Emergence of a Mid-Atlantic Twin City: Camden's Strategy to Extend

Philadelphia Real Estate Council White Paper by Jack Gordon

Emergence of a Mid-Atlantic Twin City: Camden’s Strategy to Extend Philadelphia’s Central Business District

2016 Mid-Atlantic Real Estate Research Fellowship

June 17, 2016

Emergence of a Mid-Atlantic Twin City: Camden’s Strategy to Extend Philadelphia’s Central Business District By Jack Gordon

he city of Camden, New Jersey was an industrial powerhouse during the late-1800s until the mid-1900s. The city’s access to both the Cooper and Delaware Rivers positioned Camden as an attractive location for shipyards, factories, and a variety of reputable Tcompanies. 1 The city was home to a flourishing economy where citizens were gainfully employed and development was prosperous. Today, Camden is notorious for its struggling economy, high unemployment, and crime; a current reputation as a result of more recent events. The city began to decline in the Jack Gordon is a junior at 1970s as tensions in the city grew.2 The population declined when businesses Pennsylvania State relocated and violence increased. The ruins of an industrial powerhouse are University’s Smeal College apparent with deteriorating buildings throughout the city. of Business where he majors in Risk Investors observing the conditions within Camden are reasonably concerned Management Real Estate. about crime. Infamous for having the highest murder rates in the country, During his time, Jack has Camden is consistently among the poorest and most dangerous cities.3 participated in various Investment in a failing and crime ridden city is not favorable, for it poses high real estate intensive risk and low return potential. Camden is hoping to address these worries through extracurricular activities massive economic investment, more hope for employment, and a better such as a case competition education system. As a result, local and state governments are making serious and real estate boot camp. efforts to improve Camden. The city is a recipient of various programs designed to jumpstart its economy and substantial government incentives are attracting a Recently, Jack was a Real variety of new companies, jobs and opportunities in hopes of boosting Camden’s Estate Valuation Litigation economy through large corporations and small businesses alike. A billion-dollar intern for Archer & investment in Camden has recently sparked speculation as to the legitimacy of Greiner, P.C. in their the city’s real estate market.4 This project is hoped to start the revitalization of Princeton offices. He will Camden’s skyline. intern this coming Camden is located in the South Jersey area of the Mid-Atlantic region. The South summer for appraisal firm Jersey market is not considered an investment grade region. However, Camden’s Integra Realty Resources, riverfront and location directly across from Philadelphia create the potential for covering the North Jersey Camden to merge with Philadelphia to create an attractive “twin city.” One major market. real estate investment trust is making that bet. Liberty Property Trusts’ planned construction of one million square feet of new Class-A office space paired with Connect with the author: easy transportation to Philadelphia will create an immediately attractive www.linkedin.com/in/ submarket that may jump start the redevelopment of Camden’s central business jgordon6 district (CBD). Camden has easy access to transportation, supplemental businesses, entertainment, and the workforce of Philadelphia’s residents.

Targeted corporate growth and revitalization efforts to reduce crime and poverty in Camden will poise the city to become a part of the CBD of Philadelphia, the foundation of a potential east coast Twin City.

History

Camden was previously a flourishing city of factories, corporations, and a growing workforce. Over time racial tensions grew, the population declined, and big businesses left. Camden then saw increases in crime as well as depreciation in the city’s CBD value.

From the late 1800s until 1970, Camden experienced exponential growth in population and industry. Camden was an industrial giant, home to companies like General Electric and Campbell Soup as well as the world’s largest manufacturer of phonographs. Visible in figure 2, the city’s population grew at double digit Change in Population for Philadelphia & rates until 1930. In only 50 years, from 1870 to 1920, Camden’s population grew Camden (1850-2010) by over 500% and peaked in 1950 with a population of nearly 125,000. Camden Source: U.S. Bureau of the and Philadelphia’s population trends have historically tracked one another as Census shown in figure 1. However, seen in figure 2, Camden is much more volatile in both growth and decline.5 Camden’s volatility can be noticed in population as well as vacancy rates because of its small size relative to a city the size of Philadelphia. Camden’s current population is nearly half of its peak population.

Percentage Change in Population for Philadelphia & Camden (1850-1860) Source: U.S. Bureau of the Census

During that time, the country saw a shift from a U.S. job-intensive industrial- based economy to exported jobs and factories.6 Declining populations and increasing corporate regulation led many successful companies to leave Camden. When these businesses relocated they left a tough environment in Camden with little employment opportunities.

