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DATA, charts, photos : Philadelphia, NYC & Other Cities

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DATA, US House Prices : Philadelphia, NYC & Other Cities

 

Philadelphia price breakout continues... Making new highs. As we predicted in early 2016.

 

> see original thread : US House Price Data : Philadelphia, NYC & Other Cities

 

TAcJkaD.png

============================================

Northeast Corridor Home Prices, PH = Highest Yields !
============================================

City --------- : Value (1) : Rent(1): Yield(1): Value (2): Rent(2): Yield(2): V: YoY: Value+%: R: YoY : Rent+% :
==========: Dec. 2012 : --------------------- : Jun.2017 : --------------------- :
NewYork City : $469,000 : $1,881 : : 4.81% : $685,000 : $2,400 : : 4.20% : +13.2% : +46.1% : +2.13% : +27.6% :
Washington - : $385,000 : $2,403 : : 7.49% : $551,300 : $2,650 : : 5.77% : +6.78% : +43.2% : +2.12% : +10.3% :
Boston ------- : $365,000 : $2,309 : : 7.59% : $558,300 : $2,550 : : 5.48% : +13.2% : +53.0% : - 1.16% : +10.4% :
Philadelphia: $104,000 : $1,081 : 12.47% : $138,800 : $1,204 : 10.41% : +9.90% : +33.5% : - 0.66% : +11.4% :
==========================================

Philly prices can go a long way before they will be 1/4 of NYC house prices (over $680k)

 

June 2017: $685,000 vs. $138,800 for Philly ($685.0/ $138.8 = 4.94x)
Vs. RENTS : $2,350/mo vs $1,204/mo., Philly ($2,350/ $1,204 = 1.95x)

aa6ZkTh.png

May'17: Philly = 137.3: NYC Condo: 189.89 /1.50 = 126.6 : 20 Cities: 198.38 /1.45 = 136.8 : Philly Jun'17: 138.8

Philly is above its old peak, but 20 Cities & the NY City, Case-Shiller index is not (yet.)

 

.

national-realty-investment-advisors-llc-

Philadelphia Property prices, 1980-2014... Before prices took off again.

 

Inflation-adj, back to 1890:
360px-Case-Shiller_data_from_1890_to_201

> source : http://www.multpl.com/case-shiller-home-price-index-inflation-adjusted/table

 

2017 Tax Rate:

+ To $9,325 : = x10% =
$9325-37950 = x15% =
37950-91900 = x25% =

========

> C-S wiki: https://en.wikipedia.org/wiki/Case%E2%80%93Shiller_index

> 20Cities: https://research.stlouisfed.org/fred2/series/SPCS20RSA : (monthly data back to 2000)

DataGrid : http://data.okfn.org/data/core/house-prices-us

Fels Chrt : http://www.biaofphiladelphia.com/ufiles/fels_phpi_2013q2.pdf

> RShiller:

========

 

