Modified-gross structures with opex pass-throughs.

  • Typical lease length: 10 years.
  • Typical rent-free: 14 months.
  • Vacancy: 21.6%; trend flat.
  • Modified-gross structures with opex pass-throughs.

Philadelphia office lease norms

Modified-gross structures with opex pass-throughs.

TL;DR

  • Typical lease length: 10 years.
  • Typical rent-free: 14 months.
  • Vacancy: 21.6%; trend flat.
  • Modified-gross structures with opex pass-throughs.

Structure

Modified-gross structures with opex pass-throughs. 10-year terms standard. Free rent of 12-16 months and TI of $90-$130/sqft typical.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

cityPhiladelphia
countryUnited States
regionAmericas
classARentLocal38 USD/sqft/yr
classARentUsd$38/sqft/yr
vacancy21.6%
typicalLeaseYears10
typicalRentFreeMonths14
submarkets5
primeYieldPct6.9%

Frequently asked questions

What's a typical lease term in Philadelphia?
10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Philadelphia?
In USD/sqft/year. We also publish a USD-normalised view ($38/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

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