From the 1960’s until the 1980’s both cities had negative net migration, indicated by sub-zero movements in figure 2. Many cities in the 1960’s and 1970’s were affected by decimating riots, Camden being especially harmed by the riot of 1971. On July 30, 1971, Rafael Gonzales was beat to death by Camden Police during a traffic stop.7 The subsequent riot lasted multiple days, with large portions of Camden’s downtown set on fire, police beating rioters, and stores looted. The riot resulted in millions of dollars in damages to businesses and homes which decimated Camden’s business district.8 After the fires and looting, many stores were never able to reopen. The Rafael Gonzales incident left many members of the city, especially minorities, distrustful of the police and those in power. The distrust for authority led to a disparity between the needs of the citizens and the goals of those in power. The overall population quickly dropped when racial tensions rose. Camden lost 60% of its Caucasian population by 1980, while minority populations increased substantially. In addition to racial tension plaguing the city, many wealthy citizens left the city after the riots and the poverty rate doubled to 32%.9 Camden has since been one of America’s poorest cities.

Since the riots and Camden’s corporate decline, the city has struggled to get on a sustainable path or build trust within the community. Camden was frequently targeted for unattractive governmental programs and facilities such as the Riverfront State Prison, which eventually closed in 2009.10 These programs were unappealing to the city’s value and were indicative of the lack of respect Camden received from the state. From 1980 until 2000, Camden saw three different

mayors involved in their own corruption scandals. All three scandals involved taking bribes and money laundering.11,12,13 In addition, Senator Wayne R. Bryant

14 was found to have stolen $200,000 from the city in fraudulent fees. The police department had been found guilty of its own scandal in 2010 including stealing money from drug busts. Camden, a city already distrustful of their leaders, was given perpetuating reasons to not trust the government. Changing economic trends, racial tensions, riots, and government scandals led to massive corporate relocations and left Camden with serious economic and social struggles.

Current Environment

Despite Camden’s previously flourishing economy, the city never recovered from its more recent struggles. Camden is consistently among the poorest cities in the country and has held the lowest median income in the entire country.15 Camden’s median income reached less than 50% the U.S. average in 2014.16 The lack of opportunity leads many denizens to crime, adversely affecting residents’ security and reducing real estate values.

Camden has among the highest crime rates in the United States, and is often referred to as the “Murder Capital.”17 In 2012 crime rates reached 663% the national averages at 2,566 per 100,000.18 Camden consistently posts murder rates far above the national average, apparent in figure 3. In particular, violent crime negatively effects the real estate market reducing demand and creating risks of investment depreciation for both homebuyers and real estate investors.19 Crime Rates of Residents in crime-ridden neighborhoods lack security and consequently spend Camden vs. National Average Source: U.S. Bureau of the Census

less time outdoors.20 Constant fear of physical harm and property loss leads to stress and other mental health issues for children and adults alike.21 The city of Camden must consider various issues to reduce crime. Lower unemployment leads to lower crime rates. A one percent decline in unemployment results in a 2.2 percent decrease in burglary and 1.8 percent decrease in motor vehicle theft.22 This would indicate that more job opportunities motivated people to turn away from crime. For example, in New York City crime rates rose in the 1970’s and 1980’s and peaked in the 1990s.23 In the 1990s, the strong economic upturn corresponded to a simultaneous decline in crime. From 1990 to 1999 the unemployment rate dropped over 25 percent in New York City.24

If the government is to instill hope into the citizens of Camden, they must provide “The expanded opportunity for lawful careers and a more effective school system. The economy will allow realization of a youth’s potential requires both positive male and female adult figures in their life.25 Currently Camden’s school district receives some of the for Camden to lowest ratings in New Jersey, yet are amongst the highest spenders per pupil in the country.26 “The Camden Commitment” is a plan to restructure the city’s benefit from school system, including the expansion of charter schools and ridding of poorly- Philadelphia and utilized and failing schools. Charter schools have been a common characteristic of cities that are climbing out of public school struggles, such as Baltimore and vice-versa.” Cleveland.27

Camden has recently made improvements to their education and crime problem.28 Camden’s troubles are difficult problems to solve; however, Camden may benefit greatly from being located directly next to a thriving city such as Philadelphia. Philadelphia will be able to aide in the recovery of Camden if the two cities economies can work in alignment with one another. The expanded economy will allow for Camden to benefit from Philadelphia and vice-versa. The success of closely proximate urban centers can be seen in various examples, specifically Minneapolis and Saint Paul. Market Comparison The most well-known twin cities in the United States are Minneapolis and Saint Paul. Through the use of targeted economics and better crime control, Camden and Philadelphia can rise together to become the Twin Cities of the Mid-Atlantic region. The prospect of a twin city being able to reach prosperity while one city is among America’s most dangerous is not unprecedented. Minneapolis is among the 100 most dangerous cities in the United States, yet the city is critically 29 acclaimed for its resilience to adversity and potential for corporate growth.

