Please enjoy this week’s edition of Capstone Law’s Philadelphia Real Estate Trends:
- The Philadelphia multi-family rental market continues its impressive growth. According to Marcus & Milichap’s Fourth Quarter Report, strong job and population growth in our region fueled significant gains in the rental apartment sector during the first nine months of this year. Apartment rents in the region rose by approximately 1.1% last year and Marcus & Milichap projects another 2.6% increase by the end of the year (an increase of 10% over the past four years). Even with increasing inventory coming online this year — especially in Center City — demand for multi-family properties continues to outpace supply.
- While the multi-family market remains hot across the nation, the strip mall/power center sector continues to flounder. Suburban strip malls, typically anchored by grocery stores or big box stores, struggle to attract retail tenants in an environment in which consumers increasingly rely on online shopping or seek denser urban shopping. This trend is evident throughout the Philadelphia region: a prime example is the recent foreclosure by U.S. Bank on the Chesterbrook Shopping Center in Wayne. The 122,216 square foot shopping center, once home to a Genuardi’s supermarket, remains more than two-thirds vacant.
- I will never forget the smell of cookies emanating from the former Nabisco plant (now owned by a Chicago-based bakery) near my childhood home in Northeast Philly. Unfortunately, the Roosevelt Boulevard plant, a producer of Oreos and Ritz crackers among other snacks, may be facing its final days. Apparently, the plant’s owner is engaging in “ongoing discussions” with its multiple employee unions about closing the plant in favor of increasing investment in other bakeries located outside our region.
Until next time, have a great week!