The developer and former City Councilperson knows a thing or two about finances. Here’s why he’s bullish on the economy in Philadelphia
Allan Domb is bullish on Philadelphia’s economy. / Photograph by Linette & Kyle Kielinski
Why am I bullish about Philadelphia’s economy — and Philadelphia’s future overall? The number one reason is simple: Cities never die.
Yes, they go through down periods occasionally — sometimes big ones. Philadelphia suffered greatly in the late 1970s and 1980s, when our population was dropping and crime was growing. We’ve faced more challenges in the past few years, thanks to COVID and all the issues it brought with it. But in my experience, whenever cities — Philadelphia included — confront setbacks, they figure out ways to reinvent themselves and thrive again.
I believe we’re already witnessing signs of our city being reborn. For starters, I’m encouraged by what I’ve seen from our new mayor, Cherelle Parker, particularly with her focus on public safety and crime reduction. From an economic perspective, nothing is 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 police commissioner in Kevin Bethel (a protégé of standout commissioner Charles Ramsey), and she’s rightly prioritized shutting down the open-air drug market in Kensington, which is at the root of many of our crime and quality-of-life issues. Making our city safer is a necessary first step if we want a strong economy.
Just as important, we have a solid economic foundation on which to build. Our eds-and-meds sector, which includes great institutions like Penn, Penn Medicine, CHOP and Drexel, employs tens of thousands of people and is among the best in the world. Not long ago, I met a couple having breakfast who were visiting from Boston. When I asked why they were in Philadelphia, the husband said his wife needed a cutting-edge surgical procedure that wasn’t yet being 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 work that enabled the COVID vaccines, I told then-mayor Jim Kenney he should proclaim in every speech, “We’re so proud of Philadelphia. We saved the world.”)
Perhaps my biggest reason for optimism about our economy is the number of young people who continue to choose to live here.”
That cutting-edge vitality, which is crucial to economic growth, is evident in lots of places in our city. In the construction of Schuylkill Yards and other new life-sciences spaces in University City, which will further enhance our leadership in that realm. In all the businesses that now occupy the Navy Yard, which has won major awards for adaptive reuse. In our exciting and world-class restaurant scene, which is a hotbed of entrepreneurial energy and attracts both visitors and new residents. Like every large city, we’re seeing higher vacancy rates in Center City office buildings, thanks to more people working remotely. But if we can figure out a path to convert some of those buildings to residential — which we actually did with an older generation of buildings in the early 2000s — the city’s economic vitality will only increase.
Perhaps my biggest reason for optimism about our economy is the number of young people who continue to choose to live here. Young people bring energy, ideas and innovation. They bring a creative spirit and a fresh way of looking at things. (They also bring baby boomers, who love being around that youthful energy.) All of those ingredients are essential for long-term economic growth.
Are there matters we need to attend to if we want to capitalize on all these positives? Of course. Fixing a business-tax structure that hinders our competitiveness vs. other large cities is crucial. So is realigning our school system, so that it truly prepares students for 21st-century jobs. I’d also love to see us double down on entrepreneurship in our neighborhoods of color — one of the keys to building long-term wealth — and develop a long-term vision for the east side of Center City. But all of those things are doable.
Cities don’t die; they only change. And Philadelphia is poised to be stronger than ever.
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Allan Domb served as an at-large member of Philadelphia’s City Council from 2016 to 2022 and is president of Allan Domb Real Estate.
Published as “Why I’m Optimistic About Philly’s Economy” in the April 2024 issue of Philadelphia magazine.
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