2018

PHILADELPHIA STATE OF CENTER CITY STATE

STATE OF CENTER CITY PHILADELPHIA 2018 CENTERCITYPHILA.ORG FSC 660 CHESTNUT STREET PHILADELPHIA, 19106 | 215.440.5500 | PA City District (CPDC) and Center Corporation Philadelphia Development Central (CCD), City District The Center In 1991 downtown. of Philadelphia’s and competitiveness the vitality enhance to together work (CCDF) Foundation services daily deliver to district improvement business the CCD CPDC created organization leadership the business 24-hour a vibrant City into Center This helped transform and safe. City clean with the goal of making Center and tourists. shoppers students, residents, businesses, to attractive downtown, 2018 STATE OF CENTER CITY PHILADELPHIA

660 CHESTNUT STREET PHILADELPHIA, PA 19106 | 215.440.5500 | CENTERCITYPHILA.ORG CONTENTS

INTRODUCTION & OVERVIEW 1

OFFICE 8

HEALTHCARE & HIGHER EDUCATION 15

CONVENTIONS, TOURISM & HOTELS 21

ARTS, CULTURE & ENTERTAINMENT 27

RETAIL 31

EMPLOYMENT 37

TRANSPORTATION & ACCESS 46

DOWNTOWN LIVING 51

DEVELOPMENTS 61

CENTER CITY DISTRICT 66

ACKNOWLEDGEMENTS 75

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG INTRODUCTION

| We Film Philly Philadelphia Skyline | We & OVERVIEW ACCELERATING GROWTH DOWNTOWN: Philadelphia is enjoying square feet of space. Education and health services, the largest the longest period of economic expansion in the last 50 years, sector citywide, is the second largest downtown with jobs adding 55,100 jobs since 2010 and showing positive growth in all provided by 15 colleges and universities and five hospitals, but one year since 2005. In 2016, Philadelphia added a record accounting for 20% of Center City employment. Entertainment, 13,600 jobs; in 2017, the city added another 10,700 jobs. Growth leisure, hospitality and retail provide 16% of downtown jobs in has been driven entirely by private-sector gains, with public- 243 arts and cultural institutions, 11,675 hotel rooms, 992 retail sector employment continuing a 25-year trend of contraction. premises and 453 full-service restaurants. Federal, state and By local standards, this is very good news. By national, urban local government employment provides 12% of Center City jobs. standards, things should be significantly better. Located at the center of the region’s transit and highway Center City is the largest place of employment in the city network, 48% of downtown jobs are held by commuters from and region, holding 42% of Philadelphia’s jobs with 298,612 outside the city who pay the city wage tax and also patronize wage and salaried positions and another 9,000 self-employed downtown restaurants, retailers and cultural institutions; 53% individuals, freelancers and those compensated as partners. of jobs are held by Philadelphia residents, with the city’s share Other growth areas include University City, with 11% of city jobs, of jobs steadily increasing as the downtown population has and the fast growing Navy Yard, with 1% of the city’s jobs. Since grown. This vibrant live-work core is just 6% of the city’s land 2005, the balance of Philadelphia has continued to lose jobs at area, but generates 32% of all property tax revenue for the city the rate of 0.4% per year. and the Philadelphia School District, and accounts for close to 50% of the wage tax generated by jobs in Philadelphia. Diversification is the defining strength of the downtown economy. Professional, business and financial services, real Public transportation makes possible a level of density and estate and information — prime office-using industries — accessibility unmatched in the region, concentrating jobs at account for 40% of downtown jobs, occupying 41.2 million 59 per acre in Center City and at 38 per acre in University City,

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 1 INTRODUCTION

NUMBER OF NEIGHBORHOOD AND REGIONAL RESIDENTS WHO WORK DOWNTOWN DOWNTOWN JOBS BY EDUCATION LEVEL

37.1% 32.9% 27,800 WORKERS 29,400 30.0% WORKERS 78,000 WORKERS FROM 32.9% HIGH SCHOOL OR LESS SUBURBAN 30.0% SOME COLLEGE/ASSOCIATE PENNSYLVANIA 25,800 WORKERS 37.1% BACHELOR’S DEGREE OR MORE

WHERE DOWNTOWN WORKERS LIVE GREATER 26,200 CENTER CITY 32,100 WORKERS 298,612 WORKERS FROM 11.1% JOBS SUBURBAN NEW JERSEY 33,200 47.5% RESIDENTS OF GREATER CENTER 41.4% CITY WORK DOWNTOWN 14,500 +9,000 partners, freelancers WORKERS & self-employed

3,200 11.1% GREATER CENTER CITY WORKERS FROM SUBURBAN 41.4% ELSEWHERE IN PHILADELPHIA DELAWARE/MARYLAND 47.5% OUTSIDE PHILADELPHIA Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015, Bureau of Labor Statistics, Current Employment Statistics 2017, CCD Estimates Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015

compared to 4 per acre in the rest of Philadelphia and less than the new jobs, while Philadelphia shed 4,400 jobs in financial 1 per acre in the suburbs. Transit accessibility also enables activities and information services, the city’s highest wage jobs. 25% of the workers living in city neighborhoods outside Greater While private sector growth was particularly strong in 2016 Center City to commute to jobs downtown; another 6% work and 2017, with the city’s rate surpassing that of the region and in University City. In all of these neighborhoods, more people nearly catching up with the nation as a whole, Philadelphia has work downtown than in the area where they live. While 37% of not kept pace with the rate of employment growth in America’s Center City jobs require at least a bachelor’s degree, 30% are 26 largest cities, with size determined by the number of jobs. accessible to those with an associate’s degree, and another 33% Since 2009, the largest cities have been outperforming the require no more than a high school diploma. national economy and adding private sector jobs at an average But job growth in Philadelphia is uneven. Education and health of 2.3% per year, compared to only 1.4% in Philadelphia. The services, largely exempt from real estate and business taxes, recent positive trends were sufficient to lift Philadelphia above accounted for 56% of the jobs added since the recession; lower Baltimore’s and Memphis’s rates of growth, but still behind wage, leisure, hospitality and retail employment — important 23 other cities, including Boston, Detroit, New York City, entry level positions — accounted for 37% of the growth; Washington D.C., as well as the national rate of growth of 1.7% professional and business services accounted for 20% of per year. As a result, in nearly every category of employment,

