Commercial real estate market picking up in Philly?
7/9/2013 | Real Estate Blog
Philadelphia, like just about every other major metropolitan area in the country, has suffered from a lagging real estate market as ripples of the Great Recession continue to affect potential buyers and sellers of property. But, a few recent high profile commercial real estate transactions in Philadelphia could indicate that the market is again on the upswing.
A realty corporation recently purchased three adjacent properties on Chestnut Street whose existing buildings total a combined 135,000 square feet. Once slated to be the site of a grand 21-story tower that would have housed a hotel and a number of swanky condominiums, the properties were seized by the bank when the former owner, a developer, abandoned construction plans. It is unknown what the new owner intends to do with the properties, but with the economy picking up steam, a major project in City Center could again be viable.
The 1000, 1100 and 1200 blocks of Chestnut Street all suffered deeply in the recession; there are currently over a dozen vacant storefronts in this three block stretch. This new sale, however, marks the second large commercial real estate transaction involving this section of Chestnut Street in the past few weeks.
With plenty of vacancies but real estate activity clearly picking up in the area, now could be a good time for businesses to swoop in and secure a location on Chestnut Street. Despite the infusion of new life into the Chestnut Street real estate market, as with any potential real estate deal, prospective buyers and sellers, as well as landlords and tenants, need to be cautious about fully exploring the legal ramifications of a proposed transaction before signing anything in permanent ink.
Source: Philadelphia Business Journal, Chestnut Street site where fancy hotel was once planned sells, Natalie Kostelni, July 9, 2013