The asking office rents in Philadelphia have remained resilient and even increased in recent years. However, effective rents, which account for inflation and concessions, paint a more complex picture. As a result, asking rents are no longer as reliable an indicator of occupancy costs and office market performance as they once were. From 2010 to… Read more »
Despite concerns about Philadelphia’s downtown office market, Center City’s Market Street West remains a key leasing destination, leading the region. In the first half of 2024, it secured 548,000 square feet in new leases. Notable deals include Clark Capital’s 37,500-square-foot lease at One Liberty Place and Ballinger’s 46,500-square-foot lease at 1650 Arch St. Several law… Read more »
After a citywide revaluation, the assessed value of Philadelphia office buildings fell by nearly 6%. The City of Philadelphia expects this decline to deepen as property owners appeal their assessments. The 2025 property assessments, released this week, show a $635 million drop in taxable value, bringing total office valuations to about $10.73 billion, down from… Read more »
To an outsider, Philadelphia’s office’s use of statistics might suggest it should be one of the hardest-hit cities, struggling with reduced foot traffic and empty buildings. However, the City of Brotherly Love is thriving, offering a model for other urban office markets facing high vacancy rates and quiet downtowns as they recover from the pandemic…. Read more »
A New York real estate investment firm is in talks to sell two more Old City properties after recently unloading nearby buildings. KKR Real Estate Finance Trust Inc. (NYSE: KREF) plans to sell the 209,700-square-foot office building at 325 Chestnut St. and the 469-spot Bourse parking garage at 400 Ranstead St. The firm recently sold… Read more »
A Philadelphia nonprofit has chosen to extend and enlarge its lease, standing out as one of the noteworthy office deals in the city this year. This decision reflects a growing trend among tenants to invest in larger office spaces. The Defender Association of Philadelphia, which provides legal assistance to underprivileged criminal defendants, has confirmed its… Read more »
The sale of the Bourse building and 400 Market St. in Old City has closed at a combined price of $41 million, according to industry sources. Philadelphia developers Lubert-Adler Real Estate Funds and Keystone Development and Investment paid $31 million for the 129-year-old Bourse building at 111 S. Independence Mall East and $10 million for… Read more »
Three years after buying and renovating the former Nelson building, Vert Properties has leased half of the Society Hill property and expects 80% occupancy by year-end. Fifteen companies have already taken space in the three-story, 30,000-square-foot building at 222-230 Walnut St., with an average of 1,000 square feet per tenant. The property offers a hybrid… Read more »
Center City’s post-pandemic office market is beginning to take shape, highlighted by the sale of a 15-story building at a significant discount. An undisclosed private investor purchased 1760 Market St., a 133,353-square-foot office building in the central business district, for $11.5 million. This sale price represents a 63% decrease from its last sale in 2018,… Read more »
After considering alternatives, a Philadelphia investment management firm decided to stay in one of the city’s iconic towers, nearly doubling its office space. Clark Capital Management Group, based in One Liberty Place, signed a deal to expand its headquarters from 20,100 to 37,550 square feet on a different floor of the 61-story high-rise. The new… Read more »