Minneapolis and Saint Paul are rapidly growing in size and population. Minneapolis’ population is growing five times the rates of major cities like

Chicago.30 The city is 1st in the nation in labor force participation and 4th in

31 percentage of residents with a high school degree. Minneapolis-Saint Paul is the second largest economic center in the Midwest, yet is still small business friendly. The Twin Cities of Minneapolis and Saint Paul are leaders in key aspects that Camden needs to focus on to improve their economy as more effective. Special attention given to education, creating more jobs, and a particular need for small “In addition to business growth will provide better jobs for local residents.32 infrastructure Like Camden and Philadelphia, the Minneapolis-Saint Paul area is connected to improvement, outside areas that allow for easy travel. If Camden can make infrastructure geographic focused improvements to link the cities effortlessly, it will see more effective and law enforcement sustaining improvements. In addition to infrastructure improvement, geographic focused law enforcement can increase effectiveness in reducing crime and can increase disorder. This approach has been used in various struggling cities with specific effectiveness in troubled locations that are similar to the abandoned industrial areas of Camden. reducing crime and Minneapolis conducted the Hot Spots Patrol Experiment, this experiment in police tactics identified high crime activity areas in Minneapolis. In a portion of disorder.” those areas, patrols would be doubled, while another portion would serve as a control. The control areas had significantly higher rates of crime than those areas where patrol were doubled.33

In the past, geographic crime-control has been utilized in the Mid-Atlantic. In areas of Philadelphia renovation of blighted areas reduced crime rates and increased welfare of the community.34 The area where abandoned buildings were renovated resulted in a decreased nuisance and serious crimes, including a gun assault drop by 39 percent.35 Both hot spot patrol and geographic-specific revitalization are feasible for Camden and would make significant progress in creating an attractive city.

Current Outlook With streets filled with abandoned buildings and crime, Camden’s investment environment is unfavorable at best. Camden’s potential to become a part of the

Philadelphia market is unlikely without a reduction in crime rates. However, Camden has been making small improvements lately in crime and the revitalization of its downtown should only increase the efforts. Camden is a city long forgotten, but with the correct implementation of targeted economic development it could begin to see prosperity. Targeted Economic Initiative Camden’s current struggles are measureable through statistics like population decline, high unemployment, and nation leading crime rates. In the past, Camden’s efforts to improve have largely failed. The City of Camden and the State of New Jersey are seeking to create economic, corporate and self-sustaining growth in Camden. The city has potential for sustained economic growth due to

its immediate proximity to revitalized Philadelphia and access to the high income suburbs of New Jersey and Pennsylvania. The New Jersey Economic Development Authority has been making conscious efforts to improve conditions in Camden. There are various approaches to economic development, however they all require a harmony between various institutions within the city.

In 2007 Camden was largely focused on securing Section-8 housing to provide affordable housing to struggling citizens.36 Since then homeownership has dropped and median income has not improved. After 9 years of stagnation Camden is attempting a different approach. The NJEDA has been focusing on bringing prosperity to Camden through new jobs and industries. The New Jersey Economic Opportunity Act of 2013 was created to aid New Jersey’s struggling cities. The NJEDA summarizes the Act as follows37:

 The New Jersey Economic Opportunity Act of 2013 merged the State’s economic development incentive programs with the goal of enhancing business attraction, retention and job creation effort and strengthening New Jersey’s competitive edge in the global economy.

 The Grow New Jersey Assistance Program (Grow NJ) is now the main job creation incentive program and the Economic Redevelopment and Growth Program (ERG) is the State’s key developer incentive program.

 Applications submitted to the Grow NJ and ERG programs are evaluated to determine eligibility as defined within the Act.

 As performance-based programs, approved projects must first generate new tax revenue, complete capital investments, and/or hire or retain employees to receive the approved benefits.

