What do breweries have to do with real estate in Philadelphia?
12/3/2015 | Real Estate Blog
There are many things that make a parcel of real estate valuable. Believe it or not, according to a recent market study, throughout the nation, the presence of craft breweries is one of those things. Small breweries are popping up in cities such as Philadelphia, and as compared to large breweries, among other things their presence is having a positive impact on the value of real estate in the area where the brewery is located.
There are multiple things the study—conducted by Colliers—found. First, that antiquated industrial spaces are often repurposed by craft breweries. There are multiple reasons for this including that infrastructure is usually already in place. In addition there may be tax incentives connected to the use of such a property. Such spaces also provide breweries with the character sought and can be relatively inexpensive. Their popularity can, in turn, lead to revitalization of the neighborhood where the brewery is located. Throughout the nation the trend is expected to continue.
The study, called “Craft Beer Pours into Real Estate,” determined Philadelphia is one of the cities reaping the benefits of craft breweries. Out of 29 markets for craft beer inventory, it ranks 2nd.
Currently there are a total of 116 craft breweries located in the region referred to as the Philadelphia area. Some of those breweries include the brands of Yuengling, Yards, Flying Fish and Dogfish Head. In addition to the city, the area also includes Eastern Pennsylvania, Delaware and Southern New Jersey. The breweries in this area cover 1.5 million square feet of real estate.
When a craft brewery increases the value of property in an area, it is possible development in the area will increase. This leads to an increase in the number of transactions involving property that occur. To make sure they are handled correctly, a real estate lawyer should be involved.