Jennifer E. Garrett

As published in Scotsman Guide's Commercial Edition, November 2008.

Until 1987, Philadelphia buildings were kept below the height of founder William Penn's statue atop City Hall, which rises 547 feet. That has changed in a big way.

What the Locals Say _____________________________________ "The commercial real estate market in Philadelphia is not too hot and not too cold. It's steady. There has been a slight price adjustment because of the market. Investors are waiting for prices to drop out even further, but I don't think that's going to happen because the price of land has been stable." -- Len May, senior commercial real estate specialist, Aptcor Commercial Realtors

Soaring skyscrapers may become the new norm as Philly tries to attract businesses. The Comcast Center, a 58-story, 975-foot tower, opened this past June. Ground broke in November 2007 for Cira Centre South, a mixed-use development planned to house 2.8 million square feet of office, hotel, residential, parking and retail space in a 40- to 50-story tower.

What's next? Plans for the American Commerce Center call for it to become one of the country's tallest buildings at 1,500 feet. That comes with a big if, however, because the development has significant hurdles to overcome -- beginning with zoning. The city has already enforced zoning codes against Unisys, which as of September was reconsidering moving its headquarters to Philadelphia after the city rejected its plan to place a 600-square-foot logo on a skyscraper.

Attracting businesses to fill in these massive spaces will be key for Philadelphia. Office vacancies in the city have held steady in the past year, and net absorption was positive for 11 consecutive quarters through the second quarter of this year, according to CB Richard Ellis.

Vitals

↓ Population: 1.4 million

• Population in 2000: 1.5 million
• Rank (U.S.): 6th-largest
• Metropolitan-area population: 5.8 million
• Metropolitan-area rank (U.S.): 5th-largest

↓ Average commute: 31.4 minutes

• Average commute in 2000: 32 minutes
• U.S: 25 minutes

↑ Median household income: $33,229

• Median household income in 2000: $30,746
• U.S.: $48,451

↑ Median age: years 35.4

• Median age in 2000: 34.2 years
• U.S.: 36.2 years

↑ Inflation (Consumer Price Index): 4.4 percent

• Inflation in August 2007: 1.1 percent
• U.S.: 5.4 percent

↑ Unemployment: 7.2 percent

• Unemployment in June 2007: 6.2 percent
• U.S.: 5.7 percent

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