result, lease decisions increasingly focus on optimizing space rather than expanding square footage.

The transaction highlights the ongoing shift within Philadelphia’s office market as companies balance operational needs with changing workplace dynamics.