From Peak to Reset: Greater Philadelphia Asking Rents Decline Year-Over-Year

Across Greater Philadelphia’s 171 MSF office inventory, over 56% of inventory experienced year-over-year(YoY) declines in asking rents.
After several years of steady rent growth, the Upper Main Line Radnor submarket has shifted into a period of correction, postingthe region’s sharpest YoY decline of 8.5%. This movement reflects a lagged adjustment from the elevated rent levels seen in 2024 and 2025, even as the submarket remains anchored by high-quality assets such as Ellis Preserve and the Radnor Financial District.
Center City East and West, which carry the most inventory at over 48 MSF, have also seen slight YoY softening in asking rentsdue to muted leasing demand. This softness comes despite declining inventory from office-to-residential conversions, as Philadelphia ranks seventh nationally, with further tightening expected as additional projects like the Wanamaker conversion move forward. However, compared to 2024, changes have been minimal, as Center City East declined 1% while West increased 0.2%, reinforcing broader market stabilization.
With leasing activity slowing down, landlords are forced to recalibrate their asking rents to better align with current fundamentals. These declines are not fully indicative of market weakness but rather signal a broader normalization following prior periods of elevated pricing.

June 8, 2026

Average Asking Rents (FS) within Greater Philadelphia’s Office Submarkets