2 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG INTRODUCTION

AVERAGE ANNUAL GROWTH BY INDUSTRY, 2009–2017

PHILADELPHIA PHILADELPHIA MSA LARGE US CITIES AVERAGE* US NATIONAL AVERAGE

Total Private 1.4% 1.1% 2.3% 1.7% Mining, Logging, and Construction 2.2% 1.5% 2.5% 1.6% Manufacturing -3.0% -1.0% 0.5% 0.6% Transportation, Utilities, and Wholesale Trade 1.0% 0.6% 2.0% 1.4% Retail Trade 0.9% 0.4% 1.7% 1.1% Financial Activities and Information -1.0% 0.0% 1.5% 0.7% Professional and Business Services 2.3% 1.7% 3.2% 2.7% Education and Health Services 1.8% 2.1% 2.7% 2.1% Leisure and Hospitality 3.2% 2.4% 3.4% 2.6% Other Services 0.6% 0.2% 1.3% 0.9%

This includes the 26 largest cities, with size determined by the number of jobs. Source: Bureau of Labor Statistics, Current Employment Statistics except construction and hospitality, the nation’s top cities further. This would have expanded the tax base, increased outperformed rates of growth in Philadelphia. Looking in the demand for neighborhood housing and generated additional tax rear-view mirror, we have come very far. Glancing out of the revenue for the city and schools without raising rates. But not side windows, we see peers passing us by. counting people who have ceased looking for work, an average of 43,600 Philadelphians remained on the unemployment rolls Our past dependency on industrial jobs can no longer throughout 2017 and population continued to decline in many suffice to explain slow growth. Other Northeast cities that older neighborhoods. Those with jobs often follow them to the hemorrhaged manufacturing rebounded through more robust, suburbs. Despite success downtown, 62,000 more residents post-industrial growth. Using 1970 as the baseline, New York’s of city neighborhoods since 2010 decamped for homes in the total employment is up 11% and Boston and Washington, D.C. suburbs than moved in and Philadelphia's 25.7% poverty rate are both up 23%. By contrast, Philadelphia has 26% fewer jobs is the highest of the 10 largest U.S. cities. than it did in 1970. Philadelphia’s tax structure, with its unique dependency of taxing what easily moves — employee wages and business revenues — is out of sync with hyper-mobile, 21st century, post-industrial realities. GREATER CENTER CITY WAGE & SALARY EMPLOYMENT This is a prime reason for Philadelphia’s high poverty and unemployment rates and why 40% of working residents from PROFESSIONAL/

23.4% OFF each City Council District outside of the downtown (211,000

BUSINESS SERVICES ICE JOB workers) are reverse commuting to the suburbs each day. 16.3% FINANCIAL ACTIVITIES/ Educational levels required for jobs in the suburbs are not REAL ESTATE/ S significantly different than those in the city. The suburbs simply INFORMATION have more jobs and, until recently, continued to add them 20.0% EDUCATION AND faster. Despite recent growth, we are digging out of a deep HEALTH SERVICES hole: Philadelphia still has 5% fewer jobs than in 1990, while 12.1 % PUBLIC ADMINISTRATION 298,612 TOTAL JOBS our suburbs are up 26%. 11.6% ENTERTAINMENT/ LEISURE/HOSPITALITY If local growth since 2009 had been robust enough just to make us average, attaining the 2.3% per year rate of growth 5.7% TRANSPORTATION/ UTILITIES/WHOLESALE TRADE of America’s largest cities, Philadelphia would have added an extra 45,400 jobs on top of existing growth of 55,100 for a total 4.3% RETAIL of 100,500 new job opportunities. The city’s unemployment 1.8% CONSTRUCTION +9,000 rate, which dropped from above 10% in the depths of the Great 0.5% MANUFACTURING PARTNERS, FREELANCERS & SELF EMPLOYED Recession to 6.2% in 2017 — still two percentage points higher Source: U.S. Census Bureau, Local Employment-Household 4.5% OTHER SERVICES Dynamics, 2015; Bureau of Labor Statistics, than regional and national averages — could have dropped Current Employment Statistics; CCD Estimates

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 3 INTRODUCTION

EDUCATIONAL ATTAINMENT, POPULATION 25 AND OVER, 2016

61% OF GREATER CENTER CITY RESIDENTS HAVE A HIGH SCHOOL OR LESS BACHELOR’S DEGREE OR HIGHER, A POWERFUL SOME COLLEGE

BACHELOR'S DEGREE ATTRACTOR FOR BUSINESSES SEEKING TALENT, ADVANCED DEGREE BUT A MARKED CONTRAST WITH SURROUNDING NEIGHBORHOODS

Source: U.S. Census Bureau, American Community Survey 2012—2016

PHILADELPHIA POPULATION CHANGE, 2000–2016

ENHANCING POSITIVE TRENDS, LOCALLY: The opening of the new Comcast Technology Center, the retention of Aramark’s corporate headquarters, the rapid growth of startups, investments in innovation made by major employers and local institutions and the eagerness of suburban firms to connect with Center City’s educated, skilled workforce are all positive trends upon which to capitalize. So too is the dynamic growth in University City and the collaborative work and positive messaging that emerged from the pursuit of Amazon. Philadelphia’s decline in the early- to mid-20th century resulted from overreliance on contracting manufacturing employers, complacency and failure to capture the growth of post-industrial and emerging innovation industries. Our success in the 21st century must be built upon a relentless impatience with the status quo.

