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Center City apartment vacancy drops despite rapid office conversions

April 27, 2026  |  Source: Philadelphia Business Journal
17 Market West exterior
17 Market West at 1701 Market Street, converted from office into 299 apartments. Photo: Neff, via Philadelphia Business Journal.

Less than a year after opening, Alterra Property Group’s 17 Market West is more than 90% occupied — far ahead of the 18-to-24 months a 299-unit building typically takes to lease up.

90%+
Leased in under a year
7.4%
Center City vacancy
622
Wanamaker units ahead

Principal Connor Burke pointed to strong, sustained demand for Center City living. The pace tracks a broader recovery: Center City apartment vacancy has fallen to 7.4%, down from a 2020 peak of 12.4%, and now sits near the metro average and below the national figure, according to CoStar data. Among Center City buildings completed since 2021, vacancy has roughly halved over the past year.

There’s certainly a tremendous amount of demand for people to live here in Center City.Connor Burke, Alterra Property Group (via PBJ)

With ground-up construction stalled by high costs and interest rates, office-to-residential conversions are filling the gap. Alterra is now partnering with New York developer TF Cornerstone to convert the historic Wanamaker building into 622 apartments, targeting a 2028 delivery that would help rebuild the Center City pipeline.

Read the full article at Philadelphia Business Journal →

Source: Philadelphia Business Journal, “Center City apartment vacancy drops despite rapid office conversions,” by Paul Schwedelson, April 27, 2026.