STATE OF CENTER CITY PHILADELPHIA 2021

Restoring | Returning | Reanimating

Contents

Introduction 1

Office 12

Health Care & Higher Education 18

Conventions, Tourism & Hotels 23

Arts & Culture 27

Retail 30

Employment 37

Transportation & Access 47

Downtown Living 53

Developments 62

Acknowledgements 64

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG Chapter Name| 1

Reanimating the Center of the City City District | Center Park Dilworth

The global pandemic, local stay-at-home mandates and civil boarded-up storefronts and installed new artwork on many. We unrest created extraordinary challenges for all cities. In Center commissioned 200 decorative banners created by Philadelphia City, pedestrian volumes initially plummeted by 72%, as office artists. Our landscape teams planted street trees, filled park workers, hotel guests, regional shoppers, students, theater and flowerbeds with tens of thousands of bulbs and upgraded street restaurant patrons disappeared. At night, streets were devoid of lighting. We continued to provide fee-for-service cleaning for five cars, sidewalks were empty. From the very start in March 2020, adjacent residential neighborhoods. we had all of our on-street and park employees designated To enhance safety, we deployed new bike patrols and security “essential workers.” The central lesson from the Center City vans in afternoons and seven evenings per week, supplement- District’s founding 30 years ago suddenly had renewed reso- ing the role of our Community Service Representatives (CSRs). nance: the revival of economic activity and vitality depends upon In 2020, CSRs had more than 177,000 sustained conversations confidence in a public environment that is clean, safe with pedestrians seeking directions, responding to inquiries and attractive. from businesses or addressing safety or streetscape problems. We staggered shifts to preserve social distance in locker rooms, In 2019 and 2020, our homeless outreach teams, working in provided crews with safety equipment and, until retailers start- partnership with Project Home and the Philadelphia Police ed to reopen in June 2020, paid for and delivered lunch to all service detail, persuaded more than 300 individuals to come off on-street crews. Our dedicated employees, drawn from neigh- the street to connect with services and shelter. While daytime borhoods across the city, never stopped working, continuing to homelessness and panhandling on Center City sidewalks had serve as a visible, reassuring presence, responding to every new, been steadily rising since 2015, both declined in 2020, with op- unexpected challenge that came their way. portunistic panhandling dropping dramatically. Still, the absence of other people made the presence of those in need more visible CCD cleaners power-washed sidewalks and removed graf- and reduced the beneficial effect of many “eyes on the street.” fiti from building facades and street furniture. They painted

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 2 | State of Center City

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Matt Stanley Matt Stanley

BeauMonde Originals

Staying mindful of established health guidelines, CCD promoted A successful Restaurant Week in September promoted outdoor Center City’s sidewalk level businesses that remained open, en- dining, takeout options and observance of all safety protocols. couraging takeout from restaurants, reminding residents across In January 2021, we launched a #TakeoutPhilly ad campaign to the region through traditional advertising, email newsletters and sustain restaurants, especially those unable to invest in heated social media about the unique shops, boutiques and fine dining outdoor seating, by encouraging residents to order directly from opportunities downtown. restaurants and tip generously. CCD licensed the campaign at no cost to neighborhood commercial corridors across the city. Staff worked closely with retail associations and City agencies to A successful Restaurant Week create “streeteries” in restaurant-dense Midtown Village and Rit- in September promoted outdoor tenhouse Row, closing streets to traffic on extended weekends, dining, takeout options and enabling restaurants to seat more customers, expanding dining beyond the sidewalk. observance of all safety protocols.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Reanimating the Center of the City | 3

785 100 Building Facades Uniformed Cleaning Cleaned of Personnel and Graffiti Tags Supervisors Matt Stanley

Well-managed parks and civic spaces are defining public ame- nities of downtown. To provide safe spaces for social gathering, we expedited repairs to Dilworth Park, turned the fountains on by early summer, frequently cleaned socially distanced seating and programmed activities that restored vibrancy without attracting large crowds.

We invited residents to enjoy live entertainment during “Dinner at Dilworth” with takeout from nearby restaurants. We staged small-scale seasonal markets featuring local artisans and hosted performers and a brass quartet from Opera Philadelphia. Working closely with the City’s Health Department, we reconfig- ured the Wintergarden on the Greenfield Lawn, reimagined the Deck the Hall Holiday Lights display, deployed an open-sided BeauMonde Originals Rothman Orthopedics Cabin and managed the Rothman Orthopedics Ice Rink with time limits, reduced capacity and online-only ticketing. Despite a year of intentionally scaled-back Dilworth Park Annual Visitors events with crowd limitations, 6 million people visited Dilworth Park in 2020, about 60% of the volume in 2019.

In Sister Cities Park, an expanded Children’s Discovery Garden reopened in the summer with capacity limits and new elements that became instant hits with children: a climbing net, a “hid- ing” nest, a stream dam and push-button water jets. Children’s programming continued through warmer months, providing safe outdoor spaces for families. Local artist Janell Wysock was commissioned to create the fall installation “Color Under the 0 00 0 00 0 000 000

Canopy,” wrapping the park's trees with colorful panels of fabric. 7, 15,

For the winter, a giant climbing log replaced water in the pond. ,0 ,828, ,68 10 10 10 5,999, Since 1997, CCD has invested $151.3 million in streetscape, 9,621,00 lighting and park improvements. 2016 2017 2018 20192020

Source: Center City District

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 4 | State of Center City

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Matt Stanley

Center City District Streetscape Assets, 2020 Center City District Streetscape Maintenance, 2020

STREET LANDSCAPING 3,740 Light Fixtures Trees Planted (Plant Center City) 103 Pedestrian Light Poles 2,879 Lighted Parkway 12 Trees Pruned 173 Building Facades Trees Replaced 46 City Hall Lighting - 85 10 Locations Light Fixtures on 12 Avenue 446 Shrubs, Perennials & Vines Planted 225 of the Arts Facades Light Fixtures Illuminating 64 Bulbs Planted 4,200 23 Sculptures Light Fixtures Illuminating 254 LIGHTING 6 Underpasses Pedestrian Light Poles Repaired 3 Pedestrian Poles Relamped 72 1,453 1,393 Parkway Sculpture Lights Relamped 6 Landscaping Graphic Displays Parkway Façade Lights Replaced 2 Street Trees 903 Local Artist Banners 199 SIGNS Planters 385 CCD Parks Banners 122 Wayfinding Signs Cleaned 110 Wayfinding Signs Updated 87 Trees in 4 Parks 165 Promotional Banners 943 Transit Portal Signs Cleaned 48 Storefront Artwork 55 Parkway Signs Cleaned 13 Printed Posters 69 Bus Shelter Signs Cleaned 36 Digital Screens 5 CCD PARKS 1,048 Street Furniture Shrubs, Perennials & Grasses Planted 630 Trees Planted 21 Adjustable Honor 25 Park Bike Racks 32 Box Corrals Trees Pruned 39 Park Benches 31 Bulbs Planted 26,700 Fixed (In-Ground) 15 Streetscape Benches 18 Honor Box Corrals OTHER Banner Poles 157 On-Street Bike Racks 17 Graffiti Tags & Stickers Removed 36,255 On-Street Bollards 753 (All Street Furniture & Fixtures)

1,268 Signs Pedestrian Light Poles 442 Lighted Parkway 209 Building Facades City Hall Lighting - 259 10 Locations Light Fixtures on 12 Avenue 65 of the Arts Facades Light Fixtures Illuminating 240 23 Sculptures Light Fixtures Illuminating 53 6 Underpasses

CENTERCITYPHILA.ORGCENTERCITYTPHILA.ORG Center City District & Central Philadelphia Development Corporation Reanimating the Center of the City | 5

Total CCD Employees by Home ZIP Code Philadelphia Employment by Area in Philadelphia

1 Far Northeast 1 6.7%

3 2 2 5 1 3 Roxborough/ Olney/ 2 1 Manayunk Near Northeast 1 Oak Lane 7 1 1.0% Germantown/ 3.8% 5.9% 5 Chestnut Hill 1 3.6% 4 Bridesburg/ 1 1 North Kensington/ Philadelphia Richmond 5 6.0% 6.2% 5 1 West 2 Philadelphia 6 3 4 4 3.0% 1 University 4 City Greater 3 Number of Employees 11.3% 1 1 by ZIP Code Center City 4 42.0% 11.0% 5 7 None 1-2 2 3-4 1.3% 9 8 5-6 Southwest South 7-9 Philadelphia Philadelphia 4.6% 2 1.1% Source: U.S. Census Bureau, Longitudinal House- Navy Yard hold Employment Dynamics, 2018. 1.2%

PHL Airport 3.6%

140 (82%) of CCD employees live in the City of Philadelphia; each year CCD contracts provide work opportunities for another 118 Philadelphia residents

Restoring the Economy: Maintaining and animating spaces The absence of more than 115,000 professional, tech, business was an interim strategy, a holding action, waiting for production and financial services workers and thousands of non-essential and distribution of vaccines to bring the economy back to life. health care and education employees, caused ridership on For those who live or continued to work in Center City, or whose SEPTA, parking garage occupancy and pedestrian volumes on businesses depend on downtown density, our mission has Center City sidewalks to plummet, posing significant challenges been to focus on clean and safe, enhancing nodes of vitality, for restaurants and retail. The loss of tourism and cancellation countering misinformation with frequent surveys and of conventions and trade shows compounded the challenge for reports, and rapidly responding to adverse conditions in the those sectors dependent on face-to-face interaction. Leisure public environment. and hospitality employment initially dropped by 60% — a loss of 43,300 jobs. The pandemic initially plunged Center City back to 1990 conditions, exposing weaknesses and limitations in Philadelphia’s In effect, the pandemic temporarily unraveled much of the ongoing revival. The economic shutdown eliminated 120,100 jobs work of the last 30 years: the creation of a thriving, mixed- citywide between March and April 2020, wiping out 16% of payroll use downtown whose diverse sectors reinforce each other. jobs in the city. By February 2021, employment rebounded by Investments in the 1990s and early 2000s, along with more 41,400 jobs, but remained 78,700 below March 2020 levels. competitive tax policy, had created a platform for growth. From 2009 to 2019, Philadelphia enjoyed a remarkable resurgence, Following telework mandates, about 10% of employees came into adding 87,700 jobs citywide, a significant turnaround from four offices during much of 2020. Working remotely, most continued decades prior, when the city lost 267,500 jobs between 1970 to be paid. By contrast, many cleaning, security and other and 2009. operations personnel in office buildings and on campuses were furloughed.

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 6 | State of Center City

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Matt Stanley Matt Stanley

The decade that followed the Great Recession became the Working with restaurants and the longest sustained period of employment growth in the city since City of Philadelphia, CCD supported the 1920s. Approximately half of citywide job gains during that time occurred in Center City and University City, where jobs grew the expansion of outdoor seating by 10% and 26%, respectively. through all four seasons.

Greater Center City is Philadelphia’s largest concentrated em- ployment center with 42% of all city jobs; Philadelphia residents options contracted, those with stable retirement or investment hold 52% of them. Downtown also hosts the highest concentra- income found home the best place to shelter from the storm. tion of high paying jobs, including 75% of Philadelphia’s jobs in While some decamped for second homes at the beach, the information and finance and 74% of professional and business mountains or in warmer climates, there is little evidence of services jobs. Nonetheless, two-thirds of downtown jobs do not wholesale flight of the middle class from Philadelphia. The require a bachelor’s degree. SEPTA provides the link that enables shutdown of foreign immigration in 2020 did reduce the number 25% of working residents of every city neighborhood to connect of new people moving in, but Philadelphia continued to attract with opportunity in Center City. The pandemic put these jobs at more people from Boston, New York and Washington risk, while causing the 48% of downtown workers who live in the than those moving the other way. Most chose to live in Greater suburbs to consider remote work as a long-term option. Center City.

Downtown Living: In the last two decades, the nine ZIP codes Expanding the Circle of Growth: Despite success in Center between Girard Avenue and Tasker Street that comprise Greater City prior to the pandemic, Philadelphia was growing slowly Center City became the fastest growing residential area of compared to other cities, lagging in the addition of both middle- Philadelphia. Very few downtowns can match the extraordinary class and high-wage jobs. We lacked dynamic growth in export range and affordability of diverse neighborhoods, architecture industries, what economists call “traded” sectors that sell styles and housing types. Downtown provides proximity to jobs, outside the region, bringing revenues from across the nation cultural offerings and thousands of retailers and restaurants. and around the globe back to Philadelphia. Typically, such firms Walkable and bikeable neighborhoods have unparalleled generate demand for even more workers and expand the local connectivity via transit and automobile to locations throughout purchase of services. Only five of Philadelphia’s 20 largest the region and the Northeast Corridor. Between 2000 and 2020, employers at the start of 2020 were in the for-profit sector and the population of Greater Center City increased 29% to more only three were not health care related. than 190,000, while the city as a whole grew by 5%. Among five peer cities on the East Coast, Philadelphia has While many workplaces were empty, the stay-at-home order the lowest density of businesses per thousand residents and intensified use of homes, especially where multiple adults the lowest number of Black-owned businesses per thousand worked remotely. Dining rooms, kitchens and spare bedrooms Black residents. It also has significant lower business density were commandeered for work, or as places to accommodate or than surrounding suburbs, since downtown's success was supervise virtual schooling. As travel, entertainment and dining not replicated citywide. One consequence is that 43% of the

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Reanimating the Center of the City | 7

residents of every Philadelphia neighborhood outside Center City Center City District reverse commute to jobs in the suburbs. They work alongside of suburban residents with better-funded school systems who pay a 1% wage tax compared to Philadelphia’s 3.8% rate. Despite population growth downtown, more households are moving from Philadelphia to the suburbs than are moving the other way. Philadelphia is still losing working-class and middle-class households, reinforcing a city increasingly split between wealth and poverty. Jump-starting Growth Through Equity Investments and Tax Policy: The American Rescue Plan (ARP) creates a unique opportunity for Philadelphia to reposition itself. The temporary infusion of federal funds can restore cuts, but also free up resources for permanent and transformational investments that set the city on a path of more expansive and inclusive growth.

Black- and brown-owned businesses were particularly harmed by the coronavirus crisis. Many enterprises are sole proprietorships without access to traditional capital, lacking banking relationships necessary to receive federal support. Bolstering minority businesses and commercial corridors can be a centerpiece of the city’s recovery strategy, leveraging substantial federal investments and private capital. Building on existing supplier diversity initiatives can also expand local purchasing by Philadelphia institutions and businesses, harnessing unprecedented federal investments in infrastructure to grow Black- and brown-owned businesses at scale.

Long recommended changes in local tax policy can spur new growth. The pandemic underscored the risk of relying on volatile wage and business taxes for 53% of locally generated revenue. Suburban workers contribute $800 million in wage taxes, 20% of the City’s local tax revenues. As the pandemic ends, if 10% BeauMonde Originals to 20% of suburban residents do not return downtown or to University City office buildings, health care or educational institutions, the City will lose between $80 million and $160 million in wage tax revenues. As firms choose to return to their offices or remain remote, we remain the only large city to tax both gross and net business income.

Targeted investments in disadvantaged businesses, coupled with wage and business tax reductions, can jump-start post- pandemic growth. Growth without equity created a city with huge disparities. Investments in equity without growth will leave us a slow growing city with low business density, lacking family sustaining jobs, limiting opportunities for greater workforce participation and the expansion of Black- and brown-owned businesses. The American Rescue Plan lifts Philadelphia above divisive either/or choices to a both/and strategy of inclusive growth. As vaccine distribution ramps up, it's time to get to work.

Paul R. Levy Peter Tobia President Center City District

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 8 | State of Center City

8 VINE ST

2100 Block of Cherry Street

BROAD ST

City Hall MARKET ST

Center City Center City Residents' Residents' Washington Society Hill Association Association West S 15th St Washington West

SOUTH ST

Center City District Fee for Service Areas Contracts with adjacent civic associations

Monday Wednesday Friday

Tuesday Thursday Center City District WASHINGTON AVE

Peter Tobia

Community Service 110+ Representative Contacts Police Officers and Community Service Representatives stand Hospitality/Ambassador 77,765 joint roll call and coordinate deployment Safety/Security 46,752 Homeless/Panhandlers 45,137 177,131 Public Space 6,580 Total contacts 244 795 in 2020 Business Contact Alerts sent in 2020 Outreach Transportation 102 4,086 Source: Daily Activity Logs 2020, Center City District Individuals, businesses or organizations receiving alerts in 2020

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Reanimating the Center of the City | 9

Peter Tobia BeauMonde Originals

While gun violence has become a major challenge in some Philadelphia neighborhoods, other crimes citywide had been trending down pre-pandemic. By contrast, Part One crimes were increasing in Center City since 2017. To support recovery and sustain the economy, attention to quality of life and public safety are paramount for the restoration of jobs.

