Philadelphia, PA - Office Market Overview
The Philadelphia Metropolitan Area includes the Eastwick, Logan Square, and Navy Yard office space submarkets. With a metropolitan population of over 2.1 million, Philadelphia is known as 'The City of Brotherly Love' and is one of the main historic and cultural centers of American history. Bioscience, financial services, and tourism are three of the primary drivers of the economy in the city and create demand for white-collar office space in the metro area.
As of mid-2017 the Greater Philadelphia office market encompasses over 60 million square feet of existing office space in properties larger than 50,000 square feet. Demand for Philadelphia commercial real estate is also created by the world-class research and educational institutions in the city.
Philadelphia, PA - Office Inventory Description
As the center for economic activity in Pennsylvania, Philadelphia is home to seven Fortune 1000 companies and has been ranked as a city that is an important link within the global economic system by the Globalization and World Cities Study Group & Network.
With a gross metropolitan product of $109 billion annually, there is consistently strong demand from tenants, national and international investors for the white-collar office product in Philadelphia. Nearly 61% of the office inventory in Philadelphia is Class A or A+, with Class B office product accounting for 35% of space on the market.
The Old City office market is home to some of the most historic, Class A office buildings in the metropolitan area. Located along the Delaware River, between Walnut and Spring Garden Streets, the area is home to trophy office property such as Constitution Place, The Bourse, and Riverview Place at 520 North Delaware Avenue.
Philadelphia, PA Commercial Inventory Breakdown
Total: 72,893,938 SF
By square footage range:
- 50k to 100k SF: 4,361,808 SF / 5.98% of total office
- 100k to 500k SF: 21,847,686 SF / 29.97% of total office
- 500k to 1M SF: 31,516,179 SF / 43.24% of total office
- > 1M SF: 15,168,265 SF / 20.81% of total office
- Class A+: 12,835,202 SF / 17.61% of total office
- Class A: 28,339,012 SF / 38.88% of total office
- Class B: 20,313,987 SF / 27.87% of total office
- Class C: 1,323,706 SF / 1.82% of total office
Top 10 Largest Office Buildings
|Office building||Address||Sqft||Year built|
|Comcast Technology Center||1800 Arch Street, 19103||1,555,803||2018|
|1735 Market Street||1735 Market Street, 19103||1,286,936||1990|
|Schuylkill Yards - 3025 JFK Market||3025 John F. Kennedy Blvd, 19104||1,257,000||n/a|
|Comcast Center||1701 John F. Kennedy Blvd, 19103||1,253,876||2008|
|Schuylkill Yards - 3101 Market East||3101 Market Street, 19104||1,209,000||n/a|
|One Liberty Place||1650 Market Street, 19103||1,200,000||1986|
|1500 Spring Garden||1500 Spring Garden Street, 19130||1,111,198||1947|
|Schuylkill Yards - 3003 JFK||3003 John F. Kennedy Blvd, 19104||1,066,000||n/a|
|The Philly QuarterMaster||2800 South 20th Street, 19145||1,065,000||2000|
|700 Schuylkill Avenue - Phase II, III, IV||700 Schuylkill Avenue, 19146||1,056,329||n/a|
Most Recently-Built Office Buildings
|Office building||Address||Sqft||Year built|
|FMC Tower at Cira Centre South||2929 Walnut Street, 19104||830,000||2017|
|Roberts Center for Pediatric Research||700 Schuylkill Avenue, 19146||483,000||2017|
|East Market||1100 Ludlow Street, 19107||185,000||2017|
|The Navy Yard - 1200 Intrepid Avenue||1200 Intrepid Avenue, 19112||98,000||2016|
|MaKen Studios South||3401 I Street, 19134||145,155||2015|
|MaKen Studios North||3525 I Street, 19134||104,000||2015|
|The Navy Yard - 201 Rouse Blvd||201 Rouse Blvd, 19112||80,000||2015|
|Constitution Health Plaza||1930 South Broad Street, 19145||404,847||2014|
|uCity Square - 3737 Market Street||3737 Market Street, 19104||357,251||2014|
|The Navy Yard - Five Crescent Drive||5 Crescent Drive, 19112||216,338||2013|
Philadelphia, PA - Green Office Space
The 2017 National Green Building Adoption Index surveyed the top 30 major markets in the U.S. for the adoption of energy-efficient green office building standards. Philadelphia just missed winning a top 10 ranking, coming in at #11 for percentage of green buildings.