mo Ph-Zhv : YoYr : Nyc_Zhc: YoYr : 20cityI : YoYr : condo: C-NYC : C-Nyc2: C-Wash C-Bost.
'15 116,000: : 532,000 : : 175.38 : 4.40% : 244.50: 176.57 : 174.76 : 205.24 : 175.73
F : 117,000: : 534,000 : : 177.09 : 4.84% : 245.82: 177.57 : 174.82 : 205.70 : 175.35
M : 116,800: : 536,400 : : 178.91 : 4.87% : 247.12: 178.39 : 174.37 : 206.88 : 176.12
A : 116,000: : 538,000 : : 179.43 : 4.86% : 249.01: 179.00 : 175.68 : 209.63 : 176.52
M : 116,000: : 543,000 : : 178.53 : 4.81% : 250.41: 178.82 : 177.27 : 210.98 : 179.26
J. : 117,000: : 548,000 : : 178.48 : 4.82% : 253.08: 178.36 : 179.52 : 212.51 : 181.87
jl. : 119,000: : 553,000 : : 178.48 : 4.95% : 253.87: 177.92 : 180.81 : 213.01 : 183.85
A : 121,000: : 558,000 : : 178.77 : 5.06% : 254.86: 177.80 : 181.66 : 212.88 : 184.56
S : 122,000: : 564,000 : : 179.61 : 5.28% : 255.56: 177.98 : 181.66 : 211.88 : 184.42
O : 123,000: : 569,000 : : 180.87 : 5.38% : 255.78: 178.70 : 181.40 : 210.77 : 184.14
N : 122,000: : 574,000 : : 182.49 : 5.28% : 256.45: 180.02 : 180.96 : 210.52 : 183.24
D : 121,000: : 565,000 : : 183.81 : 5.38% : 257.71: 180.71 : 180.48 : 210.27 : 182.82 :
'16 121,000: 4.31% : 569,000 : 6.95% : 185.31 : 5.66% : 259.40: 179.51 : 179.51 : 208.94 : 182.11 :
F. : 122,000: 4.27% : 572,000 : 7.12% : 186.66 : 5.40% : 261.18: 179.12 : 179.12 : 208.22 : 181.88 :
M : 123,500: 5.74% : 576,000 : 7.46% : 188.56 : 5.39% : 262.90: 179.61 : 179.61 : 209.59 : 184.07 :

A : 124,500: 7.33% : 580,000 : 7.81% : 188.04 : 4.80% : 258.96: 180.45 : 180.52 : 212.88 : 186.73 :
M : 125,400: 8.10% : 585,000 : 7.73% : 187.91 : 5.25% : 260.36: 181.43 : 181.25 : 214.99 : 189.33 :
J. : 126,300: 7.95% : 590,000 : 7.66% : 187.75 : 5.19% : 262.23: 181.72 : 182.73 : 216.36 : 190.35 :
Jl : 129.000: 8.40% : 596,000 : 7.78% : 187.78 : 5.21% : 264.17: 181.00 : 183.68 : 216.98 : 191.49 :
A : 130,000: 7.44% : 602,000 : 7.89% : 188.23 : 5.29% : 266.94: 181.06 : 184.75 : 217.77 : 192.09 :
S : 131,000: 7.38% : 608,000 : 7.80% : 189.03 : 5.24% : 266.40: 181.51 : 184.75 : 217.59 : 192.30 :

O : 132,000: 7.32% : 615,000 : 8.08% : 190.48 : 5.31% : 263.26: 182.27 : 184.14 : 215.36 : 192.32 :
N : 132,000: 8.20% : 622,000 : 8.19% : 192.18 : 5.31% : 264.59: 184.31 : 184.61 : 215.23 : 193.19 :
D : 132,600: 9.59% : 627,000 : 10.1% : 193.97 : 5.53% : 265.89: 186.07 : 185.26 : 215.75 : 194.16 :
J. : 133,700: 10.5% : 630,600 : 10.8% : 195.47 : 5.48% : 267.66: 186.75 : 185.16 : 215.87 : 194.93 :
F. : 134,100: 9.92% : 631,300 : 10.4% : 196.80 : 5.43% : 269.43: 187.86 : 185.44 : 216.39 : 195.60 :
M : 136,100: 10.2% : 650,000 : 12.8% : 198.52 : 5.28% : 273.20: 189.88 : 186.85 : 218.11 : 198.26 :

A : 136,500: 9.64% : 657,900 : 13.4% : 198.18 : 5.39% : 271.98: 191.01 : 188.37 : 220.26 : 199.25 :
M: 137,300: 9.49% : 672,400 : 14.9% : 198.38 : 5.57% : 272.08: 189.89 : 188.65 : 222.48 : 200.82 :
J : 138,800: 9.90% : 685,000 : 16.1% : 198.62 : 5.79% : 273.52: 189.44 : 190.38 : 222.52 : 202.16 :
Jl : 138,900: 7.67% : 686,400 : 15.2% : 199.37 : 6.47% : 272.48: 189.42 : 191.87 : 223.20 : 204.44 :

A : 139,900: 6.80% : 695,600 : 15.5% : 200.39 : 6.46% : 271.85: 190.45 : 193.76 : 223.21 : 205.19 :
S : 140,300: 7.10% : 693,900 : 14.1% : 201.23 : 0.00% : 271.35: 192.07 : 195.04 : 222.22 : 206.04 :
O : 140,200: 6.21% : 696,300 : 13.2% :

mo Ph-Zhv : YoYr : Nyc_Zhc : YoYr : 20cityI : YoYr : condo: C-NYC : C-NyNs: C-Wash C-Bost.