BeauMonde Originals

Part 1 Crimes Per Day in the Center City District, 1996–2020

Nonviolent Crimes Violent Crimes Total Part 1 Crimes 20

16.4 16.0

15 13.8 13.6 13.6 12.6 12.0 11.7 11.6 11.7 11.1 11.5 11.2 11.4 11.3 11.0 10.7 10.8 10.7 10.3 9.9 10 9.6 9.5 9.8 9.7

5

11.9 14.6 15.2 12.2 10.4 11.4 9.9 9.1 9.5 10.2 10.2 10.9 10.2 10.1 12.8 9.9 9.8 10.2 10.7 9.7 8.7 8.4 8.6 8.9 8.5 0 1.4 1.2 1.0 1.4 1.3 1.1 1.2 1.1 1.2 1.2 1.4 1.3 1.2 1.0 1.1 1.0 1.2 1.0 0.9 1.1 1.2 1.0 1.3 1.7 1.2 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Philadelphia Police Department

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 10 | State of Center City

Daytime Homeless Survey, 2015-2020 Panhandling Survey, 2015–2020 10 Average Daily Counts Average Daily Counts

100 70

83 60 80 50 800 60 40 40 30 60040 36 20 20 10 400 27 0 0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

200 Source: Philadelphia Police Department Source: Philadelphia Police Department

0 Overnight Homeless Survey, 2020 Average Daily Counts

2020 2015-2020 (Average) 800 564 700

600

500 247 326 400

300

200

100 380 345 409 360 393 526 688 547 548 598 456 370 0 January February March April May June July August September October November December

Source: Philadelphia Police Department

Overnight Homeless Survey, 2020 Weekly Surveys, 6th & 9th Police districts

Average Survey Count Last 10 Years (Average) 2020 800 CCD works in partnership 700

600 with Project HOME and 500 Philadelphia Police to 400 connect those in need 300

200 with services and shelter.

100

0 Jan Feb Mar Apr May Jun Ju Aug Sept Oct Nov Dec

Source: Philadelphia Police Department

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Reanimating the Center of the City | 11

Center City District Capital Investments, 1997-2020 Includes Design Costs OTHER PROJECT YEAR CCD FUNDS FEDERAL CITY STATE FOUNDATIONS DONORS TOTAL Center City Streetscape 1997-98 $21,000,000 $5,000,000 $26,000,000 Market East Streetscape 2000 $7,500,000 $7,500,000 Office District Lighting 2002 $2,300,000 $400,000 $300,000 $3,000,000 City Hall Façade Lighting 2004 $135,000 $140,000 $525,000 $800,000 Logan Circle Pedestrian Access 2004 $1,500,000 $1,500,000 Parkway Lighting 2004-05 $2,220,000 $3,000,000 $30,000 $5,250,000 3 Parkway Plaza, Phase I 2005 $450,000 $450,000 City Hall Holiday Lighting 2005 $400,000 $400,000 Pedestrian Lighting 2005 $1,250,000 $400,000 $35,000 $215,000 $1,900,000 Bus Shelter Signs 2006-07 $109,200 $109,200 Aviator Park 2006-07 $1,750,000 $1,750,000 Dilworth Plaza, Design 2006-10 $1,555,900 $1,701,900 $151,500 $3,409,300 City Hall Portal Lighting 2007 $125,000 $125,000 Honor Box Corrals 2007 $14,000 $86,000 $100,000 Parkway Signs 2007 $2,600 $450,000 $70,000 $522,600 Pedestrian Lighting 2007 $347,000 $390,000 $365,000 $1,102,000 Sculpture Lighting 2007 $10,000 $10,000 South Broad Lighting, Phase I-IV 2007-12 $350,000 $1,219,000 $1,015,900 $2,584,900 3 Parkway Plaza, Phase II 2008 $516,000 $1,320,000 $42,000 $1,878,000 Transit Portal Signs, Phase I-IV 2008-13 $146,200 $433,300 $587,000 $514,100 $1,680,600 2nd Street Civic Improvements 2009 $955,000 $955,000 Chestnut Park, Phase I 2009 $91,900 $91,900 Delaware River Trail 2009 $250,000 $323,000 $573,000 TreeVitalize 2009 $100,000 $100,000 Chestnut Park, Phase II 2010 $210,500 $210,500 Sister Cities Park, Phase I 2010 $66,100 $186,500 $252,600 LED Lighting 21st, 22nd, 23rd Street 2010-11 $94,000 $40,000 $134,000 Underpasses Chestnut/John F. Collins Park 2011 $14,700 $190,000 $1,400 $206,100 Sister Cities Park, Phase II 2011 $53,700 $388,700 $1,985,900 $393,700 $2,822,000 Pedestrian Lighting 2011-12 $196,400 - $1,788,700 - - $405,900 $2,391,000 Dilworth Park, Design & Construction 2011-14 $15,764,230 $15,000,000 $5,750,000 $16,350,000 $1,826,285 $6,066,226 $60,756,741 Reading Viaduct, Phase I 2011-14 $75,631 - $750,000 - $32,649 - $858,280 John F. Collins Park 2012 $8,733 - - - - $8,733 Sister Cities Park, Phase III Completion 2012-13 $153,600 $1,117,100 $0 $503,900 $551,900 $10,000 $2,336,500 City Hall Lighting Improvement 2012-14 - - $142,332 - - - $142,332 Bus Shelter Signs 2013 $46,238 $46,238 Pedestrian Lighting 2014 $30,820 $30,820 Dilworth Park Construction 2015 $2,088,811 $23,801 $28,055 $2,140,667 City Hall Gates 2015 $2,393 $1,425,435 $50,000 $1,477,828 City Hall Gates Lighting 2016 $228,500 $414,717 $643,217 Rail Park, Phase 1 2015-20 $1,407,984 $2,800,000 $4,125,300 $2,447,500 $2,540,067 $13,320,851 City Hall Gates Lighting 2017 $286,777 $286,777 Dilworth Park, Pulse 2017-18 $729,646 $20,000 $325,000 $41,550 $1,116,196 Market Street/JFK Bike Lanes 2020 $3,778 $3,778 Pedestrian Lighting 6th Street 2020 $14,890 $14,890 Pedestrian Lighting 9th & 10th Streets 2019-20 $14,349 $332,900 $347,249

TOTAL $48,334,377 $18,275,800 $28,365,164 $27,567,639 $14,973,389 $13,822,428 $151,338,797

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 12 | State of Center City

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Office | David Fonda Street 1600 Market

The commercial office sector was profoundly disrupted by the In the first quarter of 2020, based on momentum from 2019, March 2020 public mandates requiring telework in response rents continued to rise in Center City to $33.80 per square foot. to the pandemic. Building managers and tenants moved Positive absorption of 142,509 square feet lowered vacancy to quickly, retrofitting space, upgrading air-handling systems and 12.9%. During the second quarter, following the stay-at-home instituting new cleaning and health safety protocols in lobbies order, vacancy inched up to 13%, ultimately peaking at 15.4% by and common areas. Most imagined the interruption would be a year-end, as 536,536 square feet of office space was vacated. matter of weeks, a few months at most. However, when infection However, the surge in vacancy during the fourth quarter was rates persisted through summer and spiked in the fall, longer- due less to unanticipated departures, and more a byproduct of term questions began to emerge about the future of work in downsizing planned prior to the pandemic, including Children’s office buildings. Hospital of Philadelphia and the Army Corps of Engineers vacating space in the Wanamaker Building. Most firms adapted quickly to virtual meeting platforms. Following telework mandates, throughout 2020 no more than Throughout Center City, remote work enabled nearly all tenants 10% of employees on average came into their offices. The to operate and pay rent, while property owners accommodated absence of 115,000 professional, tech, business and financial those experiencing financial challenges, executing some services workers and thousands of non-essential health care temporary extensions and adapting to uncertain circumstances. and education employees, caused SEPTA ridership, parking Many new deals incorporated flexibility. For example, Blank garage occupancy and pedestrian volumes on Center City Rome executed a lease that gives them the ability to occupy sidewalks to plummet, posing significant challenges for between 100,000 and 196,000 square feet over a 16-year term restaurants and retail. Many cleaning, security and other without penalty. operations personnel in office buildings were furloughed.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Office| 13

Major new developments provided grounds for optimism, Center City remains an affordable location for business, including Parkway Corporation's start of construction for a centrally located and well connected by highway and transit new headquarters for Morgan Lewis at 2222 Market Street and along the Northeast Corridor with excellent national and global National Real Estate Development's construction of a 19-story connections through Philadelphia International Airport. The specialty care pavilion for Thomas Jefferson on the 1100 block region hosts a significant concentration of educational, medical of Chestnut Street. Philadelphia’s strength in life sciences and research institutions that create talent-rich labor markets, also extended beyond University City with conversions from supporting the highest concentration of jobs and educated office space to new lab space at both The Curtis and 1500 workers in the region. Spring Garden. Philadelphia offers both a high quality of life and housing While telework quickly became the primary mode for the office affordability. Home prices in the Philadelphia region, according sector, there are many reasons to suggest it will not become the to the Bureau of Economic Analysis, are close to the national norm. Much can be achieved remotely. However, interaction with average, but well below prices in Washington, New York and clients, collaboration with colleagues, creative brainstorming, Boston. Most important, all of the advantages of density, mentoring and professional development work best face-to- challenged by the pandemic, will quickly reassert themselves face. Many of the best new ideas emerge outside planned as the health emergency recedes. What is required to ensure gatherings. They are sparked by serendipitous conversations Center City’s continued growth is a broad coalition of civic in the office, on the street, in restaurants, parks and leaders to actively promote Philadelphia as a business outdoor cafes. location, build on the momentum of the Ready Set Philly initiative and not passively accept remote work as the norm. This is where Philadelphia excels. A dense, compact and In addition, City government needs to recommit to promoting walkable downtown enables you to run into colleagues, strong and inclusive economic growth through tax reform, competitors or friends on the way to lunch. More than 40 million increased investment in Black- and brown-owned businesses, square feet of office space provides a broad range of workplace neighborhood commercial corridors and programs that improve options from trophy 21st-century towers, to more affordable quality of life and overall competitiveness. renovated historic warehouses to highly flexible coworking spaces.

Center City Office Market Trends, 2020

Q1 2020 Q2 2020

TOTAL ASKING TOTAL VACANCY NET ABSORPTION TOTAL ASKING TOTAL VACANCY NET ABSORPTION SUBMARKET RENT (PRICE/SF) RATE (SF) RENT (PRICE/SF) RATE (SF)

East Market $29.81 10.0% 45,838 $29.65 9.9% 6,660 Independence Square $31.12 15.0% 10,312 $31.18 14.5% 17,023 Walnut/South Broad $30.83 18.3% -27,621 $30.78 18.7% -15,649 West Market $36.14 12.3% 113,980 $35.90 12.6% 12,365

CENTER CITY $33.80 12.9% 142,509 $33.67 13.0% 20,399 Q3 2020 Q4 2020

TOTAL ASKING TOTAL VACANCY NET ABSORPTION TOTAL ASKING TOTAL VACANCY NET ABSORPTION SUBMARKET RENT (PRICE/SF) RATE (SF) RENT (PRICE/SF) RATE (SF)

East Market $30.48 9.5% 22,295 $31.38 15.6% -357,416 Independence Square $31.13 15.7% -59,256 $31.96 17.1% -57,493 Walnut/South Broad $30.89 19.4% -28,117 $30.75 20.2% -33,514 West Market $35.80 13.8% -284,758 $36.31 14.2% -88,113

CENTER CITY $33.76 13.9% -349,836 $34.53 15.4% -536,536

Source: Newmark Knight Frank

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 14 | State of Center City

Center City Philadelphia Office Market, 1985–2020 14

Occupied (SF) Vacant (SF) Occupancy Rate Square Feet (Millions) 50 95%

40 91%

30 87%

20 83%

10 79%

0 75% 7 6 1985 1986 198 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 200 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: Data includes only buildings in Center City, not University City, and counts several major, Source: Newmark Knight Frank owner-occupied properties that are not commercially leased.

Central Business District Asking Rents, 2020 Central Business District Occupancy, 2020

San Francisco 97.2% San Francisco $82.38 San Francisco 97.2% San Francisco $82.38 Orlando 92.9% NYC - Midtown $80.11 Orlando 92.9% NYC - Midtown $80.11 NYC - Midtown South 92.1% NYC - Midtown South $78.33 NYC - Midtown South 92.1% NYC - Midtown South $78.33 NYC - Downtown 92.1% Boston $64.85 NYC - Downtown 92.1% Boston $64.85 NMYC - Midtown 91.9% NYC - Downtown $62.12 NMYC - Midtown 91.9% NYC - Downtown $62.12 Sacramento 89.6% Oakland $60.48 Sacramento 89.6% Oakland $60.48 Boston 89.0% Washington $57.49 Boston 89.0% Washington $57.49 NYC - Brooklyn 88.2% NYC - Brooklyn $53.36 NYC - Brooklyn 88.2% NYC - Brooklyn $53.36 Miami 86.2% Fairfield County, CT $49.08 Miami 86.2% Fairfield County, CT $49.08 Philadelphia 85.3% Miami $44.47 Philadelphia 85.3% Miami $44.47 Baltimore 85.2% Los Angeles $43.60 Baltimore 85.2% Los Angeles $43.60 Jacksonville 84.9% San Diego $41.51 Jacksonville 84.9% San Diego $41.51 Washington 84.7% Houston $41.05 Washington 84.7% Houston $41.05 Orange County, CA 84.6% Denver $39.83 Orange County, CA 84.6% Denver $39.83 Portland, OR 83.3% Chicago $37.63 Portland, OR 83.3% Chicago $37.63 Chicago 81.6% Orange County, CA $36.65 Chicago 81.6% Orange County, CA $36.65 Denver 81.6% Philadelphia $34.53 Denver 81.6% Philadelphia $34.53 Atlanta 81.5% Sacramento $33.60 Atlanta 81.5% Sacramento $33.60 Oakland 80.6% Portland, OR $33.21 Oakland 80.6% Portland, OR $33.21 Fairfield County, CT 79.6% Atlanta $33.14 Fairfield County, CT 79.6% Atlanta $33.14 Los Angeles 79.6% Orlando $28.36 Los Angeles 79.6% Orlando $28.36 Phoenix 79.6% Phoenix $27.33 Phoenix 79.6% Phoenix $27.33 San Diego 78.8% Dallas $26.14 San Diego 78.8% Dallas $26.14 Dallas 73.5% Baltimore $23.03 Dallas 73.5% Baltimore $23.03 Houston 73.4% Jacksonville $22.15 Houston 73.4% Jacksonville $22.15

20% 40% 60% 80% 100% $0 $20 $40 $60 $80 $100 20% 40% 60% 80% 100% $0 $20 $40 $60 $80 $100

Source: Newmark Knight Frank Source: Newmark Knight Frank Source: Newmark Knight Frank Source: Newmark Knight Frank

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Boston

Office| 15 Washington, D.C. Chicago Denver Class A Rents, Central Business District Compared to Suburbs, 2020 Oakland, CA Sacramento

Boston Boston 117% Fairfield County, CT Houston Washington, D.C. Washington 78% Chicago 66% Miami Chicago Denver 64% Philadelphia Denver Oakland 59% Orange County, CA** Houston Sacramento 45% Portland, OR Orlando Miami Fairfield County, CT 44% Houston 37% Atlanta* National Average Miami 24% San Diego Portland, OR Philadelphia 23% San Francisco Center City Philadelphia Orange County, CA 20% Phoenix Jacksonville Atlanta Portland, OR 18% Orlando 15% Los Angeles Orlando Atlanta 11% Baltimore Los Angeles San Diego 6% Dallas San Francisco San Francisco 4% Phoenix Phoenix 3% -0.20.1 0.40.7 1.01.3 Jacksonville -3% Jacksonville Los Angeles -4% Baltimore Baltimore -10% -13% Dallas Dallas -14%

-20% 0% 20% 40% 60% 80% 100% 120%

Source: Newmark Knight Frank

Philadelphia's affordability, a byproduct of slow growth and modest demand, can be a central selling point in a campaign to market Center City as a preferred business location throughout the Northeast.

Regional Average Asking Rents, 2020

Price per square foot University City $50.12 The Navy Yard $46.85 Radnor $45.40 Conshohocken $41.06 Bala Cynwyd $34.95 Center City Philadelphia $33.23 King of Prussia/Wayne $31.66 Delaware County $27.85 Plymouth Meeting/Blue Bell $27.63 Malvern/Exton $26.64 Lower Bucks County $25.88 West Chester $25.73 Fort Washington $25.41 Wilmington CBD $24.03 Horsham/Willow Grove $23.67

Source: JLL Research

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 16 | State of Center City

Center City Average Asking Rent Center City Occupancy Rate by Class 16 Dollars per square foot Trophy Class A Class B Trophy Class A Class B $45 $42.71 100%

$40 95% 93.6%

$35 $32.92$3292 $28.97 90% 91.0% $30 86.5% 86.5% $26.77 $28.62 85% $25 85.5% 85.4% $22.49

$20 80% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note: The increase in average Trophy class rent in 2020 Source: JLL Research Source: JLL Research reflects a significant increase at one building.

While life science tenants have many reasons to cluster in University City, proximity to Thomas Jefferson University and the availability of many affordable and easily adaptable older GIRARD AVE buildings creates an opportunity for Center City landlords.

