CENTER CITY REPORTS: PHILADELPHIA RETAIL
DECEMBER 2015
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION FIND MORE REPORTS AT: CENTERCITYPHILA.ORG
1 2015 ACCOLADES FOR PHILADELPHIA Second Best Shopping City in the World Condé Nast Traveller America's Next Great Food City Travel + Leisure Magazine #3 on 52 Places to Visit in 2015 New York Times UNESCO World Heritage City
2 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG CENTER CITY: A NATIONAL RETAIL DESTINATION
More than 183,000 residents, 294,000 workers, 3.1 million occupied hotel room nights and 116,000 college students have made Center City a vibrant, 24-hour downtown. Together they generate more than $1 billion in retail demand within the down- town core and immediately surrounding neighborhoods. 19130 19123
Several thousand new housing units and nine hotels are under construction. As Center City’s purchasing power continues to increase, so does demand for retail goods and services. Center City’s expanding affluent and highly educated demographic has attracted more than 33 national retailers since 2013. 19102
These stores augment a strong base of local boutiques and City Hall independents, making Philadelphia a national retail destination. 19103 19107 19106 Walkability and diversified land use foster a strong live-work dynamic. More that 40% of residents living in the neighborhoods CORE CENTER CITY between Tasker Street and Girard Avenue work within these same boundaries; 61% get to work without a car.
Center City’s density, diversity and accessibility create 19146 19147 opportunities for retailers seeking to capitalize on changing preferences that are now favoring urban cores in America. Currently, local and national developers are investing $6.7 billion in major projects that are underway or planned for completion GREATER CENTER CITY within the downtown core by 2018.1 More than 2.3 million square feet are dedicated to retail as older shopping streets are being redeveloped and Philadelphia’s prime retail district continues to expand.
1: According to a Center City District’s report, “Center City Philadelphia Developments 2014 – 2018,” as of the end of Q4 2014 there were 61 projects between Spring Garden and South Streets that were either completed in 2014 or in the pipeline for completion by 2018 and represented $6.7 billion in project costs.
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 3 SINCE 2013 MORE THAN 33 NATIONAL RETAILERS HAVE ADDED CENTER CITY LOCATIONS, AUGMENTING A STRONG BASE OF LOCAL BOUTIQUES.
1: According to a Center City District’s report, “Center City Philadelphia Developments 2014 – 2018,” as of the end of Q4 2014 there were 61 projects between Spring Garden and South Streets that were either completed in 2014 or in the pipeline for completion by 2018 and represented $6.7 billion in project costs. 2: CBRE’s report “Surging Demand for Urban Retail” found that Center City’s retail rents have grown the second fastest of 10 major U.S. cities since 2008.
4 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG RETAIL: CENTER CITY STOREFRONTS, 2015 MARKET SNAPSHOT 1,017 RETAIL 1,100 SERVICES Retail rents in Center City have increased more than any peer 956 FOOD ESTABLISHMENTS city except for Miami in a retail market comparison conducted by CBRE.2 As space becomes scarce on Walnut Street, both local and national retailers are migrating to adjacent streets, 3,073 creating a renaissance on West Chestnut Street. The latest TOTAL STOREFRONTS retailers to announce a West Chestnut Street address include Bloomingdale’s Outlet, Old Navy, California Closets and Target Express, who will be joining Uniqlo, Nordstrom Rack, Indochino, Five Below, Banana Republic Factory Outlet and Forever 21, all of whom opened within the last year. The Uniqlo, Five Below, and Old Navy stores are all flagship locations.
Other national entries to the Center City market included Michael Kors, New Balance, and Under Armour along Walnut CENTER CITY RETAILER TYPE, 2015 Street, as well as MOM’s Organic on East Market Street. Retailers announcing a second Center City location in 2015 78% BOUTIQUE/ included Aldo, Sweetgreen, Five Below, Old Navy and an ad- INDEPENDENT/LOCAL RETAILERS ditional Target Express on East Chestnut. This past year was 22% NATIONAL RETAILERS also a big year for local retailers, with Skirt and Shop Sixty Five opening Rittenhouse boutiques, Lapstone & Hammer and Rikumo opening east of Broad and Cella Luxuria adding a second location on South Street. Though new retailers have typically clustered near Rittenhouse Square, along Walnut and Chestnut Streets, in 2015 there have been several leases signed east of Broad Street (see map on page 6).
