Center City Philly: A Downtown Defying Remote Work Trends and Thriving

Center City Philadelphia is still feeling the bite of the COVID-19 pandemic, but its booming residential population is boosting its fortunes above many other American downtowns. Foot traffic remains at 80% of 2019 levels, while the office worker population in the core of the city’s West Market skyscraper district is between 50% and 60% of what it had been.

But those are among the only gloomy numbers in the annual State of Center City report. Center City’s 20% office vacancy is lower than many peer cities and most of Philadelphia’s suburbs, with only Conshohocken, Radnor, and Bala Cynwyd outperforming West Market Street. The population is growing and development—especially of apartments—is still healthy.

The Downtown Job Scene

Center City is still a regional employment hub, with about a tenth of all jobs in the larger metropolitan region and half of the workforce commuting in from outside Philly. Suburban workers still represent a third of wage tax revenues. However, Philadelphia’s reliance on an unusual amalgam of business and wage taxes has undermined its dominance in regional employment. Unlike New York City, Boston, and Washington D.C., regional companies mostly did not move back into the city during the 2010s.

Stalled Return to Office

As in the rest of the country (except New York City), office vacancy rates remain high at over 20%. Still, Philadelphia compares well to cities like Atlanta, Austin, Denver, and San Francisco, all with vacancy rates over 30%. In 2025, total office occupancy didn’t change much, with vacancies falling slightly in the highest demand “trophy” buildings. Philadelphia’s vacancy rate has been eased by the demand for apartments, with 2 million square feet of office space removed from the supply to be converted into residential.

Center City and its surrounding neighborhoods have amenities like walkability comparable to European or Canadian urban areas at a far lower price point. The success of Center City as a neighborhood has created a flywheel effect, where lively streets and popular restaurants attract more residents and developers. Last year, over 4,000 units were sold or rented in Greater Center City, described as “the strongest single-year performance on record.” While Philadelphia as a whole lost population through 2023, Greater Center City lost fewer residents and rebounded faster.

Two issues beyond the city’s tax structure affect Center City’s fortunes: SEPTA’s perennial funding battles and an increase in people with mental health challenges living on the street. “We think we live in the richest country in the world, and we shouldn’t let people languish on the streets,” said Prema Katari Gupta with Center City District. “Having visibly homeless people on the streets drives a perception of lack of safety. But more than anything, it’s not fair for the most vulnerable among us to live that way.”