The goal is to attract businesses, jobs, and promote a competitive environment. Camden was designated a Garden State Growth Zone, as one of New Jersey’s lowest income areas. Camden’s historically high unemployment rates and low median income resulted in larger benefits to incentivize incoming businesses to relocate.38 Camden, through the NJEDA, is handing out large tax credits to corporations willing to relocate in Camden. Their presence will increase the desirability for new companies to relocate, creating a self-sustainable Camden that no longer needs tax credits. Strategies for Economic Development The NJEDA is focusing on Camden to transform the city from a struggling economy into a flourishing market. Actions such as the Tax Credit Incentives and the New Jersey Economic Opportunity Act of 2013 are clear indications of targeted economic development. The definition of targeted economics according to Carla Dickstein is as follows:

“Targeted economic development strategies challenge traditional approaches to “Pure place based economic development by making explicit the recipients of job growth and job creation. They link economic development concerns such as business growth and strategy is a positive business climate to often-ignored social criteria that are reflected in identifiable by a the question of who wins and who loses in our present economy.”39 large corporate There are three different strategies to targeted economic development40: presence as well as the restoration 1. People based- focusing on people who are struggling individually of vacant and 2. Place based- focusing on areas which are depleted in structure 3. Place based people strategy- focusing on areas where residents are struggling deteriorating areas. This Three institutions must work together in order for any of these economic strategy is meant strategies to increase Camden’s real estate market values. Camden will need to reduce urban cooperation among local and state government, non-profit organizations, and distress confined businesses. The government must create a business-friendly environment, to a specific encouraging existing companies to remain in Camden while attracting new businesses. When seeking new corporate investment, the government should region.” make steps in the best interest of the Camden community.41 The revival of a blighted area can overlook current city residents and a strategy must be constructed to best meet the needs of Camden. Best Strategy for Camden

Pure place based strategy is identifiable by a large corporate presence as well as 42 the restoration of vacant and deteriorating areas. This strategy is meant to reduce urban distress confined to a specific region. Improvements may occur through locating economic drivers or through renewal efforts to the physical landscape.43 Camden has large expanses of vacant warehouse, office, and retail space throughout the city and its CBD.

Abandoned buildings attract gang and drug related crimes. Camden is now revitalizing its waterfront by attracting various large name corporations, such as Subaru who is relocating their headquarters. However, increasing the quality of a city and its downtown without positioning residents to take advantage of these improvements can lead cities to become too expensive for its own residents. Place-based strategies can ignore the needs of current residents, attracting new companies that provide jobs for new residents or commuters from other areas. The people of Camden may benefit little from a pure place-based strategy if the new jobs are given to other residents.44

Place based people strategy is identifiable by the significant emphasis placed on small businesses and mixed-use zoning. The goal is to help the existing residents

of a target market.45 This strategy not only attempts to create new jobs, but to

make sure current residents receive these jobs and opportunities, resulting in actual improvements to the city’s overall welfare. An autonomous Camden would maintain itself by helping current businesses to hire more locals and making it

easier to start a small business. Place-based people strategy argues that mixed use zoning encourages a more flexible city.46 Mixed-use zoning reacts quicker to economic conditions allowing for businesses to open and close with the market

and adjust to growing in a growing city. A variety of different businesses and organizations will promote legal activity on the streets, which is a major deterrent to crime and violence.47

The best strategy for Camden is the

place based people strategy. This strategy will directly assist Camden’s most desperate areas while ultimately helping its residents. Local businesses are vital to this approach.48 Small firms are more likely to be locally owned and loyal to their city. Although large

companies increase taxpayers, safety,

and industry diversity they lack essential components to sustaining Camden’s revitalization. The strongest argument for small firms is that they are more likely to hire locals, which are arguably the only real producers of jobs for current residents of poor urban areas.49 While large firms need customized facilities, small firms are more likely to use and improve existing buildings. In

major cities such as Baltimore and Philadelphia when old buildings are restored 50 the trend catches on. In a city like Camden there is a plethora of abandoned buildings, too much for any one company to renovate. If small businesses begin to improve the quality of the buildings around the city they will improve living conditions. Reducing problematic areas while promoting a flourishing business environment will reduce crime on the streets, making Camden safer and more attractive to additional businesses and investors.

