Our Markets
New York, New Jersey & Pennsylvania
Philadelphia, PA Market
Philly’s Multifamily Sector
The multifamily sector, particularly in the Philadelphia region, proved resilient. Investment fundamentals improved over the year as rents increased, cap rates hit historic lows, and population growth outpaced multifamily deliveries. In 2020, it is estimated that the population grew by 21,671 people in the region, while only 8,210 units were added. A return to normalcy has brought with it an exceptionally strong leasing season, diminishing concessions, and rising rents.
Philly’s Transaction Activity
Transaction activity has increased tremendously as buyers continue to favor multifamily over other product types. The suburban market is even hotter than downtown, with transaction activity approaching pre-pandemic levels. Investors are eager to make deals with increasingly aggressive underwriting. The Philadelphia MSA remains within the top 10 in the nation in terms of gross metropolitan product (GMP) and Philadelphia County has one of the top 25 largest economies in the U.S. The area also has a top 10 millennial population.
An Affordable Cost of Living
The region has maintained its status as a desirable place to live during 2020. Greater Philadelphia offers an exceptional cost of living relative to its Northeast and Mid-Atlantic counterparts. In addition, the area benefited from a national trend of reduced move-outs from affordable cities (compared to an increase in some of the city’s higher-priced neighbors like New York and Boston).
A Top Life Sciences Market
Significant growth opportunity for the Philadelphia multifamily market lies within the life sciences sector. In addition to the countless hospitals and research centers currently operating in the city, life sciences real estate development is steadily increasing. In Newmark’s 2021 Mid-Year Life Science Overview & Market Clusters report, Philadelphia was ranked sixth among the nation’s top markets for life sciences.
Major Employment Leaders
Rent Trend