The success in Center City, University City and at the Navy Increase more than 25% Yard is substantial — but simply not large enough to offset Increase 5% to 25% declines elsewhere in the city. The disparities between the Increase less than 5% thriving and declining sections of the city are enormous and Decrease less than 5% the temptation is strong to fall into a politics of resentment Decrease more than 5% with anti-growth rhetoric. Our national politics are already Non-residential (Navy Yard)

consumed by extremes — a tendency to pit one group against Source: U.S. Census Bureau, Decennial Census 2000, American Community Survey 2012-2016

4 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG INTRODUCTION

DEFINING THE DOWNTOWN

GREATER CENTER CITY (CORE + EXTENDED)

GIRARD AVENUE 19130 19123

EXTENDED CENTER CITY

VINE ST PHILADELPHIA UNIVERSITY City Hall CITY CORE CENTER CITY

19103 19102 19107 19106

PINE ST

GREATER EXTENDED CENTER CITY CENTER CITY 19146 19147 TASKER STREET

DEFINING THE RESIDENTIAL DOWNTOWN: The four ZIP codes between Vine and Pine streets are referred to in this report as “Core Center City” and the surrounding neighborhoods in the four adjacent ZIP codes are termed “Extended Center City.” Together they form “Greater Center City” — where 40% of residents live and work within the same area, while another 12% work in University City.

another. Philadelphia needs to avoid that trap and to seek far GREATER CENTER CITY POPULATION more pragmatic solutions that work locally. Instead of pitting the interests of market rate development against the needs of lower income residents, elected officials should focus on aligning both around a strategy of job growth for all. POPULATION CORE EXTENDED GREATER CENTER CITY 250,000 The federal government is steadily reducing the social safety net. State resources are constrained as well. If Philadelphia is 190,416 going to make any impact on its 25.7% poverty rate, the highest 200,000 of America’s 10 largest cities, it simply has to create the type 173,284 of competitive environment that grows private-sector jobs at a 157,812 faster rate, as other cities have done. 150,000

Philadelphia needs to commit not only to its public schools, but also to comprehensive tax reform. We can grow jobs citywide 100,000 if we reduce local government’s dependency on highly mobile 124,594 114,402 wages and business revenues and rely more on an expanding 107,927 base of the local property tax to fund municipal services and 50,000 improve public schools. Otherwise, educated residents of many 49,885 58,882 65,822 neighborhoods will continue to leave for greater opportunities in 0 the suburbs. 2000 2010 2017

Source: U.S. Census Bureau, 2000 and 2010 Decennial Census; CCD Estimates

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 5 INTRODUCTION

FASTEST GROWING PLACE TO LIVE: Greater Center City — defined as Sixty-one percent of Greater Center City residents have Girard Avenue to Tasker Street, river to river — has capitalized a bachelor’s degree or higher; in the downtown core the on growing national preferences for diverse, walkable, live-work percentage rises to 79%. This critical mass of talent, combined places. It is the fastest growing residential area of Philadelphia, with the steady stream of graduates from 15 colleges and with an estimated 190,000 residents in 2017, 40% of whom work universities in and around Greater Center City, is exercising a downtown; another 11% work in University City. In the last five powerful draw on employers. Suburban firms are announcing years, 26% of all in-movers to Philadelphia have moved into new downtown locations or putting employees into co-working downtown, including a sizable share of the largest demographic space to test the waters. group nationally, 20- to 34-year olds. Millennials now constitute Greater Center City currently has a lower percentage of 40% of the downtown population, followed closely by empty households with children (14%) than the rest of Philadelphia nesters and growing numbers of families with children. (27%), although 35,738 children have been born to downtown Greater Center City experienced another record-setting year parents since 2000. Parents can enjoy the convenience of in 2017 with the construction of 2,680 new apartments, single- walking their children to one of the 19 Greater Center City family homes and condominiums. Seventy-one percent of the elementary schools, where 8,253 students were enrolled in units were rentals, single-family housing constituted 18%, and 2017. School district data show that 81% of students in public condominiums jumped to 10% of new units from just 5% one classrooms in Greater Center City come from the downtown, a year before. Major developments were widely dispersed in 2017, significant increase from a decade ago; 67% of children attend across both the core and extended neighborhoods of Center City. Philadelphia has expanded from a 3% share of regional housing permits in the early 1990s to a 25% share from 2010 to 2017 AFFORDABLE HOUSING IN AND AROUND with Greater Center City counting for more than half of all new GREATER CENTER CITY units in the city. Since 2000, 23,385 new residential units have been added in Greater Center City. The extraordinary diversity of housing types available downtown allows households to stay GIRARD AVE in Center City as their needs change over time, with housing GIRARD AVE values appreciating at 11% per year since 2000.