Effective economic development strategies are vital to the recovery of a city. Each case is individual and must adhere to its own specific needs. If the incorrect method is chosen, Camden may end up leaving its current residents behind, counteracting any efforts for any real improvement. Due to Camden’s abundance of abandoned buildings, the city must make enhancements to its streets before it can effectively help the people. The city has taken steps to revitalize its decimated waterfront area. This revitalization has been expedited by bringing in

a large corporate presence through the use of government incentive programs, with the intentions that Camden will experience a self-sustained economic recovery. “Large Corporate Growth dependence on a The State of New Jersey has committed to economic development in Camden. few industries Camden is currently specialized in industry and lacks the ability to grow on its own. State incentive programs have resulted in development plans to construct limits a city’s new investment grade property in the near future. These buildings should see little competition in the South Jersey market. ability to expand or adapt to a The major corporations of mid to late 1900s have long-ago left the area. Currently Camden is specialized largely in the health and education sectors.51 changing world. It Additionally, local military bases and colleges provide a modest level of stability for the city. Camden’s huge dependence on the health and education sectors is helpful for cities creates a non-diverse economy. Large dependence on a few industries limits a to bring in new city’s ability to expand or adapt to a changing world.52 It is helpful for cities to bring in new industries to introduce a new corporate dynamic. Bringing in industries to companies such as Lockheed Martin and Subaru, Camden will diversify its market and demand for new workers and supplemental industries will increase. New introduce a new opportunities will attract residents with new skill sets. A diverse economy will corporate foster a multi-faceted community with the ability to sustain itself. dynamic.” In the first quarter of 2015, the South Jersey area saw little construction or newly opened buildings, indicating few new companies or investment projects in the region.53 However, Camden has millions of dollars invested and plans in place for private investment of billions of dollars to reinvigorate the city.54 Due to the quality and location of its redevelopment, Camden’s real estate market potential should be compared not only to the South Jersey market but Philadelphia’s market as well. Camden Waterfront Project

In 2015 Camden announced the Camden Waterfront Project, an effort to revitalize 16 acres of Camden’s waterfront along the Delaware River.55 Liberty Property Trust, a real estate investment trust, bought the Camden Town Center LLC from Steiner + Associates. Liberty will be teaming up with Robert A.M. Stern Architects to complete the investment project. The waterfront project is expected to be aesthetically comparable to top quality Philadelphia high-rise towers, with consideration that Robert A.M. Stern has designed multiple high-profile, class-A buildings in major cities before. Across the river, Robert A.M. Stern has previously worked with Liberty Property Trust to construct the Comcast Center, the highest building in Philadelphia’s Central Business District. Camden’s brand new, class-A waterfront buildings in a

less expensive tax-free location will likely evoke a flight to quality that will benefit Camden, but not the surrounding area.56 Class-B and Class- C office tenants in Philadelphia and South Jersey will be enticed to move from their outdated space to these Class-A towers, particularly if occupancy costs are similar after incentives are factored. Such occupancy shifts within the market will not benefit the overall market, but rather, trade new occupancy on the Camden waterfront for vacancy in older buildings. Fortunately, Concept of Camden’s however, the flight to quality does Waterfront Project Source: not appear to be the main driver in www.Phillymag.com the waterfront project. The largest reported corporate relocations involve companies which are not currently based in the Philadelphia- South Jersey market. Therefore, the overall market is expected to

expand without driving up vacancy

in older products. The venture requires over $1 billion in funding from investors, which

have not yet been secured despite

57 interest. The project will construct two towers containing 1.5 million Philadelphia’s Comcast square feet of office space, Center residential units, parking, hotel, and Source: www.resteel.com retail space.58 On completion this project would be by far the largest private sector investment in Camden’s history.59 There is expected to be 1,378 new jobs created in Camden from 16 projects recently approved by the NJEDA.60 These new companies would bring a new dynamic to Camden, and create a demand for supporting

industries from Philadelphia. In addition to thousands of permanent jobs, this

61 project would provide over 4,000 temporary construction jobs. These construction jobs would bring an immediate boost to the Camden-Philadelphia area while positioning itself for future growth.

The Camden Waterfront Project would not only assist Camden but successfully extend Philadelphia’s CBD across the Delaware River. Philadelphia’s CBD runs North to South from Vine Street to South Street. Currently, Camden’s waterfront “There is expected to be 1,378 new jobs created in Camden from 16 projects recently approved by the NJEDA.”

