British American Business Council of Greater Philadelphia

Mid-Atlantic: Continued Growth, Setting it Apart from Other National Regions

Throughout July, the Mid-Atlantic region saw a 3.9% increase in home prices, boosting the median price to $400,000. This made for the strongest price growth since the beginning of this year, going against the trends seen in other national markets.

The summer market has remained strong, a continuation of the patterns previously observed in June. The elevated mortgage rates have not discouraged competition among buyers vying for a property among the historically low levels of inventory. This is according to the Mid-Atlantic July Housing Report released by Bright MLS.

Dr. Lisa Sturtevant, Chief Economist at Bright MLS, has expressed her surprise at the market’s resilience in the face of higher rates and prices. She noted that even first-time buyers are finding ways to navigate the competitive landscape, with tactics like assumable mortgages and seller financing becoming part of the conversation.

Notably, prices saw an uptick across several metropolitan markets including Washington, D.C., Philadelphia, and Baltimore. Median days on the market, indicating the speed of property turnover, remained consistent at seven days in Baltimore, nine days in Philadelphia, and decreased by a day in the Washington, D.C. metro area, making it seven days.

While the summer season typically brings a slight market cooldown due to vacations and travel, there has been no such relief for buyers this summer. The report highlights a significant drop of over 29% in new properties listed across the region. Active listings have also decreased by 19.1%, indicating that the market pace remains rapid. This emphasizes the need for buyers to act swiftly when encountering the right property.

The report further shows that new pending sales have decreased by 13%, and closed sales experienced a 20% decline in the region for July. The limited inventory has also proven to decrease property showings, which saw a nearly 12% reduction compared to the previous year. Despite these declines, the gap in market activity between the current year and the previous year has narrowed.

Looking ahead, Bright MLS anticipates that the fall market in the Mid-Atlantic region will be characterized by ongoing low inventory, stable or potentially rising home prices, and increasing challenges related to affordability. While mortgage rates are projected to decrease slightly, they are expected to hover around 6.5%. Homeowners are less inclined to sell, fearing the loss of their favorable rates. However, listing activity is predicted to show a slight uptick in the coming months. This could be driven by “movers of necessity” and transactions involving non-standard financing options, such as assumable mortgages and seller financing.

Philadelphia Metro Area: Strong Price Growth Despite Affordability Challenges

The residential real estate market in Philadelphia has experienced a steady and promising recent performance. A steady surge in demand for housing coupled with continued low inventory, has caused property prices to continue their upward trend.

In July, the Philadelphia metro area witnessed a median home price of $369,000, just shy of June’s record at $370,000. Price surges extended to all local markets, including Philadelphia County, which had experienced a dip earlier in the year.

Despite affordability challenges, homebuyers remain actively engaged in the Philadelphia market. Although there was a 13.8% drop in showing activity compared to the previous July, the gap in buyer traffic between 2022 and 2023 is gradually narrowing.

While all of this information can be somewhat daunting, it is important to keep in mind that real estate is often a long-term investment and historically has proven to be one of the largest wealth builders amongst Americans!

State of the Commercial Real Estate Market

Philadelphia’s commercial real estate sector has shown remarkable resilience over the past decade, even navigating the pandemic and fluctuating interest rates. Let’s delve into the four key asset classes, highlighting essential terms:

Net Absorption: This measures the change in leased space over a period, showing whether more space was leased or vacated. Positive net absorption indicates lower vacancy, while negative net absorption points to increased vacant space. It’s a gauge of market demand and health.

Cap Rate (Capitalization Rate): This vital metric assesses potential ROI for a commercial property. It’s calculated by dividing net operating income by market value. A higher cap rate may mean higher returns but also higher risk. It helps compare investment options and evaluate income potential.

Vacancy Rate: This shows the percentage of unoccupied or unleased space in a market. Lower rates suggest strong demand, while higher rates indicate oversupply and weaker demand. It’s a way to assess market health and supply-demand balance.

Delivery: In real estate, “delivery” refers to a new construction or development project’s completion, marking its readiness for occupancy. It involves property transfer, signaling its operational state.

Office
Philadelphia’s office market stands strong among top U.S. markets. Its unique employment mix in healthcare, education, and government sustains its resilience. Despite challenges, Philadelphia’s vacancy and availability rates are impressive, with Center City outperforming other central business districts.

Multifamily
Philadelphia’s multifamily market transformed in 2023, with demand retreat and a surge in construction. The market adjusted as projects surpassed demand, causing the vacancy rate to rise. Philadelphia is still able to maintain a lower vacancy rate compared to other metros. Supply-demand dynamics influence rent trends and sales activity.

Retail
Philadelphia’s retail market rebounded, driven by consumer savings and spending. Even still, significant retail space remains available. Converting obsolete properties to mixed-use centers is a trend. The suburban market is robust, attracting tenants. Philadelphia’s affordability lures retailers compared to nearby markets, despite challenges in sales volume.

