Over the past 10 years, the greater Philadelphia region saw growth in the multifamily sector, the single-family sector, office space and self-storage, making it one of the top 15 most active real estate markets in the U.S.
According to Storage Café, permits for multifamily construction in the Philadelphia area skyrocketed in 2021. Between 2012 and 2021, there were more than 85,000 permits issued for multifamily units. However, that number rose from 8,202 permits in 2020 (and 8,644 permits in 2019) to 28,478 in 2021. In addition to multifamily permit increases, single-family permits also saw an increase, reaching more than 69,000 in 2021 for the decade. In 2021, 8,971 permits were issued, the highest in a decade.
While the pandemic forever altered the workspace and even with more employees working remotely or a hybrid style, office space in Philadelphia is still in high demand. According to the report, the Philadelphia area added over 13.5 million square feet of office space between 2012 and 2021, with 2.3 million square feet added in 2021, compared to just 975,000 a decade prior. 2020 was a decade low, with only 474,900 square feet added, so office space is having a large comeback.
Philadelphia also saw growth in the self-storage sector of commercial real estate. Over the past 10 years, 7.2 million square feet has been added, with 2021 hitting the highest number in a decade, as 2.1 million square feet was added.
While multifamily and single-family permits and the addition of new office and storage places has remained stable in the Philadelphia region over the past decade, 2021 was a particularly strong year for the commercial real estate sector in the area.