Outline of Philadelphia’s Central Business District Source: www.centercityphila.org

across from the CBD is a blot on Philadelphia’s landscape. The Waterfront towers’ modern class-A design would make the extension of the CBD from Philadelphia into Camden seamless. Not only will these towers be visually stunning, but they will house multiple well-respected companies which will bring prosperity and attract additional businesses. Both waterfront and CBD property are limited commodities, which a revitalized Camden would provide.

Camden and Philadelphia’s business districts are both connected by the Benjamin Franklin bridge among other various large bridges and major highways. The Port Authority Transit Corporation rail makes frequent trips between Camden and Philadelphia. Working in one city and living in the other is convenient and might lead to citizens looking for cheaper offices or residential units than Philadelphia. This raises some concern for reduced commercial and residential occupancy rates in Philadelphia, and downward pressure on rental rates. However, as much of the Camden waterfront space is expected to be occupied by corporations relocating from more distant markets, this concern may be unfounded. Rather,

Camden’s newly constructed buildings will attract new business and residents from elsewhere, expanding the combined Philadelphia-Camden market. If these two cities’ economies can merge as one, Camden may effectively become the twin city of Philadelphia.

Map of Center City Camden’s initial redevelopment is focusing on a particular area, which is Philadelphia & Camden’s circled in black in the map above. Specifically, Camden’s improvements have Waterfront been made directly across the river from Philadelphia’s CBD. The Source: revitalization zone is shown in the site plan for Camden’s Waterfront Project, Google Maps taking place between Market Street and the Benjamin Franklin Bridge. The waterfront project will be built next to the Camden Adventure Aquarium and BB&T Pavilion, two established attractions of Camden. Centralizing development is more effective compared to sprawling cities, as the latter approach is seen to be ineffective in promoting business due to poor 62 transportation. The most beneficial approach is to localize improvements and slowly expand the target area. Camden’s Waterfront Project directly across the

river from Philadelphia’s CBD begins the construction of the Mid-Atlantic’s twin cities.

Site Plan for Camden’s Waterfront Project Source: www.phillymag.com

Camden’s real estate market is on the rise while it makes steady improvements to lower crime and support better education. Crime rates are beginning to fall, school programs are in place, and the Economic Development Authority has “The benefits that taken focus on revitalizing the city. Camden received a BBB+ credit rating from Standard’s & Poor, the city’s first investment grade municipal bonds in over 15 firms obtain by years. The income was used to fund a renewal program which is in the process of demolishing over 500 vacant and neglected properties.63 With improving credit locating near each ratings and multiple investment grade projects coming in the near future, other are the Camden is poised for success. economies of Twin Cities agglomeration.” Camden’s current efforts to insert such a large a corporate dynamic indicate New Jersey’s commitment to creating a flourishing city. The city is showing small signs of turn around and has plans in place to improve itself further. Current investments in Camden still carry risk, but the upside is significant if the city weds to Philadelphia to raise to the stature of both as twin cities.

According to Merriam-Webster Dictionary, a Twin City is: “of or relating to the adjoining cities of Minneapolis and St. Paul, Minnesota.” The result is one seamless metropolitan area. Often times, the reference to a twin city can more loosely refer to an urban agglomeration or conurbation. An urban agglomeration is a built-up downtown comprising of connected suburbs. Conurbation is when two urban areas merge together through population growth and expansion.64 Often times, conurbation is simultaneously a polycentric urban agglomeration which is defined by encyclopedia.com as “when transportation between the two cities is connected, creating one labor market”. Camden and Philadelphia would both benefit greatly from a single market. The benefits that firms obtain by locating near each other are the economies of agglomeration.65 The three benefits to duel economics include:

1. Labor pooling, or the ability firms have to a variety of skilled laborers which, in turn, provides employment opportunity.

2. Development of industries due to the increasing returns to scale.

3. Ease of communication and exchange of supplies, laborers and ideas.

Camden would be the initial beneficiary of a united job market. The assurance that there is stable qualified labor force already in place will help convince companies to relocate there. A single market melding Philadelphia and Camden would help bring growth and stability to a struggling Camden while adding to Philadelphia’s economy. Camden is unlikely to grow at a rapid enough rate to match Philadelphia in size in the near future. However, the overall quality of living in Camden can be drastically improved and may create a prosperous real

estate market. In conjunction with a city-wide turn-around, Camden’s ability to provide new residential space and class-A office space on waterfront property with immediate access to Philadelphia makes Camden an intriguing real estate

market.

