 |
| A rendering of the building that will replace the Shirt Corner. It will feature 59 apartments and a street-level CVS store. |
A lingering question for the Center City multifamily market
has been whether Philadelphia can absorb all of the apartment projects that have
been announced and are currently under construction.
In all, 2,625 units are in the pipeline and another 2,700
units have been announced and going through the approval process. This is on
top of the 2,091 units that have already been added to the market. The vacancy
rate remains low — below 5 percent.
Center City District has concluded that yes, Philadelphia
can handle all of the new multifamily construction.
CCD conducted research and boiled it down into a report it
released today that makes a compelling case for Center City’s ability to
continue to have a healthy, thriving multifamily market. The main drivers —
jobs, population growth and demographic trends toward urban living and living
close to where you work — will allow Philadelphia’s multifamily market to
absorb the units that come to market, the report concluded.
Between 2011 and 2013, 3,738 new households were formed in
Center City. During that same period, 3,209 new housing units were added to the
market. Based on that rate and continued population gains, job growth and
demographic trends, CCD projected that 5,231 new households will be created
between 2013 and 2017 and a total of 5,225 new apartment units will be
completed.
One issue that may emerge from all of the new competition is
its effect on older apartments buildings that may not have all of the amenities
renters increasingly expect and how those landlords will react to those market
forces, said Paul Levy, chief executive of CCD. These older buildings may be
end up being a less expensive alternative or spur some to undertake renovations
to compete. Another issue is whether Center City can hold onto these households
once they have school-aged children.
Source: Philadelphia
Business Journal
No comments:
Post a Comment