Following Calvin Gladney’s keynote presentation at the Annual Real Estate Forecast 2021, ULI Philadelphia hosted a panel discussion titled “Navigating a Post Pandemic Economy”. The panel was moderated by Dr. Peter Angelides, president and principal of Econsult Solutions, Inc. Panelists included Gregg Caren, president and CEO of the Philadelphia Convention and Visitors Bureau (PHLCVB); Dominique Casimir, vice president of Real Estate at Thomas Jefferson University and Health Systems; and Rebecca Rynhart, City Controller for the City of Philadelphia.

This panel was focused on short term problems and solutions on how the city and region can come back from the effects of the pandemic in the next 1-3 years. With panelists representing Eds and Meds, the hospitality and tourism sector and the public sector, the group addressed issues on economic recovery and discussed how Philadelphia is uniquely resilient and positioned to withstand these unprecedented challenges.

To add some context to how the pandemic has impacted the city, the Controller shared her insights regarding the projected $650 million loss of revenue this fiscal year. While many fear tax increases will be needed to make up for the loss, the Controller’s office advocates for alternatives to improve city operations in order to not raise taxes or cut services.  While the upcoming budget cycle will prove to be difficult, reimagining the budget will be a crucial step in the recovery.  A bigger push for outside voices with varying perspectives could help redefine best practices and help reinvent the way the city operates to save costs.

Caren noted that 60% of the lost jobs in Philadelphia were in hospitality and tourism. Philadelphia saw a 93% drop in visitors from last year and a 5.4-billion-dollar loss in the region.  Since 1.1 million people normally visit Philadelphia, the shutdowns have had a huge impact on our businesses.  However, the massive impact on the economy has also produced some silver linings: a lot of experts are engaged, and the industry now has a much bigger voice in Washington, D.C.  Collaboration efforts are more focused than ever, and the hospitality industry has utilized this downtime for internal improvements and upgrades.

The Eds and Meds of the city, on the other hand, have not had time to pause.  Casimir shared the importance of collaborating with the competition and utilizing the resources available in the best interest of the city. In the face of the COVID-19 pandemic, the healthcare industry had to reinvent itself and decisions needed to be made quickly. The key to Jefferson’s success was bringing multiple perspectives to the table, which helped them reimagine education and leverage technology during this unprecedented time.

It is evident that crisis and struggle often leads to innovation and that the pandemic has forced a lot of industries to change and pivot – especially those who haven’t moved in a really long time.  Facilities and processes have been made much more efficient. The City will need to re-examine its tax structure, which has historically been too dependent on its wage tax.  A focus on encouraging organic business growth and promoting jobs with livable wages could create massive returns on investment for the city while improving quality of life.  The urban landscape has changed with outdoor dining.  The tourism and entertainment industry will also need to innovate – incorporating hybrid means of engagement upon reopening and leverage online tools to expand reach.

The panel agreed a call to action is needed in this road to recovery. Everyone must step up and apply creative problem solving within our respective industries. There is opportunity for developers to take part as well and help tenants locate resources and rework existing payment structures.  Without compromising bottom lines, we must restructure and approach things differently – keeping humanity and common good in mind.  We must each play a role and adapt.

The Controller called on the real estate industry to lean in and react to present state issues.  The equity gap has widened in our neighborhoods which must be approached with empathy and compassion.  We must actively dismantle structural racism that is present in our systems.  We must deconstruct and reconstruct to make the city and society more equitable.

Casimir also urged developers to integrate social equity into every project. Diversity brings great value to communities and shapes the eclectic fabric that attracts us to the city.  There must be a bigger focus on equity and diversity of thought which has proven to be an invaluable asset in the resilience of this city.

ULI Philadelphia would like to thank all of the panelists for their time and dedication to the city and our event sponsors, whose support made this program possible.

See below for links to additional recaps from the Annual Real Estate Forecast 2021:

Contributed by Ramune Bartuskaite. Ramune is a Project Coordinator at JKRP Architects, a 2018 ULI Philadelphia Etkin Johnson Scholar, and member of the Women’s Leadership Initiative.