Sarah Maginnis, Executive Director, NAIOP Greater Philadelphia
Sarah Maginnis, executive director of NAIOP Greater Philadelphia, spoke with Invest: about the organization serving as a voice for developers in Philadelphia. “We have a strong focus on advocacy and growing our partnership with city leadership. We are a resource for City Council and the mayor’s office. Ultimately, NAIOP aims to increase inclusive growth and promote development in commercial real estate, in Philadelphia and the region.”
What changes over the past year have most impacted NAIOP Greater Philadelphia, and in what ways?
NAIOP Greater Philadelphia has seen significant growth over the last six years, quadrupling our membership over that time. Since 2019, we have revamped the organization. We have grown in membership and sponsorship contributions. We implemented a new annual sponsorship opportunity that allows companies to invest in our networking events and our impact and advocacy efforts. We have a strong board of directors representing by all the major developers in the city, and we are continuing to lean into those experts on how we can continue to be a strong voice for the development industry in Philadelphia.
What’s driving that success, and how are you sustaining engagement long term?
The success of our growth is a result of a pivot we made several years ago. We have always been focused on the industry and what the professionals are missing. Now we also aim to diversify our efforts with stronger legislative advocacy, and working with those considering or starting out in commercial real estate. We do a lot of work in DEI and run a summer program in partnership with Drexel University for high school students in underrepresented populations. We raise funds for 30 students to attend on a full scholarship each year, so they can stay on campus for the duration of the camp and experience what life in college would be like. This program has gained momentum and is a big contributor to interest in our work.
What are your members most concerned about today, and how is NAIOP helping address those concerns through advocacy or resources?
Unknown cost considerations due to tariffs are a big concern for the construction industry, an issue we are monitoring closely. Recently we provided testimony to the Philadelphia Tax Reform Commission and to City Council regarding the mayor’s budget. We want to make it easier for out-of-town businesses to invest in Philadelphia and continue to grow the city. What makes us different from other organizations is our ability to lobby; we have been working hard to advocate for our members. Our government affairs committee and board of directors provide feedback to ensure we are supporting our membership in the best way.
What specific changes would you like to see from the local government?
Lowering the business tax is a priority. Our tax structure is not competitive compared to other cities. It is a challenge for developers seeking to bring business to Philadelphia. Our legislative efforts are focused on encouraging policies that incentivize investment and job creation, support neighborhood revitalization, and cultivate a diverse and skilled workforce.
How would you describe investor sentiment in Greater Philadelphia today, and how does it compare to peer markets nationally?
‘Zombie buildings’ — large properties that are empty — are opportunities for developers to convert the buildings into other uses. Often, there’s too much red tape and the costs are too high for developers to successfully convert these buildings. We would like to see City Council and the mayor develop incentives that would increase opportunities for our members and local developers to convert those buildings to multifamily or retail. Everyone has a stake in this, not just the CRE community, because no one wants a downtown full of vacant office buildings.
How is NAIOP Greater Philadelphia adapting its initiatives to continue fostering inclusive pathways into commercial real estate?
We have three pillars we’ve identified in the last few years: DEI, investing in young professionals, and advocacy. DEI is a top priority for us. We will continue to provide opportunities to those who don’t have them. We help past participants of our summer program find paid internships and partner with a local organization called “Breakthrough” that reaches students in middle school. We keep in contact with the students as they continue their high school and college education, ensuring we are a continued resource. We also have a Developing Leaders Mentorship program that brings professionals, age 35 and under, into a yearlong program that hosts development tours and networking opportunities for those looking to grow their careers. Participants can network both vertically and horizontally within their industry – they meet other young professionals in the industry as well as executives. In 2024 we introduced the Developer Mentorship program for aspiring developers. We utilized our network to connect these aspiring developers with those who have grown their own businesses. We have a strong focus on supporting professional growth and creating opportunities for aspiring commercial real estate professionals.
What are your top strategic goals for NAIOP Greater Philadelphia over the next few years, and what is the outlook for the largest real estate region?
We plan to continue growing our presence and impact on the industry in Philadelphia and surrounding counties. We are excited to be a resource for City Council and the mayor’s office. Growth is good; we support inclusive growth and hope to see more of that in Philadelphia. NAIOP will continue our work with students and young professionals and hopes to celebrate them both at new events this fall.
