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As for the residential buildings listed by summers....... How many of these are filled or what % are they already filled?
They are all in the construction phase or about to break ground. 4 of the towers will be in University City,adding about 125 stories to the skyline, targeting area students/grad students. Vacancy rate in Center City Philly is around 3% with avg rents at $1728 according to market research group REIS.
Don't get defensive, I hope I'm wrong! I just don't know where all of this demand is coming from, that's all. It's not like there's a dot-com bubble like there was in the 1990's causing rapid business growth and fueling an office development bubble. Even then, the city of Philadelphia didn't see this level of office activity I don't think. So what's so special about the current economic environment to suggest that this much space is warranted? Perhaps it's a lease thing and many companies are ending their long-term leases in old spaces and they're looking for new space. IDK, it just doesn't jive well with what I'M reading in the news these days, which is mostly about how businesses are cutting back and people can't find jobs.
Honestly, for Philadelphia, quite simply, "the demand" (not really the right word for it) for space in Center City stems from the fact that it has just become a nicer place to be. It's certainly not our tax code or business friendly environment--but Center City's population is booming (+42% since 2000) because it's just nicer than it's ever been--and the businesses and buildings investments are following. New parks, new restaurants, expanding retail options, renovations, new construction--it's all been fairly organic and we're seeing the slow trickle of businesses responding.
FWIW, Summers' list was just on high-rise projects and doesn't cover the myriad of large-scale low-rise in-fill that's also occurring in Center City. For example, Toll Brothers has two $50mm+ projects that are overtaking full city blocks that are both under construction on opposite ends of CC: 2400 South | Spectacular luxury townhomes and condominiums 410 At Society Hill - Home
Really excited for this museum to open... Also I had no idea it was pronounced "Broed" and not "Brahd".
I really thought LA would be among the top cities with major projects coming up, but looking at these most recent posts I think it might not even be in the top 5.
Been waiting on this for a while. It's the first major air rights project to start in D.C. The other, Union Station, has yet to announce a start date. This project will go a long way in fixing the damage done by I-395 to the downtown grid. The development contains 2.2 million square feet in 6 buildings.
Last edited by MDAllstar; 01-30-2014 at 02:58 PM..
No question without spending the time on background/info (I am in the industry):
Chicago (by sheer size, though if you want to compare to "boom" years, seems Chicago is in very average to below average times)
SF
Boston/Philly (Boston in the now and past 2 years, Philly if you look at 6 months from now and over next 2 years)
Houston
Seattle
LA
DC (has slowed down considerably in last 6 months)
Atlanta
Dallas
No question without spending the time on background/info (I am in the industry):
Chicago (by sheer size, though if you want to compare to "boom" years, seems Chicago is in very average to below average times)
SF
Boston/Philly (Boston in the now and past 2 years, Philly if you look at 6 months from now and over next 2 years)
Houston
Seattle
LA DC (has slowed down considerably in last 6 months)
Atlanta
Dallas
Huh? D.C. has more units under construction right now than any other time in the last 5 years. You must be talking about office construction. If you are, then you're right and hopefully it stays that way. We have more office space than every metro area in the nation other than NYC. We are way overbuilt on office space. Hopefully we can turn about 25% of our current office space into residential as companies take up less space per worker. It would send D.C.'s vibrancy into the stratosphere.
Huh? D.C. has more units under construction right now than any other time in the last 5 years. You must be talking about office construction. If you are, then you're right and hopefully it stays that way. We have more office space than every metro area in the nation other than NYC. We are way overbuilt on office space. Hopefully we can turn about 25% of our current office space into residential as companies take up less space per worker. It would send D.C.'s vibrancy into the stratosphere.
I think since DC has had such an astronomical boom in apartment construction over the past several years (and many proposals that are still coming through the pipeline), it will take some time for the market to absorb them. I understand DC proper is growing at a faster rate than it has in decades, but the metro area overall is not seeing the growth rates it used to. This is no doubt in no small part due to the decreasing levels of spending of the federal government leading to payroll freezes and contracts.
Overall, that's definitely a good thing for the region. This area absolutely needs to catch up with the growth it has received (the Metro, for example, despite being a very robust system, has major capacity issues -- but that's a whole other problem). Less residential demand would also force rents lower, which would be much-needed relief from housing costs.
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