Though national retailers have grown significantly over the last few years, Center City is differentiated from other retail districts by the diverse array of local proprietors that make up 78% of Center City’s tenant mix. Center City’s 1,017 retailers include 226 apparel stores, 159 jewelry stores, 137 food and drink CENTER CITY RETAILERS, 2015 retailers, and 117 home and garden establishments. One of the top dining destinations in the country, Center City’s 956 food establishments include 440 full-service restaurants and 309 226 APPAREL takeout establishments. With 412 outdoor cafés and other retail 159 JEWELRY/WATCHES establishments animating sidewalks, Center City continues to 137 FOOD OR DRINK enjoy an increase in street vibrancy and activity.3 Center City’s 117 HOME & GARDEN large daily workforce and increasing residential population have 108 ART/COLLECTIBLES/ also attracted a variety of service providers catering to their HOBBIES needs. However, given the recent increase in young families 44 ELECTRONICS 1,017 with children, there is a distinct opportunity for children’s TOTAL RETAILERS 41 BEAUTY/HEALTH/FITNESS retailers and child-oriented service providers to meet growing demand for children’s merchandise. 37 PHARMACY 25 OPTICAL 19 BOOKS/MAPS 18 MUSIC/VIDEO/VIDEO GAMES 86 OTHER Source: Retail Survey, Center City District
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 5
Source: US Census Bureau, American Community Survey Source: Center City District
SELECTED NEW CENTER CITY RETAILERS IN 2015
AS DEMAND FOR RETAIL AND RENTS INCREASE, MORE RETAILERS ARE BEGINNING TO OPEN LOCATIONS EAST OF BROAD STREET.
CENTER CITY SERVICE PROVIDERS, 2015 CENTER CITY FOOD ESTABLISHMENTS, 2015
233 BEAUTY 440 FULL SERVICE RESTAURANTS 159 HEALTH 309 TAKEOUT/SANDWICH/QUICK SERVICE RESTAURANTS 111 REAL ESTATE 84 COFFEE SHOPS 100 BANK/FINANCIAL 47 BARS/NIGHTLIFE 86 LEGAL ESTABLISHMENTS 78 LAUNDRY 38 BAKERIES 53 FITNESS 25 ICE CREAM/WATER ICE/ FROZEN YOGURT 20 CHILDCARE 1,100 13 ALL OTHERS 956 20 INSURANCE SERVICE PROVIDERS FOOD ESTABLISHMENTS 18 ACCOUNTING 18 TRAVEL 16 ART/COLLECTIBLES/HOBBIES 14 DELIVERY 174 OTHER Source: Retail Survey, Center City District
6 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG RESIDENTS CORE CENTER CITY GREATER CENTER CITY
POPULATION 62,960 183,240 HOUSEHOLDS 37,331 91,073 AVERAGE HOUSEHOLD INCOME* $107,020 $86,573 % OF POPULATION MILLENNIAL (AGE 20-34) 47% 40% CHILDREN BORN IN 2014 475 2,252 % OF POPULATION WITH A BA OR HIGHER 76% 57% AVERAGE HOME SALE PRICE $597,875 $426,142 HOUSING UNITS COMPLETED IN 2014 665 1,983
EMPLOYMENT
TOTAL WAGE & SALARY JOBS 244,000 293,700 2013 PAYROLL $12,532,313,000 $14,004,626,000
SQUARE FEET OF OFFICE 40,300,000 SF (CORE & GREATER)
OFFICE OCCUPANCY 87% (CORE & GREATER)
VISITORS
HOTEL ROOMS 10,857 HOTELS 43 OCCUPIED HOTEL ROOM NIGHTS (2014) 3,090,000
EDUCATION
INSTITUTIONS OF HIGHER LEARNING 11 TOTAL ENROLLMENT 33,861
DOLLARS OF DEMAND OF SHOPPERS’ GOODS
OFFICE WORKERS $180,764,024 $210,949,704 OTHER WORKERS $39,203,661 $50,487,231 RESIDENTS $120,883,200 $351,820,800 OVERNIGHT VISITORS $400,916,982 $400,916,982 TOTAL DOLLARS OF DEMAND $741,767,867 $1,014,174,717
Job Market Source: U.S. Census Bureau, Local Employment - Household Dynamics 2011 Dollars of demand for each market segment are CCD calculations based on retail industry standards. Residential Market Source: U.S. Census Bureau , American Community Survey 2009 - 2013 Office Market data: Newmark Grubb Knight Frank Visitor Market Source: Visit Philadelphia *CPI Adjusted
GREATER CENTER CITY WORKERS, RESIDENTS AND OVERNIGHT VISITORS CREATE MORE THAN $1 BILLION IN RETAIL DEMAND.
2: CBRE’s report “Surging Demand for Urban Retail” found that Center City’s retail rents have grown the second fastest of 10 major U.S. cities since 2008 (+87.5%). 3: A Center City District Report, “Outdoor Seating 2015,” documented 365 food establishments with café seating and 47 other outdoor seating locations in the core of the downtown.
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 7 THREE QUARTERS OF CENTER CITY RESIDENTS HOLD A BACHELOR’S DEGREE OR HIGHER. HOUSEHOLD INCOMES AVERAGE OVER $100,000.
