Category sell

Market East “is building this,” and Market East “is improving that.” Wait … Market West?

Vintage shot of West Market Street, Circa 1925 | Courtesy of PlanPhilly.com

 

That’s right, you heard me correctly. Market West is becoming a hot topic within Philadelphia’s development community.

But it’s difficult to say what it could/will look like in the near’ish future.

Over on Market East, projects have already been approved, money is in place, and shovels are in the ground. In other words, there is already a level of certainty that change is happening, and that it’s all positive development (e.g. East Market, Fashion Outlets of Philadelphia, 11th/12th + Chestnut, etc). Plus, we pretty much know what these projects are going to look like when they’re completed; which is comforting.

As for Market West, first of all, who the h*ll even refers to Market Street between City Hall and 30th Street Station as Market West? Well, I guess I just did … and others are too.

Some call it “The Business District,” some call it “Downtown,” and some call it “Rittenhouse” or “Logan Square.” Personally, I’ve always just called it Center City, but today Center City has been split into so many specific pieces/parts due to popular neighborhood names (e.g. Fitler Square, Midtown Village, etc), additions to what is now “considered” Center City (e.g. Fairmount, Graduate Hospital, etc), and the complete separate identity of the ever-growing eds/meds capital of Philadelphia, University City.

So needless to say, you have to be careful with your Philadelphia-neighborhood-based assumptions these days. Otherwise, someone may try to bash you with their Internet muscles.

Over on West Market Street, a big portion of the street frontage has recently become a hot spot for large/proven developers (i.e. those who have a successful track record in Philadelphia, and financial resources to make something happen), who are buying up pieces of real estate as if it were a game of Monopoly: Hey, I just bought my first “color-group” from “the bank,” and I want to start building “houses” and “hotels” (ha, what a great game).

But, why? What’s the draw? What’s the play?

Well for starters, a lot of it was owned by one guy/group/company: Richard Basciano. That name may sound familiar, as it was one his properties that collapsed unexpectedly at 22nd & Market in June 2013. My condolences to anyone/everyone who had a loved one there that day.

Also, Richard has been “speculating” on that long stretch of Philadelphia road for decades, which means he bought low and is now selling high. If you have not read recently, 2015 is a great time to be selling large pieces of Center City real estate.

Finally, large parcels are very hard to come by in Center City these days. Not only for a reasonable price, but just to buy in general. Now that Richard is a willing seller, developers are starting to see this as a great opportunity to close the gap between City Hall and University City. Connecting the two with large anchor projects, which could also spur a building frenzy for smaller projects.

Welp, there you have it. My professional take on one of Philadelphia’s next big development zones. More blog posts will follow, as soon as more news comes out.

Are we experiencing Philadelphia’s biggest development boom in almost 50 years?

Billy Penn
Fantastic shot courtesy of BillyPenn.com

 

In my professional opinion … maybe. Since I’ve only been alive since ’79, it’s kind of hard for me to say.

Here is what I will say. No matter how experienced you are as an agent, no matter how long you have been selling Philadelphia real estate, it’s very difficult for anyone to give a straight answer to that question or predict the future of the local market.

But … when you have someone who is as experienced and credible as Alan Greenberger (Philadelphia’s current Deputy Mayor for Economic Development & Director of Commerce) say that he has not seen a boom like this since ’74 (the year he moved from NYC to PHL), you know that something unique is currently happening in the City of Brotherly Love.

So, how is 2015 any different than the last real estate wave that ended in 2008? The answer, global awareness of Philadelphia’s affordability and accessibility.

As I have stated in the past, Philadelphia is not one of the most affordable cities in the US, but we are one of the largest and most affordable cities in the “Northeastern” US. On top of that, we are a Top US global gateway metro, with our neighbor NYC being the largest. “The Northeast” is the most economically developed, densely populated, and culturally diverse region in the entire US. There is more urbanized land than any other part of the country, and we also enjoy large amounts of forest-use/green space (about 60% in total, which is about twice the US average). From just Pennsylvania to Maine, the area is home to over 55M people.

