CENTER CITY STAGES A COMEBACK

Industry News | Philadelphia, PA | February 2023
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Downtown Philadephia

Philadelphia was highlighted in a recent Wall Street Journal article, “Downtown Philadelphia Stages a Comeback.” Exciting news for our City. Let’s take a look at the supporting evidence.

  1. Ask residents, business owners, workers, and real estate professionals, Philadelphia is approaching its pre-pandemic economic levels. Housing demand is up; storefronts are open and hotel occupancy is rising.
  2. This resurgence is a healthy combination of strong retail and tourism in a city where residents live and work. Cities that are more commuter dependent are not experiencing this growth.
  3. According to the Center City District, pedestrian foot traffic in November reached 73% of November 2019 levels. Storefront occupancy in September reached the highest level since June 2020 with 81% open for business compared with 89% in 2019.
  4. Another healthy sign is that despite a loss of population during the pandemic, Center City is now recovering with increased home prices and rental rates – higher than in 2019.
  5. The recovery has been hampered though by workers still working remotely. This is offset by the many workers living and working in Center City.

It is encouraging that Philadelphia is being showcased as a City that is experiencing positive strides in recovering from a damaging pandemic. At Spring Garden Lending, we strive to play a constructive role in the economic well-being of our market and in supporting our borrowers who strive to make Greater Philadelphia more livable and who create more housing opportunities for Greater Philadelphia residents.

We are in the business to lend and we are faster than a bank and less expensive than a hard money lender. We are proud of the role that we are playing in “growing our neighborhoods” providing over $700 million in loans to build or renovate more than $1.2 billion in investment real estate in the last six years.

— Jay Goldstein, Chair and CEO