8 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG DEMAND DRIVERS: POPULATION BY AGE CHILDREN & MIDCAREER EMPTY RESIDENTS TEENAGERS MILLENNIALS ADULTS NESTERS (019) (2034) (3554) (55+) Demand for retail is driven by steady residential growth in Cen- 100% ter City. Since 2000, the population between Tasker Street and Girard Avenue, river to river, has increased 16%, to over 183,000, 80% 23% 23% as well-educated workers choose to live close to office, universi- 26% 26% 26% ty and health-service employers and take advantage of the broad array of cultural, entertainment and dining options. Residents 60% 20% within this area generate more than $351 million in retail de- 24% 25% 27% mand. With household incomes averaging more than $107,000 28% and 76% of residents in the core holding at least a bachelor’s 40% degree, Center City’s purchasing power continues to increase. 26% 20% 21% Millennials, entering their peak consumer-spending years,4 rep- 20% 40% resent 40% of the downtown’s population. Since 2006, Philadel- 47% phia’s share of millennials has increased the fastest among the 0% 8% 14% 26% 26% 27% 10 largest U.S. cities (+6.3%).5 Residential growth and purchas- CORE GREATER PHILADELPHIA METRO AREA USA ing power has also been driven by an increase in the number of CENTER CITY CENTER CITY young families choosing to live downtown. Since 2000, more than 29,025 children were born to Center City parents and the 2010 Census documented a 42% increase in the number of children under the age of five.
The other demographic group moving back into the city are empty-nesters. No longer needing large suburban homes and tiring of auto-commuting times, they are drawn to high-end, 47% full-service condominium or rental units and the convenience of OF CORE CENTER CITY’S POPULATION being close to Center City’s cultural institutions, entertainment and dining options. This affluent group has contributed to Center ARE MILLENNIALS ENTERING THEIR City’s growing household incomes. PEAK CONSUMER SPENDING YEARS.
EDUCATIONAL ATTAINMENT, POPULATION 25 AND OLDER
Source: U.S. Census Bureau, American Community Survey 2009 - 2013 CORE CENTER CITY HIGH SCHOOL OR LESS SOME COLLEGE BACHELOR’S DEGREE ADVANCED DEGREE 14% 10% 33% 43%
GREATER CENTER CITY
28% 15% 28% 29%
PHILADELPHIA
53% 23% 14% 10%
METRO AREA
42% 24% 20% 13%
USA
42% 29% 18% 11%
0% 20% 40% 60% 80% 100%
4: In its report, “Millennials: Coming of Age in Retail,” Goldman Sachs estimates Millennial spending in apparel will increase by 20%-25% in the next five years. 5: JLL Research
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 9 RACEVINE STATION 2,315 SISTER CITIES PATCO P ARK CENTER CITY IS THE LOGAN FRANKLIN 15,195 SQUARE SQUARE SUBURBAN
R
STATION E
IV REGION’S LARGEST & 24,775 R CRET
RE PARK ST BROAD JEFFERSON A
W
STATION A
13TH ST. EL LOVE 13,365 D MOST DENSE EMPLOYMENT RIVER SCHUYLKILL PARK STATION 14,711 DI LW
15TH ST. PA OR MARKET ST RK City Hall STATION TH 41,688 5TH ST. NODE. IT’S AT THE 22ND ST. 19TH ST. 95 11TH ST. 8TH ST. I STATION STATION STATION STATION STATION 2,238 2,238 3,219 CITY HALL 9,642 13,448 STATION INDEPENDENCE NATIONAL CENTER OF A REGIONAL HISTORICAL PARK 32,010
RITTENHOUSE WASHINGTON SQUARE SQUARE TRANSIT NETWORK WALNUTLOCUST STATION 6,506
THAT BRINGS 295,000 LOMBARDSOUTH STATION PASSENGERS DOWNTOWN 2,650 EACH WEEKDAY.
The number of workers within a walkable one-mile radius of WORKERS City Hall is 14 times higher than the number of workers within Downtown Philadelphia provides opportunities for 293,700 a one-mile radius of Cherry Hill Mall and seven times greater salaried workers who generate more than $261 million in retail than the number of workers surrounding King of Prussia Mall. demand and $14 billion in payroll. Another 7,000 partners, Sixty percent of the workers within a mile of City Hall earn more freelancers, and independent entrepreneurs make Center City than $3,333 in monthly wages, compared to 55% surrounding their home. Center City employment makes up 43.3% of all city King of Prussia Mall and 33% around the Cherry Hill Mall. jobs and draws workers from across the region. Center City’s Philadelphia’s central business district has a diverse employ- location at the center of the region’s transportation network ment base, with 39% in office sector jobs, 21% in education and enables 109,000 residents from surrounding counties in Penn- healthcare, 10% in entertainment, leisure and hospitality, 14% sylvania, South Jersey and Delaware to commute downtown in public administration and 6% in transportation and utilities. each day. Forty percent of Center City workers have a BA or higher, creat- This dense concentration of employment (203 jobs per acre in ing a highly educated workforce that helps attract employers to the downtown core versus less-than-one job per acre in the Center City. Twenty-one percent of downtown workers are under surrounding suburbs) is made possible by a multi-modal transit the age of 29, 59% between 30 and 53, and 20% age 55 or older. system that brings 295,000 passengers downtown each day.
