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Real Estate Bisnow
The largest commercial real estate publication in the United States.
   
January 5, 2011 
 
 
CRE PREDICTIONS: 2012

 
It's what everyone wants the answer to. Even though we won't really know it for another 360 days: What's going to happen to Philly's CRE world this year? To help us, we contacted our local Nostradamusii for some insight.
 
martin architectural group mike rosen 2012 multifamily developers philadelphia projects
The Martin Architectural Group's Mike Rosen tells us the keyword for 2012 is multifamily (as in the plural sense). His firm is getting a lot of work from developers looking to incorporate apartments into their projects, whether they be shopping centers or even industrial parks. “There are guys tearing down office buildings and putting up apartment buildings,” he says. Mike notes that capital markets are craving multifamily, and adding an apartment is the quickest way for a developer to improve the value. Plus, Mike says, there's a “window of opportunity,” where the entitlement process has eased on new multifamily projcts with both local governments and neighborhood groups. “Today you will not get the push back that you would have five years ago.”
newmark knight frank smith mack sid class a rent growth office tenants
Next up, we consulted Newmark Knight Frank Smith Mack's Sid Smith, who stared deeply into his crystal ball and saw rent growth! (He also saw a crack in the crystal ball... haphazard shipping!) “There is a shortage of prime space in Philadelphia CBD, and Class-AA space should experience strong rent growth,” Sid tells us. Unfortunately, that will come at the expense of Class-B buildings, which will “continue to suffer as tenants upgrade their space in the classic flight to quality or pit one distressed building against another to reap substantial rent savings.”
flynn co kevin obama president election economic recovery unions reelection philadelphia
We also pounced on the predictive powers of The Flynn Co's Kevin Flynn, who says politics will dictate whether we have a strong recovery or not. Unless the adminstration changes in the next election, Kevin says we're in for more of the lackluster economic same for the next four years. Studley's Greg Soffian says he expects more of the same in 2012, with tenants continuing to benefit in the market. “The hope is that things will improve and hiring will take place and we'll see some absorption, although we're not there yet,” Greg says.

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TRYKO TRIES HARRISBURG PARK
 
TRYKO partners harrisburg park apartment multifamily altman group uri kahanow
NJ-based Tryko Partners has added to its suburban Philly affordable housing stock. Tryko just purchased Harrisburg Park, a 163-unit apartment complex in Harrisburg in what it describes as a prime opportunity play. The investor purchased it from The Altman Group for an undisclosed sum. “Our immediate plans will focus on improving operational efficiencies and fostering tenant retention,” says Tryko's Uri Kahanow. (That sounds official, but we think it just means not adding any more chimneys.)

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HOLIDAY HAPPENINGS
 
We're sorry we missed it personally, but we did get a pic of Cushman & Wakefield's Peter Greenhalgh, Contemporary Realty Corp's Chrissy Calkap and Erica Masusock, and Colliers International's Douglas Sayer celebrating a year of successes at the TriState Realtors Commercial Alliance holiday party last month. Douglas was the organization's president last year.
 
Welcome in 2012 by highlighting your big deals. Contact Jarred.Schenke@Bisnow.com with your news.
 
 
 
 
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