When you are located right in between the Financial Capital of the US (NYC, which in 2014 was also named the “World’s Leading Financial Centre”) and the Political Capital of the US (DC, or course), you are guaranteed to receive some attention. Now that Philadelphia has really begun to come into its own, with Center City, University City, and the Navy Yard all leading the charge, the world now has its eyes on us.

And when they get here, they will realize just how affordable and accessible Philadelphia really is!

Based on the city’s size, as well as the size of the surrounding suburban metro area, you can get almost anywhere using a form of public transportation (i.e. train, subway, or bus). Now that Uber has entered the Philadelphia transportation market, it’s even easier. This is due to the metro area’s compactness, which is a product of density and smart planning over the last 300+ years.

Okay, back to Greenberger.

This article states that he sees the current real estate boom in Philadelphia continuing for the next 5-10 years, although maybe not at the same pace throughout that entire time frame. There are still many highly accessible areas in both North/South Philadelphia that have yet to be touched by redevelopment/reimagination from the millennial generation, as these are the folks that are making cities like Philadelphia great again.

Just like the Market-Frankford Line has redefined neighborhoods like Northern Liberties, Fishtown, and Kensington, the Broad Street Line has the same potential.

It will be interesting to see what happens over the next 5-10 years, and if Greenberger’s prediction is right. Either way, it’s a very exciting time to be living in Philadelphia.

More positive news for North Broad Street

Image courtesy of KiraWeinstein.com

 

If you have ever tried to drive from Northern Liberties to Fairmount in Philadelphia, you know that the streets just north of City Hall can be busy. What’s up, Spring Garden! When I have to make that particular journey, I take Callowhill St from N 2nd St to N 20th St.

It’s an easy cut-through, you should try it sometime.

On my way to Fairmount, I always get caught at the traffic light at N Broad St & Callowhill St; it’s almost inevitable. If you know this intersection, then you already know that there are 2 parking lots on the southeast and southwest corners. Not parking garages, surface parking lots. This puts you about 1/2 mile north of City Hall in Center City, Philadelphia.

In 2015, those 2 lots are prime real estate. Believe it.

North Broad St has come into its own over the past few years, meaning that developers are finally starting to consider large anchor projects along the northern stretch of this famed Philadelphia boulevard. This is in part due to the resurgence of neighborhoods like Fairmount and Northern Liberties, as well as all of the new development now surrounding Temple University.

I’ve blogged about other North Broad developments over the past few years. Here, here, here, and here. Today, I am sharing another exciting article about North Broad development … here.

There is a lot going on in Philadelphia these days. Some say it’s just the start of something great (I typically fall within that crowd), and others believe it’s the beginning of the next real estate bubble (I can see some logic on that side as well).

As for me, I tend to look at real estate in 2 very simple ways: 1) Renting, and 2) Buying. If you do not buy real estate, you are a renter; unless you happen to have a super-cool family that supports your housing needs, and you in turn are okay with that arrangement for the rest of your life. But if you do not rent real estate, you are a buyer.

“Renting” and “Buying” both relate to the theory of supply/demand in real estate. When renting is up, buying is down; and vice versa.

That’s why renting has become so expensive over the past few years. Buying was slow following 2008, and remained slow for the years that followed. Rentals have been performing well since 2008, and this is what has caused rental rates to rise in Philadelphia. But buying has become a more viable opportunity today, and the momentum is now shifting.

Because I personally look at all markets as “Rent vs. Buy,” it’s easy to make correlations on how a certain city and/or metro area is performing.

In 2015, many markets offer buying opportunities that are less expensive than their rental counterparts. But now that most US metro areas are considered “Sellers’ Markets,” with some metro areas already being sellers’ markets for some time now, that may be changing sooner than we all want to believe.

In Philadelphia, renting is not cheap in 2015. Especially if you want to rent a home/apartment that is brand new. Popular neighborhoods in Center City and University City still remain expensive (think Rittenhouse, Old City, UPenn/Drexel area, etc), and popular neighborhoods in other parts of Philadelphia are not cheap either (think No Libs/Fishtown, Fairmount, Manayunk/Roxborough, etc).

But … while Philadelphia currently has many expensive homes for sale, there are still many reasonably priced opportunities to be had as well; and they might just be right down the street from where you want to live!

North Broad is having a moment, and good things are happening around projects like this one.