Greater Philadelphia Spring House Myoderm Global HQ Life Sciences Inventory Innovation Park 100 Progress Dr, Horsham Pipeline Under 727 Norristown Rd, Ambler 65,000 SF 141,000 SF Construction and Proposed Construction/ Protecs Expansion Conversions 3700 Horizon Dr, Upper Merion 74,000 SF

Proposed 1500 Spring Garden 200,000 SF Proposed Partial Conversion

Under Construction ROAD ST Build to Suit B

Under Construction VINE ST Speculative Schuylkill Yards 3025 JFK

Source: Newmark Research 775,000 SF

Cira Centre 2939 Arch 182,000 SF One uCity Square 1 Filbert 833 Chestnut 390,000 SF MARKET ST City Hall 90,000 SF

One South Broad 3.0 University Place Schuylkill Yards The Curtis 1 South Broad 4104 Market 3151 Market 601 Walnut 92,000 SF 240,000 SF 450,000 SF 300,000 SF

Powelton Yard 100 N 32nd 125,000 SF

PINE ST

Navy Yard Iovance Biotherapeutics 2500 League Island 300 Rouse 110,000 SF 136,000 SF CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation

TASKER ST Office| 17

Significant Office Leasing Transactions in Center City, 2020

MARKET WEST

TENANT BUILDING CLASS SIZE (SF) TYPE

Blank Rome One Logan Square Trophy 196,000 Renewal Army Corps of Engineers 1650 Arch St A 101,000 Relocation Hana Beneficial Bank Place A 50,745 New to Market Passage Bio One Commerce Square Trophy 37,414 Relocation Dechert 1735 Market St Trophy 34,987 Relocation QTC Management One Penn Center at Suburban Station B 29,788 Expansion GrubHub Three Parkway A 28,214 Blend and Extend Evolution Gaming 1500 Spring Garden St B 24,011 New to Market Olin Partnership One Penn Center at Suburban Station B 23,571 Relocation FreedomPay 2401 Walnut St A 14,453 New Lease Ricci Tyrrell Johnson & Grey 1515 Market St A 13,511 Renewal Naulty Scaricamazza & McDevitt One Penn Center at Suburban Station B 12,000 Renewal Bohler Engineering 1515 Market St A 11,350 New to Market Service Employees International Union 1515 Market St A 10,429 Renewal Local 32BJ GIRARD AVE AJO 230 S Broad St B 10,387 Renewal

MARKET EAST

TENANT BUILDING CLASS SIZE (SF) TYPE

Mindspace The Wanamaker Building A 41,277 New to Market Greater Philadelphia Spring House Myoderm Global HQ Life Sciences Inventory Innovation Park 100 Progress Dr, Horsham Weir & Partners The Widener Building A 21,924 Renewal Pipeline Under 727 Norristown Rd, Ambler 65,000 SF 141,000 SF Construction and Imvax The Curtis A 17,000 Relocation Proposed Construction/ Protecs Expansion City Of Philadelphia Aramark Tower A 15,231 Relocation Conversions 3700 Horizon Dr, Upper Merion 74,000 SF BDP International One Washington Square A 13,331 Renewal Hachette Book Group Wells Fargo Building B 11,500 Relocation Proposed 1500 Spring Garden 200,000 SF Proposed Philadelphia Futures Wells Fargo Building B 11,217 New Lease Partial Conversion Thomas Jefferson University Aramark Tower A 10,156 New Lease

Under Construction ROAD ST Build to Suit B Source: JLL Research Under Construction VINE ST Speculative Schuylkill Yards 3025 JFK

Source: Newmark Research 775,000 SF

Cira Centre 2939 Arch 182,000 SF One uCity Square As the challenges of 2020 recede, the Center City office district 1 Filbert 833 Chestnut 390,000 SF MARKET ST City Hall 90,000 SF can grow beyond a pattern of renewals and lateral moves to become a place that attracts in-moving companies and new One South Broad 3.0 University Place Schuylkill Yards The Curtis 1 South Broad 4104 Market 3151 Market 601 Walnut firms in expansion mode. 92,000 SF 240,000 SF 450,000 SF 300,000 SF

Powelton Yard 100 N 32nd 125,000 SF

PINE ST

Navy Yard Iovance Biotherapeutics 2500 League Island 300 Rouse 110,000 SF 136,000 SF Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG

TASKER ST 18 | State of Center City

18

Health Care & Services Photography University ©Thomas Jefferson Kirchhoff | Karen Jefferson Education

In 2020, Philadelphia’s health care institutions were the epicenter In 2020, while front-line workers staffed hospitals 24-7, pro- of the response to the COVID-19 epidemic. Jefferson Health and fessional, technical and administrative staff in hospitals and Penn Medicine converted parking lots to walk-in and drive-in academic institutions worked remotely, like other office em- testing sites and then deployed multiple vaccination sites across ployees. Classes shifted online and telemedicine replaced office the city and region. Temple University converted the Liacouras visits. Closed buildings reduced demand for administrative and Center into an overflow hospital for coronavirus cases, before support personnel. As a result, employment in health care and transforming it into a site for vaccinations. Hospital beds and education declined in 2020. Health care and social assistance personnel were consumed by the treatment of serious cases. employment was down by 6,000 between March and December, with losses primarily in social assistance jobs. Educational in- In 2019, health care and education provided 242,800 jobs stitutions shed 9,400 jobs during this period. As students return citywide in the public and private sectors, approximately one- to the classroom this fall, doctors’ offices reopen and day care third of all payroll employment in Philadelphia. In Center City, and other social services resume, most of these jobs should be these sectors accounted for 18% of employment with 55,000 restored. However, the broader decentralizing trends that bring jobs. During the prior decade, private health care employment services closer to where people live are likely to continue. growth in Philadelphia reflected the expansion of ambulatory care services – offices of doctors and other health care practi- Center City’s 12 institutions of higher education collectively tioners, outpatient care centers, laboratories, and home health enrolled 30,934 undergraduate and graduate students in the care services. From 2009 to 2019, private ambulatory care em- fall of 2019, including 16,000 at Community College of Philadel- ployment increased 42%, while hospital employment increased phia and 8,000 at Thomas Jefferson University. The Center City 1% and nursing and residential care facilities declined 8%. campuses of Drexel University and Temple University enrolled an additional 2,100 and 700, respectively. Including nearby

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Health Care & Education | 19

institutions – Temple’s main campus in North Philadelphia, and In 2020, Philadelphia’s research institutions attracted $1.1 bil- the University of Pennsylvania, Drexel University, and the Univer- lion in National Institutes of Health funding, the fourth-highest sity of the Sciences in University City – the total higher education total among major U.S. cities. Combined research spending at enrollment in or near Center City exceeded 110,000 in 2019. Drexel, Temple, Jefferson, and Penn totaled $2 billion in 2018. In 2020, the University of Pennsylvania, in partnership with Chil- While the pandemic forced many institutions to transition to dren’s Hospital of Philadelphia and The Wistar Institute, began virtual learning, colleges and universities located in or near research on the health impacts of COVID-19 on children. Center City estimate that 80% of students who previously lived in Philadelphia, on campus or off, returned to the city in fall 2020. These academic, research and medical institutions have helped Temple University reported more than 12,000 students living on Philadelphia emerge as a national center for life sciences, fos- and around campus in the 2020-2021 academic year, with 1,000 tering new startups and attracting new businesses. While most residing in ZIP codes of 19123 and 19130. The presence of growth is concentrated in University City, several older buildings students helped sustain both the apartment market and down- in Center City that can support heavy floor loads and have good town retail, making up 13% of the adult population in Greater ventilation are attracting lab space. Venture capital has played a Center City. large part in the explosive growth of these small labs. According to Bridge Bank, in 2010 there were 113 deals in Philadelphia. Graduates of these institutions form a critical mass of well- That number surged to 260 in 2019 and reached a high of 221 educated workers, creating a powerful lure for Philadelphia’s in 2020, despite the pandemic. Health care and education have growth industries. Health sciences are the major for 28% of therefore remained not only a mainstay of today’s economy, they local college graduates; science, technology engineering and are laying the groundwork for Philadelphia’s next economy. math (STEM) accounts for another 20%; business degrees are earned by 19%. A growing number of college graduates have been staying in Philadelphia, contributing to the 44% increase since 2000 in Greater Center City of residents in the 20-34 age group. They now number more than 70,000.

National Institutes of Health Funding, 2020

Boston $2.26B

New York $2.19B

Seattle $1.55B

Philadelphia $1.16B

Los Angeles $1.16B

Baltimore $1.12B

Chicago $972M

Durham $925M

La Jolla $895M

San Francisco $836M

Houston $731M

Pittsburgh $675M

Source: U.S. Department of Health and Human Services, National Institutes of Health

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 20 | State of Center City

Private Employment in Education and Health Care, Philadelphia City and Pennsylvania Suburbs, 20 2009-2019

PHILADELPHIA SURROUNDING COUNTIES (PA)

2009 2019 % CHANGE 2009 2019 % CHANGE Educational service, health care 191,325 227,005 19% 201,017 247,609 23% and social assistance Educational services 57,477 58,359 2% 34,030 33,266 -2% Health care and social assistance 133,848 168,646 26% 166,987 214,343 28% Ambulatory health care services 29,869 42,342 42% 59,507 76,951 29% Hospitals 61,295 62,059 1% 38,867 38,892 0% Nursing and residential 19,103 17,556 -8% 45,491 49,886 10% care facilities Social assistance 25,821 49,391 91% 23,122 48,615 110%

ALL INDUSTRIES 518,304 595,612 15% 1,046,599 1,149,587 10%

Note: Pennsylvania suburbs include Bucks, Chester, Delaware, and Montgomery counties. Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

In the last 20 years, there has been a significant increase in the number of adults with college degrees and a dramatic decline of those without a high school diploma.

Educational Attainment of Philadelphia Residents, Age 25 and Older

Less than High School High School Some College Bachelor’s Degree or More 2019 15.3% 32.6% 22.4% 29.7%

2010 20.6% 35.6% 21.5% 22.2%

2000 28.8% 33.3% 20.0% 17.9%

Source: U.S. Census Bureau, 2000 and 2010 decennial census, and American Community Survey 2019 five-year estimate

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation GIRARD AVE

Health Care & Education | 21 Temple University, Main Campus 34,551

Community College of Philadelphia 15,996

ROAD ST

B

VINE ST

Drexel University, Moore College CC Campus 2,103 of Art & Design Pennsylvania Academy 408 of the Fine Arts 273

Temple University, MARKET ST CC Campus City Hall 778 Hussian College Drexel 128 University 15,812 JNA Institute of Culinary Arts Thomas Jefferson University of 29 University Pennsylvania 8,026 26,675 Curtis Institute of Music Academy of 173 Vocal Arts University of 24 the Arts Peirce University of PINE ST 1,861 the Sciences College 2,285 1,178

Higher Education Enrollment, Fall 2019 110,300 students enrolled in higher education institutions in and around Center City

Sources Temple University Fact Book Drexel University Factbook, 2018-2019 < 500 501–2,000 2,001–10,000 > 10,000 ational Center for ducation Statistics

Degrees Conferred by Type, 2019

Health Fields 28.3% STEM 20.2% TASKER ST Business 18.7% Nearly half of recent college Liberal Arts 14.7% graduates have degrees in Visual and 6.5% 31,261 Performing Arts health, science, technology, Graduates Education 4.9% Legal Professions engineering and math. and Studies 3.0% Other 3.7%

Source: U.S. Department of Education, National Center for Education Statistics, Intergrated Postsecondary Education Data System

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 22 | State of Center City

Research Expenditures at Center City and Adjacent Universities 22

Expenditures ($ in Millions) 2014 2015 2016 2017 2018 $1,600

$1,400 .9

$1,200 4.3 7 $1,4 41

$1,000 $1,3 $1,296. 4

$800 1

$600 $864. $828.4 .0 1 .5 76

$400 4. 46.4 .9 $2 $268.4 $2 $227 $22 $155. 9 $148.6 $142.6

$200 $138. 6 $122. 4 $131.2 $118.4 $119.6 $127 $128 .0

$0 Drexel University Temple UniversityThomas Jefferson University University of Pennsylvania

Source: National Science Foundation, National Center for Science & Engineering Statistics, Higher Education R&D Survey

New Patent Applications Startups

2015 2016 2017 2018 2015 2016 2017 2018 250 20 18 18 7 16 200 19 5

1 15 17 17 13

150 145 132

120 10

100 92 7 75 6 6 68 64 5 5 5 53 53 4 4 51 50 4 3 3 38 36 28 24

5 1 1 0 * * 132 * 17 0 * * * * Drexel Temple Thomas Jefferson University of Children's Hospital Drexel Temple Thomas Jefferson University of Children's Hospital University University University Pennsylvania of Philadelphia University University University Pennsylvania of Philadelphia

Source: Association of Technology Managers, Licensing Activity Survey 2018 Source: Association of Technology Managers, Licensing Activity Survey 2018

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Chapter Name| 23

Conventions, VISIT PHILADELPHIA® for Philadelphia | J. Fusco Monaco Hotel Kimpton Tourism & Hotels

No sector in Philadelphia was challenged more profoundly by 2019, could rebound slowly by the second half of 2021 with new the pandemic than tourism and conventions. The sudden loss safety protocols in place. Conventions may also include hybrid of visitors rippled through the local economy, eliminating jobs models with reduced in-person attendance and increased in hotels, restaurants, and cultural organizations, depressing virtual programming. airline travel, tax revenues and vitality on Center City sidewalks. During the last three decades, Center City emerged as a highly Hotel occupancy dropped from 76.3% in 2019 to 14.8% in the competitive convention and tourist destination, due to major second quarter before inching up slowly in the fourth quarter of investments in the Pennsylvania Convention Center, new visitor 2020 to 22.5%. The pandemic resulted in the loss of 600 sched- destinations around Independence National Historical Park, and uled group events, a 78% decline in international travel and new hotels, restaurants and cultural institutions throughout the an estimated loss of $3.2 billion in spending, according to the downtown. Promoted by sustained marketing and sales efforts, Philadelphia Convention and Visitors Bureau. the city experienced steady growth in convention, group, busi- Recovery will be gradual. As vaccination rates increase, leisure ness and leisure travel. This produced significant job growth, travel should return first as consumers choose shorter trips to with accommodation and food services adding 17,850 private nearby destinations. In 2019, leisure travel accounted for 33% of sector jobs citywide from 2002 to 2019. The COVID-19 pandemic room demand. Philadelphia’s location on the dense Northeast temporarily erased these gains, with a loss of 23,400 jobs Corridor, well served by highways and trains, provides a distinct from March to September 2020, a 40% decline. As restrictions advantage. Business travel, which accounted for 31% of room relax on business activity, as travelers gain confidence and as demand in 2019, will mirror the process of business openings vaccinations increase and cases decline, employment will throughout 2021 and 2022. Conventions, trade shows and steadily rebound. group travel, which accounted for 32% of room demand in

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 24 | State of Center City

Prior to the pandemic, the Pennsylvania Convention Center The average daily room rate (ADR) for Center City decreased 24 hosted 17 conventions and events in early 2020, with 1.2 mil- from a high of $202 in 2019, to $156 in 2020, comparable to lion attendees. It then took on new civic purposes, serving as a rates during the Great Recession in 2008-2009. Rates are fore- vote counting center in the general election of 2020 and a mass cast to gradually increase over the next three years, as demand vaccination site in 2021. increases. Total hotel revenue decreased from a modern-day high of $707 million in 2019 to $176.9 million in 2020. To position the center for the return of conventions and other events, the Pennsylvania Convention Center Authority made new Nonetheless, betting on a strong recovery for Center City’s leisure investments to enhance health safety, including upgraded air sector, the Canopy by Hilton and the Hyatt Centric opened in handling units, and received the Global Biorisk Advisory Coun- 2020, increasing downtown room inventory to over 13,000. cil's (GBAC) Star accreditation on outbreak prevention, response Forecasts for Center City anticipate a slow recovery in 2021 and recovery. There are currently 18 major conventions still as the vaccine becomes more widely available, with increasing on the books for 2021, although plans are subject to change, demand in the third and fourth quarters. It is estimated that given the uncertainty of health guidelines for large events. The ADR and occupancy rates may not return to 2019 levels until Philadelphia Convention and Visitors Bureau (PHLCVB), which is at least 2023. prepared to start booking new events, conservatively estimates that total attendance for 2021 will be 100,000, less than one- tenth of 2019 levels. To promote leisure travel, which accounted Average Daily Room Rate for Center City Hotels for 464,000 room nights in 2020, Visit Philadelphia’s marketing $250 campaign, #ourturntotourist, is focused on those within easy driving distance. $202 In 2020, counting about 75 days of normal business before the $200 pandemic, the yearlong occupancy rates averaged 30.9% with $173 1.1 million occupied hotel room nights. Many Center City hotels decided by the end of March 2020 to temporarily suspend oper- $150 ations, including The Loews Hotel Philadelphia, the Downtown $156 Marriott and the Warwick Rittenhouse Square, while others were repurposed by the City as quarantine sites for the home- less, including the Holiday Inn Express at Sansom and Juniper $100 streets and the Fairfield Inn. With temporary hotel closures, 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 room inventory dropped to 10,016. Source: Philadelphia Convention & Visitors Bureau

