Philly development is paralyzed | Morning Newsletter

It’s looking like a beautiful Sunday. It will be mostly sunny with a high near 88.

It’s hard to miss the cranes that dot the sky across Philadelphia, but nothing is happening at some construction sites. Our lead story explores how rising interest rates are impacting local development.

— Paola Pérez (@pdesiperez, morningnewsletter@inquirer.com)

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Philadelphia has seen a boom in residential real estate, especially around Center City. But that could be going on hiatus as interest rates surge.

Catch up quick: On July 26, the Federal Reserve raised interest rates to their highest level in 22 years. More hikes are possible this year, as policymakers keep a wary eye on inflation.

As a result, many ambitious projects unveiled over the last year are paused, if not outright canceled. The high price tag on borrowing and costs of construction materials have made many developers reconsider their plans.

Take Alterra Property Group for example. The Philly-based company has scrapped plans for a 352-unit modular apartment building (pictured above) in University City.

In fact, none of the projects The Inquirer spotlighted last summer have broken ground yet.

In their own words: “The combination of land cost, construction costs, interest rates, scarcity [of] debt capital for development, and rents don’t make for a viable project,” said Leo Addimando, managing partner with Alterra.

Continue reading for more on what it all means for new and developing projects across the city.

Sometimes, it’s the most awkward part of ordering coffee. Suddenly, the server flips around a screen.

It prompts you with several options, including “custom” and “no tip,” and your mind races to pick the most appropriate option for the service provided.

This happens even in less public situations, like tipping Uber drivers and food couriers for services like DoorDash.

Sentiments around tipping have changed since the beginning of the pandemic. People have less in the bank than they did in 2020, and some are getting tired of tipping. Two-thirds of U.S. consumers have a negative view of tipping due to a combination of factors.

But we are still faced with the internal questions: “Is the restaurant-standard of 20% appropriate here? Will they think I’m cheap if I only give $1? Do I even need to tip at all?”

To clear things up, consumer reporter Erin McCarthy went straight to the source and talked to a dozen service industry insiders — workers and business owners at coffee shops, breweries, and hair salons, as well as rideshare and food-delivery drivers.

See their insights in this handy guide to help you take the guess work out of tipping.

Which Pennsylvania preserve is considered America’s First Urban Refuge?

A) Cherry Valley National Wildlife Refuge

B) Edge Hill Woods Wildlife Sanctuary

C) Erie National Wildlife Refuge

D) John Heinz National Wildlife Refuge

Think you got it? Check your answer here.

Hint: Go with its flow 🌊

QUARRIES UNSHAVEN

Email us if you know the answer. We’ll select a reader at random to shout out here. Cheers to Lisa Claire Wiley who correctly guessed Friday’s answer: Franklin Music Hall.

🎶 For today’s Sunday track, we’re listening to: “Tell me if I’m right or wrong / If you’re the moonlight to my sun / ‘Cause I could do this all day long.” 🎶

👋🏽 The weather calls for brunch and roller skating. Enjoy your day! Taylor will bring you the Monday morning digest.