The commercial real estate market has been mainly dialed in on warehouse space and conversion space over the past 6 months. The multi family sector has been very tricky to make sense of with interest rates hovering around 7% and property owners not willing to adjust.
Greater Philadelphia's economy has shown resilience and growth in terms of job creation and development projects. The unemployment rate of 3.8% as of February, staying flat month-over-month and below the national average, indicates a stable labor market. The addition of 92,000 net jobs in 2023, with a focus on the education and health services sector, demonstrates positive growth and expansion in the metro area. The $2 billion expansion project by Cooper University Health Care in Camden is expected to further boost job opportunities and economic development.
Additionally, the construction of over 18,000 units and the steady pace of deliveries in the real estate sector suggest ongoing growth and investment in the region. Value add properties have been in very high demand where investors are either able to rehab the units to increase rent and add value in that aspect or to add units to the property based on the square footage. We have been focusing on finding our clients a mix of both, some are looking for value add apartment buildings and some are looking for fully leased commercial spaces, the main commercial spaces being used now are ones that provide a service and not retail. For example, barber shops, spas, hair salons, and private doctor offices. These spaces will always be in need and in most cases I am seeing that landlords prefer having these tenants over residential tenants.
If you are looking to acquire or sell and property and would like a analysis on your current situation, please send me an email at Joe@rarityre.com
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