401 Market Owner Seeks Loan Discount After Occupancy Drops to 28%

401 Market Owner Seeks Loan Discount After Occupancy Drops to 28%

The owner of 401 Market St. is seeking a discounted payoff on its $52 million debt after Wells Fargo’s exit left the building 28% occupied and pushed the loan into special servicing. With the loan maturing in October, Miller Investment Management hopes to negotiate a deal, highlighting the declining value of Philadelphia’s older office buildings.

The loan was transferred to special servicing in October when Wells Fargo’s 349,770-square-foot lease expired. A March CMBS report confirms Miller’s intent to settle for less than the balance due, pending approval from special servicer Rialto Capital and CMBS investors. Without a deal, foreclosure could result in a sale at a steep loss, said Sarah Helwig, VP at Morningstar Credit.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Philly Leads Nation’s Office Recovery

Philly Leads Nation's Office Recovery

Philadelphia stands out as the most stable office market among the 15 largest U.S. markets heading into spring, with a year of occupancy gains bringing its office availability rate to 14.1%, the lowest in the nation, just ahead of Minneapolis at 14.2%.

While most major markets struggle with rising vacancies, Philadelphia is one of only three experiencing positive absorption—more space occupied than vacated—alongside Dallas-Fort Worth and New York. The region recorded 1.2 million square feet of net absorption over the past year, a 0.4% increase in inventory, outpacing the national recovery. In contrast, most top markets saw losses of 1 to 3 million square feet, with Boston and San Francisco suffering absorption rates of -1.6% and -1.4%, respectively. Unlike cities burdened by oversupply, Philadelphia’s limited speculative development in the 2010s helped shield it from the challenges facing markets like Boston.

However, obstacles remain. The region still has 11.3 million square feet more available office space than in early 2020, and economic uncertainty may impact its momentum in 2025.

Still, Philadelphia’s steady absorption signals resilience. Anchored by education, healthcare, and government sectors—industries less affected by remote work—the city remains better positioned than tech-heavy markets like San Francisco, where office demand continues to decline.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Developer Purchases Center City Building for Potential Apartments

Developer Purchases Center City Building for Potential Apartments

An entity affiliated with Eclipse Development, a new Philadelphia firm, has purchased a Center City office building from the American Red Cross for $7.2 million. The five-story, 52,676-square-foot property is located at 23rd and Chestnut Streets. Eclipse plans to explore options, including leasing office space short-term for up to two years before converting the building to multifamily use or redeveloping it into a new multifamily project. The property was last assessed by the city at over $12 million.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Duane Morris Trims Office Space By Nearly 20%

Duane Morris Trims Office Space By Nearly 20%

Duane Morris has renewed its long-term lease at Duane Morris Plaza, downsizing by 45,000 SF as part of a broader trend of law firms reducing office space. The Philadelphia-based firm will shrink its footprint at the Center City tower from 241,022 SF to 195,757 SF, a 19% reduction, consolidating from seven and a half floors to six.

This follows a 2022 space reduction, bringing the firm’s total cutback to 25% from its original lease. The renewal includes 183,000 SF of office space and the 12,000 SF Morris’ Café. Building owner Oaktree Capital Management is upgrading the lobby and systems, while Duane Morris plans a full renovation of its space, set to begin in the fall and take 18 months. The firm’s previous lease was set to expire in March 2026.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Elon Musk’s DOGE Cancels 20 Philly Office Leases

Elon Musk's DOGE Cancels 20 Philly Office Leases

Elon Musk’s Department of Government Efficiency (DOGE) is scaling back the federal real estate footprint, putting office space in Greater Philadelphia on the chopping block. According to a list posted on the DOGE website Monday, nearly 20 government leases in the region have been canceled, totaling approximately 183,000 square feet and over $4.93 million in annual value. Affected properties span Philadelphia, Montgomery County, South Jersey, and northern Delaware. The largest terminations in Philadelphia include a 44,765 SF lease for the Securities and Exchange Commission at One Penn Center (1617 JFK Blvd.) and a 43,000 SF lease for the Department of Education in the historic Wanamaker Building (100 E. Penn Square).

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

First Class Office For Sublease In Philadelphia

1700 MARKET STREET, PHILADELPHIA, PA

Wolf Commercial Real Estate, the leading commercial real estate and advisory firm in South Jersey has been appointed the exclusive listing agent for 1700 Market Street, Philadelphia, Pennsylvania 19103.  The Philadelphia property is available for sublease.

The property contains +/- 6,044 square feet, which could be utilized by retail and office users.

Features of 1700 Market Street

The sublease at 1700 Market Street, Philadelphia, Pennsylvania, is available through January 31, 2029 on the southeast corner of the 31st floor. This beautifully designed, high-tech workspace features a well-appointed reception area, a large 10-seat conference room, two private phone rooms, and a spacious open kitchen with an island. Additionally, the space is outfitted with 47 workstations and boasts spectacular city views.