===

Zillow: Philly : ------> : NYC-Z : -------> : 20-city: 20cNsa: condo: NY-rsa: /(NSA): NYC: Wash : Bost :

===

This is a back-up thread, for :

US House Price Data : Philadelphia, NYC & Other Cities

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HOW MUCH HOUSING (in Sq Ft) can $1 Million buy you - in various cities?

NTR48H4.png

 

Philadelphia still looks like an interesting "low cost" option... PB.

But some wild / creative ideas are being considered, which misconstrue a Poverty problem as a Housing problem,

As the image above shows, there is plenty of cheap housing in Philly

 

Philadelphia City Council President Darrell Clarke unveiled a new plan this week to address what he calls a housing affordability “crisis.”

Creatively titled “The 1,500 Affordable Housing Units Initiative,” the proposal calls for the construction of 1,000 affordable rental units and 500 purchasable homes, with the goal of reducing the backlog of 110,000 people on the Philadelphia Housing Authority’s waiting list.

The 500 homes would come from transferring city-owned vacant properties to non-profit and private developers for low fees with a restrictive deed covenant attached, requiring that they be sold to households who earn between 80 to 120 percent of the Area Median Income. Philly’s AMI is officially $78,800 for a family of four, though PlanPhilly’s Jared Brey notes the actual median income in Philadelphia County is $37,016.

The 1,000 rental units would be financed with a $100 million bond issue and some complicated public finance alchemy leveraging an underused 4 percent federal Low Income Housing Tax Credit.

While it’s always good to see well-meaning city leaders engaging with housing affordability and cost of living issues, the big problem with Clarke’s plan is that the housing affordability “crisis” he’s worrying about doesn’t actually exist. The impetus for the plan rests on a misreading of the policy implications of a recent Urban Institute report, cited in Clarke’s press release:

In 2012, for every 100 extremely low-income renter households in Philadelphia there were only 37 available affordable rentals units, according to the nonpartisan Urban Institute in Washington, D.C. In total, there were 43,700 affordable and available rental units for 117,578 extremely low-income renter households in Philadelphia.

Clearly this is a huge problem. But it isn’t really a housing problem — it’s an income problem.

The housing itself is quite cheap here compared to most of Philadelphia’s peer cities. The real issue is the 28.4 percent poverty rate, one of the highest in the nation. Cheap as the housing is in absolute terms, a sizable segment of the population still doesn’t earn enough money to afford it.

==

> more: https://nextcity.org/daily/entry/philly-has-an-income-problem-not-a-housing-affordability-problem

 

So many poor people are living in the city of Philadelphia precisely because it IS CHEAP.

Presumably, the creation of many decent jobs would be the very best cure for this problem

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THE CYCLE - Philly also shows an 18-year cycle

 

mzVVq5Q.gif

 

K3ZEt7L.jpg

 

Philly's property price cycle has been driven, in part, by Job losses, and then job creation

=

Philly's population stopped shrinking about 1998, and job growth has returned after the GFC

 

fredgraph.png?height=400&id=SMU423796400

> source: https://fred.stlouisfed.org/series/ATNHPIUS37964Q

 

New skyscapers are now changing the Philadelphia skyline:

"Of the top 20 tallest buildings in Philadelphia, only 7 were built before 1986, and of the top ten, ALL of them were built after 1986.
By contrast, in booming Houston, all but 3 of its 20 tallest buildings were built before 1986.
In Dallas, only 5 of the 20 tallest buildings were built in 1986 or after, with just one of them built after 1988.

