8/9/21 Philadelphia Mastermind Group Meeting

Key Take Aways from Philadelphia August 2021

• There has been a lot of interest in residential, particularly building homes in the suburbs. (Ballard Spahr LLP – Bart Mellits, Old City District – Job Itzkowitz, eConsult Solutions – Stephen Mullin, Yardi Systems – Paul Fiorilla)
• Logistics and the cargo industry offer a new field of interest and involves some large real estate transactions in the area, including a 19 acre site near the airport. (Ballard Spahr LLP – Michael Sklaroff, Pennoni – Mark Celoni, Kelly Maiello Architects – Jim Karmolinski)
• There is a developer led RFP for 3 contiguous land sites, including a family court building, that are ripe for development near Logan Square. (Pennoni – Mark Celoni, Kelly Maiello Architects – Jim Karmolinski)
• Life Sciences are hot right now, and there are multiple RFPs involving sites with half a million sq ft and more. (Pennoni – Mark Celoni, Talson Solutions – Robert Bright)
• Universities are busy at this time, including dental schools which seem particularly interested in new projects. Both public and private universities are active. (Pennoni – Mark Celoni, Kelly Maiello Architects – Jim Karmolinski)
• Los Angeles and Boston are both hot areas, with Los Angeles anticipating a lot of large infrastructure projects in anticipation of the Olympics. (Talson Solutions – Robert Bright)
• Senior Housing has also shown an uptick in new activity. (Rittenhouse Appraisals – Yaroslav Kavoliv)
• There has been a lot of new interest in hotels, with hotels being at capacity similar to 2019, though business travel is still uncertain. (Rittenhouse Appraisals – Yaroslav Kavoliv)
• Many have been very busy, with some having to turn down good clients because they’re unable to provide services with all the current work on the table. (Kelly Maiello Architects – Jim Karmolinski)
• A lot of foot traffic has returned to areas of the city and residential seems to be back, with landlords offering less free months rent. Retail is doing better, but office remains uncertain and it’s important to the Center City economy to bring workers back to the office. (Old City District – Job Itzkowitz, eConsult Solutions – Stephen Mullin)
• Staffing issues and fewer office workers in town have made it difficult for some restaurants to recover. Many jurisdictions are looking to make it possible for restaurants to continue offering outdoor seating. (Old City District – Job Itzkowitz)
• Multi-Family is strong. Rents went up 1% last month, though the average was 2%. Year over year rents are up 7.5%, which is less than the national average. Some smaller cities have more room to grow. (Yardi Systems – Paul Fiorilla)
• The Commerce Department in the City of Philadelphia worked hard to help businesses make it through the pandemic, offering resources to small business owners, providing grants, and even offering PPE kits to businesses that couldn’t afford them. (Dawn Summerville, Deputy Commerce Director – City of Philadelphia)
• Ready, Set, Philly. The City of Philadelphia is working on a marketing campaign to make sure everyone knows that the City of Philadelphia is open. (Dawn Summerville, Deputy Commerce Director – City of Philadelphia)
• The Commerce Department has continued to help close deals during the pandemic and is working with four large new businesses that they hope will bring additional jobs and revenue to the city. (Dawn Summerville, Deputy Commerce Director – City of Philadelphia)
• The Commerce Department works to bring new business to the city but is also a resource for existing businesses and agencies. They are available to help coordinate meetings, to help bring in new business, and to help existing businesses with any issues businesses may have. (Dawn Summerville, Deputy Commerce Director – City of Philadelphia)
• Staff will be returning on September 13th to the office, though many have continued working in the office at least part of the time throughout the pandemic. (Dawn Summerville, Deputy Commerce Director – City of Philadelphia)