At the same time, Greater Center City has 5,938 units of subsidized housing intermixed with market-rate apartments,

row homes and condominium buildings. Within a half-mile of VINE ST ST BROAD

the outer edges of the expanding downtown are another another VINE ST ST BROAD

4,766 subsidized units, providing a total of 10,704 units and MARKET ST City Hall

FIGURE 20: AFFORDABLE HOUSING IN AND AROUND an opportunity for local government to stabilize lower-income MARKET ST City Hall FIGURE 20: AFFORDABLE HOUSING IN AND AROUND GREATER CENTER CITY residents near Philadelphia’s prime employment center as PINE ST GREATER CENTER CITY market conditions continue to improve. PINE ST While 81% of suburban residents travel by car from home to work, 70% of core Center City residents commute without a car. The compact, intimately-scaled street grid that Philadelphia inherits from the 17th century promotes walkability and reinforces density, concentrating 60 residents per acre in TASKER ST TASKER ST the core downtown area and 47 per acre in the extended neighborhoods — compared with 37 per acre in the rest of Philadelphia and just 15 people per acre in the suburbs. Single- use, suburban zoning separates residents from commercial UNIT COUNT: 1 - 5 6 - 25 26 - 50 51 - 100 UNIT COUNT: 1 - 5 6 - 25 26 - 50 51 - 100 districts. Downtown land-use diversity comingles living, 101 - 250 251 - 500 501 - 506 working, retail, dining, cultural, entertainment and educational 101 - 250 251 - 500 501 - 506 offerings, and density allows for ease of travel by public transit, GCC BOUNDARY 1/4 MILE BUFFER 1/2 MILE BUFFER cab and ride- and bike-sharing services. For success to be ensured, the growing challenge of congestion must be managed Properties 70 88 118 and rules of the road enforced for all. TOTAL UNITS 5,938 7,694 10,704

Source: National Housing Preservation Database

6 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG INTRODUCTION school in the catchment area in which they live. An equally CENTER CITY KEY FACTS important metric: while Center City has three high quality, independent schools, 75% of children in Greater Center City attend public school, comparable to the citywide average of 80%. CENTER CITY KEY FACTS Total Wage & Salary Jobs 298,612 More robust job growth will not only provide expanded opportunities for Philadelphia residents, it will ensure that Partners & Self-Employed Workers 9,000 developers can fill new apartments now under construction. Office Square Feet 41.2 million More certainty about long-term school funding will also help Office Occupancy 86.6% retain millennials as they form families. A greater attention to Co-working Square Feet 502,000 quality of life issues downtown will encourage both workers Hotel Rooms 11,675 and residents to stay, while supporting the burgeoning hospitality industry. Hotel Room Occupancy 78.2% Average Daily Room Rate $185 A MANAGED PLACE, PLANNING FOR THE FUTURE: For 27 years, Center City District (CCD) has enhanced public spaces, Retailers 992 reinforcing private-sector investment and supplementing city Full-Service Restaurants 453 services. In partnership with Central Philadelphia Development Cafes/Bakeries/Quick-Service Restaurants 447 Corporation (CPDC), research, planning and advocacy have Hospitals 5 guided investments and shaped policies that enhance downtown Arts & Cultural Institutions 243 competitiveness. Today, sidewalks, filled with pedestrians and outdoor cafés, are cleaned seven days a week and graffiti Colleges & Universities 15 is removed from the ground floor of building façades and Total Enrollment in Higher Education 34,812 from street furniture. CCD’s uniformed Community Service Annual Philadelphia International Airport Passengers 29,585,754 Representatives work in partnership with the Philadelphia Police Annual Amtrak 30th Street Station Passengers 4,391,966 Department, providing a welcoming presence for pedestrians Average Weekday Center City Transit Ridership 308,527 and helping to reduce the number of serious crimes by 44% (All Modes) since 1993, while retail theft has been cut by 42% and thefts Housing Units Completed in 2017 2,680 from autos by 86%. Average Home Sale Price $369,234 CCD maintains nearly all of the $146 million streetscape and Apartment Median Asking Rent $1,930 public space improvements it has made in the last 20 years, Greater Center City Population 190,416 routinely cleaning, updating and refurbishing pedestrian, transit and vehicular directional signs, disk and bus shelter maps and Percent of Residents with Bachelor's or More 61% interpretive panels along the Benjamin Franklin Parkway. CCD has installed 2,189 pedestrian-scale light fixtures since 1996, doubling or tripling nighttime illumination, while supporting Today, Center City is more vibrant than at any time since the late the evening economy. CCD programs color-changing lights on 1940s, before suburbanization and de-industrialization started building façades along the Avenue of the Arts and maintains draining life and jobs out of the city. But changes at the national the illumination on public sculptures on the Benjamin Franklin and state levels are challenging Philadelphia more than at any Parkway. CCD manages and programs four parks it has time in recent memory. We must be far more self-reliant and renovated and is transforming part of the defunct Reading inventive, making better use of the assets we have. It’s time to Railroad viaduct into the first phase of the new Rail Park that manage more effectively our narrow streets and intimate-scaled opens in 2018. sidewalks and create a competitive platform for broader, more inclusive growth. CPDC was formed 62 years ago as the private-sector leadership group that partnered with local government at the inception of the downtown revival. CCD was formed 27 years ago, after a decade of federal disengagement and a major recession rendered Center City’s public domain a dirty and dangerous place to be avoided.

