Philadelphia office market reports

Q4 2024

23.1%

Total availability at year end

Total availability finished 2024 at 21.3%, representing a YoY 50-basis point decline from 2023 year-end total availability rate of 21.8%. A combination of owner-user sales along with building conversions has continued to help bring downward pressure to availability. Although total space availability decreased over the course of the year, additional gains in occupancy are still necessary for vacancy rates to begin decreasing.

5.6msf

Total annual leasing volume

Despite annual leasing volume sitting below the historical 10-year average of 8.8 msf, there has been a gradual shift in market sentiment over the past year. After more than three years of occupiers contracting or right sizing their space, tenants are beginning to look farther into the future and as a result the average deal sizes are increasing. In 2024, the average size of direct lease deals equated to 34K SF, a 24% increase from the 2023 average of 27.5K SF.

69.3%

Q4 24’ peak office visitation

In the fourth quarter office visitation across Greater Philadelphia reached its highest recorded volume following the onset of the pandemic. In the month of October office visitation volume reached 69.3% of the visitor volume recorded before the onset of the pandemic. An increase in mandated return-to-office (RTO) policies across multiple industries over the past three months has helped bolster visitation volume, particularly on Monday's and Fridays.

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