Philadelphia Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $38.14 2023 Avg. Asking Rent
  • 4.85% Y-o-Y Avg. Asking Rent Change
  • 12.69% 2023 Office Vacancy Rate
  • $97.9M2023 Total Office Sales
  • $130.66Avg. Sale Price/SF

Philadelphia office price per square foot in 2023 was $38.14 on average. This marked a +4.85% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 12.69% across all asset classes combined. The 5 transactions that closed here throughout 2023 amounted to a total sale volume of $97.9M. Philadelphia office space commanded an average sale price per square foot of $130.66.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Philadelphia Class A & A+ Office Space$41.09
  • Philadelphia Class B Office Space$27.21
  • Philadelphia Class C Office Space$24.48
  • Pennsylvania Class A & A+ Office Space$32.78
  • Pennsylvania Class B Office Space$24.45
  • Pennsylvania Class C Office Space$29.06

Philadelphia, PA Office Asking Rents by Class

Average office rent in Philadelphia rested at $38.14 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Philadelphia averaged $41.09 per square foot. Across all submarkets, class B office space recorded an average asking rent of $27.21 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $24.48 per square foot, on average. Comparably, statewide Pennsylvania average office rents by class in 2023 were: $32.78 per square foot for class A office space; $24.45 per square foot for class B office space; $29.06 per square foot for class C office space.

2023 Office Vacancy Rates in Philadelphia

Submarket Asking Rents Vacancy Rates
Philadelphia - Center City $37.42 13.91%
Philadelphia - University District $33.82 7.39%
City Avenue Corridor $33.78 25.76%
Philadelphia - West $28.59 1.51%
Philadelphia - North Central $21.25 10.62%
Philadelphia - Northwest $19.43 14.91%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Philadelphia market was 12.69% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Philadelphia was 1.51% in the Philadelphia - West submarket, while the highest office vacancy in the market was 25.76%, recorded in City Avenue Corridor.

Office Spaces for Rent in Pennsylvania

Philadelphia Office Sale Price per SF

  • $130.662023 Avg. Price per SF
  • $97.9M2023 Office Sales Volume
  • 52023 Number of Transactions

Philadelphia, PA Sale Price per SF Trend

  • Philadelphia Avg. Sale Price per SF in 2023$130.66
  • Pennsylvania Avg. Sale Price per SF in 2023$124.26
The sale price for office space in Philadelphia averaged $130.66 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Pennsylvania average office sale price during the same time period was $124.26 per square foot.

2023 Office Sales Volume

  • Philadelphia, PA Total Office Sales Volume in 2023 $97.9M
  • Philadelphia, PA Total Number of Office Sales Closed in 2023 5
A total of 5 deals closed on the Philadelphia office market in 2023, adding up to a yearly sales volume of $97.9M. Notably, the largest transaction on the market saw Ralston House change hands for $44,150,000 on 1/11/2023.
Data provided by Commercial Edge

Coworking Spaces in Pennsylvania

2023 Office Construction in Philadelphia, PA

  • Philadelphia, PA Total SF completed in 2023 1,274,917
  • Philadelphia, PA Total SF under construction in 2024 2,465,693

During 2023, 1,274,917 square feet of new office space were delivered across the market. At the close of 2023, the Philadelphia office inventory included 5 buildings equal to or larger than 25,000 square feet, which comprised 1,274,917 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 2,465,693 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Philadelphia
Office building Address SF Completed
Schuylkill Yards - 3151 Market Street 3151 Market Street, 19104 435,000 2024
University Place 3.0 4101 Market Street, 19104 250,000 2023
Schuylkill Yards - 3025 JFK Blvd 3025 John F. Kennedy Blvd, 19104 209,000 2023
LVL North 510 North Broad Street, 19130 535,000 2022
FMC Tower at Cira Centre South 2929 Walnut Street, 19104 625,863 2017
East Market 1100 Ludlow Street, 19107 185,000 2017
The Steele Building 15 South 11th Street, 19107 31,700 2017
The Navy Yard - Five Crescent Drive 5 Crescent Drive, 19112 216,338 2013
2.0 University Place 30 North 41st Street, 19104 97,479 2013
5201 Old York Road 5201 Old York Road, 19141 322,645 2010

Worth noting among recent office completions on the Philadelphia market is Schuylkill Yards - 3151 Market Street, which is currently the largest new office development in the city, at 435,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Philadelphia commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.