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 7 OFFICE Cozen O'Connor | Matt Stanley Center City’s 41.2 million square feet (sf) of commercial office ($56.64) and Washington, D.C. ($54.83). In Center City, the space is the backbone of the downtown economy. Well-served West Market Street submarket commands the highest rents at by transit, office buildings hold the densest concentration an average of $31.78/sf, with Independence Square following of employment opportunities in the region, providing 40% of closely behind at $31.27/sf. The submarkets east of Broad saw downtown jobs and the most diverse opportunities: high-skilled the highest rate appreciations in 2017, as older office buildings positions requiring at least a college degree, technical, support have been repositioned and the historic westward migration of and clerical jobs, as well as building engineers and managers, tenants has been counter-balanced by a broader resurgence of security personnel and custodians. Every time tenants turn the east side of downtown. over, construction trades are called on to renovate space. Co-working spaces are continuing to grow in Center City, but Office workers spend time and money in downtown shops, at a slower rate than previous years, accounting for 2.8% of restaurants, and entertainment venues, creating $230 million in all leasing activity in 2017. A total of 24 co-working locations annual retail demand. Business travelers accounted for almost occupy 502,000 sf of space with an additional 209,000 sf under one-third of all hotel room nights in 2017. construction. Despite the perception that co-working spaces Center City’s office occupancy rate slightly decreased from are filled with young entrepreneurs and startups, many large 87.8% in 2016 to 86.6% in 2017, though still surpassing companies are using co-working spaces downtown to test suburban occupancy levels of 85.3%. Trophy occupancy was the market. highest at 95%, followed by Class A and B at 89% and 88%, But most leasing activity in 2017 followed Center City’s historic respectively. Though average asking rents rose to $30.59/sf pattern of renewals and in-market movement. The largest from $29.60/sf, this is still far lower than the leading markets leasing transaction came from Thomas Jefferson University. nationally — almost a third less of asking rents in Midtown Capitalizing on the large block of space being vacated by Manhattan ($80.15), and nearly half of asking rates in Boston Aramark’s impending move to 2400 Market, the medical

8 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG OFFICE institution signed a 230,000 sf lease on East Market Street. With the repositioning of recently acquired buildings, developers Their move reinforces the redevelopment of The Gallery into are looking to differentiate their product within the marketplace Fashion District Philadelphia and the development of the by investing heavily in amenities, including state-of-the-art former Girard Estate parcel across the street into a mixed-use meeting space, as well as new ground floor retail tenants that residential, office and retail center. The First Judicial District of younger office workers like to patronize. Pennsylvania, Philadelphia’s local court system, also secured Center City’s largest development, Liberty Property Trust’s 120,000 sf of space in the Sovereign Building at 714 Market St., Comcast Technology Center, will add 1.3 million sf of trophy placing its offices adjacent to the federal courthouse complex space to Center City upon completion in 2018. PMC Property on Market Street. Group’s 2400 Market will house Aramark’s relocated Inbound office tenants accounted for 16% of all leasing activity headquarters and several other tenants, adding 485,000 sf of between 2015 and 2017, as 1.2 million sf of space was taken office space and narrowing the gap between Center City and by tenants migrating downtown from outside the city limits, University City. Still on the drawing boards is Oliver Tyrone according to JLL. While some relocations have been large, Pulver Corp.’s proposed 1301 Market that will add 840,000 sf of most newcomers into the Philadelphia market leased small or office along East Market, if constructed. gateway spaces to attract young, educated workers who live in Despite these positive trends, Center City’s office sector Greater Center City and who may be reluctant to commute to continues to lag compared to other peer markets. A simple the suburbs for a job. A prime example was the announcement measure of success is the premium that businesses are willing in 2017 that Malvern-based Vanguard Group is opening a to pay to be in the employee- and amenity-rich CBD, as opposed 16,000-sf innovation center at 2300 Chestnut St. to the suburbs. A sampling of major CBD markets nationwide Investor demand for office buildings continues to grow in by Newmark Grubb Knight Frank showed an average CBD Philadelphia’s relatively affordable market, especially from premium of 25% in 2017 — rising to 112% in Boston and 74% national and global firms. A total of 4.7 million sf of office space, in Washington, D.C. In Philadelphia, the premium on downtown representing $830 million in transactions, exchanged hands in space was just 10%, comparable to many sprawling Sun Belt 2017. Notable sales included: Oaktree Capital Management’s metros. These lower rent premiums are a result of the impact purchase of United Plaza from CBRE Global Investors; on occupancy costs of Philadelphia’s wage, business and Rubenstein’s partial acquisition of the Wanamaker Building use and occupancy taxes, which can easily add a 20% to 30% from TIER REIT; Washington, D.C.-based MRP Realty’s purchase premium on downtown costs. More robust growth will occur of Three Parkway also from TIER REIT; New York-based only when Philadelphia updates its tax structure to 21st Nightingale Properties’ acquisition of Centre Square from century realities. Equity Commonwealth; and Alterra Property Group’s purchase of One City Plaza, with the likely conversion to residential.

MAJOR CENTER CITY OFFICE SUBMARKETS

TOTAL INVENTORY (SF) VACANT (SF) OCCUPANCY RATE 2017 ABSORPTION (SF) AVERAGE ASKING RENT (PSF)

West Market 25,782,472 3,300,156 87.2% -287,400 $31.78 East Market 6,502,780 559,239 91.4% 196,022 $27.51 Independence Square 4,852,963 1,014,269 79.1% -211,086 $31.27 Walnut/South Broad 4,065,524 662,680 83.7% 10,316 $26.98 TOTAL 41,203,739 5,536,344 86.6% -292,148 $30.59

