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Originally Posted by 3rd&Brown
Ditto.
According to a friend that is in commercial real estate (and an investor in Philly)...the supply glut of luxury product that was feared never came to fruition. Apparently, it's been almost entirely absorbed.
I think there are a handful of notable exceptions (the remnants of the Piazza), but otherwise I think things are chugging along pretty much at full steam.
Good to see.
Further, I find it hard to believe Philly is growing at only 4,000-6,000 residents per year given all of this product and new construction, particularly in the ring neighborhoods, seemingly being gobbled up.
If we're not over 1.6MM in the next census, I'll be shocked and a bit disappointed.
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Population growth is stifled because the neighborhoods outside the core and near core are shrinking. Greater Center City is definitely growing at a nice clip. As far as real luxury rentals, we've had very little (and the Piazza doesn't qualify). The Harper, Laurel, and Atlantic Building are and will be pumping out high end rentals in numbers far greater than we've ever seen. The Laurel and Tower Formerly Known as SLS will be doing the same as to condos. I'm hopeful we have the demand to absorb it, but we'll have to see.
Despite the Harper's great apartment lease out, I'm more bullish on the condo market. It's not really THAT many condos that will need to be absorbed. It is quite a lot of pretty pricey rentals.