Philly Office Towers Trade At Steep Discounts As Pandemic Freeze Thaws

The period ahead of Labor Day can be a sleepy time for CRE, but that hasn’t been the case for Center City this year. The neighborhood’s office market has been absolutely buzzing.

Several skyscrapers along Market Street traded at steep discounts in recent days following years of extending and pretending in Philadelphia’s central business district. Valuation drops and special servicing updates in the neighborhood have also made headlines this week.

CSB Holdings and Tide Realty Capital are buying the 29-story 2000 Market St. for $45.5M, the Philadelphia Business Journal reported Friday. That is a 58% drop from the nearly $108M the building sold for in 2018.

The new ownership told the outlet they plan to continue operating the 68% occupied tower as-is, making it the largest office property to trade in Philly postpandemic without a residential conversion plan...


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RSK: Good news is office buildings are selling. Bad news is they are selling at steep discounts.