Supply and Demand

I guess I'm a bit confused about how developers in the process of building new residential and office towers in Center City Philadelphia made the ultimate decision to go ahead and build.

It's a well-known fact that Philadelphia is suffering from a population drain -- most of that drainage going to the immediate suburbs. In addition, demand for office space is shrinking and companies with existing leases in Center City want to shrink their existing office spaces.

So, population drain + low demand for commercial space + existing companies shrinking their office space = less aggressive construction and development initiatives....right?

No. As you can see by paging through the blog, major construction initiatives are popping up all over the Center City cityscape. I understand that unlike the rest of the city, Center City itself is actually experiencing residential population growth, but signs are clear that there is little demand for commercial space that would justify the current construction and development projects.

What gives? Someone explain this to me? Is it part of that maverick, risk-taking entrepreneurial spirit that infects the land?

| Center City Data: Neighborhood-by-Neighborhood (PDF) |