... Philly re-invented itself. No longer a manufacturing city it is now a world class city for "Eds/Meds/Tourism/Culture"

> SSC-#1403: http://www.skyscrapercity.com/showthread.php?t=1659356&page=71

 

new-comcast-building-inline-1a.jpg

 

That's Comcast's new Technology Center, which has been said to be set to do* some "bird flipping" to those who once knocked the city.

The other new factor is how skyscrapers have crossed the river and are now going up on the West bank,

the area (of UPenn and Drexel) called University City

==

*Not quite finished yet: http://www.skyscrapercity.com/showthread.php?t=1659356&page=70

 

fmc_02.jpg

=

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The state of Philly’s housing market, in five charts

Pew’s latest report reveals some eye-popping stats about housing in Philly

by Melissa Romero Apr 7, 2017
"Pew reported that median home prices were 38 percent higher in 2016 than in 2010, rising from $103,000 in 2010 to $142,000"

 

Pew’s latest check-up on the City of Brotherly Love reveals a lot of things that Philadelphians already knew: Both the housing and rental markets are hot, hot, hot.

But what about other housing aspects of Philly? Are Philadelphians making enough money to keep up with the rental boom? Has the city’s stark poverty rate changed even a little?

In Pew’s new report “Philadelphia 2017: The State of the City,” researchers take a deep dive into multiple aspects of the city from population and demographics to transportation to job growth. Here are the five big takeaways from the report’s state on housing.

 

1. Median housing prices have risen and home sales hit a major milestone in 2016

Using research conducted by Drexel Lindy Institute’s Kevin Gillen, Pew reported that median home prices were 38 percent higher in 2016 than in 2010, rising from $103,000 in 2010 to $142,000. As the chart above reveals, some of the biggest hikes in home prices occurred in Greater Center City, the River Wards, and South Philly.

Interestingly, the biggest change in home prices over this six-year period occurred in the Kensington zip code of 19122. There, the median housing price jumped a whopping 94 percent, from $80,000 to $155,000.

 

Screen_Shot_2017_04_06_at_3.06.20_PM.png

2. There were more home sales in 2016 than any year post-Great Recession.

When it comes to home sales, Philly still hasn’t met its pre-recession levels in 2006. But as the above chart reveals, sales have been on the steady upswing since 2012. That trend is likely to continue: A recent Billy Penn article lifted the veil on Philly’s crazy housing market and bidding wars that have emerged throughout the city this past season.

 

3. There’s still a big need for affordable housing

This chart shows that there’s still a great need for affordable housing in Philly, although the researchers note that the waiting list has decreased “sharply.” Still, that’s mostly because the Philadelphia Housing Authority removed people from the list that they couldn’t get in touch with, they note.

It’s also worth noting that Philly has lost 20 percent of its affordable housing stock between 2000 and 2014. Couple that with the fact that the city’s remaining affordable restrictions are set to expire in the next five years, and that could mean that this chart may look a little different.

 

4. The rent is too damn high, even for Philly

Yes, it’s still possible to find a good deal on an apartment in Philly, compared to other major U.S. cities like New York and San Francisco. However, a majority of Philly renters still pay at least 30 percent of their annual income on rent. In other cities, that’s a case of just purely high rents. But for Philly, that 56.4 percent of cost-burdened renters is because the city’s median income is still quite low, though growing, at $41,233.

 

Screen_Shot_2017_04_07_at_7.26.30_AM.png

5. Homes in Philly are “substantially” more affordable than in other cities

You don’t have to earn the big bucks to be able to afford a median-priced home in Philly—that’s the good news. The bad news is that although you need $53,422 to be able to afford to buy here, the city’s median income is $41,233.

 

However, that number has been growing steadily in recent years. The researchers write, “Over the last two years, Philadelphia’s median income has grown faster in percentage terms than those of all of the comparison cities, with the exception of Washington.”

==

> CHARTS: https://philly.curbed.com/2017/4/7/15209526/philadelphia-housing-rental-statistics-pew-report

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Philadelphia Housing Prices Are Up 22% in the Last 12 Months

 

Good Summary Analysis!

