Average Cost of Office Space in Philadelphia: 1 Minute to Understand Office Space Pricing in Philly

The average cost of office space in Philadelphia varies depending on several factors, such as location, building class, amenities, and lease terms. As of early 2024, Class A office space in Center City—the city’s prime business district—typically averages around $30 to $38 per square foot per year. Class B and C spaces, often found outside central zones or in older buildings, can range from $20 to $27 per square foot per year. Suburban Philadelphia areas generally offer more affordable options, with rates sometimes dipping below $20 per square foot annually. Keep in mind, these figures are for base rent and may not include additional costs like utilities, maintenance, taxes, and common area fees, which can add a few dollars more per square foot.

For businesses considering a move or new lease, the choice of office space isn’t just about budget—it’s also about functionality and adaptability. The pandemic has redefined workspace needs, making flexible layouts, collaborative zones, and hybrid set-ups more desirable than ever. As a designer, I always recommend starting the decision-making process with a thorough assessment of your workflow and company culture. Modern office planning tools like a layout planner help visualize different floor plan configurations, optimize team proximity, and even enhance circulation—all before committing to any space. This ensures that your investment in office real estate goes beyond square footage and truly supports your business objectives.

Tips 1:

Consider not just the lease rate but also the total occupancy cost—factor in build-outs, furniture, and technology needs. Early in the search, create a list of must-have amenities (like natural light, meeting rooms, or fitness facilities) to streamline your shortlist and negotiations.

FAQ

Q: What’s the average price per square foot for downtown Philadelphia office space?

A: It typically ranges from $30 to $38 per square foot per year for Class A buildings in Center City.

Q: Are there cheaper office space options outside the city center?

A: Yes, suburban areas offer lower prices, sometimes less than $20 per square foot per year, depending on location and building quality.

Q: What extra costs should I expect besides base rent?

A: Common extras include utilities, taxes, property insurance, maintenance, and common area charges, which can add several dollars per square foot annually.

Q: Has the pandemic affected office space demand and pricing in Philadelphia?

A: Yes, there’s increased demand for flexible and collaborative spaces, with some areas seeing stabilized or even reduced rates due to remote work trends.

Q: How can I determine the right amount of space for my team?

A: Many companies use design tools and office space calculators to estimate needs based on headcount, work style, and future growth plans.