6: Longwoods International/Tourism Economics for Visit Philadelphia 8: Visit Philadelphia 7: Longwoods International/Tourism Economics for Visit Philadelphia 9: Visit Philadelphia
10 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG RACEVINE STATION 2,315 SISTER CITIES PATCO P ARK LOGAN FRANKLIN 15,195 SQUARE SQUARE SUBURBAN
R
STATION E
IV
24,775 R CRET
RE PARK ST BROAD JEFFERSON A
W
STATION A
13TH ST. EL LOVE 13,365 D SCHUYLKILL RIVER SCHUYLKILL PARK STATION 14,711 DI LW
15TH ST. PA OR MARKET ST RK City Hall STATION TH 41,688 5TH ST. 22ND ST. 19TH ST. 95 11TH ST. 8TH ST. I STATION STATION STATION STATION STATION 2,238 2,238 3,219 CITY HALL 9,642 13,448 INDEPENDENCE NATIONAL STATION HISTORICAL PARK 32,010
RITTENHOUSE WASHINGTON SQUARE SQUARE WALNUTLOCUST STATION 6,506
LOMBARDSOUTH STATION 2,650
Source: SEPTA & PATCO 2014
AVERAGE WEEKDAY RIDERSHIP AT CENTER CITY STATIONS , 2014
EDUCATIONAL ATTAINMENT, FOR WORKERS 30 AND OLDER GREATER CENTER CITY WAGE & SALARY EMPLOYMENT, 2013
GREATER CENTER CITY PROFESSIONAL/ BACHELOR’S DEGREE 23% HIGH SCHOOL OR LESS SOME COLLEGE BUSINESS SERVICES OR HIGHER 21% EDUCATION/ 30.1% 29.8% 40.1% HEALTH SERVICES 16% FINANCIAL PHILADELPHIA (NOT INCLUDING GREATER CENTER CITY) ACTIVITIES/REAL ESTATE/ INFORMATION 14% PUBLIC 293,700 ADMINISTRATION 35.7% 30.7% 33.6% TOTAL JOBS 10% ENTERTAINMENT/ LEISURE/HOSPITALITY USA 6% TRANSPORTATION/ UTILITIES/WHOLESALE TRADE
4% OTHER SERVICES 33.3% 30.7% 36% 4% RETAIL 0% 20% 40% 60% 80% 100% 2% CONSTRUCTION 1% MANUFACTURING Source: U.S Census Bureau, Local Employment-Household Dynamics 2011 Source: U.S Census Bureau, Local Employment-Household Dynamics 2011
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 11 hotels in the CBD. Indicative of the strength of the leisure tour- VISITORS ism industry in Philadelphia is the 88.2% Saturday occupancy With more than 1 million convention attendees and a record 3.1 rate, second only to New York City (90.4%) among major north- million occupied hotel room nights in 2014, Center City over- east cities. Overnight leisure tourists are likely to spend more at night visitors augment residential and employee retail demand restaurants and retailers and help account for the strong retail in the downtown. Five of Center City’s top six visitor destinations demand created by overnight visitors in Center City – overnight are located near Independence Mall, with Independence Na- visitors create more than $400 million in retail demand within tional Historical Park attracting more than 3.5 million visitors in the core of the downtown, 54% of all retail demand within 2014. Strong attendance numbers at Philadelphia’s historic this area. sites and the Pennsylvania Convention Center are helping lure Growing visitation and occupancy numbers are increasing more retailers and retail development to the Market East demand for hotel rooms. Developers are responding with nine retail corridor. hotel projects in the pipeline that will add more than 2,100 Of the 40 million domestic visitors to the region in 2014, a rooms by 2018 in the core of the downtown. The strength of the majority are from the mid-Atlantic (58%), with the next largest tourism economy in Center City is also luring new attractions, cohort representing the South Atlantic region (23%).6 Forty-one like Montparnasse 56’s newly opened One Liberty Observation percent stay overnight and 59% are daytime visitors.7 Domestic Deck, and the Museum of the American Revolution, to open overnight visitors to the region are well-educated (64% having a in 2016. BA or higher), affluent (average household income of $75,000) Further solidifying the city as an international tourism desti- 8 and spend an average of 2.5 nights in the region. Overnight nation was the announcement in November that Philadelphia leisure visitors spent approximately $4 billion in the region in was named America’s first UNESCO World Heritage City. Other 2014, with top visitor activities comprising shopping (35%) and accolades included Philadelphia placing third on The New York 9 fine dining (26%). In terms of international visitation, 673,000 Times’ list of 52 places to visit in 2015, behind only Milan and visitors came from outside the United States to the Philadelphia Cuba. With the success of the Papal visit in September and the region in 2013, with more than 16% coming from China, India, upcoming Democratic National Convention in 2016, Philadelphia South Korea, and Japan. will continue to have a spotlight on the international stage. As Since 2005, Center City has seen a 48% increase in overnight tourists increasingly view Philadelphia as a travel destination of leisure tourism, which helped increase downtown hotel occu- choice, we expect that retail demand generated by visitors will pancy rates to 75.5% in 2014 and is driving demand for more continue to grow in the years to come.