 

An average Philadelphia house sold for $112K in April (these numbers are seasonally-adjusted, smoothed over time, and adjusted for housing traits), compared to $92K in April 2016. This means that prices are up 6.1% over the last quarter and a whopping 22.2% over the last year. This increase mostly represents skyrocketing demand, though it also includes changes in housing quality, as houses are being built new or rehabbed.

 

This continues the dramatic boom in prices since November 2015. In the 17 months since, prices are up 44% (after years of modest growth, if any).

 

ESI_PHI_May17-update-700x585.png

Is This Sustainable?

Clearly 22% annual growth in prices can’t continue indefinitely. But a less clear question is whether this will settle into steady, strong growth for years, or is this a sign of a Philadelphia Housing bubble?

Frankly, I’m of the opinion that trying to guess the market is a loser’s game. Anyone who is too certain of one side is probably over-selling their hand.

One argument is that this will all come crashing back down. We saw it in 2008, after all. People are over-leveraging themselves to buy houses, thinking of their houses not as places to live but as investments. They are rushing to buy in Fishtown, in South Philly, in University City before the prices rise too much higher. Nationally, household debt has returned to 2008 levels, (though the share of housing debt is significantly lower this time around). Philadelphia’s recent construction boom could accelerate that if developers are over-predicting demand.

 

But what is the argument that maybe this is the beginning of long, sustained growth? The core is that this boom in prices represents the continued trend of Americans revaluing urban lifestyles. Philadelphia is actually relatively late to the game, as prices have already boomed similarly in New York, Boston, and San Francisco, however, with its walkable streets and distinct neighborhoods, Philadelphia is perfectly suited to attracting new urbanists.

Meanwhile, job growth in the Greater Philadelphia Region, which has long lagged other large cities, has finally outpaced the country and a majority of other large U.S. cities.

Piazza-250x188.jpg

 

As preferences shift, the pool of people who moved to the suburbs in past generations will start bidding for houses and apartments in the city, adding to the competition among buyers and renters, and driving up values. Even relatively small shifts in preferences can lead to system-wide changes when multiplied by the entire population of our metropolitan region. These new in-movers are probably going to move just to the edge of already-gentrified neighborhoods, causing the gentrified regions in Kensington, West Philly, and South Philly to spread.

 

This is, on net, a good story. These shifts in preferences are likely due to (1) our city becoming a better place to live, with lower crime and better amenities and (2) a decrease in overt racism, as new-comers are willing, or at least less likely to outright reject, moving to the “inner city”.

If it continues, however, it does mean that Philadelphia will need to shift its paradigm, from a city desperate to attract residents and investment, to one trying to manage it for the good of all. If we become a city that sees 1% annual population growth, we are going to need more units to house people. The easiest way to keep housing affordable is to have enough housing supply for everyone to live in...

==

> MORE: http://www.econsultsolutions.com/may-2017-philadelphia-housing-index-update/

 

 

Econsult Solutions, Inc. provides the Philadelphia Housing Index (PHI) free of charge to the public.

ESI also has a Blog at: ESI Blog Post .

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Screen_Shot_2017_10_25_at_8.14.49_AM.png

 

The latest numbers are in for Philly’s housing market, and the biggest takeaway is that while the city’s real estate is still hot, relief may be on the way.

That’s according to economist Kevin Gillen’s latest “Philadelphia Housing Report: Q3 2017,” which found that while every neighborhood experienced an increase in housing price appreciation, housing inventory seem to have stopped dwindling and may have hit bottom.

Q3 by the Numbers
  • $159,900 median house price
  • 10.6% annual house appreciation rate
  • 5,585 sales
  • 38 sales of $1M+ houses

This is good news for potential homebuyers who have been dealing with a sellers’ market over the past two quarters with the lowest number of homes for sale since 2001. Said Gillen, “When they (finally!) begin to increase from their current lows, it should provide some long-needed relief from the upward pressure they are exerting on local house prices.”

