What is the average Class A rent in Philadelphia?

Around 38 USD/sqft/yr ($38 USD) across the broader Class A index. Trophy submarkets like Center City West command 20–40% above that.

How many months of rent-free are normal in Philadelphia?

14 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Philadelphia?

The Philadelphia Class A market is currently flat. Vacancy is 21.6%, which sets the negotiating context.

Headline Class A rent in Philadelphia is around 38 USD/sqft/yr ($38 USD), with 14 months of typical rent-free on a 10-year term.

Headline Class A rent: 38 USD/sqft/yr ($38 USD).
Trophy submarket rents (Center City West) push to roughly $54/sqft/yr.
Typical concessions on a 10-year deal: 14 months free rent.
Vacancy stands at 21.6% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Philadelphia Class A office rents and incentives

Headline Class A rent in Philadelphia is around 38 USD/sqft/yr ($38 USD), with 14 months of typical rent-free on a 10-year term.

TL;DR

Headline Class A rent: 38 USD/sqft/yr ($38 USD).
Trophy submarket rents (Center City West) push to roughly $54/sqft/yr.
Typical concessions on a 10-year deal: 14 months free rent.
Vacancy stands at 21.6% — market trend is flat.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Philadelphia are quoted in USD per sqft per year. Across the broad Class A index the figure is 38, but the trophy tier in Center City West reaches roughly $54/sqft/yr. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Philadelphia concessions on a 10-year Class A lease run to 14 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 21% federal plus 9.99% Pennsylvania corporate net income tax (declining over time) for an effective rate near 26%. Philadelphia Business Income & Receipts Tax (BIRT) applies.

Where rents land by submarket

Center City West sits at the top end (~$54/sqft/yr). Center City East clears around $46/sqft/yr as the prime tier. King of Prussia & Conshohocken represents the value end at ~$32/sqft/yr. The full submarket map is on the Philadelphia city page.

Key facts

city	Philadelphia
country	United States
region	Americas
classARentLocal	38 USD/sqft/yr
classARentUsd	$38/sqft/yr
vacancy	21.6%
typicalLeaseYears	10
typicalRentFreeMonths	14
submarkets	5
primeYieldPct	6.9%
trophyRent	$54/sqft/yr
primeRent	$46/sqft/yr

Frequently asked questions

What is the average Class A rent in Philadelphia?: Around 38 USD/sqft/yr ($38 USD) across the broader Class A index. Trophy submarkets like Center City West command 20–40% above that.
How many months of rent-free are normal in Philadelphia?: 14 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Philadelphia?: The Philadelphia Class A market is currently flat. Vacancy is 21.6%, which sets the negotiating context.

Editorial provenance

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

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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