M id A tlantic Real Estate Journal — Year in Review 2025 — December 2025 — 5B
www.MAREJ.com
Y ear in R eview 2025
s we close out 2025 and look toward the new year, it’s easy By Carlo L. Batts, MAI, Rittenhouse Appraisals and The Reduxx Group Looking Forward: How smart development is addressing real challenges A
need while creating positive effects beyond the project. Temple’s student housing can ease rental pressure, open- ing pathways to homeowner- ship. The industrial building conversion can provide the jumpstart a community needs for rebirth. The life sciences building brings people and amenities that strengthen the established cluster. Finally, GBFP’s cold storage facil- ity raises the profile of our regional infrastructure and supply chain capabilities. As commercial real estate professionals, this is what we look for: development that
makes sense, solves problems, and creates momentum. Based on what’s currently taking shape across Philadelphia, we have good reason for optimism about 2026. Carlo L. Batts, MAI is the principal of Ritten- house Appraisals and The Reduxx Group, both based in Center City Philadel- phia. He has a B. S. in Urban Planning and Real Estate Urban Land De- velopment from Virginia Commonwealth University and received his MAI desig- nation from the Appraisal Institute. MAREJ
measured, strategic investment in the sector. Their life sciences building under construction at 3201 Cuthbert benefits from in- stitutional anchor tenancy and a prime location in an estab- lished life sciences community. The project will also bring ground-floor food and bever- age options that can serve as amenities for both the building and the broader community. Another project less visible but important for the region is GBFP International’s cold storage warehouse being built in Port Richmond. With only a small fraction of indus- trial space suited for freezer
storage, this addresses a critical gap in regional food distribution infrastructure. The building will exceed city energy codes by 30%, proving sustainability works even in energy-intensive industrial applications. Philadelphia is alongside Houston and Jacksonville (other port cit- ies) where GBFP is investing simultaneously. This shows a vote of confidence in our logistics infrastructure and strategic position in national supply chains. The Common Thread What ties these projects together is each addresses a
to focus on commercial real estate challenges of rising costs, market un- certainty, and shifting demand pat- terns. But
Carlo L. Batts
across Philadelphia, several projects proposed or under construction are demonstrat- ing thoughtful ideas and in- vestment addressing real com- munity needs. These are the kinds of projects that give us optimism about what’s ahead. Here are some examples. Temple University Presi- dent John Fry said at a recent NAIOP event that Temple is working to expand on-cam- pus student housing along the North Broad corridor. While this might seem like a straightforward institutional project, the ripple effects are very important. More on-campus housing means fewer students compet- ing for nearby rental units. That reduced rental demand creates opportunities for more residents to pursue homeown- ership rather than competing with students for limited hous- ing stock. It’s a clear example of how one strategic project can help ease pressure across an en- tire housing market segment. Not too far from Temple University an entire block of obsolete industrial buildings at 2200 N. 8th Street is being proposed as 232 residential units. This community is in the early stages of a rebirth, and the project could serve as an anchor and attract addi- tional investment. This adap- tive reuse recognizes that this neighborhood’s highest and best use has evolved, and is contributing housing supply to the city. The concentration of these North Philadelphia projects isn’t coincidental. In recent years, significant develop- ment along Girard Avenue has transformed the Broad and Girard intersection into what many now consider the down- town of North Philadelphia. Moving to University City, while Philadelphia’s life sci- ences boom has cooled from its peak, the Drexel University and Gattuso Development Part- ners partnership demonstrates
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