Per usual, Gillen pulled data from the city’s recorder of deeds and Trend MLS for his report, and only included single-family home sales. He found that median house price in Philadelphia is currently $159,900, a slight 1.2 percent increase from last quarter.

And unlike previous quarters, home values rose in every neighborhood, with University City’s 7.7 percent rise leading the pack. Interestingly, Gillen also found that the sale of $1 million-plus homes (not including condos) is spreading from outside of the notoriously pricey neighborhoods of Center City and Chestnut Hill.

==

> https://philly.curbed.com/2017/10/25/16542858/philadelphia-housing-market-q3-statistics-kevin-gillen

 

Related:

The latest report questioning where Amazon’s next headquarters should be ranks Philly as the third best choice, with the potential to move into first place.

That’s according to Moody’s Analytics, which just published its report on Economy.com. It deemed Austin, Texas as the best metro for Amazon HQ2, with Atlanta and Philadelphia rounding out the top three spots, respectively.

Moody’s took a data-driven approach to its findings, focusing on five main criteria: 1) business environment, 2) human capital (i.e. skilled workforce), 3) cost, 4) quality of life, and 5) transportation.

It number-crunched a bunch of data and provided each metro with a ranking for each category between 1 to 5.

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Here’s what $1,300 rents in Philly right now

Is one person’s townhouse another’s studio? Let’s find out!

This week we’re looking at rentals in the $1,300 monthly price range.

 

(no comparison - it seems)

 

Northern Liberties (2 beds, 1 bath)—Located in a gated community in Northern Liberties is this two-bedroom rental that clocks in at 648 square feet. It has all the basics, including a dishwasher, and it seems to get a lot of light. Its monthly rent is $1,250.

IMG_9986_4.jpg
IMG_9983_2.jpg
IMG_9998_11.jpg
IMG_8983_4.jpg via JG Real Estate

Kensington (1 bed, 1 bath)—For $1,295 a month, rent out this 950-square-foot apartment in a new triplex. It’s on the top floor, which means lots of light and easy access to the community roof deck. Pets are welcome, too, for an extra fee.

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From new kinds of renters to a coworking boom

by Melissa Romero Dec 4, 2017

 

shutterstock_767231329.0.jpg Experts don’t expect Philly to slow down in 2018.Courtesy of mandritoiu/Shutterstock.com

 

With the end of 2017 in clear view (seriously, how did that happen?), experts in Philly’s development and real estate world have their eyes set far ahead into the next year. And while they’ve cast their prediction nets far and wide, it seems like they can agree on one thing: Philly won’t slow down in 2018.

 

“We are very bullish on Philadelphia,” said Jerry Sweeney, CEO of Brandywine Realty Trust, at the Urban Land Institute’s Real Estate Forecast last week.

Sweeney was one of a few top developers and experts who spoke to some of the trends to watch in 2018 here in Philadelphia, from a new kind of workplace to a new kind of renter.

Here are five of the top real estate trends to keep an eye out for come 2018.

 

1. More apartment concessions to sweeten the deal

Philly is expected to see a lot of new construction deliver in 2018, with multifamily residential builds making up a good portion of it. So as all of those apartments come online, expect to see a lot of these buildings offering concessions—think one month’s free rent—to entice renters to fill up their vacancies, says Gilchrist.

The luxury rental market is most likely to push this, since, simply put, they’re just too expensive for the average Philly renter to afford. This high-end market averages about $3 per square foot—not many people can afford paying $3,000 a month for a 1,000-square-foot apartment.

As Gilchrist points out, when there are hundreds of older Philly rowhomes available for rent at a much lower price point, luxury apartments are going to have to really woo renters with deals to convince them to live in their building.

Canvas_amenity_space.jpg

Canvas Valley Forge is a new development in King of Prussia catered to renters ages 55 and up. Courtesy of Bozzuto

 

2. The tale of two renters: Millennials and baby boomers

Talk of millennials in Philly isn’t going to go away anytime soon. As long this group keeps moving into Philly in droves (and puts down more permanent roots here), apartments will still keep coming online.

