7/12/21 Philadelphia Mastermind Group Meeting

Key Take Aways from Philadelphia July 2021

• The Surfside condo collapse has caused real estate professionals to look more closely at the condo market and it’s likely a variety of changes will come about to prevent future tragedies. (Ballard Spahr LLP – Bart Mellits. Ballard Spahr LLP – Michael Sklaroff, Johnson, Kendall & Johnson – Matt Musilli, Eisner Amper – Ed Opall, Kelly Maiello Architects – Jim Karmolinski)
• There has been pronounced growth in rental prices over the past few weeks and months in multi-family units, with asking rents up more than 10% year over year in some cases. (Counter Management – Christian Dalzell, Yardi Systems – Paul Fiorilla)
• Inflation concerns, LIBHOR and commodity prices are important factors in the current financial market. (Chatham Financial – Pat Acox, Chatham Financial – Matt Hoffman)
• Tax legislation is still uncertain, but many are bracing for changes. (Eisner Amper – Ed Opall)
• There have been improvements in retail vacancy in some areas of the city, but foot traffic and tourism remain down. (Old City District – Job Itzkowitz)
• Industrial continues to be highly sought after. (Ten-X – Kevin Krause)
• The office market continues to be uncertain as many companies attempt to bring employees back to work. Many companies are downsizing. (Ten-X – Kevin Krause, Colliers – Matt Shanahan)
• The Navy Yard project continues to move forward, including the Phase 1 development of life sciences buildings by Ensemble and Mosaic. (Kelly Maiello Architects – Jim Karmolinski)
• Covid-19 hit distressed neighborhoods the hardest. (Cornerstone Community Partners – Chris Gigliotti)
• Many people have not considered how detrimental the short to long term impact of Covid-19 and shutdowns will be on the city economy. (eConsult Solutions – Stephen Mullin)
• General activity is up, from more people moving about in the city to larger numbers of transactions and client interest in projects. (Kelly Maiello Architects – Jim Karmolinski, Colliers –Matt Shanahan, Counter Management – Christian Dalzell)
• Data regarding the current recession and recovery does not follow the patterns of a normal economic cycle. (Federal Reserve Bank of Philadelphia – Paul Flora)
• Consumer confidence is up. (Federal Reserve Bank of Philadelphia – Paul Flora)
• During the pandemic, Philadelphia MSA lost over 500,000 jobs and has recovered just over 300,000. Many of those jobs lost were in leisure and hospitality and may not be back for awhile. (Federal Reserve Bank of Philadelphia – Paul Flora)
• Inflation is not at the heights it was in the 60s, 70s and 80s. (Federal Reserve Bank of Philadelphia – Paul Flora)
• Workplace diversity is a problem in Philadelphia as it is in most other major U.S. cities. (Federal Reserve Bank of Philadelphia – Paul Flora)