“Go to key secondary markets.”
That’s advice from the Urban Land Institute’s 2016 Emerging Trends in Real Estate Outlook and many seem to be following the tip, including investors, developers/redevelopers and millennials. Consider the following:
- Philadelphia notched $ 1.9 billion in office transaction volumes around the region in 2015, up 44 percent year-over-year
- Nearly 30 million square feet is currently under development across all asset classes
- More than 100,000 millennials have moved to the city since 2006, representing a 6.3 percent increase in share of population as of 2014
“Philadelphia is seeing strong growth in its millennial workforce, most of whom want to live, work and play in a vibrant urban setting. This is leading to rapid re-urbanization and tempting even more employers back into Philadelphia’s downtown core,” says Mark Portner, managing director at Shorenstein Properties.
Construction or redevelopment and a growing millennial population are a few of the main drivers of Philadelphia’s commercial real estate environment. JLL’s Philadelphia: State of the Market explains how these dynamics are affecting each sector and how it compares to similar markets.