Opinion
The property developer and former city councilor knows finances. Here's why he's optimistic about Philadelphia's economy
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Allan Domb is optimistic about Philadelphia's economy. / Photo by Linette & Kyle Kielinski
Why am I optimistic about Philadelphia’s economy – and Philadelphia’s future as a whole? The main reason is simple: cities never die.
Yes, they experience occasional downtimes – sometimes major ones. Philadelphia suffered greatly in the late 1970s and 1980s as our population shrank and crime increased. Thanks to COVID and all the problems that come with it, we have faced greater challenges in recent years. But in my experience, whenever cities—including Philadelphia—face setbacks, they find ways to reinvent themselves and thrive again.
I believe we are already seeing signs that our city is being reborn. First, I am encouraged by what I have seen from our new Mayor Cherelle Parker, particularly her focus on public safety and crime reduction. From an economic point of view, there is nothing more important. People don't want to live, work or play in a place where they don't feel safe. Mayor Parker made a great choice for the police commissioner post in Kevin Bethel (a protégé of the outstanding Commissioner Charles Ramsey), and she has rightly prioritized closing the open-air drug market in Kensington, which is the cause of much of our crime – and quality problems. Questions of life. If we want a strong economy, making our city safer is a necessary first step.
Equally important is that we have a solid economic foundation on which to build. Our education and medical sectors, which include major institutions such as Penn, Penn Medicine, CHOP and Drexel, employ tens of thousands of people and are among the best in the world. Not long ago I met a couple over breakfast who were visiting from Boston. When I asked why they were in Philadelphia, the husband said his wife needed a state-of-the-art surgical procedure that was not yet performed in Boston. I think we sometimes don't realize how great our medical facilities are. (After two Penn researchers won the Nobel Prize for their work that made COVID vaccines possible, I told then-Mayor Jim Kenney to proclaim in every speech: “We are so proud of Philadelphia. We saved the world. “
Perhaps my greatest reason for optimism about our economy is the large number of young people who continue to choose to live here.”
This modernity, which is crucial for economic growth, can be felt in many places in our city. In building Schuylkill Yards and other new life sciences spaces in University City, which will further strengthen our leadership in this area. In all companies now located at the Navy Yard, which has received significant awards for adaptive reuse. In our exciting and world-class dining scene, which is a hotbed of entrepreneurial energy, attracting both visitors and new residents. Like every major city, we are seeing higher vacancy rates in downtown office buildings as more people work remotely. But if we can find a way to convert some of these buildings into housing — which we actually did with an older generation of buildings in the early 2000s — the city's economic vitality will only increase.
Perhaps my greatest reason for optimism about our economy is the large number of young people who continue to choose to live here. Young people bring energy, ideas and innovation. You bring a creative mind and a fresh perspective. (They also bring with them baby boomers who love being around that youthful energy.) All of these ingredients are essential for long-term economic growth.
Are there things we need to take care of if we want to capitalize on all these positives? Naturally. It is critical to establish a corporate tax structure that impacts our ability to compete with other major cities. This also applies to realigning our school system so that it truly prepares students for 21st century careers. I would also like to see us increase entrepreneurship in our neighborhoods of color – one of the keys to building long-term prosperity – and develop a long-term vision for Center City's east side. But all of these things are doable.
Cities don't die; they just change. And Philadelphia is poised to be stronger than ever.
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Allan Domb served as a full member of the Philadelphia City Council from 2016 to 2022 and is president of Allan Domb Real Estate.
Published as “Why I’m Bullish on Philly’s Economy” in the April 2024 issue of Philadelphia magazine.
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