Occupied Center City Hotel Rooms by Purpose of Trip, 2008-2020

Group and Room Nights Individual Leisure Commercial* Convention Airline Government 4,000,000 62,000 3,500,000 1,,,117,000 3,000,000 69,212 97,207 2,500,000926,476

2,000,000 987,894 689,002 1,500,000 68,600 409,800 696,940 189,900 1,000,000704,880 464,000 409,800 500,000 677,215 464,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

*Beginning in 2018, the commercial category includes government. Source: STR Inc. and TravelClick, provided by Philadelphia Convention & Visitors Bureau

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Conventions, Tourism & Hotels | 25

In 2020, 366,300 international visitors came to the Philadelphia Older hotels are responding with rebranding and renovations. region, generating an economic impact of $253.3 million. Visi- The Sheraton Philadelphia Downtown underwent a $30 million tors from Canada and Mexico accounted for 68% of international upgrade to its 760 rooms and fitness center. The Philadelphia travelers. Due to pandemic-related travel restrictions, Phila- Marriott Downtown began extensive renovations including delphia International Airport handled fewer than 11.9 million technology upgrades to public workstations and WiFi access passengers in 2020, a 64% decrease from the 2019 all-time points, renovations to the hotel entrance and all 1,408 guest annual record of 33 million passengers. January and February rooms, and a new grab-and-go market in the lobby. 2020 had year-over-year increases in travelers, 2.5% and 4.45% respectively. PHL was temporarily stripped of its “funneling Historic Attraction Attendance, 2019–2020 airport” status, resulting in nearly six months where it was unable to receive travelers from countries including the top two 2019 2020 feeder markets, the U.K. and China. International travel suffered an almost 83% drop and domestic travel fell by 61% from 2019. Independence National Historical Park (all attractions)* 4.6M During this time PHL increased its airmail capacity, transporting 907K upwards of 53,268 tons of mail in 2020, an almost 87% increase Independence Visitor Center from 2019. 2.5M 360K Eight hotel projects under construction or proposed in Center Liberty Bell Center City will expand downtown supply to more than 14,000 rooms by 2.0M the end of 2021. Those currently in the pipeline with an antici- 291K pated completion date of 2021 include the Element by Westin, Independence Hall W Hotel, MainStay Suites/Ascend Hotel Collection and Comfort 561K Inn Arch Street. Collectively, they will add 1,093 rooms. In the 69K planning phases are 1101 Walnut Street, a short term apartment National Constitution Center 260K concept operated by San Francisco-based Sonder, AC Hotel by 80K Marriott, 2300 Market Street and Blue Ivy Hotel. These will join Betsy Ross House the recently opened Canopy by Hilton Philadelphia Center City 196K and Hyatt Centric Philadelphia. 22K

Christ Church and Burial Ground *Note: Figures for Independence National Historical Park are estimates of the number of unique visitors and do not 126K represent the sum of all visits to individual attractions. Source: Individual organizations

Availability & Occupancy of Center City Hotel Rooms, 2008-2020

Hotel Rooms Occupancy

14,000 85%

70.8% 13,000 73%

12,000 61%

11,000 49%

30.9% 10,000 37%

10,045 10,262 10,580 10,586 10,813 11,199 11,210 11,119 11,139 11,675 12,283 12,76710,016 9,000 25% 2008 2009 2010 2011201220132014 2015 2016 20172018 2019 2020

Room Supply Occupancy Rate Source: STR Inc., provided by Philadelphia Convention & Visitors Bureau

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG GIRARD AVE

26 | State of Center City Conventions, Tourism & Hotels | 26

Hotel Developments 26 in Center City, 2020 and 2021

Rooms:

100 or Less VINE ST 101–250 AC Hotel by Marriott 251–450

BROAD ST Mainstay Suites/Ascend Hotel Collection 451–800 Comfort Inn Arch Street More than 800 2300 Market City Hall MARKET ST W Hotel Canopy by Hilton Element by Westin Proposed Blue Ivy Hotel 1101 Walnut Under Construction Hyatt Street Centric Opened in 2020

Existing Hotels PINE ST

Source: Visit Philadelphia, Center City District, and Philadelphia Convention & Visitors Bureau

Center City Hotel Occupancy, Weekday vs. Weekend, 2008-2020

Occupancy Rate Weekday (Mon–Thurs) Weekend (Fri–Sat) Sunday 100%

80%TASKER ST

60%

40%

20% % % % % % % % % 0% 1% 7% 7% 0% .5 % .3 % .1 7% .3 % .3 % .3 % .2 % .9 % .9 % .5 % .9 % .3 % .0 .7 .2 % .6 % .4 % .3 % .6 % .1 .2 % 73 74 54. 69.8 % 75 51.3% 74 76 51. 74 75 54.4% 74 56.6% 73 81.2% 57 79 84. 57 78.7 86 .1 60 80 87 62.3 % 76 84.6% 60 28. 38. 24 80 56 .1 77 84. 76 84.4% 0% 59.4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: STR Inc., provided by Philadelphia Convention & Visitors Bureau

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Chapter Name| 27

Arts & Culture | Matt Stanley Philadelphia Orchestra Opera Dilworth

At the beginning of 2020, Center City was the setting for 357 surged. Institutions began to reopen in January 2021 in museums, theaters, dance companies and other cultural orga- accordance with state and local guidelines. Overall, the arts, nizations, second only behind New York in the number of arts entertainment, and recreation sector lost 43% of its jobs and cultural institutions downtown, ahead of Boston, Chicago, in 2020. San Francisco, Seattle and Washington. Employment in arts, From the onset of the crisis, organizations began innovating, entertainment and recreation increased by 40% citywide from providing programming virtually to members and visitors. The 2010 to 2019, peaking at 13,627 jobs. Barnes Foundation launched the Barnes-DeMazia Education While cultural institutions are clustered along the Avenue of the program, hosting more than 2,600 students in 46 online classes. Arts, the Benjamin Franklin Parkway and in Old City, the map The Barnes Takeout YouTube series reached 400,000 viewers, as on page 29 shows how many blocks in Philadelphia’s walkable curators, scholars and educators discussed their favorite works downtown were enlivened by arts, cultural and civic attractions. in the collection. The Philadelphia Museum of Art also turned to The growth in arts and culture, as well as the expansion of virtual offerings and moved the 44th Annual Contemporary Craft the hospitality industry, correlated closely with the restaurant show, typically held at the Pennsylvania Convention Center, to renaissance in Center City. its website. More than 150 artists appeared virtually in viewers’ homes talking about their work. In March 2020, cultural and performing arts organizations were directed to close in response to the pandemic. Tourists and The National Constitution Center launched a free eight-week regional visitors disappeared, stages went dark and museums series of daily interactive courses on the Constitution for middle were ordered to close. Restrictions were briefly relaxed in July, school, high school and college students. Eastern State Peni- but tightened again in late November as new COVID-19 cases tentiary led virtual tours exploring the building’s history, offered

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 28 | State of Center City

online conversations about criminal justice via The Searchlight multilingual images that relayed important COVID-19 prevention 1500028 Series and through a new Prisons and the Pandemic video se- messages. CCD also started slowly and cautiously to program ries, informed the public of the devastating effects of COVID-19 Dilworth Park in accordance with state and local guidelines, in correctional facilities. launching a weekly Dinner at Dilworth promotion for restaurant takeout, presenting a performance by Opera Philadelphia and In a similar fashion, with restrictions barring large gatherings, 12500 hosting a variety of holiday and winter events, drawing 6 million many performing arts groups moved online. The presenting visitors to the park in 2020. companies at the Kimmel Center offered a wide variety of virtual 10000 programs, including the launch in fall 2020 of the Opera Phila- Public engagement through virtual programming, while delphia Channel — a subscription streaming channel enabling successful, cannot curtail the substantial losses of revenue viewers to enjoy Opera Philadelphia’s 2020-2021 season at throughout the arts and culture sector. Attendance plummeted home. In June, the Pennsylvania Ballet presented the Front Row at cultural institutions and parks that normally featured 7500 Festival, a free 10-day digital series of classical and contem- extensive programming. Many theaters anticipate in-person 2009 2009 2010 2011 2012 2013 2014 2015 2016 2018 porary ballets that received over 10,000 views. Other theaters performances resuming in the fall, while others may wait until relied on virtual programming, including readings on Zoom, winter. Restoring tourism and conventions and reconnecting 5000 streaming productions, and online conversations with artists with regional audiences are essential components for the and directors. recovery of the arts and culture sector.

In spring 2020, Mural Arts Philadelphia, the nation’s largest public art program, working in conjunction with the Center City District, commissioned artists to decorate boarded-up storefront windows with works that conveyed messages of Arts and entertainment hope, resilience and beauty. Additionally in partnership with the City of Philadelphia, Mural Arts hired over 25 artists to design employment grew by 40% between 2010 and 2019.

Arts, Entertainment and Recreation, Private Wage Museum, Visitor Destination and Park Attendance and Salary Employment, Philadelphia ORGANIZATION 2019 2020

Jobs Reading Terminal Market 7,756,235 2,870,394 15,000 Dilworth Park 10,687,000 5,999,843 Liberty Bell Center 2,043,710 291,407 13,627 Franklin Square 795,160 228,445 13,125 Franklin Institute 839,804 134,131 Philadelphia Museum of Art 761,843 175,517 Independence Hall 546,549 68,484 11,250 National Constitution Center 252,691 80,098 Eastern State Penitentiary 444,348 73,616 The Barnes Foundation 259,164 66,776 9,375 Academy of Natural Sciences of Drexel 205,294 45,014 9,751 University Pennsylvania Academy of the Fine Arts 213,000 34,464

7,500 Museum of the American Revolution 277,150 40,493 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mural Arts 25,000 20,000 Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (2020 includes virtual programming)

Source: Individual Institutions

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Arts & Culture | 29 GIRARD AVE

Arts and Cultural Organizations, 2020

Annual Attendance:

< 10,000 10,000–24,999

25,000–49,999

50,000–99,999 VINE ST

BROAD ST BROAD 100,000–249,999

250,000–499,999

MARKET ST City Hall > 500,000

Community Arts and Education Museums, Visual Arts, PINE ST Historic and Scientific

Performing Arts

Support and Advocacy

Source: National Center for Charitable Statistics databases, compiled by SMU DataArts

Downtown Arts and Cultural Organizations, 2020

Museums History Organizations All Other Dance Theater Music Other Performing Arts (Not Including (Including History Museums) Organizations History Museums)

Midtown Manhattan 1,043

Downtown Manhattan 367

Center City Philadelphia 357 Comparative Population, 2019

Downtown Washington 354 8.4M

Downtown San Francisco 308

Chicago 253 Loop 2.7M Downtown 240 Boston 1.6M Downtown 875K 724K 693K 684K Seattle 148

New York City Chicago Philadelphia San Francisco Seattle Washington, D.C. Boston Source: IRS Business Master File, December 2020, compiled by DataArts; U.S. Census Bureau, American Community Survey, 5-Year Estimates, 2015-2019

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 30 | State of Center City

30

Retail | BeauMonde Originals Retail Street Walnut

Demand for Center City retail has been built upon a diversi- Retailers and restaurants in central business districts across fied base of office, education and health care workers, a large the country have been challenged by the combined impact of and growing downtown population and an expanding num- global ecommerce trends, local civil unrest and the mandat- ber of tourists and convention attendees. At the center of the ed withdrawal of a large portion of their daily customer base. region’s highway and transit system, Center City is the most Nationally, several major retailers declared bankruptcy and concentrated employment node in the region, hosting 42% of shuttered their stores. National closures in 2020 that affected Philadelphia’s jobs, creating opportunity for residents of all city Philadelphia include Gap, Aldo, Loft, Century21 and Lucky Brand. neighborhoods and surrounding counties. In 2019, Greater Cen- The pandemic accelerated the long-term trend toward ecom- ter City’s 309,000 workers, 98,000 households and 3.5 million merce. Between 2000 and 2019, ecommerce steadily expanded overnight visitors concentrated between 400,000 and 500,000 market share. Just prior to the pandemic, 11.2% of national people downtown each day, generating $2.9 billion in retail, food retail sales took place online. With mandated closings in 2020, and beverage demand. ecommerce rose to 16.1% of all sales during the second quarter In 2020, the pandemic and stay-at-home directives from the of 2020 before dipping to 14.3% in the third. Retail giants such City and State significantly reduced the numbers of people as Amazon, Walmart, and Instacart continue to attract buyers who came into Center City each day for work, school, medi- with low prices and convenient home delivery, creating chal- cal appointments, leisure and entertainment. Most downtown lenges for local retailers. residents remained. The absence of others eroded the customer Nevertheless, brick and mortar retailers both large and small base for the 1,900 retail, restaurant and service businesses that stayed relevant to their customers by integrating ecommerce occupy the ground floor of commercial and residential buildings into consumer options. With more than 85% of sales nation- and the indoor shopping centers within the Center City District. ally still taking place in physical stores, Center City offers the experience of walking on vibrant streets, offering customers the

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Retail| 31 ability to discover a unique mix of local and regional owner-pro- District, road closures have continued since summer 2020 on prietors. Local and regional shops make up 70% of downtown South 13th Street, South 18th Street and on the 1500 block of tenants and they can capitalize on proximity to both well-known Sansom Street. CCD conducted four surveys of outdoor seat- national chains and an unparalleled array of restaurants, arts, ing, showing an overall increased outdoor capacity in the fall and cultural institutions. Quality merchandising and customer followed by a small decline in the winter and rebound in early service, and the ability to offer an unmatched experience, all 2021. To sustain restaurants, especially those unable to invest in remain hallmarks of successful urban retail. heated outdoor seating, CCD launched a “Takeout Philly” mar- keting campaign during the first quarter of 2021 to encourage Center City District manages 20 digital counters on key retail residents to order directly from restaurants and tip generously. corridors and in the primary office district. Volumes initially Despite a challenging year, Center City saw several notable dropped 88% from 2019 levels after the stay-at-home order in openings including The Wayward, Huda, Steak 48, Cockatoo, March 2020. Average daily pedestrian counts at these sample and Federal Donuts. locations then rose from a low of 23,233 in April to 91,574 in October with the expansion of outdoor dining. Volumes tapered Center City merchants have shown extraordinary creativity and off at year-end following a second spike in COVID-19 cases. Data resilience, adapting to one of the greatest challenges most from Placer.ai, which samples anonymized cellphone data, have experienced in a lifetime, during a time of unprecedented suggests that the volume of downtown pedestrians increased national political uncertainty. In early 2021, restaurateur Jose slightly during the summer and fall of 2020, although overall Garces repurposed his full-service restaurant, Tinto, as a wine counts remained below 2019 due to the absence of workers, shop focused on takeout and delivery orders. Vesper and Olo- tourists and non-resident shoppers. roso also temporarily switched to “ghost kitchens” — Hunnie’s Crispy Chicken and Remi Ricotta, respectively — focusing only For restaurants, outdoor dining, takeout and delivery were the on delivery orders. Local proprietors that sell food, like Metro- survival strategy to adapt to indoor dining restrictions. While politan Bakery, DiBruno Brothers and Reading Terminal Market, Center City restaurants were able to deploy sidewalk seating successfully integrated ecommerce into their business model. since the late 1990s, the Department of Commerce and the Office of Transportation, Infrastructure and Sustainability per- mitted sidewalk seating to expand citywide and expedited the approval of temporary street closures to enable the placement of socially distanced chairs and tables in roadways. Within the

Center City Retail Mix, January 2021 Center City District Retailer Status, January 2021 342 Fully Open 451 Boutique/Independent/ Local Retailers Appointments, Online 29 sales and/or Curbside Pickup only 210 Temporarily Closed 42 National Retailers 552 Retailers Permanently Closed 30 Surveyed Source: Center City District Survey 229 Apparel 24 Entertainment Jewelry & 117 22 Art, Collectibles, Watches or Hobbies 75 Food or Drink 19 Optical Retailers 14 General 51 Beauty, Health, Merchandise or Fitness 8 Bookstore 34 Home & Garden 32 Other 27 Electronics

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 32 | State of Center City

Openings on the horizon for 2021 include Victory Brewing, Center City possesses all the diverse components required for Brooklyn's Van Leeuwen Ice Cream and Chicago’s Sunnyside. revival, the restoration of jobs, the reopening of restaurants and Existing high street retailers, such as Tiffany & Co., Govberg shops and the creation of new businesses. CCD is actively sup- Jewelers, Dr. Martens, and Wells Fargo, have moved to new porting Center City’s retail recovery and growth through direct locations on West Walnut. Overall, brokers report many new outreach to brokers and store representatives, detailed data and prospects actively seeking locations in Center City in the first market research, advertising campaigns and story placements quarter of 2021. in trade publications to elevate Philadelphia’s retail profile, as well as an online presence (www.philadelphiaretail.com) that positions Center City as an attractive place to open for business. However, getting office workers and hotel guests back in Center City is essential for retail and restaurant revival and restored prosperity.

