New York ($102/sqft, 17.4% vacancy) and Philadelphia ($38/sqft, 21.6% vacancy) compete on different axes: New York on talent depth and Philadelphia on rent and tax.
New York ($102/sqft, 17.4% vacancy) and Philadelphia ($38/sqft, 21.6% vacancy) compete on different axes: New York on talent depth and Philadelphia on rent and tax.
| Metric | New York | Philadelphia |
|---|---|---|
| Region | Americas | Americas |
| Country | United States | United States |
| Class A rent (USD/sqft/yr) | $102 | $38 |
| Class A rent (local) | 102 USD | 38 USD |
| Vacancy | 17.4% | 21.6% |
| Trend | rising | flat |
| Prime yield | 5.6% | 6.9% |
| Premium flex / seat / month (USD) | $1,450 | $700 |
| Submarkets covered | 7 | 5 |
| Corporate tax | 27.5% | 26% |
| Metric | New York | Philadelphia |
|---|---|---|
| Typical term | 10 yrs | 10 yrs |
| Typical rent-free | 14 mos | 14 mos |
| Lease norms | Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year. Free rent (12-18 months on a 10-year term) and fit-out-capex">tenant improvement allowances ($130-$180/sqft for high-spec build-outs) are core economic levers. Personal guarantees are uncommon at institutional tenant scale; Good Guy Guarantees remain standard for smaller suites. | 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 + New York State + NYC corporate income tax effectively reaches 27.5% for most C-corps. New York City Commercial Rent Tax (CRT) applies to Manhattan tenants south of 96th Street paying base rents above $250,000. | 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 | New York | Philadelphia |
|---|---|---|
| Talent index (0–100) | 100 | 85 |
| Talent note | Deepest white-collar talent pool in the Americas. Average all-in compensation for senior knowledge workers indexes 100 (the global baseline used elsewhere in this Atlas). | 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. |
New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch.
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.
New York has the deeper talent index (100/100 vs 85/100).
Philadelphia has the lower headline corporate tax (26% vs 27.5%). Local incentives can change the effective rate materially.
New York typical term is 10 years with 14 months free; Philadelphia runs 10 years with 14 months free.
New York: MTA subway lines, Metro-North, LIRR, and PATH converge on Midtown and the Financial District, anchored by Grand Central, Penn Station, and the Oculus. Class A landlords now factor commute time as part of their leasing pitch. 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 New York, 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.