Office Leasing Rebounds in Center City, But Daytime Worker Population Still Lags Prepandemic Levels
New Center City District report identifies strengths, tees up initiatives to engage office workers in downtown events as well as focus groups conducted through the Central Philadelphia Development Corporation
Contact
JoAnn Loviglio, 215.440.5500, pr@centercityphila.org
PHILADELPHIA (July 30, 2026) — Center City District (CCD) today released Building Back the Daytime Office Population, a Center City Insights report brief examining the state of Philadelphia’s downtown office district. The report finds a district of two stories: office leasing fundamentals are stabilizing and residential conversions are gaining momentum, while return-to-office (RTO) rates have plateaued, with no meaningful uptick in the office district’s daytime population over the last two years.
2025 was the strongest leasing year of the postpandemic period, with nearly 2.3 million square feet of office space transacting in Center City, according to CoStar data cited in the report. Leasing activity is increasingly concentrated in trophy and upper-tier Class A buildings, a flight to quality that has pushed trophy occupancy to 88% as of the first quarter of 2026 — a level considered healthy even by prepandemic standards.
The opening of Chubb’s new headquarters at 2000 Arch Street is a high-profile bright spot, bringing nearly 3,000 employees to the western end of the office district under a full-time in-office policy. The building is strengthening demand for office-serving retail, including the recently opened MOTW Coffee and Pastries, and providing new customers for established businesses such as Trader Joe’s at 22nd and Market and Giant’s flagship at 23rd and Arch.
Even so, office attendance in the West Market office district in 2026 averages just 56% of 2019 levels, according to Placer.ai data — a figure pulled down by sharp declines in Monday and Friday attendance. RTO activity climbed quickly in 2022 and 2023 as pandemic-era restrictions eased, but the recovery leveled off by 2024, suggesting hybrid work patterns have become firmly embedded in the district.
“Office leasing and neighborhood investment are moving in the right direction, but a strong data trend for buildings hasn’t yet translated into a strong data trend for daytime foot traffic,” said Prema Katari Gupta, President and CEO of Center City District. “Closing that gap means understanding what will actually bring workers back to the office more often, and that’s exactly what we intend to do this fall.”
New housing continues to reshape the district as well. Nearly 3,500 residential units have been created through office-to-residential conversions since the mid-20th century development of the JFK Boulevard corridor, with at least 500 more proposed, and another 2,000 units delivered through ground-up apartment development in and around the office district. That growing residential base is fueling a livelier retail mix, with recent and upcoming additions including Cake & Joe, Five Iron Golf, Poke Bowl, and Rhythm and Spirits, alongside a new bar and restaurant at 1515 Market, a Broad Street Brewing beer garden in the LOVE Park saucer, and the reopening of Real Food Eatery on the ground floor of 1700 Market.
The report also highlights CCD programming that has proven effective at drawing office workers into the district, including CCD Sips, which has brought an average bump of more than 5,500 people to the office district on summer Wednesdays. The 2026 edition of Let’s Do Lunch will take place every weekday in August, offering $10, $15, and $20 deals at dozens of participating restaurants around Center City.
Looking ahead, the Central Philadelphia Development Corporation (CPDC), a nonprofit business leadership organization managed by CCD staff, is piloting two new initiatives this fall:
- The first brings CoExperiences, a Pittsburgh-based technology platform that matches employees with local events, to Philadelphia through CPDC member companies.
- The second is a series of focus groups with employees of downtown companies, gathering direct feedback on what workers love, what they don’t, and what they want more of in Center City.
Organizations interested in joining these conversations can reach CCD at research@centercityphila.org.
For more details, visit the Building Back the Daytime Office Population report page.
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Center City District, partner to property owners and downtown stakeholders, is the steward and advocate for a clean, safe and thriving Center City Philadelphia. Find us at www.centercityphila.org.
