Several Center City office buildings have sold in recent months for well under half their previous prices and assessed values, attracting residential developers and out-of-market investors. An Inquirer analysis of city tax assessment data found that the overall value of Philadelphia’s large office buildings in 2019 was about $9.8 billion, slightly higher than today. But adjusted for inflation, that’s a 28% decline in the past six years. Of 197 office properties worth $5 million or more that were analyzed, the majority saw flat or declining values, while 10% saw their valuations drop by 25% or more. That analysis notably does not factor in ongoing tax assessment challenges or likely future contests. As buildings sell for greatly reduced prices, owners have successfully fought the city’s latest assessments, which are used to calculate property taxes and other taxes. Last year, about 1 in 5 commercial properties filed new appeals, according to data from the city’s Board of Revision of Taxes, seeking to push their official valuations even lower. The declines affect property tax revenues for the city, which gets 44% of every property tax dollar, and the school district, which gets 56%, as well as all proceeds of the use and occupancy tax that is also calculated off assessments.
Source: Philadelphia Inquirer; 9/23/2025