November 2, 2017
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PREIT Takes on the Largest Retail Development Project in Downtown Philadelphia
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From Rags to Riches: How The Gallery at Market East will soon be transformed from a meager shopping mall to an upscale shopping complex to be known as Fashion District Philadelphia
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The Gallery at Market East was once a shopping mall that sat in East Central Philadelphia, along the busy intersection of 9th and Market Streets. However, to any native Philadelphian, The Gallery was, essentially, a joke. It was not even considered a mall, and despite being there since 1977, customers barely ventured inside to go and spend their money It was comparable to what the aftermath of a zombie apocalypse would be like: empty and run-down. The options at the Gallery were very limited, as it was comprised of stores and food stands that most people have never heard of as well as lower-end department stores such as Kmart and Strawbridges which contributed to its unappealing image. In addition, several of these stores ended up closing down or not renewing their leases. The Gallery struggled to find new tenants that would keep up with the up-and-coming gentrification of Philadelphia.
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However, I have always believed that The Gallery had so much potential, especially since I am interested in a career in commercial real estate. It is interesting because now, according to The Philadelphia Inquirer, a commercial real estate firm known as Pennsylvania Real Estate Investment Trust (PREIT) had the same idea as me, and is currently working on a multi-million dollar project to redevelop The Gallery into a the city's premier destination for all things fashion, dining, and entertainment called Fashion District Philadelphia. PREIT owns other affluent shopping complexes in the greater Philadelphia area such as Cherry Hill Mall located in Southern New Jersey. PREIT plans to expand the experience of Fashion District Philadelphia to span between 8th and 11th streets, making it the largest retail project in downtown Philadelphia. It is set to open in 2018, and as both an aspiring commercial real estate developer and a Philadelphia native, I am excited to see these changes come into my hometown.
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PREIT's proposed digital model for Fashion District Philadelphia
November 7, 2017
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Simon Property Group Transforms the Shopping Mall Experience
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With online shopping taking over the preferences of today's consumers, Simon Property Group proves that they can keep their customers coming back for more.
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Simon Property Group is a commercial real estate company located in Indianapolis, Indiana. It is the largest real estate investment trust and shopping mall operator in the United States. A notable property that Simon Property Group is responsible for is the King of Prussia Mall located in King of Prussia, Pennsylvania, which is the second largest mall in America. Because of its proximity to Philadelphia, PA, my hometown, it is the top destination for residents in the greater metropolitan area to do their shopping. King of Prussia Mall recently underwent a $200 million renovation which added 50 more stores and restaurants to its already impressive directory. I actually work at a clothing store in the King of Prussia Mall so it was interesting to witness these changes unfold.
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Another well known shopping mall is the Roosevelt Field located in Garden City, New York. According to Fortune, this mall also features luxury additions similar to the ones in King of Prussia Mall, including innovative interactive digital screen directories that literally direct you to the store you want to visit, leather couches with charging stations, eateries with actual silverware, and much more to create a unique shopping mall experience that entice customers. All of these factors contribute to the reason why the malls run by Simon Property Group are still thriving while other shopping malls are facing potential extinction. This shows how Simon Property Group is keeping its empire on top by adding this upgrades to not only competing with other shopping malls, but to also compete with the online shopping industry as well. As a real estate risk management major, I would like to learn Simon Property Group's strategies to maintain their success.
November 9, 2017
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Philadelphia Proves to be a Good Investment for Real Estate
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The sixth most populous city in the country also becomes the twentieth most expensive city in the country.
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Although my focus is in commercial real estate, I am also interested in residential real estate as well, particularly in the Philadelphia region because that is where I plan to invest after graduation. Philadelphia has always been a city lost in the shadows of the nearby New York City, NY or the famous Los Angeles, CA. However, it seems as if the constant development of its run-down neighborhoods is finally paying off, as Philadelphia is moving up the list of the highest rent for a one-bedroom apartment in the United States, making it a good time to for real estate developers and investors to enter the market. According to the Philadelphia Inquirer, the national median rent for a one-bedroom apartment in November is $1,032 per month, compared to Philadelphia's median rent for a one-bedroom apartment in November of $1,374 per month. Obviously, this rate could be higher or lower depending on the particular area of Philadelphia, but several neighborhoods are being redeveloped and are becoming hot commodities for prospective residents.
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My dad and my older brother currently invest in real estate on the side, renting out properties in the Philadelphia area to tenants. This information is very important and shows that it is extremely beneficial to stay up-to-date with the housing market in order to bring in the highest possible income. For example, before my brother learned more about the market, he was charging about $600 per month for a two-bedroom apartment in Queen Village, one of the wealthiest neighborhoods in Philadelphia. After looking at the numbers presented in this article, however, it is clear that he significantly undervalued his property and would have been able to charge a much more than double that amount. This mistake emphasizes the value of research that must be taken into consideration when investing or developing real estate.