Shifts to Ecommerce Trends, 2020

Ecommerce Market Share Prior Current Future 20%

15%

10%

5%

0% 5% 14% 14% 8% 18% 18% 4% 11% 12% 3% 11% 12% 5% 13% 16% 6% 14% 15% 8% 15% 16% 8% 15% 16% 6% 14% 15% 6% 13% 15% 6% 13% 15% Food Takeout Alcoholic Prescriptions Personal Home DIY Tools Apparel, Luxury Consumer Average (for cooking or Delivery Beverages Care Items Décor and Materials Footwear and Goods Electronics at home) Accessories

Source: Accenture COVID-19 Consumer Research, conducted April 17-27, 2020

Center City District Service Establishment Status, January 2021

Fully Open 306 307 Fully Open Customer Request, 118 CustomerMany Request, traditional retailers Appointments and/ 120 Appointments and/ or Teleservice oradded Teleservice ecommerce options 494 Temporarily Closed 46 46 Temporarily Closed Service Permanently Closed 24 Establishments 24 Permanentlyto stay Closed connected to Surveyed Source: Center City District Survey their customers.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation < 500

501–2,000

2,001–10,000

> 10,000

GIRARD AVE

33 | State of Center City Chapter NameRetail| 33

Outdoor Seating in Center City,

ROAD ST

January 2021 B

VINE ST 10 or less 11 to 25 26 to 50

51 to 100

101 to 240

MARKET ST City Hall

Sidewalk Cafe Only Sidewalk Cafe and Streetery Streetery Only

Source Center City District Survey

PINE ST

Outdoor Seating at Center City District Restaurants

OUTDOOR SEATING TYPE JUNE 2020 SEPT 2020 DEC 2020 JAN 2021 FEB 2021 MAR 2021

Sidewalk Cafe N/A 2,628 2,355 1,549 1,541 1,876 Sidewalk Cafe and Streetery N/A 2,414 2,148 1,961 1,938 2,191 Streetery Only N/A 110 196 206 174 339

TOTAL 2,997 5,152 4,699 3,716 3,653 4,406

Source: Center City District Survey

Center CityTAS KERDistrict ST Food Service Establishment Center City District Food Establishments, Status, January 2021 January 2021

251 Full Service Restaurant Open for Takeout, 219 Full Service Restaurant 249 Pickup or Delivery Only 249 Takeout, Sandwich, Takeout, Sandwich, 248 or Quick Service Open for Eating or Quick Service 208 64 Coffee Shop On Premises Coffee Shop 63 (indoor and/or Outdoor) 21 Nightlife 624 624 Nightlife 21 Food Service Temporarily Closed 150 14 Bakery Food Service Bakery 14 Establishments Establishments 14 Bar Surveyed Permanently Closed 47 Bar 14 Surveyed 14 Ice Cream, Water Ice, Ice Cream, Water Ice, Source: Center City District Survey 14 Frozen Yogurt Frozen Yogurt 1 Other* Other* 1 *Reading Terminal

Source: Center City District Survey

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 34 | State of Center City

Average Daily Center City Pedestrians: Residents, Workers, and Other Visitors (in Thousands) 34

Others Workers Visitors and Others

250

215 200

168 150 141

100

59 50 46 54

0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Source: Placer.ai

The full return of office workers, regional visitors and shoppers is essential to retail and restaurant recovery. % 7% .3 % 4.3 % 84.6 % 60 28 .7 Average Daily Pedestrians, Weekday38. 2 Weekend

Weekday Weekend 120,000

100,000

80,000

60,000

40,000

2

20,000 2 3 7 7 7 1 9 73 44 24 92 30 16 045 160 ,1 ,848 01 ,253 ,48 ,32 ,7 00 ,42 1 , 044 ,5 ,456 0,7 3,603 6,34 64,848 65,22 1 62,999 65,56 105,436 81, 32, 2 60 38, 57 47 72 79 70, 87 87 9 9 75 83,60 66, 68,482 87 94,3 0 60 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Source: Center City District

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Retail | 35 % % % 7% .3

Average Daily Pedestrians by 4.3 % Location and Quarter, 2020 84.6 60 28 .7 38. 2

Q1 Q2 Q3 Q4 15,000

12,000

9,000

6,000

3,000

0 * 1200 Block 1200 Block 1200 Block 13th & 1600 Block 16th & 1700 Block 1700 Block 17th & 1800 Block 800 Block of Chestnut of Market of Walnut Sansom of Market Chestnut of JFK of Walnut Chestnut of Market of Market

* 1800 Market Block is a new camera and was not in service during Q1 Source: Center City District

Average Hourly Pedestrian Volume

1,200

1,000

800

600

400

200

0 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

1200 Block 16th & 17th & 800 Block 1200 Block 1600 Block 1800 Block 1200 Block 1700 Block of Chestnut Chestnut Chestnut of Market of Market of Market of Market of Walnut of Walnut

1700 Block 13th & of JFK Sansom Source: Center City District

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG GIRARD AVE

36 | State of Center City Retail | 36

ROAD ST

B Newly Opened VINE ST 36 Retailers in 2020

Newly Opened 38 Coming Soon 36 Source: Center City District, CoStar

9 3237 MARKET ST City Hall 28 33 3 45 41 8 44 29 30 25 4 5 6 7 20 43 10 31 34 39 26 46 11 21 22 42 40 15 2 12 13 14 16 24 27 23 17 35 1 19 18

PINE ST

Newly Opened In 2020

1. Sally, 2220 Spruce St 13. Allbirds, 1709 Walnut St 24. Dim Sum Factory, 35. Flowers & Co, 267 S 19th St 1304 Walnut St 2. Lost Bread Co., 2218 Walnut St 14. Interior Define, 1605 Walnut St 36. Giant, 60 N 23rd St 25. Super Spartan, 105 S 13th St 3. The Garden, 24 S 24th St 15. Govberg Jewelers, 37. The Fashion District, 1529 Walnut St 26. Sueno, 114 S 12th St 901 Market St 4. Anchor Light, 1935 Chestnut St Starbucks 16. Sola Salon Studios, 27. Remi Ricotta, 1121 Walnut St 5. The Goat, 1907 Chestnut St Lids 1503 Walnut St Naturally Us 6. Kevin O’Brien Studio, 28. Schmear It, 19 S 12th St Primark 17. Hunnie’s Crispy Chicken, African Shades 1811 Chestnut St 233 S Sydenham St 29. Federal Donuts, 21 S 12th St O' Dat's Cute 7. Playa Bowls, 1804 Chestnut St 18. Evil Genius Brewing, 30. The Wayward, 1170 Ludlow St 8. Huda, 32 S 18th St 1602 Spruce St 31. Morea, 110 S 11th St 9. Pizza in Style, 1735 Market St 19. Steak 48, 260 S Broad St 32. Kate Spade New York Outlet, 10. Ancient Spirits & Grille, 20. Dolce, 1439 Chestnut St 901 Market 1726 Chestnut St 21. The Original Hotdog Factory, 33. American Heritage Federal 11. Greens and Grains, 125 S 15th St Credit Union, 714 Market St TASKER ST 1700 Sansom St 22. Blind Barber, 1325 Sansom St 34. Pizza Fresca, 707 Chestnut St 12. Tiffany & Co, 1715 Walnut St 23. Cockatoo, 208 S 13th St

Coming Soon

38. Alchemy Coffee, 119 S 21st St 41. OceanFirst Bank, 43. Sunnyside, 1221 Chestnut St 45. Removery, 1500 Market St 1800 Chestnut St, 2nd Fl 39. Equinox, 1911 Walnut St 44. Dolce, 1439 Chestnut St 42. Van Leeuwen Ice Cream, 46. Dr. Martens, 1704 Walnut St 40. Victory Brewing Co., 119 S 13th St 1776 Benjamin Franklin Pkwy

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation GIRARD AVE

Chapter Name| 37

ROAD ST

B Newly Opened VINE ST Retailers in 2020

Newly Opened 38 Coming Soon 36 Source: Center City District, CoStar

9 3237 MARKET ST City Hall 28 33 3 45 41 8 44 29 30 25 4 5 6 7 20 43 10 31 34 26 46 11 22 42 39 21 40 15 2 12 13 14 16 24 27 23 17 35 1 19 18

PINE ST

Employment | Matt Stanley Properties Pearl

From 2009 to 2019, Philadelphia enjoyed a remarkable resurgence, which taxes were raised as residents and jobs were departing, only adding 87,700 payroll jobs — a significant turnaround from the prior pushing more of those with choice out of the the city. Due to the four decades, when the city lost 267,500 jobs between 1970 and recession, the schedule of tax reduction was suspended in 2010 by 2009. The decade that followed the Great Recession was also the Mayor Michael Nutter and was only restarted in 2015 at a greatly longest sustained period of employment growth in the city since diminished level. the 1920s. In the 1990s, the City, State and local foundations made Philadelphia benefited from an expanding national economy significant investments in arts and cultural institutions, hotels, and demographic and cultural trends favoring cities. However, the Pennsylvania Convention Center and sustained tourism and the resurgence was sparked by local, strategic decisions and convention marketing. These hospitality investments fueled the investments that began in the early 1990s. In 1990 and 1991, growth of restaurants and retail, while creating thousands of new Philadelphia pulled back from the brink of bankruptcy with the entry-level jobs in the city. Commonwealth’s assistance. The Pennsylvania Intergovernmental The 10-year tax abatement, first approved in 1997, helped jump- Cooperation Authority (PICA) enabled the City to refinance debt start housing construction and turned around population decline. and required budget discipline within a five-year plan. In 1991, the TASKER ST Philadelphia grew every year from 2006 to 2019, adding 96,600 Center City District began an expanding set of services focused new residents. on the cleanliness, safety and attractiveness of downtown, adding during the next decade streetscape improvements and park Most of the job and population growth was concentrated around renovation, management and programming. By the late 1990s, Philadelphia’s two largest employment nodes, Center City and similar efforts were underway in Old City, University City and on University City, which together hold 53% of the city’s jobs. South Street. On one hand, it is a sign of success that so few people who lived Beginning in 1992, Mayor Ed Rendell’s administration implemented and worked in Philadelphia in February 2020 had any experience or budget controls and efficiencies. In 1996, they set the City on a memory of a place that was dirty, dangerous and nearly bankrupt. path of sustained, predictable wage and business tax reduction for On the other hand, too many now take for granted, or have 15 years, continuing through both terms of Mayor John F. Street’s forgotten, the foundations on which success was built. administration. This reversed a two-decade downward spiral during

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 38 | State of Center City

The Impact of the Pandemic: The COVID-19 pandemic briefly well as conventions, trade shows and tourism. Professional 38 plunged Philadelphia back into 1990 conditions, exposing the and technical services, providing robust, middle class jobs, weaknesses and limitations of the recent revival. The initial impact increased by 30%, with the largest gains in computer systems of the economic shutdown was the loss of 120,100 jobs between design, management consulting, and scientific research March and April 2020, wiping out 16% of payroll employment in the and development. city. By February 2021, employment had rebounded by 41,400 jobs, but remained 78,700 below the March 2020 level. The most serious Slow Job Growth: Despite the strength in certain sectors, losses were in leisure and hospitality, where jobs initially declined and expansion in Center City and University City, Philadelphia’s by 43,400 (-60%). Losses were also severe in transportation, and overall job growth prior to the pandemic underperformed that every other sector dependent on face-to-face interaction. of other cities. From 2009 to 2019, private sector jobs in the city increased at an average annual rate of 1.4%. If Philadelphia had As of February 2021, compared to pre-pandemic levels, the leisure grown jobs at 2.3% per year, the median growth rate of the 25 and hospitality sector shed 34,600 jobs (-45.3%); educational largest cities during that time, there would have been 52,000 services lost 9,400 jobs (-12.4%); health care and social assistance more jobs in the city in 2019. declined by 6,000 jobs (-3.4%); and professional and business services contracted by 4,200 jobs (-4.0%). Employment increased in three sectors: retail trade by 1,600 jobs (3.2%), concentrated in grocery stores and big-box locations easily accessible by auto; construction by 700 jobs (5.9%); and government by 2,200 Philadelphia Employment by Area jobs (2.1%).

Three sectors of the economy make up nearly two-thirds of the city’s overall job losses: leisure and hospitality accounts for 41%,

health care and social assistance makes up 13%, and educational Far Northeast services represent 10% of overall losses. 6.7%

Philadelphia’s employment losses were similar to other major Northeastern cities, losing fewer jobs proportionately than New Roxborough/ Olney/ York, but more than Baltimore and Washington. Philadelphia’s Manayunk Oak Lane Near Northeast 1.0% Germantown/ 3.8% 5.9% recovery since the low point in April 2020 has largely tracked trends Chestnut Hill in these peer cities. 3.6% Bridesburg/ North Kensington/ Uneven Job Growth: During the recovery from 2009 to 2019, Philadelphia Richmond West 6.0% 6.2% Philadelphia grew an insufficient number of family-sustaining Philadelphia jobs. Of all jobs created in the city in that period, 60.5% were in 3.0% sectors that pay on average $35,000 or less; only 26% were in University City Greater sectors that pay $35,000 to $100,000. Surrounding suburbs saw 11.3% Center City 62% of their new job growth in family-sustaining jobs; in the 25 42.0% 11.0% largest U.S. cities, 51.8% of their employment growth came as 1.3%

middle class jobs. Southwest South Philadelphia Philadelphia The city’s most rapidly growing sectors were social assistance, 1.1% 4.6% ambulatory health care, leisure and hospitality, and professional Navy Yard 1.2% services. Arts, entertainment and recreation jobs increased Source: U.S. Census Bureau, Longitudinal Household Employment Dynamics, 2018. 36%, and accommodation and food services increased 34%, PHL Airport reflecting expansion in downtown employment and living, as 3.6%

Private Sector Job Growth by Area, 2009-2019

GREATER UNIVERSITY ALL OTHER CENTER CITY CITY NAVY YARD AIRPORT NEIGHBORHOODS PHILADELPHIA Private Sector Jobs 14.30% 23.90% 121.30% 25.40% 4.90% 17.10% Average Annual Rate of Growth 1.40% 2.40% 12.10% 2.50% 0.40% 1.70%

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Employment | 39

Private Employment in Greater Center City and Philadelphia, 2009-2019

PRIVATE EMPLOYMENT TOTAL EMPLOYMENT

ANNUAL ANNUAL 2009 2019 2009 2019 % CHANGE % CHANGE Greater Center City 212,987 243,371 1.4% 281,720 309,473 1.0% University City 64,042 79,325 2.4% 66,402 83,506 2.6% All Other Neighborhoods 265,471 312,704 1.8% 304,778 347,621 1.4% Philadelphia 542,500 635,400 1.7% 652,900 740,600 1.3%

Note:Population and private employment figures for Greater Center City represent area including the Source: ESRI Community Profile following ZIP Codes: 19102, 19103, 19106, 19107, 19109,19123, 19130, 19146, 19147.

The slow pace of expansion reflected relatively weak growth or declines in key sectors such as finance and insurance, The American Rescue Plan management, and information, export sectors that offer high provides Philadelphia an wages and can drive overall growth. This was offset to some extent by relatively strong growth in administrative services and opportunity to make investments social assistance. in both equity and growth. Compared to Boston and New York, Philadelphia’s growth was similar in professional and business services, health care and social assistance, and leisure and hospitality, but lagging in high-wage sectors such as information and financial activities. In 2019, Philadelphia’s poverty rate of 24.3% ranked third highest among the 30 largest U.S. cities. Increasing job opportunities Prior to the pandemic Philadelphia was therefore growing and labor force participation, along with investments in slowly, while lagging in the addition of both middle-class and education and in Black- and brown-owned business, should be high-wage jobs. We lacked dynamic growth in export, or what key elements of the city’s anti-poverty strategy. economists call “traded” sectors that sell outside the region and draw business revenues from across the nation and around the Vibrant Downtown: Greater Center City remains globe back into Philadelphia, where they generate demand for Philadelphia’s largest concentrated employment center, more workers, increase labor force participation and expand the with 42% of all Philadelphia jobs, a prime driver of citywide local purchase of services. Only five of Philadelphia’s 20 largest opportunity with 52% of downtown jobs held by city residents. employers at the start of 2020 were in the for-profit sector and The area holds the highest concentration of high paying jobs in only three were not health care related. the city, including 74% of Philadelphia’s jobs in information and finance and 70% of its professional and business services jobs. Among five peer cities on the East Coast, in 2017, Philadelphia However, two-thirds of downtown jobs do not require a four-year had the lowest density of businesses per thousand residents and college degree. SEPTA provides the link that enables 25% of the the lowest number of Black-owned businesses per thousand working residents of every city neighborhood to connect with Black residents. It also had significantly lower business density opportunity downtown. than surrounding suburbs. One consequence is that 43% of the residents of every Philadelphia neighborhood outside Center Jump-starting Growth with Tax Policy: Changes in local City reverse-commute to jobs in the suburbs, where they work tax policy are essential for faster job growth. The pandemic alongside of suburban residents with better-funded schools and underscored the risk of relying on volatile wage and business who pay a 1% wage tax compared to Philadelphia’s 3.8% rate. taxes for 53% of locally generated revenue. Suburban workers Despite population growth downtown, more households are contribute $800 million in wage taxes, 20% of the City’s local moving from Philadelphia to the suburbs than are moving the tax revenues. As the pandemic ends, if 10% or 20% of suburban other way. Philadelphia is still losing working- and middle-class residents do not return downtown or to University City office households, reinforcing a city increasingly split between wealth buildings, health care or educational institutions, the City and poverty. stands to lose $80 million to $160 million in wage tax revenues. At a time when businesses are choosing whether to return to

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 40 | State of Center City

their offices or remain remote, we are the only large city that economic development, the growth of Black- and brown-owned 40 taxes both gross and net income of local companies. Mayor businesses, enhanced neighborhood services and tax reduction, Jim Kenney's proposal to lower wage and business taxes, to we can set the city on a course toward more expansive growth reverse the 2020 increase in the parking tax and the wage tax that benefits all Philadelphians. for suburban residents who work in the city, sends an important message throughout the region: "We want you back!"