Source: Newmark Grubb Knight Frank

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 9 OFFICE

CENTRAL BUSINESS DISTRICT OCCUPANCY, 2017

NEW YORK CITY - MIDTOWN SOUTH 94.5% SAN FRANCISCO 93.6% NEW YORK CITY - MIDTOWN 92.5% NEW YORK CITY - DOWNTOWN 90.9% PORTLAND, OR 90.5% MIAMI 88.8% WASHINGTON, D.C. 88.8% BOSTON 88.4% NEW YORK CITY - BROOKLYN 88.0% SAN DIEGO 87.8% JACKSONVILLE 87.4% CHICAGO 86.7% PHILADELPHIA - CENTER CITY 86.6% BALTIMORE 85.3% ATLANTA 84.3% DENVER 83.9% FAIRFIELD COUNTY, CT 82.6% DALLAS 80.6% LOS ANGELES 80.5% HOUSTON 79.0% PHOENIX 77.7%

20% 40%60% 80%100%

Source: Newmark Grubb Knight Frank

CENTER CITY HAS THE SAME AMOUNT OF OCCUPIED OFFICE SPACE IN 2017 AS IT DID IN 1990

CENTER CITY PHILADELPHIA OFFICE MARKET, 1985–2017

OCCUPIED (SF) VACANT (SF) OCCUPANCY RATE

SF (MILLIONS) OCCUPANCY RATE

50 95%

40 91%

30 87%

20 83%

10 79%

0 75% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Newmark Grubb Knight Frank

10 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG OFFICE

COMPARATIVE CENTRAL BUSINESS DISTRICT ASKING RENTS, 2017

NEW YORK CITY MIDTOWN $80.15 SAN FRANCISCO $74.80 NEW YORK CITY MIDTOWN SOUTH $74.09 NEW YORK CITY DOWNTOWN $64.91 BOSTON $56.64 FAIRFIELD COUNTY, CT $54.98 WASHINGTON, D.C. $54.83 NEW YORK CITY BROOKLYN $43.97 MIAMI $42.03 LOS ANGELES $41.67 HOUSTON $38.82 CHICAGO $35.44 DENVER $33.92 PORTLAND, OR $30.81 PHILADELPHIA CENTER CITY $30.59 ATLANTA $27.91 SAN DIEGO $27.42 PHOENIX $25.50 DALLAS $25.23 BALTIMORE $23.18 JACKSONVILLE $20.52

Source: Newmark Grubb Knight Frank

DOWNTOWN PREMIUM: CENTRAL BUSINESS DISTRICT CLASS A RENTS COMPARED TO REGIONAL RENTS, 2017

BOSTON 112% WASHINGTON, D.C. 74% FAIRFIELD COUNTY, CT 66% CHICAGO 61% OAKLAND 50% SACRAMENTO 44% DENVER 39% MIAMI 39% HOUSTON 33% PORTLAND, OR 26% NATIONAL AVERAGE 25% ORLANDO 10% PHILADELPHIA CENTER CITY 10% ORANGE COUNTY, CA 6% ATLANTA 6% SAN FRANCISCO 4% BALTIMORE 3% LOS ANGELES 2% PHOENIX 2% JACKSONVILLE -5% DALLAS -10%

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

Source: Newmark Grubb Knight Frank

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 11 OFFICE WEWORK LOCALHOST NORTHERN LIBERTIES 3,000 30,000 CENTER CITY AVERAGE ASKING RENT BENJAMIN'SCENTER DESK CITY OCCUPANCY RATE BY CLASS 17,000

DOLLARS PER SQUARE FOOT TROPHY CLASS A CLASS B OCCUPANCY RATE TROPHY CLASS A CLASS B $40 100% $37.41 VENTUREF0RTH 10,000 95% $35 95% $31.27 91% BOND STATION HOUSE $30.85THE EXCHANGE WEWORK 21,526 7,500 (1601 MARKET) 89% $30 BENJAMIN'S DESK MAKEOFFICE 40,00090% $26.77 (30 NORTH 41ST ST) 67,000 $27.43 87% 12,400 PIPELINE 21,000 IC@340 MAKEOFFICE INDY HALL 88% $25 11,7500 24,000 85% THE YARD 10,000 $22.49 24,000 WEWORK 85% CITY COHO (1900 MARKET) BENJAMIN'S DESK 13,000 56,000 80% WASHINGTON SQUARE $20 9,850 2010 2011 2012 2013 2014 BENJAMIN'S2015 DESK2016 2017 2010CULTUREWORKS2011 2012 2013 2014 2015 2016 2017 6,100 INDUSTRIOUS GREATER PHILADELPHIA Source: JLL 21,000Research 5,000 Source: JLL Research BENJAMIN'S DESK 11,700 WEWORK (WALNUT STREET) JOYNTURE 30,000 23,000 WeWork Northern Liberties30000 502,000 SF OF CO-WORKING SPACE IS LocalHost3000 PROVIDING NATIONAL AND REGIONAL FIRMS AN OPPORTUNITY TO TEST THE CENTER CITY MARKET Benjamin's Desk17000

GIRARD AVE Bond Station House21,526

The Exchange7500 Venturef0rth10000

LOCALHOST MakeOffice24000 MakeOffice67000 3,000 COWORKING DIVINE WORKS WEWORK WeWork 1601 Market40000 1776 BENJAMIN’S DESK NORTHERN LIBERTIES OFFICE SPACE 17,000 30,000 Indy Hall10000 ic@340117500 SQUARE FEET: Pipeline21000 The Yard24000