Conclusion

Camden has potential to become the next twin city in the United States. In 2019, Liberty Property Trust plans to complete its waterfront project.66 Camden will have new class-A investment grade property that will compete with the towers of downtown Philadelphia. These towers, created by the reputable architecture firm Robert A.M. Stern, will attract businesses from Philadelphia’s Class-B, Class -C and expensive Class-A space, as well as the rest of New Jersey. The towers

may start the expansion of Philadelphia’s CBD across the river into Camden.

Despite Camden’s prior success as an industrial giant in the late-1800s and mid -1900s, the city has recently been overwhelmed by poverty, crime and violence. The government has begun to reduce crime, and has even more opportunity to do so. Currently, the city’s landscape poses little interest for real estate

investors, but future projects and tax credit programs are changing that

landscape.

Economically depressed cities like Camden have a difficult time recovering on their own. With the help of generous government incentives, Camden is beginning to make strides. The city has many blighted areas and poor citizens that are in need of attention. The government must take care of its residents by

promoting a small business environment that will employ existing citizens if the economic advances are to benefit current residents.

Camden, despite its struggles with crime and violence, is making serious efforts to improve itself. The city is bringing in new companies and is trying to restore

to its previous position as a major industrial city from the mid-1900s. Camden

is using targeted economic strategies to develop the city and its people. The NJEDA has approved 16 relocation projects, resulting in Liberty Property Trust investing over a billion dollars in 1.5 million square feet of new space. These class-A towers will be the building blocks of a brand-new skyline. As the

stature of Camden and its corporate presence rise, so will the acceptance of Camden as a twin city to Philadelphia. If Camden can reduce crime and attract business, there will be a new investment-grade market in the Mid-Atlantic region.

End Notes

1. Sheridan, 2016 39. Dickstein, 1996 2. Gammage, DiStefano, Ott, 1991 40. Ellen, Turner, 1997 3. Steele, 2013 41. Ladd, 1994 4. Hurdle, 2015 42. Ladd, 1994 5. Moroz, 2016 43. Ladd, 1994 6. Morley, 2006 44. Ladd, 1994 7. Gammage, DiStefano, Ott, 1991 45. Ladd, 1994 8. Gammage, DiStefano, Ott, 1991 46. Ladd, 1994 9. Gammage, DiStefano, Ott, 1991 47. Ladd, 1994 10. Ung, Ott, 2007 48. Ladd, 1994 11. Peterson, 2000 49. Ladd, 1994 12. Schurr, 2000 50. Moroz, 2016 13. Sherman, 2013 51. Camden.Rutgers.edu, 2012 14. Bey, 2012 52. Glaeser, 1992 15. Fahim, 2006 53. NAI Global, 2015 16. Bestplaces.net 54. Hurdle, 2015 17. Sheridan, 2016 55. Phillymag.com, 2015 18. Fbi.gov, 2012 56. American Realty Advisors, 2014 19. Ihlanfeldt, Mayock, 2015 57. Hurdle, 2015 20. Ellen, Turner, 1997 58. Hurdle, 2015 21. Dustmann, Fasani, 2012 59. Hurdle, 2015 22. Francis, National Bureau of 60. Hurdle, 2015 Economic Research, National 61. Hurdle, 2015 Bureau of Economic Research 62. Ladd, 1994 23. Francis, National Bureau of 63. Hurdle, 2015 Economic Research 64. Glaeser, 2010 24. Francis, National Bureau of 65. Glaeser, 2010 Economic Research 66. Philllymag.com 25. Communityprogress.net, 2016 26. Snell, 2016 27. Snell, 2016 28. Phillymag.com, 2014 29. Colliers, 2015 30. Colliers, 2015

31. Colliers, 2015 32. Ladd, 1995 33. Eck, Weisburd, 2007 34. Duranton, Diego, 2013 35. Duranton, Diego, 2013 36. Moroz, 2016 37. NJEDA.com 38. Sheridan, 2016

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Questions or comments? Please contact the author, or PREC’s Research Associate, Tatiana Swedek, at [email protected]

This article is intended for informational purposes only. Neither PREC nor the author guarantee the accuracy or completeness of any information contained herein. None of this work is intended as a professional recommendation, and both the Philadelphia Real Estate Council and the white paper’s author disclaim any responsibility for any business decisions or losses resulting from information herein.