Philadelphia 2035 (Erie: warehouse, Episcopal, driving)

[RightonWalnut]

“Real estate is doing much better. Prices are off bottom and climbing back quickly and inventory in Center City is scarce. There hasn’t been any new product built in last two years. I used to have four full pages of listings two years ago and now I have one page.”

The Philadelphia Association of Realtors? agenda under new leader - Philadelphia Business Journal

Know what that means?? Expect many more residential projects to be built in Center City

[MarketStEl]

Originally Posted by Summersm343

The Philadelphia Association of Realtors? agenda under new leader - Philadelphia Business Journal

Know what that means?? Expect many more residential projects to be built in Center City

While I think Domb is pretty much on target with both what he advocates and his assessment of the market, I'd like to suggest his views of inventory are affected a bit by the fact that he specializes in condos.

The housing market here suffered after the bubble burst, but the condo market all but evaporated. Lenders, for some reason, have been extremely reluctant to finance new condo projects. In Center City adjacent - that is, the largely gentrifying ring of neighborhoods beyond the 1682 city limits - new SFR construction has continued at a fairly steady clip over the past few years - certainly not the pre-bubble pace, but not nonexistent either.

[kidphilly]

Is this really a good thing?

Part of Two Liberty in Phila. to be sold by IStar, converted to hotel - Philadelphia Business Journal

[kidphilly]

Changing Skyline: New Cheesecake Factory at 15th and Walnut: A creamy-rich glass box

[rotodome]

Originally Posted by kidphilly

Is this really a good thing?

Part of Two Liberty in Phila. to be sold by IStar, converted to hotel - Philadelphia Business Journal

Some might say so, because it "lowers the office vacancy rate", and provides an excuse for more tax abated new construction. Personally I have neutral to negative feelings on this, as it seems to me a sign that property owners feel that actual current and near-term demand for existing commercial office space is low enough to warrant the expense of conversion to a new use.
This is certainly not a new thing to happen to a skyscraper in Center City - in fact it's happened so many times in the last 20-30 years that it's almost predictable at this point. Like clockwork; a new office building goes up, and an older office building gets converted to a different use.

[rotodome]

Originally Posted by kidphilly

Changing Skyline: New Cheesecake Factory at 15th and Walnut: A creamy-rich glass box

Nice. BCJ is a good local firm (despite the unfortunate Liberty Bell pavilion). Glad to see them doing more work in the city.
They're really good at retail. They did nearly all of the Apple stores, who I believe were their first retail commission, and since have gotten pretty good at this stuff (Ironically, they previously had designed Bill Gates' compound in Seattle).

[kidphilly]

Originally Posted by rotodome

Some might say so, because it "lowers the office vacancy rate", and provides an excuse for more tax abated new construction. Personally I have neutral to negative feelings on this, as it seems to me a sign that property owners feel that actual current and near-term demand for existing commercial office space is low enough to warrant the expense of conversion to a new use.
This is certainly not a new thing to happen to a skyscraper in Center City - in fact it's happened so many times in the last 20-30 years that it's almost predictable at this point. Like clockwork; a new office building goes up, and an older office building gets converted to a different use.

Understand your point, I also got a little more info and it appears the actual hotel footprint will be rather small (about 6 floors) and will mostly backfill un-leased prior condo conversion so the actual leaseable office space will be virtually unchanged from what it is today in this building.

The other part is it appears there at least 3 tennant looking for larger continuous space which actually is not very available on the market today, may actually see some new buildings for office space

Cira South Walnut looks like a go, potentially under contruction within the year and two new potential commercial spaces around 19th with a new Comcast tower potential on the SW corner of the current lot (18th and JFK)

could actually be for new commercial towers (even if not supertalls) in the next 24-36 months if recent chatter is correct


Also it sounds like Hahnaman is moving their hospital to just west of the Drexel campus (on Market) in the next decade and the Broad to 17th Cherry to Vine is rumored for a decent sized mixed use project over a few blocks. we will see on that though

But on Liberty and your last point, I am hesitant at this point to call this an older building just yet

[rotodome]

Originally Posted by kidphilly

But on Liberty and your last point, I am hesitant at this point to call this an older building just yet

Hey, it's almost 30 years old now

Just as old now as Mies Van der Rohe's Seagram Building was when Liberty One was built.

[rotodome]

Originally Posted by rotodome

Nice. BCJ is a good local firm (despite the unfortunate Liberty Bell pavilion). Glad to see them doing more work in the city.
They're really good at retail. They did nearly all of the Apple stores, who I believe were their first retail commission, and since have gotten pretty good at this stuff (Ironically, they previously had designed Bill Gates' compound in Seattle).

Just actually read the whole article, and I notice it's a Midwood Management project. These guys are from NYC but have been doing great things in Philly since their first development on the 1800 block of Walnut in the early '00s. One thing is that they make a point of hiring good (and local) architects.

[kidphilly]

Originally Posted by rotodome

Hey, it's almost 30 years old now

Just as old now as Mies Van der Rohe's Seagram Building was when Liberty One was built.

well its younger than me, and I am not old


I do see your points and always appreciate them though