OVERNIGHT LEISURE VISITORS TO THE REGION: SATURDAY HOTEL OCCUPANCY: VISITOR ACTIVITIES NORTHEAST CITIES
40% $100
$80 30%
$60
20%
$40
10% $20
35% 26% 20% 18% 16% 14% 12% 7% 14% 90.4% 88.2% 84.8% 80.7% 78.7% 0% $0 SHOPPING FINE HISTORIC MUSEUM ART/ SPECIAL NIGHTLIFENATIONAL OTHER NEW YORK CITYBPHILADELPHIA BOSTON ALTIMORE WASHINGTON, DC DINING SITE THEATER EVENTS OR STATE PARK Source: Longwoods International for Visit Philadelphia Source: Longwoods International for Visit Philadelphia Source: PFK Consulting for Visit Philadelphia
12 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG CENTER CITY HAS BECOME A TRAVEL DESTINATION OF CHOICE FOR LEISURE TOURISTS WHO CREATE STRONG DEMAND FOR RETAIL, RESTAURANTS AND HOTEL ROOMS.
OCCUPIED CENTER CITY HOTEL ROOMS BY PURPOSE OF TRIP, 2014
LEISURE BUSINESS TRAVEL GROUP & CONVENTION AIRLINE GOVERNMENT
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Hospitality Snapshot, PKF Consulting - Provided by the Philadelphia Convention & Visitors Bureau
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 13 COLLEGE STUDENTS 2013 Enrollment
Greater Center City’s 11 institutions of higher education TEMPLE UNIVERSITY 31,589 welcomed 34,000 students in 2013. University City’s Drexel UNIVERSITY OF PENNSYLVANIA 24,630 University, University of Pennsylvania (Penn), and University of DREXEL UNIVERSITY 23,332 the Sciences, along with Temple University’s campuses, drew 82,000 additional students to areas immediately adjacent to COMMUNITY COLLEGE OF PHILADELPHIA 19,063 downtown. This large student population seeks out apartments THOMAS JEFFERSON UNIVERSITY 3,635 to rent and stores for shopping; patronizes bars, cafés and DREXEL COLLEGE OF MEDICINE 2,800 downtown restaurants; and visits museums, movie theaters, musical venues and cultural institutions. UNIVERSITY OF THE SCIENCES 2,773 ART INSTITUTE OF PHILADELPHIA 2,494 300,000 regional students also represent a strong potential pipeline of highly educated workers for Philadelphia – and UNIVERSITY OF THE ARTS 2,063 Center City in particular – with 64% of students choosing to PEIRCE COLLEGE 1,796 stay in Philadelphia after graduation.10 Of those students who TEMPLE UNIVERSITY, CC CAMPUS* 678 are native to Philadelphia, 76% chose to live and work in Phila- delphia after they graduated, with 51% of non-natives remaining MOORE COLLEGE OF ART & DESIGN 484 after graduation.11 TEMPLE UNIVERSITY, SCHOOL OF 381 PODIATRIC MEDICINE PENNSYLVANIA ACADEMY OF 299 THE FINE ARTS CURTIS INSTITUTE OF MUSIC 168 TOTAL ENROLLMENT 116,185
10: “Choosing Philadelphia” 2014 Report on Recent College Graduates,” Campus Philly 11: “Choosing Philadelphia” 2014 Report on Recent College Graduates,” Campus Philly
HIGHER EDUCATION ENROLLMENT, FALL 2013
FALL 2013 ENROLLMENT TEMPLE Less than 500 COMMUNITY COLLEGE UNIVERSITY* OF PHILADELPHIA 500-2,000
2,001-10,000 SISTER CITIES P ARK LOGAN FRANKLIN SQUARE DREXEL COLLEGE SQUARE Greater than 10,000 OF MEDICINE MOORE COLLEGE CRET OF ART & DESIGN PARK TEMPLE UNIVERSITY, * Note: Data provided by Temple University PENNSYLVANIA ACADEMY SCHOOL OF PODIATRIC MEDICINE Center City. LOVE OF THE FINE ARTS
SCHUYLKILL RIVER SCHUYLKILL PARK Source: Integrated Postsecondary Education Data System, National Center for Education Statistics DI LW PA OR TEMPLE UNIVERSITY, RK City Hall MARKET ST CC CAMPUS* TH
95
I
INDEPENDENCE NATIONAL ART INSTITUTE HISTORICAL PARK DREXEL OF PHILADELPHIA UNIVERSITY ST BROAD
RITTENHOUSE WASHINGTON UNIVERSITY SQUARE THOMAS JEFFERSON SQUARE OF PENNSYLVANIA UNIVERSITY UNIVERSITY CURTIS INSTITUTE OF THE ARTS OF MUSIC
14 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG PEIRCE COLLEGE FALL 2013 ENROLLMENT TEMPLE Less than 500 COMMUNITY COLLEGE UNIVERSITY* OF PHILADELPHIA 500-2,000
