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Panelists See Good, Not Great, Year Ahead

PHILADELPHIA-Efforts to fill Center City's retail gap will proceed, and there will be fewer Ddowntown condos built as prices decline. So say panelists during a ULI forecast.

By Marita Thomas | Updated on November 15, 2006

PHILADELPHIA-Some of the air is coming out of the Center City condo boom, but most other commercial real estate sectors here and in the suburbs will inch ahead in 2007, according to panelists at “Emerging Trends in Real Estate 2007.” A representative from each sector spoke at the Urban Land Institute Philadelphia District Council’s seventh annual capital markets trend conference.

The Center City condo boom peaked in 2005, said Allan Domb, president of Allan Domb Real Estate. “Between January and October 2006, prices fell between 12% and 15%,” he said, and predicted, “not a third of the new projects will be built now.” This is a revision from Domb’s earlier prediction that half of those announced would not be built during this cycle.

There is still residential sales movement when sellers reduce prices, he said. Sales are strongest near Rittenhouse and Washington squares, while “the waterfront is very weak,” he added. Opportunities lie in “product that is not being done, smaller units in the $270,000 to $750,000 range.”

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