In an analysis conducted for CCD in fall 2020, Public Financial Management calculated that if Philadelphia had a tax structure Center City Employment by Industry, 2019 similar to Boston's, deriving 60% of its revenues from real estate taxes, only 15% from wage, earnings and net profits Professional and taxes and just 5% from the business income and receipts tax Business Services 73,238 (BIRT), Philadelphia would still have seen significant tax revenue Government 66,101 declines of 9.6% from pre-recession levels. However, due to Information and the greater stability and lower volatility of real estate taxes, Financial Activities 42,904 Philadelphia would have had $160.8 million more in tax receipts Health Care and 41,488 in the final FY2021 budget. Fewer cuts or tax increases would 309,473 Social Assistance have been required, and the City would have had an extra year to Total Jobs Leisure and Hospitality 35,231 plan for further adjustments. Other Services 14,839 The $1.9 trillion federal American Rescue Plan provides Educational Services 13,947 Philadelphia with significant resources to respond to multiple Wholesale and crises exacerbated by the pandemic. In addition to addressing Retail Trade 13,772 immediate needs, the temporary infusion of federal funds Transportation, creates a unique opportunity for Philadelphia to reposition itself, Warehousing, and Utilities 3,416 not just to fill budget gaps, but also to free up resources to Construction 3,263 make permanent and transformational change. By investing in Manufacturing 1,272

Source: CCD estimate based on US Census Bureau, Longitudinal Employer-Household Dynamics, and Bureau of

Philadelphia Total Jobs, 1969–2020

1,000,000 938,600

900,000

800,000 700,000

700,000

600,000 1970s: 1980s: 1990s: 2000s: 2010s: 2020 -145,800 -31,200 -76,500 -32,200 84,700 -37,600 (-16%) (-4%) (-10%) (-5%) (+13%) (-5.1%) 500,000

Source: Bureau of Labor Statistics, Current Employment Statistics

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Employment | 41

Percent Employment Change, March–September 2020

-14.8% Las Vegas (Clark) -13.2% San Francisco -12.6% New York -11.5% Los Angeles -10.3% Philadelphia -9.9% Boston (Suffolk) -9.8% Portland (Multnomah) -9.1% San Diego -8.7% Denver -8.2% Washington -8.0% San Jose (Santa Clara) -7.9% Nashville (Davidson) -7.8% Chicago (Cook) -7.6% Houston (Harris) -6.6% Detroit ( Wayne) -6.5% Median City -6.3% Seattle (King) -5.8% U.S. Total -5.8% Charlotte (Mecklenburg) -5.7% San Antonio (Bexar) -5.5% Fort Worth (Tarrant) -5.5% Austin (Travis) -5.2% Phoenix (Maricopa) -4.9% Memphis (Shelby) -4.8% Indianapolis (Marion) -4.7% El Paso -4.7% Louisville (Jefferson) -4.6% Oklahoma City (Oklahoma) -4.5% Dallas -4.3% Columbus (Franklin) -3.1% Jacksonville (Duval) 0.1% Baltimore

-16% -14% -12% -10% -8% -6% -4% -2% 0%

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Philadelphia's job losses in 2020 were not as severe as in New York and San Francisco, but well above the median for the 30 largest U.S. cities.

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 42 | State of Center City

Monthly Employment Change, Compared to January 2020 42 New York Philadelphia Washington U.S.

0.00

-0.05 -12.7%

-10.7% -0.10 -9.0% -5.3%

-0.15

-0.20

-0.25 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Monthly Unemployment Rates, 2020-2021 -8.0% Washington Boston (Suffolk) Philadelphia New York U.S. -10.0% 5% Philadelphia Pennsylvania U.S. -10.3% 20% -13.0% -5.9% 0.7% 0% 15%

-5% -8.0%

10% -13.0% 9.3 -10% -10.3% -10.0%6.5 6.0 -5.9%6.4 5% -15% 4.7 4.0

-20%0% January February March April May June July August September October November December

Source: Bureau of Labor Statistics, Current Population Survey -25% and Local Area Unemployment Statistics, not seasonally adjusted Philadelphia'sJan LargestFeb EmployersMarch April May June July Aug Sept

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages RANK EMPLOYER 1 Trustees of the Unversity of Pennsylvania 2 City of Philadelphia 3 Federal Government Only two of Philadelphia's 4 School District of Philadelphia 5 Children's Hospital of Philadelphia 10 largest employers are private 6 Temple University 7 Thomas Jefferson University Hospitals sector, fully taxable businesses. 8 Comcast Cablevision Corp. (PA) 9 American Airlines Inc. 10 Southeastern Pennsylvania Transportation Authority

Source: Pennsylvania Department of Labor & Industry, Center for Workforce Information & Analysis

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Employment | 43

Philadelphia Private Employment by Industry, March and September 2020 AMOUNT PERCENTAGE OF MARCH SEPTEMBER CHANGE TOTAL LOSS

ALL INDUSTRIES 596,074 524,799 (71,275) 100%

Manufacturing 18,749 17,310 (1,439) 2% Wholesale trade 13,304 12,449 (855) 1% Retail trade 47,532 43,503 (4,029) 6% Transportation and warehousing 27,189 23,638 (3,551) 5% Information 14,511 13,689 (822) 1% Finance and insurance 29,234 28,005 (1,229) 2% Real estate and rental and leasing 10,327 9,484 (843) 1% Professional and technical services 56,998 54,127 (2,871) 4% Management of companies and enterprises 11,809 10,475 (1,334) 2% Administrative and waste services 27,836 23,118 (4,718) 7% Educational services 59,775 52,930 (6,845) 10% Health care and social assistance 170,097 160,853 (9,244) 13% Arts, entertainment, and recreation 12,929 7,444 (5,485) 8% Performing arts and spectator sports 5,427 2,478 (2,949) 4% Museums, historical sites, zoos, and parks 2,389 1,628 (761) 1% Amusements, gambling, and recreation 5,113 3,338 (1,775) 2% Accommodation and food services 59,098 35,699 (23,399) 33% Accommodation 7,337 2,836 (4,501) 6% Food services and drinking places 51,761 32,863 (18,898) 27% Other services, except public administration 23,990 19,660 (4,330) 6%

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Average Annual Private Job Growth by Industry, Philadelphia, Median of 30 Largest Cities, and U.S., 2009-2019

INDUSTRY PHILADELPHIA MEDIAN, 30 LARGEST CITIES U.S. Utilities* 2.2% NA -0.2% Construction 2.0% 3.3% 2.3% Manufacturing -2.9% 0.5% 0.8% Wholesale trade -0.2% 0.9% 0.6% Retail trade 0.7% 1.9% 0.7% Transportation and warehousing* 1.9% NA 3.2% Information -0.9% 2.2% 0.1% Finance and insurance -1.6% 1.8% 0.7% Real estate and rental and leasing 1.2% 2.5% 1.5% Professional and technical services 2.7% 2.9% 2.5% Management of companies and enterprises -0.8% 2.8% 2.6% Administrative and waste services 3.7% 2.8% 2.6% Educational services 0.2% 1.5% 1.9% Health Care and Social Assistance 2.3% 2.9% 2.4% Ambulatory health care services 3.6% 3.5% 2.9% Hospitals 0.1% 2.2% 1.0% Nursing and residential care facilities -0.8% 1.1% 0.9% Social assistance 6.7% 4.2% 5.2% Arts, entertainment, and recreation 3.1% 3.1% 2.4% Accommodation and food services 3.0% 2.8% 2.4% Other services, except public administration 1.5% 1.7% 0.4%

*Data not available for all 30 cities. Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 44 | State of Center City

Private Job Growth by Industry, Philadelphia, 2009-2019 44

Social assistance 4.4% 91% Administrative and waste services 44% Ambulatory health care services 42% Arts, entertainment, and recreation 36% Accommodation and food services 34% Professional and technical services 30% Utilities 25%

Construction 22% Transportation and warehousing 21% Other services, except public administration 16% Real estate and rental and leasing 13% Retail trade 7%

Educational services 2%

Hospitals 1%

Wholesale trade -2% Management of companies and enterprises -7% Nursing and residential care facilities -8% Information -9%

Finance and insurance -15%

Manufacturing -25% 1.1%

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Northeastern City Growth in Private Employment by Industry, 2009-2019

Philadelphia Boston (Suffolk County) New York 60% 57% 53% 50% 46% 44% 41% 40% 37% 38% 37% 34% 35% 34% 30% 29% 27% 26% 27% 22% 20% 18% 14% 11% 10% 5% 2% 0% -1% -10% -9% -13% -9% -20% -19% -30% -25% Construction Manufacturing Wholesale Information Financial Professional and Educational Health Care and Leisure and and Retail Trade Activities Business Services Services Social Assistance Hospitality

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Employment | 45

Businesses Per 1,000 Residents, City and Total Businesses and Black-owned Businesses Per Region, 2017 1,000 Residents, Major Cities, 2017

Region City Total Businesses Black-Owned Businesses 24.6 25.0 24.6 25.0 22.8 22.4 22.4

19.2 20.0 20.0 18.6 18.6 17.5 17.3 17.1 17.1 16.4 15.0 15.0 12.1 12.1

10.0 10.0

4.7 5.0 5.0 5.0 3.4 2.5 1.8 0.0 0.0 New York Boston Atlanta Philadelphia Washington Atlanta New York Boston Washington Philadelphia

Source: U.S. Census Bureau, Annual Business Survey and American Source: U.S. Census Bureau, Annual Business Survey and American Community Survey 2017 one-year estimates. Community Survey 2017 one-year estimates.

Philadelphia's wage tax doubled from 1970 to 1984 as people and jobs were leaving. Substantial, sustained reductions from 1996 to 2010 laid the foundation for population and job growth that followed. Returning to those pro-growth tax policies can prompt a new, more expansive and inclusive cycle of job growth.

Wage and Earnings Tax Rate History, 1952-2021

Wage and Earnings Tax Rate Resident Tax Rate Non Resident Tax Rate 1984: 4.9600% 5.0%

2008: 3.980% 4.5%

2020 & 2021: 3.8712% 4.0% 1984: 4.3135% 2020: 3.4481% 3.5%

2008: 3.539% 2021: 3.5019% 3.0%

2.5%

2.0%

1.5%

1952: 1.250% 0% 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2021

Source: City of Philadelphia, Summary Schedule of Tax Rates since 1952

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 46 | State of Center City

Poverty Rates Among the 30 Largest U.S. Cities, 2019 46 Deep Poverty Poverty

Detroit 35.0% Memphis 25.1% Philadelphia 24.3% Baltimore 21.2% Houston 20.1% Columbus 19.5% El Paso 19.1% Dallas 18.9% Boston 18.9% Chicago 18.4% Indianapolis 18.0% Los Angeles 18.0% Phoenix 18.0% New York 17.9% San Antonio 17.8% Washington 16.2% Oklahoma 16.1% Louisville 15.9% Las Vegas 15.3% Nashville 14.9% Jacksonville 14.5% Fort Worth 13.7% Portland 13.2% Austin 12.9% Denver 12.8% San Diego 12.8% Charlotte 12.8% Seattle 11.0% San Francisco 10.3% San Jose 8.7%

0% 10% 20% 30% 40%

Source: U.S. Census Bureau, American Community Survey, 2019 five-year estimates

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Chapter Name| 47

Transportation & Access | BeauMonde Originals Yard Powelton SEPTA

Center City is strategically positioned at the heart of a multimodal, Within the region, State and City work-from-home mandates regional transportation network that connects the metro area’s for all but essential employees led to a 90% drop in transit large and diverse workforce to opportunity downtown. Center City ridership between February and April 2020. SEPTA, PATCO and is at the confluence of 14 rail lines, three rapid transit lines, five NJ Transit responded quickly, encouraging mask use and social trolley lines and 29 local SEPTA bus routes. In January 2020, the distancing, increasing cleaning protocols, installing protective transit system transported 300,000 daily commuters into Center barriers and signage, and upgrading air systems on all vehicles City. Interstates 95 and 76, along with the Delaware River bridges, and stations. Total SEPTA ridership across all modes partially brought more than 313,000 vehicles downtown each workday. recovered throughout 2020, but total passengers in January SEPTA, Amtrak and both interstates also provide quick connections 2021 numbered 6,538,000, still down 67% from January 2020. between Center City and Philadelphia International Airport. The largest declines have been on SEPTA's Regional Rail, where While the pandemic dramatically reduced passenger volumes on total ridership in January 2021 was 522,000, just 19% of the all transit modes, Philadelphia kept nearly all routes operational. pre-pandemic level. Bus riders totaled 3,695,000 in January, Philadelphia International Airport maintained all 104 nonstop 41% of the January 2020 total. Riders on subways and trolleys in domestic and 26 international destinations throughout 2020, only January represented 28% to 29% of the pre-pandemic levels. suspending five seasonal international destinations, despite a 64% drop in total passengers from 2019 to 2020. Amtrak adjusted Automobile Traffic: Based on counts conducted by DVRPC, frequency of service to meet diminished demand, but continued traffic volumes on the major roadways entering Center City to run all service lines, even as passenger volumes at 30th Street declined by 42% at the onset of the pandemic but returned Station dropped by 50% from 2019 to 2020. to 78% of normal capacity by September 2020. Parkway Corporation reports that across their multiple off-street garages, parking volumes since the stay-at-home order have been well below normal due to restrictions on restaurants, arts and cultural institutions and the absence of office workers.

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 48 | State of Center City

There was a general recovery from May through September, Center City continued to adapt by providing individual 48 but volume declined steadily to 35% of prior year levels in heated dining pods of all styles, in lieu of curbside parking. December. Similarly, the Philadelphia Parking Authority is Philadelphia’s restaurants were sustained by this flexible collecting about 40% less on-street revenues than in its prior reuse of curbside lanes, which has created renewed interest in fiscal year. rethinking the mixture of uses that can be accommodated on Center City’s streets. Pre-pandemic, among big cities, Philadelphia was the seventh least auto-dependent, fifth most transit friendly, and fourth Pre-pandemic, Center City was already diversifying its use of most walkable in America, with the most walkable areas transportation modes. Since 2010, bicycle ridership in Greater concentrated in Center City. CCD monitors pedestrian volumes Center City increased 10%; working from home grew from 5% at 20 locations throughout downtown. Average daily pedestrians to 8%, while the 22% of commuters using transit and the 26% at these locations reached a low point of 23,233 in April 2020 walking remained constant. Within core Center City, Vine to and increased through the spring and summer, peaking at Pine, river to river, 38% of workers walked to work, more than 91,574 in October. Placer.ai estimates that total daily pedestrian any other commute mode. traffic within Center City declined from 444,000 in February 2020 Looking forward, SEPTA is redesigning its bus network with the to 123,000 in April 2020, a 72% drop, a trend that closely tracks intention of implementing changes by 2023. The agency is also CCD’s on-street counters. The decline has been due almost enhancing its customer focus by rethinking wayfinding signage. entirely to a decline in workers (down 77%) and non-resident With a new administration in Washington focused on public visitors (down 85%). Visits to Center City by workers and other transit and infrastructure, there may be significant opportunities non-residents increased from May through October before to upgrade the system. However, the five-county region still declining in December. By spring 2021, pedestrian volumes needs to develop long-term, sustainable sources of funding in Center City were steadily rebounding as vaccination rates to underwrite operating costs. This will enable Philadelphia increased and employees slowly began returning to work. to thrive as a major center of employment opportunity and The gradual reopening of retail stores and recurring street contribute to long-term climate protection goals. closures for restaurants to provide safe, outdoor dining helped restore some level of sidewalk vitality. “Streeteries” on 13th, 18th, and Sansom streets became destinations, allowing restaurants to expand their seating into the street, essentially pedestrianizing the entire block during peak restaurant hours. As temperatures dropped in December, restaurants throughout

NYC Work Commuting Modes, 25 Largest U.S. Cities Drove Alone 22.2 Carpooled 4.5 Transit 56 Work at Home Other Means Bike Walk Public Transit Carpool Drive Alone Walked 10 100 Bicycle 1.3 Other means 1.7 Worked at home 4.3 80 Mean travel time to work (minutes) 41.5

60

40

20

0

n o a a t o x e n s co h re mi oi ille ork a U.S. Mi Dallas hingto ancis Boston Seattle Atlant Denver Detr sonv s Chicag Phoeni olumbus Housto New Y Fr Portland Baltimo San Dieg Charlotte San Jos Memphi hladel C ack Wa P Los Angeles J San AntonioIndianapolis San

Source: U.S. Census Bureau, American Community Survey 2019, 5-Year Estimates

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Transportation & Access | 49

Work Commuting Modes, Philadelphia Region

Drive Alone Carpool Public Transit Walk Bike Other Means Work at Home Philadelphia Metro

73%8% 10% 4% 5%

Philadelphia

50% 8% 25%9%4%

Greater Center CIty 2% 17% 8% 8% 33%

31% 4% 22%28% 5% 8%

Core Center City

24%22% 2% 38% 3% 9%

Source: Source: U.S. Census Bureau, American Community Survey 2019, 5-Year Estimates

Nearly 70% of all Greater Center City residents use modes other than cars to commute to work each day.

