Some of the tallest buildings in Philadelphia have declined in value and will pay smaller property tax bills next year as a result, writes Kristen Mosbrucker-Garza for WHYY.

The market value of one Center City office tower at the corner of 16th and Market streets went down by 20 percent last year, according to an analysis of the city’s 2025 property tax assessments by WHYY News. Consequently, its owner, American Real Estate Partners, will have to pay less to the city of Philadelphia and the school district in 2025.

The building’s new estimated value is $132 million in 2025, a decrease from $167 million in 2024. This will bring the property tax bill to around $1.8 million in 2025, which is about $400,000 less than the previous year. The property tax rate remains the same.

One of the main reasons for this drop in value is vacant office space as a result of companies adopting remote policies during the pandemic.

“It’s not a secret that commercial property values across the board, not just in Philadelphia, are seeing reductions and that’s largely due to less folks in the office right now, people working remotely,” said James Vandermark, partner at law firm White and Williams.

Read more about the declining property taxes of Philadelphia’s tallest buildings in WHYY.

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