This year will be exciting and opportunistic for new development projects in Philadelphia. The past few years presented several economic challenges, slowing down progress on many construction projects. However, with gradual economic improvements, we’ll start to see several new development projects in Philadelphia this year. That said, here are some of the most talked about development projects to watch for in 2023.
Contents of This Article:
- New Development Projects in Philadelphia
- How Does Development Impact Neighborhoods and Investors?
- Explore New Housing Opportunities in Philadelphia
New Development Projects in Philadelphia
Philadelphia is a city constantly changing and evolving through various development projects. So whether you’re an investor, renter, or property manager in Philadelphia, keeping up with new development projects is crucial for business. After all, these projects range from renewing neighborhoods to constructing new iconic buildings, making this city a hub for innovation.
Although some construction was halted due to economic challenges, this year–construction is in full swing. So, read along while we go over some of the new exciting development projects that are currently underway in Philadelphia.
- The Park at Penn’s Landing
- Iron Stone’s Apartment Plan
- Rivermark Northern Liberties
- 1001 S. Broad St.
- New Morgan Lewis Building
The Park at Penn’s Landing
The Park at Penn’s Landing is set to begin construction this year after several years of planning and design. This project will include the long-awaited cap over part of I-95, which has been in the pipeline for decades. That said, the $225 million project led by the Delaware River Waterfront Corporation was postponed for two years due to the Covid-19 pandemic.
Once completed, this 11.5-acre space will extend from Front Street to the Delaware River Waterfront. Among the planned amenities include a pavilion, cafe, mobile food options, a full stage and amphitheater, a large complex of gardens, and plenty of children’s play areas.
Iron Stone’s Apartment Plan
Another critical development project in Philadelphia is Iron Stone Real Estate’s massive apartment construction plan. Iron Stone Real Estate plans to build over 1,000 apartments on the acres surrounding the Provident Campus.
As the largest residential project West Philly has seen in decades, the development will bring significant changes to the area. For instance, more housing, jobs, and residents will likely flock to the site. The details and plans of this construction are still underway as developers determine zoning variances and how much funding they need for completion.
Rivermark Northern Liberties
Another major construction project led by the Delaware River Waterfront Corporation is set to start this year and open in 2024. Rivermark Northern Liberties is a $2.2 billion mixed-use project that’s been in the works for several years. Located at 501 N. Columbus Boulevard, the project is set to include the following:
- Four hundred seventy multi-family housing units within two different 5 and 6-story buildings
- 45,000 sq. ft. of commercial space, including restaurants and stores
- 4 acres of public space and parks connecting to the Delaware River Trail
1001 S. Broad St.
A partnership with Post Brothers and Bart Blatstein’s Tower Investments Inc. presents a massive $305 million development on South Broad Street. It’ll include over 1,100 apartments and 65,000 square feet of retail space in South Philadelphia.
Construction for the project’s first phase is set to finish in late 2024. It includes 52,962 square feet of retail space, including a Giant grocery store, 45,000 square feet of outdoor amenities, 629 apartments, and 25 electric vehicle charging stations.
New Morgan Lewis Building
Parkway Corporation, a family-owned parking firm that’s been developing real estate for years, plans several projects for existing lots this year. One major project set for this year is the new $200 million, 19-story headquarters for Morgan Lewis & Bockius LLP, Philadelphia’s largest law firm.
The law firm will be the only tenant at the new development structure at 2222 Market Street in Center City. Construction started last year, finishing the exterior portion of the project. They’re finishing up the interior space this year, and the law firm is set to move in later during the year with a 20-year lease.
How Does Development Impact Neighborhoods and Investors?
New development projects are generally great for the economy. After all, new construction brings in more housing opportunities, jobs, and people. But how does new development impact neighborhoods and investors in Philadelphia? Here are some of the positive and negative impacts you may see with new development projects.
Positive Impacts on Neighborhoods
- Increased Property Values- New developments may increase property values in a neighborhood, making it more attractive for residents and investors alike.
- New Amenities- Developments planned for Philadelphia can bring in new amenities like retail stores, parks, and restaurants.
- Job Opportunities- New development projects can also bring in several job opportunities, positively stimulating the economy.
Negative Impacts on Neighborhoods
- Environmental Impacts- New developments can have negative environmental impacts, like pollution and loss of green space. However, some of Philadelphia’s new construction projects involve creating more green space for residents.
- Gentrification- New construction can lead to gentrification, changing the nature of a neighborhood and making housing less accessible to low-income residents.
- Congestion- Traffic from new developments can lead to congestion in a neighborhood, negatively impacting the quality of life for some residents.
Positive Impacts on Investors
- Higher ROI- Investors involved in new development projects can get higher returns than existing properties.
- Lower Maintenance Costs- New buildings generally require less maintenance than older properties, which can lower investors’ ownership costs.
- More Flexibility- New construction offers more flexibility in terms of design and layout, attracting a wider range of tenants.
Negative Impacts on Investors
- Market Risk- There may not be enough demand for some new construction projects, which presents a market risk.
- Construction Delays- Many developers experienced construction delays in recent years. Construction delays can increase costs and delay the time it takes to generate revenue.
- Financing Risk- New developments are significant expenses as it is. They can also be more challenging to finance and time-consuming to find the necessary funding to complete a project.
Explore New Housing Opportunities in Philadelphia
Whether you live in Philadelphia or plan to relocate, several new development projects open new personal or rental housing opportunities. That said, whether you’re a rental owner or prospective tenant, Bay Property Management Group can help you get on the right track.
BMG helps rental owners manage all aspects of their business while assisting tenants in finding the best rental home to fit their needs. So, we’ve got you covered whether you’re a busy landlord running out of time to manage properties or a tenant looking for rental housing. Contact BMG to learn more about our services, and check out our listings today!