PHILADELPHIA: Expansion of Philadelphia City

John Connors of The Brickstone Companies said it best, “Philadelphia City Center is expanding. It’s a new day in every way. From Allegheny to the stadiums the city is expanding the same way it emptied out.” Philadelphia is adding approximate 2400 new multi-family units each year to its housing base and filling them all with new people.  In the recent past, significant real estate trades simply didn’t happen in Philadelphia since with no demand it was difficult to price deals. Now that there is demand, properties are able to be priced and significant properties are trading. These deals are between traditional Philadelphia real estate players and those from outside Philadelphia. As far back as Philadelphia REAL Professionals Members can remember,  very little, if any, outside investment happened in Philadelphia. Now that new capital is coming to the city, the cap rate differential with neighboring cities has compressed substantially.