Philadelphia office occupancy hits new high
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The Philadelphia metro hit a record post-pandemic office occupancy rate in January, per the latest swipe data from Kastle Systems.
Why it matters: Philly is among the few cities to achieve that milestone last month, driving a nationwide office occupancy high.
Yes, but: The progress is still pretty modest.
By the numbers: The Philly metro's office occupancy rate has reached 44% of its pre-pandemic level, per the Kastle Systems data.
- It's an improvement from March 2020, when the rate crashed to 20.5%, but overall it's not much to write home about.
- Nationwide, office occupancy hit 54.2% in January.
State of play: While a push by some of the region's biggest employers, including Philadelphia's government is calling workers back in-person full-time, hybrid work appears here to stay.
- Many big companies here are sticking with flexible work arrangements. Think KPMG, Deloitte, PwC and UPenn.
- Meanwhile, the office market landscape in Philly proper remains in flux. Assessed values have plummeted and companies are downsizing.
Plus: High vacancy rates in some Philly buildings have led to foreclosures, including the Wanamaker building in Center City, where Macy's is closing its flagship store.
What we're watching: This year should offer more clarity to the future of Philly's office market, the Philadelphia Business Journal reports.
- Leases for millions of square feet of office space in Philly's central business and the burbs are due to expire this year, allowing those companies to adjust to current needs, per the outlet.