3.0 University Place is an excellent example of a green office building in Philadelphia. Proposed for a LEED Platinum certification, this six-story building on 4101 Market Street in the West Powelton neighborhood has nearly 201,000 square feet of space, including ground-floor retail.
Of the office buildings larger than 50,000 square feet in Philadelphia, over 2% are LEED-certified, over 12% have an Energy Star rating, and over 13% of the large office buildings in the city are recognized as being green buildings. In mid-2017, the percentage of green office buildings in the top 30 U.S. markets has reached 38%, while 12 years ago less than 5% of the office space in the country was energy-efficient to current standards.
Philadelphia, PA's Top Office-Using Sectors
The demand for Class A white-collar office space and commercial real estate in Philadelphia is driven by a vibrant mix of both public and private business sectors, including major research universities, financial services, professional services, and Fortune 1000 companies.
- Education & Research – Major research universities such as Drexel University, Temple University, the University of Pennsylvania, and the venture capital industry they attract, all create demand for Class A office space in Philadelphia.
- Financial Services – Philadelphia is home to the Philadelphia Stock Exchange, insurance company Colonial Penn, the Federal Reserve Bank, and numerous other financial services companies that are among the top office-using sectors in the city.
- Professional Services – The American Law Institute, the Third Circuit Court of Appeals, and ten of the 100 largest law firms in the U.S. including Morgan Lewis, and Duane Morris, all create tremendous need for white-collar office space.
- Fortune 1000 – The numerous businesses headquartered in Philadelphia are also top users of office space in the city, including CIGNA, Comcast, Aramark, Crown Holdings, FMC, and GlaxoSmithKline.
- Total Population1,555,072
- Male Population(47.2 %) 734,521
- Female Population(52.8 %) 820,551
- Median Age33.70
- Average Household Income$56,418
- Median Household Income$38,253
- Median Income Under 25$20,393
- Median Income 25-44$44,459
- Median Income 45-64$42,200
- Median Income Over 65$27,129
- Ashton - Woodenbridge Demographics
- Byberry Demographics
- Callowhill Demographics
- Chinatown Demographics
- East Tioga Demographics
- Eastwick Demographics
- Fishtown Demographics
- Frankford Valley Demographics
- Harrowgate Demographics
- Juniata Park Demographics
- Kensington Demographics
- Logan Demographics
- Logan Square Demographics
- Market East Demographics
- Navy Yard Demographics
- North Delaware Demographics
- Northeast Philadelphia Airport Demographics
- Old City Demographics
- Philadelphia International Airport Demographics
- Port Richmond Demographics
- Rittenhouse Square Demographics
- Society Hill Demographics
- Somerton Demographics
- Spruce Hill Demographics
- Stadium District Demographics
- Tioga Demographics
- University City Demographics
- Washington Square West Demographics
2018 Office Check-In: Top US Markets for Development, Largest Projects of the Year
September 20, 2018
We’re almost halfway through H2 2018, and it’s high time to check up on construction activity, as well as the state of the U.S. office pipeline when compared to previous analyses. Last year around the same time, we looked at top U.S. cities for office delivery during the fall-winter season, and ...
Winners and Losers in the Labor Market – US States and Metros with the Highest Income Inequality
August 21, 2018
Ever since Gordon Gekko uttered his now infamous credo, “greed is good,” many economists have been concerned with the long-term effects of the growing income inequality in the U.S. While free-market enthusiasts see things differently, inequality has become a recurring topic within our new...
The 40 Most Sustainably Powered US Cities, Ranked
August 01, 2018
Nearly four decades after President Carter adventurously installed solar panels on the White House, America’s energy transition away from fossil fuels has seen only modest progress. 2007 marked the first year in history when more than half of the world’s population lived in cities, and the...