PHILADELPHIA—The Center City District, viewed by many as the economic engine that drives the city, is having some issues in terms of its office space and employment in key job creating sectors.

According to the 75-page “State of Center City” report released by the Center City District, the district's office rental rates are lagging behind national and even suburban Philadelphia rates.

The report notes that job growth in the n health care and education sectors, which have been the city's largest job creators, has flattened and for the first time in a decade, declined last year in Center City, according to The Inquirer.

The report, which is for the most part positive on the Center City District's performance last year, did note that the district's office market, while sporting a high occupancy rate at 86%, falls below the national average of $35.19 per square foot for office space. In fact, Center City's $27.11 per square foot rate is less than rates commanded in Pennsylvania suburbs—$27.95 per square foot.

Since 1990, Center City's share of the office space in the greater Philadelphia region has slipped from 36.3% to 29.1%.

"This is not meant to be a purely promotional report," says Paul Levy, CEO of the Center City District. "This is meant to be a look at our strengths and our challenges. The city is loads better than it was, but it is not yet fulfilling its full potential." See story in The Inquirer.