 

But there’s another type of renter that developers have started to cater to: baby boomers. There’s been a lot of talk of empty nesters downsizing from their suburban mansions and moving into condos and homes in Center City. But research shows that a lot of adults in this age group are actually transitioning from buyers to renters at a faster rate than millennials.

 

Bradley J. Korman, co-CEO of Korman Communities, says this means that developers now have to market their communities in two very different ways to attract these different types of renters.

17.0.jpg

Courtesy of WeWork

 

3. A boom in coworking and shared work spaces

 

At last count, coworking spaces like WeWork, Benjamin’s Desk, and the Yard made up 527,000 square feet of total office space in the Central Business District (CBD). While that’s a small percentage of the city’s total office space, the numbers show this type of workspace could account for as much as 30 percent of office space in the country years down the road. “Coworking will be a huge driver,” said Lauren Gilchrist, vice president of research at JLL Philadelphia.

Philly is already home to a plethora of coworking spaces, and there are a bunch more in the pipeline, including Bond Collective at Suburban Station and Spaces in the old Hale Building. Both are set to deliver next year.

 

Why are these type of offices so attractive? The flexibility these spaces allow is a big factor, but they also come with amenities like outdoor space, kitchens, and host special events. Gilchrist says to “expect vanilla, un-amenitized Class A trophy office space to struggle.”

 

2015_05_04___FOP___Aerial_Night_Renderin Rendering courtesy of PREIT/Macerich

 

4. A different kind of shopping experience

Whoever predicted the end of malls was wrong: They’re not dead, just different. While e-commerce has no doubt caused a major shift in the typical shopping experience, brick and mortar shopping is still the most popular way for folks to consume, and it doesn’t look like people are going to stop shopping in malls anytime soon.

What will change is what malls offer, says Gilchrist. Her research shows that food and beverage is the most popular renovation strategy for malls, making up an astonishing 40 percent, followed by tenant upgrades, entertainment, and multifamily residential features.

PREIT’s redevelopment of the Gallery Mall is a prime example of what Philly should expect with the new shopping experience. After originally promoting itself as the Fashion Outlets, months later it reemerged as the Fashion District of Philadelphia, with an eye toward restaurants and entertainment. Along with flagship stores like H&M, the Fashion District will offer things like Market Eats, a food hall of sorts, as well as a fancy movie theater with reclining chairs with the option to order food and drinks.

PREIT is banking on its redevelopment being one of the most successful mall redevelopments. “We see it as a project that’ll be the premiere urban retail centers in the country,” said CEO Joseph F. Coradino.

 

town_center_philly_by_drone_2.jpg

King of Prussia is on the move.Photo by Philly by Drone

 

5. Philly will have some stiff nearby competition

The desire to live and build in Center City and Philadelphia in general isn’t going to become any less popular next year. But Gilchrist says that by the looks of it, the ‘burbs are making a comeback, too.

“Expect mixed-use suburban office, multifamily, and retail to peak up steam,” Gilchrist said in her presentation.

There are some suburbs in particular to keep an eye on, starting with King of Prussia. The town has seen $1 billion in development in recent years, including a revamp of the famous King of Prussia Mall and the nearby KOP Town Center that is now home to tons of retail, townhomes, and apartment developments. And although it’s many years down the road, the goal to extend the SEPTA Regional line here has gained recent traction.

On the Main Line in Bala Cynwyd, a developer has undertaken a $100 million master plan to redevelop the town’s historic corridor with new retail, restaurants, and apartments.

And while Camden isn’t a suburb, it is much smaller compared to Philly, but also its closest competition. Liberty Property Trust is responsible for all of the waterfront development that’s happening in Camden on the Delaware River, where there is 1 million square feet of mixed-use development under construction.

“That town finally has momentum that’s gaining traction,” said CEO and president William Hankowsky. “I would watch Camden.”

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Delaware earthquake shakes Philly region

The Philly region felt the effects of a 4.1 magnitude earthquake that took place near Dover, Delaware.

 

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