{"id":8963,"date":"2026-10-15T10:34:57","date_gmt":"2026-10-15T14:34:57","guid":{"rendered":"https:\/\/www.lee-associates.com\/easternpa\/?p=8963"},"modified":"2026-10-15T10:34:58","modified_gmt":"2026-10-15T14:34:58","slug":"margo-mocarski-moderates-sior-panel-on-the-next-chapter-of-philadelphias-office-market","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/easternpa\/2026\/10\/15\/margo-mocarski-moderates-sior-panel-on-the-next-chapter-of-philadelphias-office-market\/","title":{"rendered":"Margo Mocarski Moderates SIOR Panel on the Next Chapter of Philadelphia\u2019s Office Market"},"content":{"rendered":"
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Lee & Associates of Eastern Pennsylvania was pleased to support the Philadelphia Chapter of SIOR\u2019s Office & Industrial Property Summit, held Tuesday, September 29, 2026 in Bethlehem, PA. Margo Mocarski, SIOR, Principal, moderated a discussion about how changing workplace needs, investment decisions, and downtown development are shaping Center City Philadelphia\u2019s office market.<\/p>\n

The panel, \u201cThe Office Market: Investment, Transformation, and the Next Chapter,\u201d<\/strong> featured Brian Berson, CEO of Shepherd Root Real Estate and Gregory Webster, COO of PMC Property Group. The conversation focused on the transition of the office market. It may be finding its footing, but the prospects for individual buildings vary widely. Quality and amenities influence which offices attract tenants, while the growth of downtown housing is changing how investors think about the uses and vitality of the urban core.<\/p>\n

For owners, investors, and developers, the discussion offered a practical reminder that decisions about office buildings are increasingly connected to the experience they provide and the role they can play in a changing downtown.<\/p>\n

Several themes emerged from the discussion.<\/p>\n

 <\/p>\n

Office demand is stabilizing, but quality matters more than ever.<\/strong><\/p>\n

The panelists described a market that feels as though it is expanding, with companies showing renewed interest in office space. But improving sentiment does not mean every building will benefit equally. The flight to quality, widely discussed across the office market, is also evident in Philadelphia. Overall, Center City office vacancy is roughly 20%, while vacancy in trophy buildings is about half that rate. Trophy properties also command rent premiums of $15 per square foot or more compared with other building classes.<\/p>\n

The figures point to a widening divide between buildings that meet current tenant expectations and those that do not. Companies are weighing more than location and square footage; building quality, amenities, and the day-to-day workplace experience all influence their decisions.<\/p>\n

For owners and investors, upgrading an existing property may create an opportunity to compete for tenants, but the right approach depends on the building, its financial position, and the investment required. The panel\u2019s discussion of creative improvement strategies underscored the value of evaluating each asset on its own merits.<\/p>\n

 <\/p>\n

Downtown housing growth is part of the office story.<\/strong><\/p>\n

The panel also considered how housing growth is contributing to Center City\u2019s vitality. According to the Center City District, more than 4,000 housing units have been added to the Greater Center City Core in the past 18 months, and approximately 90% are occupied.<\/p>\n

A larger residential population can keep downtown active beyond the workday, supporting restaurants, services, and public spaces. It can also expand the nearby workforce and make Center City a more appealing destination for employees commuting from outside the city.<\/p>\n

This growth brings residential and office real estate into closer focus. Underperforming office properties may offer opportunities to help meet demand for well-located housing, though conversion is not feasible for every building. Location, building quality, transit access, and redevelopment costs all factor into the decision. Acquisition costs, construction costs, and building-system expenses must be weighed against projected rents, demand, and lease-up time to determine whether a project makes economic sense.<\/p>\n

 <\/p>\n

The office experience needs to justify the commute.<\/strong><\/p>\n

The pandemic prompted many people to reconsider how much time they want to spend commuting. Some prioritize living near work, while others may be willing to travel for an office that offers meaningful opportunities to connect with colleagues and those in leadership roles.<\/p>\n

That shift has raised expectations for the workplace. Features that support health and wellness, collaboration, and in-person connection can make the office more appealing. For employers and building owners, the question is what the workplace makes possible. A strong environment for teamwork and learning can give employees a clearer reason to come in and support companies\u2019 decisions to maintain or expand their office presence.<\/p>\n

 <\/p>\n

AI could reshape employment and future office demand.<\/strong><\/p>\n

AI may slow hiring in some industries while also contributing to new company formation and job creation as businesses adopt the technology. Its overall effect on office demand will depend on how these changes unfold. Some companies may need less space as their workforce changes, while new and growing businesses may create new demand for workplaces.<\/p>\n

For owners and investors, it will be useful to track not only broad employment trends but also where new companies are forming, which industries are growing, and how AI is changing workforce needs. These factors could influence the type and amount of office space businesses seek.<\/p>\n

Center City\u2019s next chapter will depend on how well its buildings and neighborhoods respond to changing expectations. The panel highlighted how office quality, housing, accessibility, and the workplace experience are increasingly connected. For owners, investors, and developers, understanding those connections can help guide decisions about how buildings compete and contribute to the city\u2019s continued evolution.<\/p>\n

Lee & Associates thanks the Philadelphia Chapter of SIOR for hosting another successful summit, and Brian Berson and Gregory Webster for contributing their perspectives.<\/p>\n

 <\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

Lee & Associates of Eastern Pennsylvania was pleased to support the Philadelphia Chapter of SIOR\u2019s Office & Industrial Property Summit, held Tuesday, September 29, 2026 in Bethlehem, PA. Margo Mocarski, SIOR, Principal, moderated a discussion about how changing workplace needs, investment decisions, and downtown development are shaping Center City Philadelphia\u2019s office market. The panel, \u201cThe Office Market: Investment, Transformation, and the Next Chapter,\u201d featured Brian Berson, CEO of Shepherd Root Real Estate and Gregory Webster,…<\/p>\n","protected":false},"author":229,"featured_media":8961,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,9,1319],"tags":[],"class_list":["post-8963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-view-all-lee-associates-of-eastern-pennsylvania-blog-posts","category-announcements","category-team-news"],"yoast_head":"\nMargo Mocarski Moderates SIOR Panel on the Next Chapter of Philadelphia\u2019s Office Market - Eastern Pennsylvania<\/title>\n<meta name=\"description\" content=\"Margo Mocarski, SIOR, Principal, moderated a discussion about how changing workplace needs, investment decisions, and downtown development are shaping Center City Philadelphia\u2019s 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