Suburban Philly's Alive And Kicking (And Attracting Millennials)
The death of the Philly suburbs has been greatly exaggerated; they're not even under the weather. That was one of the main takeaways at our Future of the 'Burbs event last week. Our speakers noted that both suburban and center city Class-A office markets are seeing strong occupancies in amenity-rich buildings by attracting corporations with knowledge workers who are interested in a live/work/play environment. The demand means that core suburban submarkets are landlord favorable.
In short, it might be cold outside, but the suburbs are hot, both in the office and residential markets. It was a full house for the event in Plymouth Meeting, with participating speakers including Brandywine Realty Trust's Jeff DeVuono, Keystone Property Group's Rich Gottlieb, JLL's Patrick Gallagher, Liberty Property Trust's Anthony Nichols, Morgan Properties' Patrick O'Grady, and Workspace Property Trust's Roger Thomas, with IMC Construction's Rob Cottone as the moderator.
Not all renters want to live in an urban environment, but all renters are looking to live, work and play close to each other, our speakers noted. The suburbs are increasingly able to provide that proximity. Moreover, while some renters want to be in new-construction apartments, and can afford it, long-range forecasts (three to five years) show continued growth in suburban jobs in sectors whose workers live in workforce housing. That means that Class-B multifamily will also continue to be in demand through the end of this decade.