2,001-10,000 SISTER CITIES P ARK MORE THAN 116,000 LOGAN FRANKLIN SQUARE DREXEL COLLEGE SQUARE Greater than 10,000 OF MEDICINE MOORE COLLEGE STUDENTS ATTEND COLLEGE CRET OF ART & DESIGN PARK TEMPLE UNIVERSITY, * Note: Data provided by Temple University PENNSYLVANIA ACADEMY SCHOOL OF PODIATRIC MEDICINE Center City. LOVE OF THE FINE ARTS
SCHUYLKILL RIVER SCHUYLKILL PARK Source: Integrated Postsecondary IN OR IMMEDIATELY Education Data System, National Center for Education Statistics DI LW PA OR TEMPLE UNIVERSITY, RK City Hall MARKET ST CC CAMPUS* TH
95
I SURROUNDING CENTER
INDEPENDENCE NATIONAL ART INSTITUTE HISTORICAL PARK DREXEL OF PHILADELPHIA CITY. THEY LIVE, SHOP UNIVERSITY ST BROAD
RITTENHOUSE WASHINGTON UNIVERSITY SQUARE THOMAS JEFFERSON SQUARE OF PENNSYLVANIA UNIVERSITY UNIVERSITY & DINE DOWNTOWN. CURTIS INSTITUTE OF THE ARTS OF MUSIC
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 15 PEIRCE COLLEGE RETAIL DRIVES TRAFFIC
Center City’s dense and diverse, 24-hour downtown has the West Chestnut has typically had strong pedestrian traffic during second largest residential population in the country and gener- weekdays, because of its proximity to workers to the Market ates significant foot traffic on Center City retail streets. While Street office district. However, with the critical mass of retailers most of Center City’s pedestrian traffic peaks during the week that have opened stores on West Chestnut, pedestrian counts around lunchtime and late afternoon, the area between Ritten- have increased. Residents and visitors looking to shop are aug- house Square and Broad Street remains animated throughout menting strong office-worker foot traffic on the street. As West the weekend and during evening hours. Chestnut Street demonstrates, destination retailers can locate anywhere in Center City’s walkable downtown and shoppers will follow.
AN AVERAGE OF 31,700 DAILY PEDESTRIANS WALKED THE 1700 BLOCK OF WALNUT ON SATURDAYS IN THE FALL.
SENSOR LOCATIONS FOR 24-HOUR PEDESTRIAN COUNTS SISTER CITIES PA
LOGAN RK FRANKLIN SQUARE THE CENTER CITY DISTRICT HAS INSTALLEDSQUAR 14E SENSORS THROUGHOUT CENTER CITY THAT PROVIDE 24-HOUR VER PREDESTRIAN COUNTS, 365 DAYS EACH YEAR. CHERRY ST CRET PARK
DELAWARE RI DELAWARE
ARCH ST
LOVE R SCHUYLKILL RIVE SCHUYLKILL PARK
JFK BLVD DI LW PA
VD OR MARKET ST RK City Hall TH
I 95
UMBUS BL CHESTNUT ST
INDEPENDENCE NATIONAL SANSOM ST HISTORICAL PARK
OPHER COL OPHER WALNUT ST
WASHINGTON
RITTENHOUSE CHRIST SQUARE SQUARE LOCUST ST
16 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG
9TH ST 9TH
8TH ST 8TH
7TH ST 7TH
6TH ST 6TH
5TH ST 5TH
4TH ST 4TH
3RD ST 3RD
2ND ST 2ND
13TH ST 13TH
12TH ST 12TH
11TH ST 11TH
10TH ST 10TH
18TH ST 18TH
15TH ST 15TH
17TH ST 17TH
16TH ST 16TH
19TH ST 19TH
FRONT ST FRONT
BROAD ST BROAD
JUNIPER ST JUNIPER 2015 PEDESTRIAN ACTIVITY BY SEASON, DECEMBER 2014 – OCTOBER 2015 WINTER* SPRING SUMMER FALL 30,000
25,000
20,000
15,000
10,000
5,000
0
1700 BLOCK INTERSECTION OF INTERSECTION OF 1200 BLOCK 1200 BLOCK 1100 BLOCK 800 BLOCK OF WALNUT 17TH & CHESTNUT 16TH & CHESTNUT OF WALNUT OF MARKET OF CHESTNUT OF MARKET
* Winter includes December 2014, January 2015 and Feburary 2015 AVERAGE DAILY PEDESTRIAN ACTIVITY BY WEEKDAY/WEEKEND, DECEMBER 2014 – OCTOBER 2015 WEEKDAY WEEKEND 30,000
25,000
20,000
15,000
10,000
5,000
0 1700 BLOCK INTERSECTION OF INTERSECTION OF 1200 BLOCK 1200 BLOCK 1100 BLOCK 800 BLOCK OF WALNUT 17TH & CHESTNUT 16TH & CHESTNUT OF WALNUT OF MARKET OF CHESTNUT OF MARKET
AVERAGE HOURLY PEDESTRIAN ACTIVITY BY TIME OF DAY, DECEMBER 2014 – OCTOBER 2015
INTERSECTION OF INTERSECTION OF 1700 BLOCK 1200 BLOCK 800 BLOCK 1200 BLOCK 1100 BLOCK 16TH & CHESTNUT 17TH & CHESTNUT OF WALNUT OF MARKET OF MARKET OF WALNUT OF CHESTNUT 3,000