Industrial
Philadelphia’s industrial market leads the Mid-Atlantic, with high delivery and construction numbers. While annual absorption ranks third, the vacancy rate is rising due to a wave of new projects. Different warehouse sizes experience varying impacts. Financing costs affect sales volume and cap rates.

Philadelphia’s commercial real estate sector exhibits strengths across asset classes, backed by resilience and unique market dynamics.

Meet The Mike McCann Team

Our team of dynamic and motivated professionals consistently keep client satisfaction as our primary focus. Our team of licensed agents are knowledgeable and passionate about Philadelphia’s wide range of neighborhoods and properties. We have been the #1 real estate team in Philadelphia for over three decades, with over 12K homes sold, 3 billion in revenue, and more rewards from the Philadelphia Board of Realtors than anyone else in the city’s history. We target the specific needs of our clients in order to provide them with the resources and expertise they deserve and use our extensive experience to find the ideal location for their perfect home.

Whether you are interested in buying, selling or investing in Philadelphia, the surrounding suburbs, or the Jersey Shore let us be your guide—no one will work harder for you than The Mike McCann Team. Visit our website at mccannteam.com or contact us at Office: 215.607.6007 | Cell: 215.778.0901.

Source: Bright MLS July Housing Report: Mid-Atlantic Housing Market Resilient (prnewswire.com)

Gain visibility and increase your exposure with a revolving digital promotion on the British American Business Council of Greater Philadelphia website.

Marketing your business with our global network will help you develop new contacts and grow your enterprise throughout the transatlantic commercial space and beyond!

Use us to help you expand your online presence.

• $750.00 for a six-month revolving digital promotion running from July 1, 2023 until January 1, 2024
• $1,500.00 for a full year revolving digital promotion running from July 1, 2023 – June 30, 2024, along with a full-page color ad in our Signature Annual Holiday Lunch program book (print-run more than 200 copies in December 2023)

But wait, there’s more!

All six-month revolving digital promo purchasers will be entered into a raffle for two complimentary tickets with a value of $75.00 or under to a mutually agreed upon BABCPHL event during the July 1, 2023 – June 30, 2024 period, and one-year purchasers for four complimentary tickets.

Specs:

• Website Digital Messaging: 300 x 250px, max file size 60 KB
• Full page, color ad: 8.5″x11″ with an additional .125″ bleed

Promotional Guidelines

Digital messages may include:

• The organization’s support of the British American Business Council of Greater Philadelphia
• Factually, value-neutral descriptive, information about the organization’s products, product line or services
• The organization’s logo and/or well-established trademarked corporate tagline
• Brand or trade names that help identify the organization, but that do not promote nor induce to buy
• A phone number and/or web address, but no call-to-action may accompany it

Digital messages may not include:

• Superlatives or comparatives, such as bigger or best
• Calls to action or inducements to action
• Comparison with other products or businesses
• References to prices
• Third-party endorsements
• Political messaging or the views of any person with respect to any matter of public importance or interest

Contact babc@babcphl.com to confirm your interest.

This Saturday, May 6, 2023, will be the coronation of King Charles III which will kick off a weekend filled with many events and celebrations across the UK. The Coronation Service that will take place at Westminster Abbey will begin the festivities followed by The Coronation Procession. On Sunday, a special Coronation Concert will be staged and broadcasted live at Windsor Castle. Communities are also encouraged to share food and fun together for The Coronation Big Lunch. Click here to learn more about the festivities.

Monday is a UK bank holiday, and the royal family is encouraging people to volunteer as part of “The Big Help Out” in tribute to the King’s lifetime of public service. The objective is to encourage volunteerism to bring communities together to create a legacy from the coronation weekend. The BABCPHL is collaborating with the World Affairs Council of Philadelphia and the British Consulate New York on a UK-themed teacher appreciation lunch at Bodine High School for International Affairs. Click here to learn more about “The Big Help Out” initiative.

Corporate Members:

Con Murphy’s Irish Pub
Liam Kelly
E: liamjkelly8@gmail.com
1700 Benjamin Franklin Parkway
Philadelphia, PA 19103

Con Murphy’s is an Irish Pub in Philadelphia, paying tribute to an old friend from Ireland, Con Murphy, and a tribute to the Irish community in Philadelphia.

Con was, like many an Irishman, both a gentleman and a scholar. He had a healthy aversion to work. Con never lied but was often careless with the truth and never allowed it to get in the way of a good story. He treated your money like his, but his generosity knew no bounds. Con was a raconteur and a rogue but, above all, he was a character who brought a smile to your face and warmth to your heart, which is what this Pub aims to do also.

