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: 75,270,219 SF
By square footage range:
- 50k to 100k SF: 4,273,208 SF / 5.68% of total office
- 100k to 500k SF: 21,863,433 SF / 29.05% of total office
- 500k to 1M SF: 32,646,048 SF / 43.37% of total office
- > 1M SF: 16,487,530 SF / 21.9% of total office
- Class A+: 12,848,777 SF / 17.07% of total office
- Class A: 28,868,262 SF / 38.35% of total office
- Class B: 20,817,173 SF / 27.66% of total office
- Class C: 2,533,396 SF / 3.37% of total office
Top 10 Largest Office Buildings
|Office building||Address||Sqft||Year built|
|Comcast Technology Center||1800 Arch Street, 19103||1,569,378||2018|
|1800 North 9th Street||1800 North 9th Street, 19122||1,305,690||1952|
|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|
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
- Bustleton Demographics
- Byberry Demographics
- Callowhill Demographics
- Chestnut Hill Demographics
- Chinatown Demographics
- Cobbs Creek Demographics
- East Tioga Demographics
- Eastwick Demographics
- Frankford Demographics
- Germantown Demographics
- Kensington Demographics
- Logan Demographics
- Logan Square Demographics
- Market East Demographics
- Mayfair Demographics
- Navy Yard Demographics
- Old City Demographics
- Olney Demographics
- Port Richmond Demographics
- Rittenhouse Square Demographics
- Society Hill Demographics
- Somerton Demographics
- Spruce Hill Demographics
- Stadium District Demographics
- University City Demographics
- Washington Square West Demographics
- West Oak Lane Demographics
Iconic Philly High-Rise Switches Owners
February 21, 2018
The PNC Bank Building, one of the landmarks of the Philadelphia central business district, has changed its owner. The iconic high-rise was sold by Equity Commonwealth to American Real Estate Partners (AREP), the former owner of Two Liberty Place.
Q&A: Locating the Best Office Space for Your Business
December 07, 2017
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Suburban Construction Fuels 2018 US Office Pipeline
December 05, 2017
A couple of months ago, we conducted an analysis to see which were the top markets for office deliveries during the final leg of 2017. The fall-winter pipeline placed New York City at the top of the list, followed by the tech-driven San Francisco, Plano, Texas, and Cupertino, home to Apple’...