Greater Center City Commuting Modes, Percentage Change Over Time

Work at home Bike Taxicab, motorcycle, Drive alone Walk Public Transit Carpool or other means 60%

50%

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

2012 2013 2014 2015 2016 2017 2018 2019

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 50 | State of Center City

SEPTA Transit Network

15 Minute Bus Routes 30 Minute Bus Routes Broad Street Line Market-Frankford Line Trolley Lines PATCO High Speed Line Regional Rail Norristown High Speed Line

Source: SEPTA

Center City Transit Connections

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Transportation & Access | 51

SEPTA Ridership by Mode

Index, January 2020 = 100 Market-Frankford Line Broad Street Line Trolley Bus Regional Rail 120

100

80

60

45 40 32 32 31 20 17

0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Source: SEPTA

6,000,000

5,000,000

4,000,000 Transit ridership plummeted between February and April

3,000,000 2020 with bus volumes showing the largest recovery.

2,000,000

1,000,000

0

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 SEPTA Total Ridership By Month

Bus Market-Frankford Line Regional Rail Broad Street Line Trolley 25,000,000

21.2M 19.9M 20,000,000 18.8M

15,000,000

10,000,000 8.4M 8.5M 8.9M 7.2M 7.4M 6.6M 5.7M 6.0M 6.5M 6.4M 5,000,000 2.6M 3.2M

0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Source: SEPTA

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 52 | State of Center City

PHL Domestic and International Routes 52

Year Round

Seasonal

Source: Innovata schedule data for YE October 2020

PHL

Philadelphia has maintained its multimodal infrastructure through the pandemic. As the pandemic abates, emergency federal funding and rigorous health and safety efforts by transportation agencies are providing the foundation for economic recovery.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Chapter Name| 53

Year Round

Seasonal

Source: Innovata schedule data for YE October 2020

PHL

Downtown Living | Matt Stanley Street Chestnut

Greater Center City, the eight ZIP codes between Girard Avenue open houses. In Greater Center City and immediately adjacent and Tasker Street, has been the fastest growing residential area areas, there were more new units under construction at the of Philadelphia for the past two decades. Housing construction end of 2020 than at the end of 2019, driven by local population started in the core, prompted by the passage of the 10-year tax growth and the movement of people from other metro areas abatement in 1997, and has radiated outward, extending far into Philadelphia. north of Girard Avenue. Since 2000, the population of Greater While many workplaces were empty, the stay-at-home Center City has increased 29%, as the city as a whole grew by order intensified the use of homes, especially for those with 5%. The largest increase has been in core Center City, where the multiple adults working remotely. Dining rooms, kitchens and population is up 36% as land-use dramatically diversified with spare bedrooms were commandeered for work, or as places vacant office and warehouse buildings converted to housing and to accommodate or supervise virtual schooling. As travel, surface parking lots filled with townhouses, new apartments entertainment and dining options contracted, many found that and condominiums. This resulted in a 34% increase in housing home was the best place to shelter from the storm. While some units in the core, between 2000 and 2020, and a 29% increase in decamped for second homes at the beach, the mountains or all of Greater Center City, compared to 6% citywide. in warmer climates, there is little evidence of wholesale flight While the pandemic impaired many parts of Philadelphia’s of the middle class from Philadelphia. To be sure, long-term economy, the housing sector recovered quickly citywide, buoyed patterns of movement to suburbs continued. However, even by historically low interest rates and continued interest in city with international immigration closed down, Philadelphia living. From March to June 2020, construction, sales and leasing continued to experience both local population growth and net plummeted. However, after the first wave of the pandemic migration from other East Coast cities, as the city emerged as abated in the spring of 2020, local government permitted an attractive alternative to other higher-priced cities in construction to resume. Leasing and sales quickly rebounded, the Northeast. facilitated by much greater use of digital technology for virtual

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 54 | State of Center City

Demographics: While empty nesters and families with city exceeds 10% in core Center City and is above 15% in several 54 children continue to move to Greater Center City, 25- to 34-year- neighborhoods. Neighborhoods in the northwest sections of the olds have increased from 24% of the downtown population in city also have attracted new residents and immigrants. 2000 to 34% in 2019, compared to 19% citywide. This group In 2020, Greater Center City was home to 190,000 residents and accounts for nearly four-fifths of all population growth during 98,800 households. One-third of all households were homeown- the last 20 years in Greater Center City. At the same time, those ers; 13% had children. Two-thirds of adults possessed a bach- from 35 to 54 make up 24% of Greater Center City’s popula- elor's degree and median household income exceeded $81,000. tion, while those 55 and older constitute 24%. The population In Greater Center City, 66% of all housing units were renter occu- under 20 is below the citywide average: 15% compared to 25%. pied, compared to 53% in Philadelphia as a whole and 39% in However, as young people remain in core Center City and have the region. Compared to the Philadelphia region, Greater Center children, household sizes are steadily increasing from 1.46 City residents are more likely to possess a college degree, have persons per household in 2000 to 1.52 in 2020, with households higher median income, and are far less likely to rely on an auto- in the extended neighborhoods now at 2.02 persons, compared mobile to commute to work. to 2.45 citywide.

Schools: While disrupted by the pandemic, Center City pro- Housing: Population growth fueled housing development. In vides a wide range of school options. Nine charter schools, 18 2020, 2,624 dwelling units were completed in Greater Center traditional public schools, and 13 private or parochial schools City and adjacent ZIP codes, down somewhat from 2019, reflect- located in the area enrolled 15,707 students in kindergarten ing the pause in construction mandated in the spring. By the through eighth grade in the 2020-2021 academic year. Tradi- end of the year, however, there were 9,643 units under construc- tional public schools in Greater Center City draw 70% of their tion, as the development zone around the downtown continued elementary students from the local neighborhood. Two decades to expand. This represents a 43% increase from the number of ago, they could only be filled by reaching citywide. Today, down- units being built as of the end of 2019. town charters fill that citywide role. Sales of condominiums and single-family homes declined in Despite concerns about people moving to the suburbs, there the second quarter of 2020, particularly in the core, due to the is little evidence of any accelerated flight from the city. The absence of workers, visitors and cultural amenities and the shutdown of foreign immigration in 2020 did reduce the number impact of social unrest in June 2020. Sales quickly rebounded of new people moving into the city, but Philadelphia continues in the third quarter and exceeded prior year levels by the fourth to attract more people from Boston, New York and Washington quarter. In 2020 overall, the average sale price of Greater Center than those moving the other way. The neighborhoods of Phila- City housing was $513,200, a 3% increase over 2019, while the delphia that are attracting new residents are in close proximity number of sales totaled 3,217, a 6% increase, and the average to the center of the city where colleges, universities and medical time on market declined 28% to 61 days. schools are situated and where 53% of all jobs are located. The percentage of current residents who have recently moved to the

Philadelphia Age Distribution Greater Center City Age Distribution

2000 2000

29% 8% 15% 15% 10% 8% 7% 7% 18% 10% 24% 15% 12% 8% 7% 7%

2010 2010

26% 10% 16% 12% 13% 11% 6% 6% 14% 11% 29% 13% 11% 10% 6% 6%

20152019 20152019

25% 7% 19% 12% 12% 12% 8% 6% 15% 6% 34% 14% 10% 10% 8% 6%

5.8% Under 20 Years 20 to 24 Years 25 to 34 Years 35 to 44 Years 45 to 54 Years 55 to 64 Years 65 to 74 Years 75 Years and Over

Source: 2000 and 2010 from decennial Census, 2019 from Census Bureau, American Community Survey, five-year estimate.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Downtown Living | 55

Based on a comparison by Redfin, Philadelphia’s median home located in Greater Center City. Downtown provides proximity to sale price increased 15% from December 2019 to December job opportunities, cultural offerings and thousands of retail 2020, compared to a decrease of 1% in Boston, and a 5% establishments and restaurants. Walkable and bikeable increase in New York. neighborhoods have unparalleled connectivity via transit and automobile to locations throughout the region and the North- Rents declined modestly in the core in 2020, to an average of east. Most of the pre-automobile commercial corridors in the $1,883, but continued to increase in nearby neighborhoods. extended neighborhoods, derelict in the 1970s and 1980s, now Citywide, rents declined in 2020, but less precipitously than offer a broad range of services and amenities provided by many in high-cost cities such as New York, Washington, and local proprietors. During the pandemic, these commercial areas San Francisco. benefited from seven-day demand, prompted by stay-at-home mandates. National and regional supermarkets and many big Center City remains an attractive residential location due to box retailers have created new urban formats in these neigh- multiple strengths that have temporarily been interrupted — borhoods. They are augmented by several year-round farmers but not fundamentally disrupted — by the pandemic. Very few markets. Together, they have dramatically increased the array of downtowns can match the extraordinary range and affordability products and services available to Greater Center City residents. of diverse neighborhoods, architecture styles and housing types

Greater Center City Racial/Ethnic Diversity, 2019

White* 62.0% Very few downtowns61% White* can Black or 17.7% African American* match the extraordinary19% Black or range Asian* 10.4% African American* 190,000 Hispanic/Latino 6.5% and affordability10% Asian* of diverse TOTAL POPULATION of Any Race neighborhoods, architectureHispanic/latino Two or More/ 3.2% 7% of Any Race Other* styles and housing types *Non-Hispanic 4% Two or More/ (Hispanic may be of any race) in Greater CenterOther* City.

*Non-Hispanic Source: U.S. Census Bureau, American Community Survey, (Hispanic may be of any race) 2019 five-year estimates

Population and Housing Characteristics of Center City, Philadelphia, and Region, 2020

CORE EXTENDED GREATER PHILADELPHIA CENTER CITY CENTER CITY CENTER CITY PHILADELPHIA METRO

Total Population 61,471 128,529 190,000 1,559,579 6,191,755 Area (Square Miles) 2.2 5.6 7.8 134.1 4,603.1 Population Density (per Square Mile) 27,717 22,767 24,163 11,630 1,345 Average Household Size 1.52 2.02 1.82 2.45 2.56 Percent of Households Owner Occupied 27% 39% 34% 47% 61% Percent of Households with Children 6% 18% 13% 30% 33% Percent Bachelor's or more 78% 61% 67% 30% 38% Median Household Income $86,482 $76,778 $81,157 $46,991 $56,639 Non-Auto Commuting Mode Share 96% 59% 69% 42% 20% Percent No-Vehicle Households 48% 29% 36% 30% 13%

Source: U.S. Census Bureau, American Community Survey 2019 five-year estimates, ESRI.

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 56 | State of Center City 1 9 13 Adaire K–8 School GIRARD AVE Spring Garden Enrollment, 2020 Bache-Martin 39 28 34 Ludlow 3 25 250 or Less Morris Waring 251 to 500 36 7 17 15 More than 500 24 Kearny 20 VINE ST Charter School 32

BROAD ST Private School 30 Public School 31 26

Catchment Area MARKET ST City Hall McCall Boundary Greenfield 23 5 Greater Center 33 City Boundary 38 Source: Pennsylvania Department of Education PINE ST 10 35 21 40

Jackson Meredith Arthur 12 2 27 16 19 22 29 14 Alcorn Stanton Nebinger 6 18 4 Childs 18 37 McDaniel 8

TASKER ST Kirkbride 11 Vare-Washington

Public Schools Charter Schools Private Schools

1. Adaire, Alexander School 19. Christopher Columbus Charter 28. City School at Fairmount 2..Arthur, Chester A. School 20. Folk Arts Cultural Treasures 29. Crooked Places Made Straight 3. Bache-Martin School 21. Independence Charter School 30. Friends Select School 4. Childs, George W. School 22. Laboratory Charter School of 31. Greene Towne School Inc 5. Greenfield, Albert M. School Communication & Language 32. Holy Redeemer School 6. Jackson, Andrew School 23. Mastery Charter-Lenfest Campus 33. Philadelphia Classical School 7. Kearny, Gen. Philip School 24. Math, Civics and Sciences 34. Philadelphia Free School 8. Kirkbride, Eliza B. School 25. People For People 35. Philadelphia School 9. Ludlow, James R. School 26. Russell Byers Charter School 36. St. Francis Xavier School 10. McCall, Gen. George A. School 27. Universal Institute 37. St. Gabriel School 11. McDaniel, Delaplaine School 38. St. Mary Interparochial School 12. Meredith, William M. School 39. St. Peter the Apostle School 13. Morris, Robert School 40. St. Peter's School 14. Nebinger, George W. School 15. Spring Garden School 16. Stanton, Edwin M. School 17. Vare-Washington Elementary 18. Waring, Laura W. School

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation 1 Downtown Living | 57 9 13 Adaire K–8 School GIRARD AVE Spring Garden K-8 Enrollment in Greater City Public and Charter Schools, 2010-2020 Enrollment, 2020 Bache-Martin 39 28 Private Charter District 34 Ludlow 9,000 3 25 250 or Less Morris 8,000 Waring 251 to 500 36 7 7,000 17 6,000 15 More than 500 5,000 24 Kearny 20 4,000 VINE ST Charter School 32 3,000

BROAD ST Private School 2,000 30 Public School 31 26 1,000 0 Catchment Area MARKET ST City Hall McCall 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 Boundary Greenfield 23 5 Greater Center 33 Source: Pennsylvania Department of Education City Boundary 38 Source: Pennsylvania Department of Education PINE ST 10 35 21 40

Jackson Meredith Arthur 12 2 27 Population and Housing Characteristics of Center City, Philadelphia, and Region, 2000-2020 16 19 22 29 14 Alcorn GROWTH GROWTH GROWTH Stanton Nebinger 2000 2010 2020 2000-2010 2010-2020 2000-2020 6 18 4 POPULATION Childs Core Center City 44,809 53,228 60,978 19% 15% 36% 18 37 McDaniel 8 Extended Center City 101,155 109,627 127,497 8% 16% 26%

TASKER ST Greater Center City 145,964 162,855 188,475 12% 16% 29% Kirkbride 11 All Other Neighborhoods 1,371,586 1,363,151 1,407,104 -1% 3% 3% Vare-Washington Philadelphia 1,517,550 1,526,006 1,595,579 1% 5% 5% HOUSEHOLDS Core Center City 27,777 32,162 37,260 16% 16% 34% Extended Center City 46,838 52,417 61,579 12% 17% 31% Greater Center City 74,615 84,579 98,839 13% 17% 32% All Other Neighborhoods 515,456 515,157 530,929 0% 3% 3% Philadelphia 590,071 599,736 629,768 2% 5% 7% AVERAGE HOUSEHOLD SIZE Core Center City 1.46 1.51 1.52 3% 1% 4% Extended Center City 2.11 2.05 2.02 -3% -1% -4% Greater Center City 1.87 1.84 1.83 -1% 0% -2% All Other Neighborhoods 2.57 2.55 2.56 -1% 0% 0% Philadelphia 2.48 2.45 2.45 -1% 0% -1% HOUSING UNITS Core Center City 30,700 36,101 41,005 18% 14% 34% Extended Center City 54,438 59,639 68,455 10% 15% 26% Greater Center City 85,138 95,740 109,460 12% 14% 29% All Other Neighborhoods 576,820 574,431 589,051 0% 3% 2% Philadelphia 661,958 670,171 698,511 1% 4% 6%

Source: 2000 and 2010, U.S. Census Bureau, decennial census; 2020, Esri.

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 58 | State of Center City

Housing Completions by 58 Area of Center City, 2020

Unit Count: 5 or Fewer 19121 19122 6-10 11-25 19125 26-50

51-100

101-200 19130 19123

More than 200

Single Family 19103 19107 Apartments

ZIP Code Boundary 19102 19106

Source: CCD analysis of Philadelphia Department of Licenses and Inspections data. 19109

19146

19147

19145 19148

Housing Units in Progress by Area of Center City, 2020 UNITS UNDER % OF UNITS UNDER AREA (ZIP CODE) CONSTRUCTION CONSTRUCTION Core West (19102, 19103) 1,192 8% Core East (19106, 19107) 194 1% CORE CENTER CITY TOTAL 1,386 10% Extended Northwest (19130) 1,331 9% Extended Northeast (19123) 2,030 14% Greater Center City Extended Southwest (19146) 519 4% Extended Southeast (19147) 86 1% and immediately Extended Center City Total 3,966 28% GREATER CENTER CITY TOTAL 5,352 37% adjacent areas Adjacent Northwest (19121) 715 6% accounted for 67% Adjacent North (19122) 1,814 13% Adjacent Northeast (19125) 1,461 10% of the new housing ADJACENT NORTH TOTAL 3,990 28% units completed in Adjacent Southwest (19145) 226 2% Adjacent Southeast (19148) 75 1% Philadelphia in 2020. ADJACENT SOUTH TOTAL 301 2% ADJACENT ZIP CODE TOTAL 4,291 30% GREATER CENTER CITY AND ADJACENT ZIP CODES 9,643 67% CITYWIDE TOTAL 14,415 100%

Source: CCD analysis of Department of Licenses and Inspections data.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Downtown Living | 59

Greater Center City Housing Units Completed, 2000–2020

Apartment Condo Single Family

3000

353 353 2500 353 180 180

2000 327 118 1500

1000 478 500

2,277 1,697 648 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source City of Philadelphia Department of Licenses and Inspections

City’s Share of Regional Permits for New Housing, 2001-2020

Suburbs City 25,000

20,000

15,000 1 1,000 10,417 11,04

5,000 5,665 0 4,566 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: U.S. Census Bureau, Building Permits Survey

Residential Sales in Greater Center City

Single Family Condo 1,200

900 Residential sales in Greater Center City rebounded in 358 357 295 363 600 286 the third quarter of 2020, 271 283 218 as prices continued to rise 300 and houses sold quickly.

