Boston ($78/sqft, 19.5% vacancy) and Philadelphia ($38/sqft, 21.6% vacancy) compete on different axes: Boston on talent depth and Philadelphia on rent and tax.
Boston ($78/sqft, 19.5% vacancy) and Philadelphia ($38/sqft, 21.6% vacancy) compete on different axes: Boston on talent depth and Philadelphia on rent and tax.
| Metric | Boston | Philadelphia |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $78 | $38 |
| Class A rent (local) | 78 USD | 38 USD |
| Vacancy | 19.5% | 21.6% |
| Trend | flat | flat |
| Prime yield | 6.2% | 6.9% |
| Premium flex / seat / month (USD) | $1,140 | $700 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 28% | 26% |
| Metric | Boston | Philadelphia |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 18 mos | 14 mos |
| Lease norms | Modified-gross with op-ex escalations. Rent-free 18-24 months on 10-year term standard. Lab leases carry distinct economics — base rent plus operating expenses plus utilities pass-through. | Modified-gross structures with opex pass-throughs. 10-year terms standard. Free rent of 12-16 months and TI of $90-$130/sqft typical. |
| Tax note | Combined federal + Massachusetts corporate tax 28%. | 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. |
| Metric | Boston | Philadelphia |
|---|---|---|
| Talent index (0–100) | 95 | 85 |
| Talent note | Deepest STEM and life-sciences talent pool in the US — anchored by MIT, Harvard, BU. Average all-in compensation indexes 95. | Deep healthcare, life sciences, legal, and academic talent — anchored by Penn, Temple, Drexel, and a deep network of hospital systems. Strong financial services concentration in asset management and insurance. |
Boston: MBTA subway, commuter rail, and Logan Airport access. Silver Line connects the Seaport to South Station.
Philadelphia: SEPTA regional rail (13 lines), broad-street and Market-Frankford subway, multiple bus and trolley routes. PATCO connects Camden and South Jersey. Center City is highly walkable.
Philadelphia is the cheaper Class A market on a USD basis.
Boston has the deeper talent index (95/100 vs 85/100).
Philadelphia has the lower headline corporate tax (26% vs 28%). Local incentives can change the effective rate materially.
Boston typical term is 10 years with 18 months free; Philadelphia runs 10 years with 14 months free.
Boston: MBTA subway, commuter rail, and Logan Airport access. Silver Line connects the Seaport to South Station. Philadelphia: SEPTA regional rail (13 lines), broad-street and Market-Frankford subway, multiple bus and trolley routes. PATCO connects Camden and South Jersey. Center City is highly walkable.
Score Boston, Philadelphia and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.