ST 5,000 or less

D

OA Benjamin's Desk Washington Square9850

BR VENTUREF0RTH 5,001–10,000 10,000 BOND KISMET 6,400 THRIVE PHILLY STATION HOUSE 11,000 SPACES37,735 21,526 VINE ST 10,001–15,000 Benjamin's Desk12400 CAMBRIDGE PHL NEXT THE EXCHANGE INNOVATION CENTER 7,500 15,001–25,000 127,000 STAGE MED WEWORK MAKEOFFICE CultureWorks Greater Philadelphia5000 20,856 56,050 56,776 WEWORK PIPELINE SPACES 39,846 21,000 37,735 City CoHo13000 MAKEOFFICE INDY HALL WeWork Walnut Street30000 City Hall MARKET ST 25,001–35,000 Benjamin's Desk6100 Abbotts Square 1776 24,000 THE YARD 10,000 23,500 BENJAMIN’S DESK IC3401 12,380 17,500 1776 BENJAMIN’S DESK CULTUREWORKS 1776 BENJAMIN'S DESK 6,100 19,400 5,000 35,001 or more Benjamin's Desk11700 CITY COHO 1776 BENJAMIN’S DESK Joynture23000 13,000 11,693 INDUSTRIOUS WEWORK WeWork 1900 Market56000 21,000 21,000 PINE ST Coming Soon JOYNTURE Industrious21000 23,000 Open Pennovation Center Source: Center City District, 58000 JLL Research

PENNOVATION CENTER 38,000 12 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG OFFICE WEWORK LOCALHOST NORTHERN LIBERTIES 3,000 30,000 BENJAMIN'S DESK SIGNIFICANT OFFICE LEASING TRANSACTIONS IN CENTER CITY, 2017 17,000

MARKET WEST

Tenant Building Class Size (SF) VENTUREF0RTH 10,000 Morgan Lewis & Bockius Ten Penn Center A 97,198 Reed Elsevier Four Penn Center A 75,000

BOND STATION HOUSE THE EXCHANGE WEWORK Comcast Three Logan Square A 70,000 21,526 7,500 (1601 MARKET) BENJAMIN'S DESK MAKEOFFICE 40,000 Post & Schell Four Penn Center A 60,000 (30 NORTH 41ST ST) 67,000 12,400 PIPELINE Pennoni 1900 Market Street A 55,000 21,000 IC@340 MAKEOFFICE INDY HALL McCormick Taylor Beneficial Bank Building A 50,000 11,7500 24,000 THE YARD 10,000 24,000 Braskem BNY Mellon Center Trophy 44,000 WEWORK CITY COHO (1900 MARKET) BENJAMIN'S DESK Pennsylvania Office of Attorney General The Phoenix B 33,000 13,000 56,000 WASHINGTON SQUARE 9,850 Tierney 1700 Market Street A 31,214 BENJAMIN'S DESK CULTUREWORKS 6,100 INDUSTRIOUS GREATER PHILADELPHIA Jenkins Law Library Ten Penn Center A 30,000 21,000 5,000 BENJAMIN'S DESK LEAF Financial One Commerce Square A 30,000 11,700 WEWORK (WALNUT STREET) JOYNTURE Coalition of Cancer Cooperative Groups Beneficial Bank Building A 30,000 30,000 23,000 Simon & Simon Beneficial Bank Building A 25,000 WeWork Northern Liberties30000 JPMorgan Chase One Liberty Place Trophy 25,000 Market Resource Partners Beneficial Bank Building A 23,500 LocalHost3000 Bond Station House One Penn Center at Suburban Station B 21,526 Cozen O'Connor One Liberty Place A 20,000 Benjamin's Desk17000 Kleinbard One Liberty Place A 20,000 Brandywine Global BNY Mellon Center A 88,713 GIRARD AVE Bond Station House21,526 Hussian College 1500 Spring Garden Street A 32,771 The Exchange7500 Pennsylvania Office of Attorney General Centre Square A 23,453 Venturef0rth10000 LOCALHOST Magee Rehabilitation 1617 John F Kennedy Blvd MakeOffice24000 B 21,883 MakeOffice67000 3,000 COWORKING DIVINE WORKS WEWORK MARKET EAST WeWork 1601 Market40000 1776 BENJAMIN’S DESK NORTHERN LIBERTIES OFFICE SPACE 17,000 30,000 Tenant Building Class Size (SF) Indy Hall10000 SQUARE FEET: ic@340117500 The Yard24000 Thomas Jefferson University Aramark Building A 230,000 Pipeline21000

ST 5,000 or less D First Judicial District of Pennsylvania (GSA) Sovereign Building B 120,000 OA Benjamin's Desk Washington Square9850

BR VENTUREF0RTH 5,001–10,000 KISMET 10,000 Philadelphia Water Department Aramark Building A 22,000 BOND THRIVE PHILLY STATION HOUSE 6,400 VINE ST 11,000 EEOC 801 Market Street B 20,588 SPACES37,735 21,526 10,001–15,000 Benjamin's Desk12400 CAMBRIDGE Source: JLL Research PHL NEXT THE EXCHANGE INNOVATION CENTER 7,500 15,001–25,000 127,000 STAGE MED WEWORK MAKEOFFICE CultureWorks Greater Philadelphia5000 20,856 56,050 56,776 WEWORK PIPELINE SPACES 39,846 21,000 37,735 City CoHo13000 MAKEOFFICE INDY HALL WeWork Walnut Street30000 City Hall MARKET ST 25,001–35,000 Benjamin's Desk6100 Abbotts Square 1776 24,000 THE YARD 10,000 23,500 BENJAMIN’S DESK IC3401 12,380 17,500 1776 BENJAMIN’S DESK CULTUREWORKS 1776 BENJAMIN'S DESK 6,100 19,400 5,000 35,001 or more Benjamin's Desk11700 CITY COHO 1776 BENJAMIN’S DESK Joynture23000 13,000 11,693 INDUSTRIOUS WEWORK WeWork 1900 Market56000 21,000 21,000 PINE ST OF ALL LEASING Coming Soon 16% JOYNTURE Industrious21000 23,000 Open ACTIVITY FROM 2015 TO 2017 (1.2 MILLION SQUARE FEET) Pennovation Center Source: Center City District, WAS BY FIRMS MOVING IN FROM58000 OUTSIDE THE CITY JLL Research

