12/14/20 Philadelphia Mastermind Group Meeting

Philadelphia December 2020 – Key Takeaways

• Two key senate races are happening in Georgia, which will potentially have an effect on tax rates, available money for renters and money for affordable housing.
• Multi-family properties are still doing well.  Lots of loans are closing and the fundamentals appear to be strong.  The Philadelphia multi-families appear to be doing better than in similar large east coast cities.
• With the end of the year approaching, many businesses are busy trying to close out the year.
• There are a lot of questions and growing confusion surrounding PPP loans and what must be paid back.  Banks are opening forgiveness platforms.  
• Some members are having difficulty with clients that are slow to pay, though it seems to be improving in general.
• As vaccine distribution begins, there are a lot of questions about how quickly it can be distributed, how many people will be willing to take it and how long it may take for things to get busy again.
• Many members are staying busy.  While not as busy as last year, there are proposals coming in and there is some optimism. 
• Eds and meds and the services that support them, including multi-family properties near the universities, continue to do well in Philadelphia.
• Many of the hardest hit industries, particularly transportation, may take awhile to come back. 
• The transition from LIBOR to SOFR is likely going to be delayed another year and a half, which is good for many clients because there are fewer loans to convert.
• Many developers are asking for estimates on projects, but are then sitting on the sidelines to see what’s going to happen.
• The insurance industry has been hardening over the past 2-3 years with higher rates and more stringent policies.  This trend increased during the pandemic, and higher rates should be expected.
• REAL Professionals members continue to take advantage the network available to them. Talson Solutions discussed how pleased they were with the work of Kelly Maiello Architects on a project while Ballard Spahr discussed utilizing the niche expertise of Chatham Financial.