2,500
2,000
1,500
1,000
500
0 EARLY MORNING LATE LUNCHTIME LATE EVENING EVENING LATE MORNING RUSH HOUR MORNING (11AM2PM) AFTERNOON RUSH HOUR (7PM11PM) NIGHT (4AM6AM) (6AM9AM) (9AM11AM) (2PM4PM) (4PM7PM) (11PM4AM)
Source: Eco-counter Pedestrian Counts, Center City District
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 17 FOUR LARGE-SCALE PROJECTS ARE UNDER CONSTRUCTION THAT WILL ADD 1.8 MILLION SQUARE FEET OF RETAIL CREATING A NEW RETAIL DISTRICT EAST OF BROAD.
EAST MARKET 18 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG FASHION OUTLETS OF PHILADELPHIA
RETAIL DEVELOPMENT: CREATING CENTER CITY’S NEXT RETAIL DISTRICT
Strong retail and housing demand is driving development east of district. With four major retail-driven developments currently Broad Street, where there is space for large-scale development under construction or about to break ground, Market East will projects. While Center City’s prime retail district is on the west add more than 1.8 million SF of new retail space by 2017, repre- side along Rittenhouse Square, both local boutiques seeking senting a $675 million investment in this section of Center City. lower rents and national tenants desiring larger floor plates are looking to locate along the burgeoning Market East retail
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 19 1 FASHION OUTLETS OF PHILADELPHIA MARKET ST. BETWEEN 8TH AND 11TH ST. (1,500,000 SF.) $325,000,000 INVESTMENT
City Hall 1 2 EAST MARKET MARKET ST BETWEEN 11TH AND 12TH, MARKET AND CHESTNUT (130,000 SF.) 2 $250,000,000 INVESTMENT CHESTNUT ST 3 3 1112 1128 CHESTNUT 4 WALNUT ST 1112 1128 CHESTNUT ST. (90,000 SF.) $75,000,000 INVESTMENT
4 THE CURTIS CENTER 699 WALNUT ST. (50,000 SF.) $25,000,000 INVESTMENT
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RETAIL DEVELOPMENTS BY SIZE AND INVESTMENT
The proposed redevelopment will capitalize on its central 1) FASHION OUTLETS OF PHILADELPHIA location where mass transit, tourism, and Center City’s office AT MARKET EAST and residential districts converge. The repositioned urban Location: Northern blocks of Market Street marketplace will become a pillar of the new, vibrant Market between 8th and 11th Streets East retail district and leverage other private and public invest- Developer: PREIT & Macerich ments in this section of Center City. The project will benefit Size: 1.5 Million SF from the participation of Macerich, one of the nation’s top mall Investment: $325 Million owners, operators and developers, with extensive experience Completion: 2017 adding value to properties located in densely populated, urban environments. In July 2014, it was announced that the California-based retail developer Macerich acquired a 50% interest in The Gallery Under the proposed $325-million-redevelopment plan, the mall in return for investing in redeveloping the mall. PREIT and will undergo a top-to-bottom redesign that will reconfigure Macerich are now repositioning the urban mall into The Fashion the 1.5 million square-foot, mixed-use facility as a bright, new Outlets of Philadelphia. The plan will create an open, well-lit, contemporary space that welcomes shoppers and reconnects and easily accessible three-block corridor of approximately 125 to Market Street with accessible storefronts, sidewalk cafés, a new stores, including dining and entertainment options. The first new streetscape, digital signage and graphics. The highlight of anchor tenant is Century 21, which opened a 100,000-SF store in the newly reimagined space will be a stunning new glass-walled October 2014, the first for the retailer outside the NYC metropol- Center Court at Ninth and Market that will welcome tourists, itan region. office workers, conventioneers, and residents alike.