475 591 627 536 431 386 589 626 0 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4

Source: Kevin Gillen, Lindy Institute - Drexel University

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 105

100

95

90

85

80

75 60 | State of Center City

70 Monthly Apartment Rent Index, Major Cities, Percentage of Population Who Moved Into Each 60 2020-2021 ZIP Code Within the Past Year, 2019

(January 2020 = 100) 105

100

95

90

85

80

75

70

-20 y-20 Percent Moved Jan-20 Feb-20 Mar Apr-20 Ma Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Source: Apartment List 0.7% –2.5% Baltimore Philadelphia Washington Boston Seattle 2.51% - 3.9% 3.91% - 5.3% New York San Francisco 5.31 - 10.3% 10.31 - 15.5% 15.51 - 23.8% No Data

Source: U.S. Census Bureau, American Community Survey, 2019 five-year estimates

Average Monthly Rent, Greater Center City and Adjacent ZIP Codes, 2014-2020

Core Center City Extended Center City Adjacent ZIP Codes $2,000 $1,902 $1,843 $1,844 $1,866 $1,807 $1,883 $1,815 $1,722 $1,750 $1,795 $1,742 $1,708 $1,577 $1,667 $1,618 $1,500 $1,380 $1,359 $1,397 $1,312 $1,338 $1,285

$1,250 $1,259

$1,000 2014 2015 2016 2017 2018 2019 2020

Source: Zillow Rent Index

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Downtown Living | 61

Philadelphia Housing Price Index, Greater Center City, Annual Change, 2001-2020

20%

15.0% 15.0% 15% 13.1% 13.6% 13.1% 10.0% 10% 9.4% 9.3% 8.7% 7.2% 6.3% 7.0% 4.4% 5% 0.7% 2.4% 2.1% 1.1% 0%

-5% -4.5% -5.3%-5.7%

-10% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Econsult Solutions Inc, Phialdelphia Housing Index

Adjusting for inflation and housing type, home values have risen in Philadelphia for all but three of the last 20 years including a 13.1% increase in 2020.

MLS Brokered Residential Sales in Greater Center City and Adjacent ZIP Codes, 2020

% CHANGE AVERAGE % CHANGE AVERAGE DAYS % CHANGE AREA SALES FROM 2019 PRICE FROM 2019 ON MARKET FROM 2019

CORE CENTER CITY 732 -9% $621,657 -4% 89 -23% East 353 -7% $528,279 -5% 80 -25% West 379 -11% $708,629 -3% 97 -20%

EXTENDED CENTER CITY 2,485 12% $481,248 +8% 53 -30% North 764 8% $466,150 +6% 53 -30% East 286 26% $494,654 +1% 61 -28% West 478 -1% $449,095 +8% 48 -28% South 1,721 14% $487,950 +9% 53 -29% East 689 21% $516,257 +5% 54 -33% West 1,032 10% $469,052 +11% 52 -24%

GREATER CENTER CITY TOTAL 3,217 6% $513,197 +3% 61 -28%

Source: MLS

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 62 | State of Center City

62

Developments | BeauMonde Originals Street 60 North 23rd Riverwalk

Even though the pandemic interrupted development activity in the East of Broad Street, National Real Estate Development delivered early spring, Center City saw a substantial volume of new invest- the Canopy by Hilton boutique hotel in the historic Stephen Girard ments in 2020 and continued confidence in the downtown. By May, Building in spring 2020. Work is underway on the final phase of projects that were underway at the beginning of the year resumed the full-block development of Thomas Jefferson’s Specialty construction, including the Laurel on Rittenhouse Square, Arthaus Care Pavilion on the 1100 block of Chestnut Street. A number of on South Broad Street, Riverwalk at 23rd and Arch streets, Thomas developments North of Broad Street continue to transform the area Jefferson’s Specialty Care Pavilion on the 1100 block of Chestnut adjacent to the Rail Park, including Toll Brothers’ 368-unit residen- Street and the W Hotel/Element by Westin at 15th and Chestnut tial mixed-use building near the park entrance at Broad and Noble. streets. Construction also commenced for a new headquarters for Morgan Lewis on West Market Street while several major new Greater Center City’s population has increased 29% since 2000, as residential projects were announced. millennials, empty nesters and families with children have cho- sen to live close to work and to an extraordinary variety of dining, Building upon a decade-long, sustained national economic ex- cultural and entertainment attractions. Developers have respond- pansion, 25 development projects representing an estimated $3.4 ed to this growing demand with townhouses, apartment towers, billion investment were completed or in progress in Center City condominiums and major mixed-use projects that include an between Fairmount and Washington avenues, river to river in 2020. extensive selection of amenities. PMC’s Riverwalk added not only Another 40 projects with an estimated development value of $3.6 700 residential units, but also a two-level Giant Food Store, making billion were in the planning or proposal phase. More than half are it the largest grocery store in Center City. The Laurel, developed mixed-use projects with a residential component and five are solely by Southern Land Company at Rittenhouse Square, and Arthaus, residential. Remaining projects include two commercial/mixed-use developed by Dranoff Properties on South Broad Street, both broke developments, three hospitality investments, three cultural and ground in 2019. Upon completion, The Laurel will be the tallest res- health care developments and one public space improvement. idential tower in the city. Southern Land Company also announced 308 new units of housing on Sansom Street. PMC Property Group’s 2018 completion of 2400 Market, the new location of Aramark’s headquarters, has spurred a number of Center City’s success as a convention and tourist destination projects on Market Street West. Although the pandemic halted drove demand for additional hotel rooms downtown. Although the construction for 42 days, Parkway Corporation broke ground on hospitality industry was effectively shut down by the pandemic, two a new commercial mixed-use 18-story building that will house hotels that opened in 2020­ — The Canopy by Hilton and the Hyatt Morgan Lewis at 23rd and Market streets. Brandywine Realty Trust Centric — together added 570 rooms. In 2021, the dual-branded unveiled plans to develop a 23-story tower with office, residential Element and W Hotel and the Mainstay/Ascend Hotel are bringing a and retail components on the 2100 block of Market if they secure combined 873 rooms to the market. Three new hotel developments an anchor tenant. These will be within a few blocks of Riverwalk, announced in 2021 are indicators of confidence in the return of PMC’s residential mixed-use development under construction along overnight leisure and business to the downtown. the Schuylkill River at the end of Arch Street. In addition to the developments map on the following page, an interactive map and full-color pdf with renderings and descriptions are available at www.centercityphila.org/developments.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation GIRARD AVE

15 54 2

40 5 51 Developments in 52 61 SPRING GARDEN ST Center City, 2020 23 16 41 Commercial/ 7 Mixed-Use 63 53 29 28 64 Cultural VINE ST

13 ST BROAD 33 Government & 56 Nonprofit Institutions 3 14 37 26 Health Care & Education 21 10

Hospitality 50 12 4 MARKET 32ST 1 65 City Hall 59 Public Space 8 47 43 58 11 44 20 38 Residential 46 45 34 35 24 25 30 17 42 48 27 Residential/ 9 36 31 39 Mixed-Use 19 Source: Developments Database 2020, Center City District PINE ST 55

6 22

62

49 57 WASHINGTON AVE 18 60

Projects Completed or Under Proposed Projects Construction in 2020 Commercial/ Government & Residential Commercial/ Public Space 51. 501-539 Mixed-use Nonprofit Mixed-use Spring Garden Institutions 14. The Terrace 35. Penn’s Landing 52. 510 N Broad 1. 23rd & Market on 18th 26. 1709 Benjamin 53. 900-934 Callowhill 2. The Studebaker 7. Philadelphia Franklin Parkway Residential 54. 918-980 Delaware Building Public Safety Residential/ 27. The Washington Building Mixed-use 36. 1 Dock Street 55. Broad & Pine Cultural Cultural 37. 23rd & Cherry 56. Cathedral Place Hospitality 15. 1300 Fairmount 38. 709 Chestnut 57. Chocolate Factory 3. Faith and Liberty 16. 1520 Hamilton 8. Canopy by Hilton 28. Calder 39. Dilworth House 58. Freeman's Discovery Center 17. 702 Sansom Philadelphia 9. Hyatt Centric 40. Fishtown Village Auction House 4. Academy of Natural 18. 9th and 29. Pennsylvania Ballet 10. Mainstay/ 59. Lits Tower Sciences at Drexel Washington 30. Walnut Street University Ascend Hotel Residential/ 60. Market House 19. Arthaus Theatre 5. Philadelphia 11. W Hotel & Mixed-use 61. Mural West Element by Westin 20. East Market Museum of Health Care & 41. Noble & Broad 62. Pier 34/35 South Art Expansion 21. Riverwalk Education 42. 1101 Walnut 63. Quarters Public Space 22. Royal Theater 43. 113-121 S. 19th & 64. Vine & Callowhill Health Care & 23. SoNo 31. Caroline Kimmel 12. John F. Kennedy 1822-24 Chestnut 65. 21st & Market Education 24. The Laurel Biomedical Plaza/LOVE Park Building - 44. 1208 Chestnut 25. The Witherspoon 6. Independence 13. Sister Cities Park Thomas Jefferson 45. 12th & Sansom Building University Charter School 46. 1608 Sansom Expansion Hospitality 46. 1776 Benjamin Franklin Parkway 32. 2300 Market 47. 2012 Chestnut 33. AC Hotel 48. 204 S 12th by Marriott 49. 2201 Washington 34. Blue Ivy Hotel 50. 33 N 22nd

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG 64 | State of Center City

The State of Center City 2021 team includes Stephen Camp-Landis, Vice President of Research and Policy; Cassie Glinkowski, Manager 64 of Public Spaces and Streetscapes; Prema Katari Gupta, Vice President of Parks and Public Realm; Romina Gutierrez, Manager of Mem- bership and Development Relations; Alexis Jefferes, Digital Communications Manager; JoAnn Loviglio, Senior Director of Communications and Publications; Colin Munro, Manager of GIS Mapping Services and Technology; Brenda Nguyen, Manager of Retail and Economic Development; Lauren Smith, Senior Research Analyst; Bonnie Thompson, Senior Director, Digital Marketing; and Laure Wassen, Manager of Research and Economic Development. This document was designed by Amy Genda, CCD’s Creative Director, with Graphic Designers Michael Choi and Tran La.

The entire document, individual sections and many additional reports produced by the CCD throughout the year can be downloaded from centercityphila.org. Bulk copies of this report are also available for sale.

Information Sources Pennsylvania Convention Center CCD Board The Academy of Natural Sciences of Pennsylvania Department of Education John J. Connors Drexel University Philadelphia Chamber Music Society Brickstone Realty - Chairman African American Museum in Philadelphia Philadelphia Convention & Visitors Bureau Joseph S. Zuritsky Amtrak Philadelphia Department of Public Health Parkway Corporation - Chair Emeritus Arden Theatre Philadelphia International Airport Maureen Anastasi Association for Public Art Philadelphia Museum of Art CBRE Association of Technology Managers Philadelphia Police Department William M. Boone Barnes Foundation Philadelphia Theatre Company LSNA Children's Hospital of Philadelphia Public Health Management Corporation Joseph F. Coradino Christ Church Reading Terminal Market Pennsylvania Real Estate Investment Trust Cushman & Wakefield Schuylkill River Development Corporation Gregory L. DeShields Drexel University SEPTA PHL Diversity Eastern State Penitentiary SMU DataArts Jeffrey DeVuono Brandywine Realty Trust Econsult Solutions Inc. Springboard The Franklin Institute STR Inc. Romulo L. Diaz Jr. Turtle On Post LLC Franklin Square Temple University FringeArts Thomas Jefferson University Paige Jaffe JLL Retail Historic Philadelphia Tourism Economics Global Cities Travel Ernest E. Jones, Esq. Independence National Historical Park TravelClick Ejones Consulting LLC Independence Visitor Center Corporation U.S. Census Bureau InterAct Theatre Company Robert D. Lane Jr., Esq. U.S. Department of Education Greenberg Traurig LLP Internal Revenue Service U.S. Department of Health and Human Services Clayton Mitchell JLL Research U.S. Department of Labor, Thomas Jefferson University and Kimmel Center Inc. Bureau of Labor Statistics Jefferson Health Lantern Theater Company Visit Philadelphia Gregory B. Muller Moore College of Art & Design Walnut Street Theatre SSH Real Estate Mural Arts Philadelphia The Wilma Theater Drew Murray Mütter Museum Zillow Logan Square Neighborhood Association National Center for Charitable Statistics RECENT CCD/CPDC PUBLICATIONS Randall L. Scott National Center for Education Statistics Coretrust Capital Partners LLC Greater Center City Housing: National Constitution Center Building on Resiliency (2021) H. Hetherington Smith National Housing Preservation Database Ready for the Return of Customers: Savills National Institutes of Health Center City Restaurants and Retail (2021) Jack Soloff Jr. National Science Foundation Monitoring Philadelphia's Economic Recovery Newmark Knight Frank Newmark Knight Frank (2020-2021) Christophe P. Terlizzi NJ Transit Business Density and the Role Laurier Capital Advisors of Black and Minority Owned Businesses (2020) Opera Philadelphia Restaurant and Retail Recovery: Angela Val Parks on Tap Slow, Steady, but Fragile (2020) Philadelphia Convention & Visitors Bureau PATCO Reopening Restaurants and Retail: Keli Wallace Peirce College The Customer Perspective (2020) BOMA (Ex officio) Penn Medicine Reopening Office Buildings: Carol Watson Penn Museum of Archeology & Anthropology The Tenant Perspective (2020) Kimpton Hotel Palomar - Philadelphia Penn State University A complete list of CCD and CPDC publications Tina Byles Williams Pennovation is available at www.centercityphila.org. For FIS Group Pennsylvania Academy of the Fine Arts more information, call 215.440.5500 or email [email protected] Pennsylvania Ballet

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation Acknowledgements | 65

CPDC Board Eric L. Stern, Esq. Edward M. D’Alba, P.E. Morgan Lewis & Bockius LLP Urban Engineers Inc. - Chairman Frederick D. Strober, Esq. James R. Pearlstein Saul Ewing, Arnstein & Lehr LLP Pearl Properties LLC - President Jason A. Tucker Tracy Maeter The Goldenberg Group JP Morgan Chase - Vice President Joseph S. Zuritsky H. Hetherington Smith Parkway Corporation Savills - Vice President John P. Derham Secretary CCDF Board Christophe P. Terlizzi Gerard H. Sweeney Laurier Capital Advisors - Treasurer Brandywine Realty Trust - Chairman Julian P. Rackow, Esq. Richard Vague Gabriel Investments - Secretary Blank Rome LLP - Emeritus Christophe P. Terlizzi Marc D. Brookman, Esq. Laurier Capital Advisors - Treasurer Duane Morris LLP - Emeritus John J. Connors Robert D. Lane Jr., Esq. Brickstone Realty Greenberg Traurig LLP - Emeritus Michael C. Forman David G. Marshall FS Investments Amerimar Realty Company - Emeritus Thomas J. Gravina Amara A. Briggs Evolve IP Wells Fargo Bank James Paterno Ira A. Brown Stockton Real Estate Advisors M&T Bank Jane Scaccetti Mark T. Celoni, P.E. Drucker & Scaccetti Pennoni Associates Inc. Angela Val Heather Crowell Philadelphia Convention & Visitors Bureau Pennsylvania Real Estate Investment Trust Harold Dichter Errata Aramark Corporation www.centercityphila.org/socc Mark A. Duffy Firstrust Bank Kenneth Fulmer Urban Engineers Inc. Joseph W. Healy AIA, LEED AP BD+C Wallace Roberts & Todd LLC Branton Henderson Bank of America Monica Jindia Commonwealth Land Title Insurance Company Peter Kelsen Blank Rome LLP Alan C. Kessler, Esq. Duane Morris LLP Bradley A. Krouse, Esq. Klehr, Harrison, Harvey, Branzburg LLP Shawn McCaney William Penn Foundation Matthew N. McClure, Esq. Ballard Spahr LLP Mark Merlini Brickstone Realty Anne Papageorge University of Pennsylvania Christopher W. Rosenbleeth Stradley Ronon Stevens & Young LLP Mark L. Silow, Esq. Fox Rothschild LLP

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG