Contact:                                                
JoAnn Loviglio
T 215.440.5546
jloviglio@centercityphila.org
pr@centercityphila.org

Center City District’s in-depth look at economic trends, employment statistics, residential growth, retail development, transportation usage, public space initiatives, and more

PHILADELPHIA (May 1, 2025) — Center City District (CCD) and the Central Philadelphia Development Corporation (CPDC) today released State of Center City 2025, CCD’s signature yearly research report distilling the most recent data available from city, state, and federal agencies; local organizations and businesses; and CCD’s own surveys, pedestrian counts, research and analysis.

This comprehensive report examines the key drivers of downtown vitality and investment – new housing, return to the office, retail, employment, arts and culture, transportation, health care and higher education, and travel and tourism.

State of Center City 2025 is organized to reflect CCD’s organizational vision that Center City is Philadelphia’s heart of commerce, culture, and connection, generating opportunity and prosperity for the entire city and region. Those three pillars — commerce, culture, and connection — provide the data-rooted framework for understanding Center City’s current state and future potential.

The Commerce section examines economic trends, employment, the office market and return-to-office, development projects and building conversions. The Culture section explores population growth, retail and restaurants, arts and culture, and tourism. The Connection section looks at the mobility patterns, climate impacts, infrastructure and the physical environment, and quality-of-life indicators.

“Five long years ago, when pandemic lockdowns emptied Center City seemingly overnight, crisis narratives quickly took hold to make sense of the disruptions: downtowns were ‘dead,’ offices were ‘over,’ dense urban living had lost its appeal in a vast, work-from-anywhere world,” CCD President and CEO Prema Katari Gupta said.

“These crisis narratives have shown remarkable staying power and continue to inform individual choices about were to live, work, invest, and spend leisure time, despite the wealth of data telling a dramatically different story,” she added.

Just a few of the key findings explored in State of Center City 2025:

Jobs rebound to historic highs
Philadelphia achieved a major milestone in 2024, surpassing its 1980 peak employment levels for the first time in 45 years. With nearly 300,000 jobs concentrated in greater center city — 42% of all citywide employment — downtown Philadelphia remains the beating heart of the region’s economy. Center City’s job recovery outpaced the suburbs, fueled by growth across diverse sectors including health care, hospitality, finance, and the creative economy. Notably, more than half of Center City jobs require less than a college degree, offering broad opportunities across education levels.

Office sector reshapes for the future
While office dynamics remain in flux nationally, Center City’s "flight to quality" is redefining its commercial core. Trophy office buildings are seeing strong leasing activity, capturing 43% of new leases despite representing only 20% of inventory. Meanwhile, older Class A and B buildings are undergoing reinvestment or conversion. Innovative projects like Morgan Lewis’ new headquarters and the adaptive reuse of older office spaces into residential units are ushering in a revitalized and more sustainable downtown.

Conversions drive residential growth
Philadelphia leads the nation in converting outdated office spaces, with 10 million square feet repurposed over the past two decades. Current projects, such as the transformation of Three Parkway and the Public Ledger Building, will add over 1,000 new homes to Center City. This pipeline supports the Parker administration’s broader goal to deliver 30,000 new or preserved homes by 2028.

Return-to-office momentum continues
Center City has one of the nation's strongest return-to-office rates, with 74% of non-resident workers back in downtown offices by the end of 2024, outperforming peer office districts like Lower Manhattan. Workers living within two miles of Center City are returning at a remarkable 88% rate, emphasizing the advantage of dense, transit-accessible urban living. CCD’s dynamic programming, including events like Center City District Sips, draw thousands of people downtown weekly.

Population growth fuels urban vitality
Since 1990, greater Center City’s population has increased by over 70,000 residents, fueled by the addition of more than 50,000 new housing units. With more than 5,000 additional units projected by 2030, Center City’s walkable, mixed-use environment remains a magnet for young professionals and families. Educational attainment and median household income also continue to rise, strengthening downtown Philadelphia’s competitive edge nationally.

Retail and dining evolution continues
Retail occupancy across Center City stabilized at 83% by early 2025, closely mirroring pedestrian volume recoveries that now approach 90% of pre-pandemic levels. New retail entrants like Aritzia, Abercrombie, and Nike's Jordan World of Flight, along with a boom in restaurants and nightlife, are reshaping the shopping and dining landscape. Midtown Village, in particular, surpassed 2019 pedestrian counts by 25% during weekend evenings.

Cultural resurgence underway
Center City’s cultural institutions have rebounded impressively, with new venues like Calder Gardens and the Philadelphia Ballet Center for Dance set to open this year. The newly opened TKTS booth brings discounted theater tickets to Philadelphians, solidifying Center City’s place among global cultural hubs. Arts institutions are innovating to engage younger and more diverse audiences, with new membership initiatives tailored to millennials and Gen Z residents.

“The evidence is clear: Center City Philadelphia in 2025 is reinventing itself as a more resilient, diverse, and dynamic downtown,” Gupta said. “This report invites you to look beyond preconceptions and recognize the remarkable urban center that continues to drive our regions economic and cultural prosperity.”

To read the 112-page State of Center City report, visit centercityphila.org/socc.