1700 Market Street offers top-tier amenities, including 24-hour access, a fitness center with shower facilities, bicycle storage, a roof terrace, daycare services, on-site dining options, and banking services. Conveniently located just two blocks from Rittenhouse Square, three blocks from City Hall, and steps from Suburban Station, this location provides easy access to public transportation, parking garages, and countless restaurants and retailers.

For more information about the lease price or a tour of the office site, please contact Todd Monahan, Managing Director & Executive Vice President, at (215) 799 6145 or via email todd.monahan@wolfcre.com and Joe Fox, Vice President, at (215) 799 6900 or via email joseph.fox@wolfcre.com. To review the brochure, please click here.

Wolf Commercial Real Estate is a full-service CRE brokerage and advisory firm with a full range of commercial real estate listings and services. The firm handles a variety of properties including medical, office, industrial, retail and investment. WCRE represents buyers, landlords, investors, tenants and sellers and also provides property management services. For a full list of buildings and suites that are available for sale or lease, visit www.wolfcre.com.

Prominent Retail/Office Lease Opportunity

1717 South Broad Street, Philadelphia, Pennsylvania 19148

Wolf Commercial Real Estate, the leading commercial real estate and advisory firm in South Jersey has been appointed the exclusive listing agent for 1717 South Broad Street, Philadelphia, Pennsylvania 19148.  The Philadelphia property is available for lease.

The property contains +/- 1,580 square feet, which could be utilized by retail and office users.

Features of 1717 South Broad Street

1717 South Broad Street is ideal for a cafe, deli, professional services, boutique, or medical use. The property is immediately available for lease and features rare off-street parking in the rear. It benefits from prominent visibility and signage along Broad Street. The location is conveniently close to the CHOP Primary Care Facility, the Broad Street Subway, Passyunk Avenue, and the adjacent USPS, ensuring easy access and high foot traffic.

For more information about the lease price or a tour of the retail site, please contact Eric Flocco, Executive Vice President, at (609) 790 6940 or via email eric.flocco@wolfcre.com and Corey Hassman, Senior Advisor, at (856) 261 5812 or via email corey.hassman@wolfcre.com. To review the brochure, please click here.

Wolf Commercial Real Estate is a full-service CRE brokerage and advisory firm with a full range of commercial real estate listings and services. The firm handles a variety of properties including medical, office, industrial, retail and investment. WCRE represents buyers, landlords, investors, tenants and sellers and also provides property management services. For a full list of buildings and suites that are available for sale or lease, visit www.wolfcre.com.

Feds Plan to Sell U.S. Custom House, 2 Other Philly Offices

Feds Plan to Sell U.S. Custom House, 2 Other Philly Offices

Amid the Trump administration’s effort to cut federal spending, the General Services Administration (GSA) has listed three large Philadelphia office buildings for sale as “non-core properties for disposal.” The properties include the Mid-Atlantic Social Security Center at 300 Spring Garden St. (534,016 SF), U.S. Custom House at 200 Chestnut St. (436,608 SF), and Veterans Administration Center at 5000 Wissahickon Ave. (418,153 SF), totaling 1.4 million square feet. The GSA deems these properties “not core to government operations” and eligible for disposal.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Capital Market Challenges Delay Philly’s Office Recovery

Capital Market Challenges Delay Philly’s Office Recovery

Philadelphia’s office market showed signs of stabilization in early 2025, with positive annual net absorption for the first time in five years. However, challenges remain as companies continue to downsize, rents stay under pressure, and high interest rates suppress asset valuations. Here’s an update on what local industry players are saying about the market. Several brokers reported lease deals falling through because lenders refused to accept lower rents due to mortgage clauses. Strict loan conditions are complicating the recovery, preventing landlords and tenants from finalizing agreements.

The first office buildings are seeing rent resets after being sold at steep discounts. For example, a 1980s-era property in Center City traded at a 60% discount from its 2018 sale price, with rents dropping from the low $30s per square foot to the mid-$20s. These adjustments are expected to continue as more distressed buildings change hands. While distressed office sales have dropped between 20% and 60%, owners of well-occupied, premium assets are holding out for better financing terms to maximize value. With most sales involving distressed properties, the current comps don’t fully reflect the market’s future potential.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Tax Panel Proposes 20-Year Break for Office Conversions

Tax Panel Proposes 20-Year Break for Office Conversions

Philadelphia’s Tax Reform Commission proposes a temporary 20-year tax abatement to encourage converting distressed office buildings for new uses. The recommendation, doubling the current 10-year abatement, is part of a 29-page report analyzing the city’s tax structure.

The report also calls for a $15 minimum wage, phasing out the Business Income and Receipts Tax (BIRT), and offering grants or low-interest loans to upgrade office buildings staying in use.

With remote work leaving Center City offices like the Wanamaker largely empty, some buildings — like 1701 Market and 400 Market — are already converting to residential. The commission believes more conversions are needed to revitalize the market.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, advisory and property management firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.