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20 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 1 FASHION OUTLETS OF PHILADELPHIA MARKET ST. BETWEEN 8TH AND 11TH ST. (1,500,000 SF.) $325,000,000 INVESTMENT
City Hall 1 2 EAST MARKET MARKET ST BETWEEN 11TH AND 12TH, MARKET AND CHESTNUT (130,000 SF.) 2 $250,000,000 INVESTMENT CHESTNUT ST 3 3 1112 1128 CHESTNUT 4 WALNUT ST 1112 1128 CHESTNUT ST. (90,000 SF.) $75,000,000 INVESTMENT
4 THE CURTIS CENTER 699 WALNUT ST. (50,000 SF.) $25,000,000 INVESTMENT
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FASHIONCENTER CITY DISTRICTOUTLETS & CENTRAL OF PHILADELPHIA PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 21 EAST MARKET
residential rental apartments, 161,000 SF of office space, 2) EAST MARKET parking, signage, and hospitality uses. Location: City block of Market and Chestnut Streets, and 11th and 12th Streets Phase I will include the construction of two new retail build- Developer: National Real Estate Development ings with large format digital signage along Market Street with Owner: National Real Estate Advisors, JOSS Realty Partners, rental units above. The entire site will feature approximately 175 Young Capital, SSH Real Estate below-grade parking spaces and a central loading facility. Also Size: 775,000 SF, including 130,000 SF of retail included in Phase I is the redevelopment of 34 South 11th Street Investment: $250 Million (Phase I) (the former Family Court Building) into modern Class A ware- Completion: Q2 2016 (Phase I) house office space above new ground-floor retail. This building will house MOM’s Organic Market on the ground floor and the East Market, a $500-million-plus mixed-use project, aims to relocated Marketplace Design Center will occupy 48,000 SF of upgrade Philadelphia’s downtown retail district east of Broad space above. Street. The redevelopment’s prime Center City location – two blocks east of City Hall and immediately across the street Phase II will include demolishing and replacing the existing from the landmark Reading Terminal Market and Pennsylvania mixed-use building located on the 1100 block of Chestnut Street Convention Center – is perfectly located to capitalize on the with retail, residential, office, and parking uses. Once complete, demands of a growing population, job growth and increased the project will reopen Ludlow and Clover Streets, now closed tourism, breathing new life into this neighborhood. The project to pedestrian and vehicular traffic, and create a pedestrian will completely revamp the entire block between 11th and 12th, walkway from Market Street to Chestnut Street, revitalizing and Market and Chestnut Streets, by creating and enhancing pedes- expanding the Market East retail district, as well as connecting trian-oriented retail both along Market Street and former alleys it to the vibrant Midtown Village retail district just south of on Ludlow and Clover Streets. The project will also add 322 new the project.
22 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 3) 1112-1128 CHESTNUT Location: 1112-1128 Chestnut Street Developer: Brickstone Realty Size: 192,000 SF, including 90,000 SF of retail Investment: $75 Million Completion: Spring/Summer 2016
Brickstone Realty’s development on the 1100 block of Chestnut Street spans five parcels and will include 112 high-end rental units and 90,000 SF of commercial space, with dedicated park- ing for retail. Signed tenants include a 19,000-SF Target Express and a 14,000-SF state liquor store, which will include space dedicated to wholesale.
This project will be the center to a broader redevelopment plan for the East Chestnut Street corridor that looks to extend the vibrancy of the Midtown Village retail district east along Chestnut Street.
Other key properties in the vicinity acquired by the develop- er include: 1108-1110 Chestnut, where 8,000 SF of retail and 9,000 SF of office space is available; 1021 Chestnut, a 9,500-SF building Brickstone plans to convert into coworking space; 106- 114 South 11th Street, a 16,000-SF, mixed-use building with 12 residential units and three retail spaces; and 15-21 South 11th Street, a 30,000-SF building that will be converted into creative office space with ground-floor retail. Once complete, this rede-
1112-1128 CHESTNUT ST velopment will create a new vibrant, mixed-use district east of Broad with a built-in office and residential customer base. 4) THE CURTIS CENTER Location: 699 Walnut Street Developer: Keystone Property Group, Mack-Cali Realty Corp & Roseland, a Mack-Cali Company Size: 885,000 SF, including 50,000 SF of retail Investment: $25 Million Completion: Spring 2017
The 885,000-SF Curtis Center will undergo a $25 million renovation that will transform the quiet stretch along Washington Square Park into a vibrant urban corridor and add luxury residential units as well as retail. Mack-Cali Realty Corporation and the Keystone Property Group acquired the building for $125 million in the summer of 2014. Plans include the conversion of 90,000 SF of vacant office space into 57 luxury apartments and outdoor streetscape improvements. Retail will be added on the ground floor and will include two corner restaurants with outdoor seating overlooking both Washing- ton Square and Independence National Park. The building will include a total of 50,000 SF of retail, 700,000 SF of office space and 100,000 SF of residential space. THE CURTIS CENTER
CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG 23 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION FIND MORE REPORTS AT: CENTERCITYPHILA.ORG
24 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORG