What Is the Average Price Per Square Foot for Office Space In Philadelphia?
Thu, 16 Dec 2021 | Written by Corporate Suites Staff
Philadelphia is a historic city with a thriving business district, and there are many choices for office space in the city. Many people choose to rent an apartment-style arrangement where they live and work under one roof, but other professionals prefer a location that is more remote from their home life. Here’s what you need to know about the average price per square foot of office space in Philadelphia.
What is the Average Cost per Square Foot to Rent Office Space in Philadelphia?
Due in part to its central location between New York City and Washington, D.C., office space in “The City of Brotherly Love” is in very high demand. Philadelphia typically commands a lower average rent for office space than either of those cities though.
In general, the average office rental rate in Philadelphia per square foot in 2020 was $32.12 per square foot. Compared to 2019, this figure marked a +3.77% change. Asking prices vary based on the property’s location, overall rating, amenities, proximity to restaurants, cafes and entertainment venues, as well as public transport, airports and highways.
What’s important to keep in mind is that the range for office space in Philadelphia can be anywhere from $15 to $60, depending on the factors mentioned above. Keep in mind that this number changes all the time, so it’s best to consult with an office space provider before making any decisions.
What is the Average Cost per Square Foot by Class?
Office spaces in Philadelphia can be generally classified into three categories: Class A, Class B and Class C. As you would expect, the higher the class of office space, the more expensive it is to rent. The first floor of a building is more expensive than the subsequent floors above it too.
Below is a breakdown of the average rent price per square foot for office space in Philadelphia and Pennsylvania by class:
- Class A: $36.08
- Class B: $27.37
- Class C: $24.48
- Class A: $31.04
- Class B: $24.78
- Class C: $20.82
Office Vacancy Rates in Philadelphia
The office vacancy rate in Philadelphia was 9.03% percent at the end of 2020. This figure is up slightly from the previous year’s rate of just over eight percent. Compare that to the office vacancy rate of NYC, which hit a 30-year high of 18.6 percent among pandemic woes.
What Are the Types of Commercial Construction in Philadelphia, PA?
The construction of new office buildings is slowing down, but there are still some big projects on the boards that are reshaping Philly’s skyline. One of them is construction on The FMC Tower in University City that’s due for completion this fall.
Located at the corner of Spring Garden St. & Benjamin Franklin Pkwy., right next door to the Comcast Center, the tower will stand 49 stories and comprise 622,000 sq ft of office spaces under 18 floors of residential units once completed. Chemical Giant FMC Corp. recently moved their commercial HQ’s into the location.
Should I Rent Office Space in Center City?
Many business owners will want office spaces in Center City since it is home to the central business district and neighborhoods. In fact, Corporate Suites’ Philadelphia Center City office spaces are located in this epicenter of commerce and culture at 123 South Broad Street.
However, if you are going to house your offices in Center City, the cost can be a mitigating factor. It’s one of the priciest office spaces in Philly, so it’s a good idea to make sure your business model can support the cost.
Top Neighborhoods to Rent Office Space in Philadelphia
The first step of finding the right neighborhood for your business is doing some research on neighborhoods that would be a good fit based on what you do and how many employees you have.
Once you’ve narrowed it down, take a look at the different types of office spaces available in each neighborhood:
People flock here to be close to the city’s major companies and law firms. Office space in Center City for Class A is $32/SF and Class B is $27/SF on average. That makes it one of the most expensive places to rent in the city.
North Philadelphia is seeing a resurgence in popularity, as businesses are realizing that it’s an affordable alternative to Center City. The average rent for office space here is $27.50 per square foot, making it a great option for startups and small businesses.
Northeast Philadelphia is a great option for businesses looking for more space. The average rent here is only $17/SF, making it the most affordable option in the city.
West Philly has a lot to offer businesses, including close proximity to Center City and a large population of young people who are interested in new startups. The price for office space here is $29/SF on average, which makes it slightly more expensive than Northeast Philadelphia.
Old City District
Old City is a great option for businesses looking to take advantage of a growing area with a lot of character. It’s home to the historic district and shopping centers, as well as numerous restaurants and sports bars that are popular among young professionals. The price here is $33/SF on average, making it one of the priciest places in town.
Penn’s Landing District
Penn’s Landing is right on the waterfront, making it a great choice for businesses that want to attract tourists and other visitors. Top draws include sprawling parks, entertainment venues like the SugarHouse Casino and multicultural eating establishments The average rent here is $30/SF.
Spring Garden District
The Spring Garden District is a charming district that is quickly gaining popularity. It’s home to the Philadelphia Flower Show, as well as art galleries and high-end cafes and bistros. The average rent here is $27/SF.
Nicetown-Tioga is one of the most affordable areas in Philadelphia. The average rent here is $20/SF and there’s plenty of space for new businesses to grow, including numerous industrial spaces that are being converted into office space.
Fox Chase-Bensalem District
Fox Chase-Bensalem is a suburban area that’s quickly becoming popular with businesses. The average rent here is $22/SF, making it a great option for businesses that want to be close to the city but don’t want to pay the high prices in Center City.
Trolley Square District
The Trolley Square District is a historic district that’s home to numerous businesses, including restaurants, bars and art galleries. The average rent here is $27/SF.
Brewerytown is quickly becoming one of the most popular areas in Philadelphia for businesses. The neighborhood takes its name from the nine breweries that were established there during the late 19th Century. The average office space rent for the Brewerytown District is $25/SF.
The Churchill District has become a popular choice for businesses that want to be close to the city but don’t want to pay Center City prices. The average price per square foot here is just $20, making it affordable and convenient as well.
Marlton is a suburb of Philadelphia that’s quickly becoming popular with businesses. The average rent here is $25/SF, making it an affordable option for businesses that want to be close to the city but don’t want those more expensive city rental prices.
Thorofare is an up-and-coming suburb that’s home to large office spaces, warehouses, retail stores, restaurants, bars, fitness centers. The average rent here is $25/SF.
Cherry Hill is another popular option among Philadelphia businesses looking for inexpensive rentals in the area. It’s located close to Marlton and is a central hub for shopping and entertainment. The average rent here is $22/SF.
Malvern & Paoli
These are both suburbs of Philadelphia that are popular among businesses. Malvern is home to numerous large office parks, while Paoli has a lot of suburban charm. The average rent here is $25/SF.
Newtown Square is a small suburb located just west of the city. It’s home to numerous businesses, including restaurants, bars and fitness centers. The average rent here is $22/SF.
Located just west of the city limits, Broomall has become home to many businesses that are looking for inexpensive rentals in the area. There are numerous office parks as well as shopping areas nearby. The average price per square foot here is $20/SF.
This neighborhood is popular among students and young professionals. There are plenty of restaurants and nightlife options here as well. The average rent is $28/SF.
Overbook Farms is a small suburb of Philadelphia that’s home to large office parks and an industrial area. It’s also conveniently close to the city, making it popular among businesses looking for inexpensive rentals. The average rent here is $23/SF.
Parc-Ridge & Manayunk Grandview Avenue Station
This area of Philadelphia has become popular among businesses looking for inexpensive rental prices and convenience to the city center. There are large office buildings as well as retail stores, making it an ideal location for a business that needs to be close to clients. The average rent here is $25/SF.
Cherry Hill-Pennsauken Transit Center
This area of the city has become popular among businesses for its convenience and affordable rentals. There are also plenty of retail stores, restaurants, bars and entertainment amenities in this neighborhood, making it great for socializing after work. The average rent here is $23/SF.
Let Corporate Suites Help You Find the Perfect Office Space
There are numerous office spaces in Philadelphia that offer businesses great value for their money. Whether you’re looking for an affordable option in the Nicetown-Tioga District or you want to be close to the action in Center City, there’s a perfect space for your business. To help you decide which one is right for you, please call us at (866) 828-4078 or contact us online.
Frequently Asked Questions
Here are some of the most asked questions about office space in Philadelphia.
What does office space cost in Philadelphia?
On average, office space per person costs begins at roughly $300 per month. That figure can go up depending on facilities and location.
How much does an office cost SF in Philadelphia?
The average rent for office space in Philly is about $32/SF. However, there are many different neighborhoods with different prices.
What is the best way to rent office spaces in Philadelphia?
It’s best to find a reputable agent who can help get you where would you like to work in Philadelphia that fits your needs and is within your budget. There are plenty of agents out there, but make sure to do some research before choosing one and ask for references from previous clients they’ve worked with.