--- title: "New York vs Philadelphia: Class A office comparison" description: "Side-by-side Class A office comparison for New York and Philadelphia — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/new-york-vs-philadelphia pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > 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. ## TL;DR - Class A rent: New York $102/sqft vs Philadelphia $38/sqft. - Vacancy: New York 17.4% vs Philadelphia 21.6%. - Talent index: New York 100 vs Philadelphia 85. - Corporate tax: New York 27.5% vs Philadelphia 26%. - Premium flex/seat/month: New York $1,450 vs Philadelphia $700. # New York vs Philadelphia: Class A office comparison **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.** ## TL;DR - [Class A](/glossary/class-a) rent: New York $102/sqft vs Philadelphia $38/sqft. - Vacancy: New York 17.4% vs Philadelphia 21.6%. - Talent index: New York 100 vs Philadelphia 85. - Corporate tax: New York 27.5% vs Philadelphia 26%. - [Premium flex](/topics/lease-vs-flex)/seat/month: New York $1,450 vs Philadelphia $700. ## Market data side-by-side | 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%| ## Lease norms | 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.| ## Talent | 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.| ## Transit & commute **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](/topics/workplace-talent-strategy) 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. ## Top submarkets — New York - [**Plaza District**](/cities/new-york/plaza-district) — [trophy tier](/topics/trophy-asset-selection) · $145/sqft/yr - [**Hudson Yards**](/cities/new-york/hudson-yards) — trophy tier · $130/sqft/yr - [**Midtown**](/cities/new-york/midtown) — trophy tier · $128/sqft/yr ## Top submarkets — Philadelphia - [**Center City West**](/cities/philadelphia/center-city-west) — trophy tier · $54/sqft/yr - [**University City / Schuylkill Yards**](/cities/philadelphia/university-city) — trophy tier · $50/sqft/yr - [**Center City East**](/cities/philadelphia/center-city-east) — prime tier · $46/sqft/yr ## Decision criteria ### Pick by cost Philadelphia is the cheaper Class A market on a USD basis. ### Pick by talent depth New York has the deeper talent index (100/100 vs 85/100). ### Pick by tax Philadelphia has the lower headline corporate tax (26% vs 27.5%). Local incentives can change the effective rate materially. ### Pick by lease optionality New York typical term is 10 years with 14 months free; Philadelphia runs 10 years with 14 months free. ### Pick by transit 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. ## Run a 4-city comparison 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. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in New York or Philadelphia?**** : Philadelphia is cheaper on a USD basis: $38/sqft vs $102/sqft. ****Which has better talent depth, New York or Philadelphia?**** : New York indexes higher on talent depth (100 vs 85). ****Which has more sublease availability, New York or Philadelphia?**** : Philadelphia carries higher vacancy (21.6% vs 17.4%) and therefore typically more sublease overhang. ****What lease term should I expect in New York vs Philadelphia?**** : New York typical term is 10 years with 14 months rent-free; Philadelphia typical term is 10 years with 14 months rent-free. ****How does transit and commuter access compare?**** : 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. ## Editorial provenance Reviewed by [**Miriam Hollander**](/about/authors/miriam-hollander) — Lead market analyst. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/new-york-vs-philadelphia), updated 2026-04-15T00:00:00.000Z.