2401 Locust St, Philadelphia, PA 19103 For Sale

Cushman & Wakefield is offering a Telco Hotel for sale in Philadelphia—an asset that is over 85% occupied by telecommunications and colocation companies. These industries form the core infrastructure that enables AI, cloud services, and data‑intensive applications to reach end users.

Why This Asset Matters

Data demand is surging at record levels, driven by AI workloads, video, cloud computing, and IoT. This growth is pushing telecom operators to expand capacity and invest heavily in next‑generation digital infrastructure. Key trends include:

• • AI‑driven network automation that lowers operating costs and enables new digital services
  • Rapid adoption of private 5G networks across manufacturing, logistics, healthcare, and energy
  • Major global investment in cloud, edge, and data center infrastructure to support AI and hybrid connectivity
  • Expansion of satellite and Non‑Terrestrial Networks, opening new markets and enabling continuous global coverage

The Opportunity

Telecom providers are evolving into digital infrastructure and platform companies, powered by AI, enterprise 5G, and massive cloud and edge investment. These forces position this Telco Hotel as a strong acquisition with meaningful upside.

The property is located at the Southern edge of the Market Street West business corridor. It is one of only a handful of data center assets in the downtown market. 2401 Locust Street is a multi-tenanted, 46,319 SF four story boutique Telco Hotel, which is anchored by Verizon.

Situated on a 0.28-acre parcel, 2401 Locust Street is a carrier hotel and mission-critical facility originally built as a manufacturing plant for Hires Root Beer. The Property was also previously used as a neighborhood newspaper plant before being acquired for conversion to office space. When previous ownership was approached by telecommunications users due to its proximity to the Baltimore and Ohio Railroad fiber routing and the AT&T central office, the building was converted to its current use as an IT carrier facility during the 1980s.

2401 Locust Street has an overall average rent of $43.65 with rents ranging from $36.21 to $238.41 PSF. With multiple sources of additional income providing steady cash flow coupled with engagement of available conduits and ceiling boxes, the property has with significant upside potential over a 10 year hold.