Fellow Limerick men themselves, Liam Kelly and Maurice Collins have carved an Irish niche in Philadelphia with the help of a few Irish craftsmen. A classy yet comfortable Irish Pub experience awaits you in the Windsor Hotel on Ben Franklin Parkway. Ben and Con would have gotten along famously (and are probably trading stories as we speak).

Quoin Capital
William Block
P: 215-564-1222 Ext. 112
E: wblock@quoincapital.com
2005 Market St.
Suite 2030
Philadelphia, PA 19103

Since 2004, we have provided investment banking through collaborative leadership in financial strategy and execution with Fortune 500 corporations, financial institutions, asset managers, pension funds, municipalities, and startups. We combine large bank experience with entrepreneurial drive to achieve optimal outcomes.

From capital raises and IPOs to financial restructuring and M&A, we offer customized, hands-on guidance and advocacy through every transition. As champions of our partners’ interests, we look deep into the workings of your culture and operations to understand and articulate your true power and potential, from initial valuation through the seamless execution of complex transactions.

With headquarters in Philadelphia, we are an independent, certified minority business enterprise (MBE) that provides the full scope of investment banking services with an excellent reputation for results, period.

Written by: Kaitlyn Rampone, Coordinator, British American Business Council of Greater Philadelphia

King Charles III will be crowned alongside Camilla, the Queen Consort on May 6, 2023, at Westminster Abbey in London. This will be the first coronation since Queen Elizabeth’s on June 2, 1953. There is a rich history surrounding the coronation ceremony in England; coronations have remained the same for more than 1,000 years. A coronation is a symbolic religious ceremony in which the monarch is crowned and formalizes their role as head of the Church of England. It marks the transfer of their title and powers. It was once a necessary stage of an individual’s journey to becoming King or Queen, but now by law immediately following the death of the current sovereign, they ascend into their role. Coronations emerged from a European tradition which called for increased church involvement in the state. It also sought to bring stability to societies where there were several individuals who had a claim to the throne. The United Kingdom is the only European monarchy that continues to retain such a ceremony.

There are a lot of moving pieces that take place during the coronation ceremony. The event starts with The King’s Procession that originates at Buckingham Palace and ends at Westminster Abbey. The various stages of the service include the recognition, the oath, the anointing, the investiture, and the enthronement and homage. The recognition consists of the Archbishop of Canterbury presenting the monarch to the congregation where the crowd shouts “God Save the King” followed by trumpets sounding. During the oath, the sovereign swears to uphold the law and the Church of England. Next is the anointing where the King’s ceremonial robe is taken off and he sits in the Coronation Chair. Normally, the King is then concealed with a gold cloth, but for King Charles there will be a transparent canopy in order to broadcast the anointing for the first time in history. Then during the investiture, the King is presented with the Royal orb, representing religious and moral authority; the Sceptre, representing power; and the Sovereign’s Sceptre, a rod of gold topped with a white enameled dove, a symbol of justice and mercy. The Archbishop then places St. Edward’s Crown on the King’s head. Lastly, in the enthronement and homage stage, the King leaves the Coronation Chair and moves to the throne. 

Following the ceremony, the King and Queen Consort will return to Buckingham Palace in a large ceremonial procession known as The Coronation Procession. Once back at Buckingham Palace they will be joined with the other members of the Royal family on the balcony to conclude the day’s ceremonial events. The day after the Coronation will consist of the Coronation Big Lunch, where neighbors and communities across Britain will be invited to share food and fun. For the Coronation of Queen Elizabeth there were more than 8,000 people from 129 nations that travelled to Westminster Abbey, but for King Charles’ Coronation there will be approximately 2,000 to accommodate health and safety restrictions.

The Coronation will be televised for British and international audiences to view throughout the world. The late Queen’s Coronation was the first to be televised with an estimated 27 million people in the UK watching and 11 million listening on the radio. To mark the Coronation of King Charles, there will be a bank holiday on Monday, May 8. This holiday will be observed throughout the UK, in recognition of the King’s interest in strengthening local communities. People throughout the UK will be encouraged to volunteer and join projects in their region as part of the “Big Help Out.” The Big Help Out is an organization supported by some of the UK’s largest volunteer organizations to raise awareness of volunteerism and provide people with an opportunity to make a difference within their community. The King and Queen Consort hope this will create a long-lasting legacy felt across the country.

The Coronation will be celebrated all over the world. The Philadelphia branch of the English-Speaking Union will be hosting their annual garden party and celebration of the Coronation at the Highlands Mansion and Gardens in Fort Washington, PA on May 6, 2023. The garden party will have everything from elegant hats, champagne served from a Rolls Royce, a Scottish Piper and Drummer, a silent auction including coronation items from George V to Charles III, and much more. Oliver St. Clair Franklin CBE, His Majesty’s Honorary Consul to Philadelphia and BABCPHL Board Member will be a featured guest. To learn more click here.