PENNOVATION CENTER 38,000 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 13 OFFICE

CENTRAL BUSINESS DISTRICT COMPLETIONS, 2017

CBD COMPLETIONS COMPLETIONS AS PERCENT OF EXISTING CBD COMPLETIONS AS PERCENT OF NATIONAL COMPLETIONS

Seattle-Downtown 3,557,841 6.4% 20.4% Chicago 3,473,854 2.4% 19.9% Washington DC 1,979,552 1.6% 11.4% Nashville 1,387,000 10.9% 8.0% Dallas 292,237 0.8% 1.7% Cincinnati 290,000 1.7% 1.7% Portland-Central City 265,551 1.0% 1.5% New York-Midtown South 178,504 0.3% 1.0% Boston 0 0.0% 0.0% New York-Midtown 0 0.0% 0.0% Philadelphia - Center City 0 0.0% 0.0% All Other Cities 5,990,646 0.8% 34.4% UNITED STATES CBD TOTALS 17,415,185 1.1% 100.0%

Source: JLL Research

CENTER CITY OFFICE BUILDING ACQUISITIONS, 2017

SQUARE FEET:

150,000 or less VINE ST

150,001–350,000 BROAD ST

ER

V

350,001–1,000,000 RI

RE

A

THREE PARKWAY W

A

R R

557,440 SF EL 1926 ARCH* ONE CITY PLAZA D

1,000,000 or more 52,104 SF 220,300 SF K

VD

MARKET ST

SCHUYLKILL RIVE SCHUYLKILL S SCHUYLKILL RIVE SCHUYLKILL City Hall 801 MARKET 312,000 SF STATUS: WANAMAKER BUILDING* CENTRE SQUARE I 95

Acquired by a 2300 CHESTNUT 1,770,000 SF 973,610 SF MBUS BL LU National Investor 103,905 SF UNITED PLAZA Acquired by a 617,476 SF

PHER CO PHER Local Investor O

1533 LOCUST CHRIST *Purchased by Philadelphia-based 1624 LOCUST 12,720 SF national investment company. 49,000 SF

Source: JLL Research

PINE ST

14 14 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG

T

S

RD ST RD

9TH ST 9TH

8TH ST 8TH

7TH ST 7TH

6TH ST 6TH

5TH ST 5TH

4TH

3

2ND ST 2ND

21ST ST 21ST

13TH ST 13TH

12TH ST 12TH

11TH ST 11TH

10TH ST 10TH

18TH ST 18TH

17TH ST 17TH

16TH ST 16TH

15TH ST 15TH

25TH ST 25TH

27TH ST 27TH ST 24TH

26TH ST 26TH

20TH ST 20TH

19TH ST 19TH

23RD ST 23RD

22ND ST 22ND

FRONT ST FRONT

BROAD ST BROAD

JUNIPER ST JUNIPER HEALTHCARE &

University of Pennsylvania | Matt Stanley of Pennsylvania University HIGHER EDUCATION Higher education and healthcare institutions are the prime 3,090 people. In addition to placing office and administrative engines of Philadelphia’s economy, accounting for 32% of all jobs in Center City office buildings, CHOP and the University of jobs in the city and 20% of all jobs downtown. Since 2009, “eds Pennsylvania have been migrating east into new glass towers and meds” jobs account for 30,800 of the 55,100 jobs added in lining the Schuylkill River, further narrowing the gap between the city since the recession. Center City and University City.

Thomas Jefferson University accounts for more than half In fall 2016, Center City’s 15 colleges and universities reported of Center City’s educational, medical and health services a total enrollment of 34,812 students. Adjacent to Center employment and has steadily been increasing both its City, Drexel, Penn, Temple, and the University of the Sciences regional reach and downtown impact. In July 2017, Jefferson enrolled an additional 76,980 students. Well-connected to the completed a merger with Philadelphia University, putting one downtown by public transit, thousands of these students live, of Philadelphia’s largest medical institutions and one of its shop and socialize in Center City. Of students who graduated major design institutions under the same leadership, facilitating in 2016, 60% of the degrees were in health, business or STEM further cross-disciplinary study. The merger has resulted in (science, technology, engineering, and math). As graduates programs such as JeffDESIGN, which teaches students to apply transition to employees, 67% of students reported to Campus design thinking to solve healthcare challenges. At the end of Philly that they are likely to stay in Philadelphia. 2017, Jefferson also announced plans to expand its Center Philadelphia’s research institutions are driving innovation in City campus by leasing space being vacated by Aramark on the healthcare sector as well as other areas. According to the East Market. National Science Foundation’s Higher Education Research and Penn Medicine, Drexel University and Children’s Hospital of Development Survey, combined research spending at Drexel, Philadelphia (CHOP) increased their combined number of Temple, Jefferson, and Penn totaled $1.79 billion in 2016, up jobs in Center City to 9,357, leasing both office and medical from $1.34 billion in 2015. Those four institutions launched space, while eight smaller institutions employed more than a total of 29 startups in 2016, applied for 316 patents, and

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 15 HEALTHCARE & HIGHER EDUCATION

generated income from active licenses totaling $51.8 million. In 2018, the Cambridge Innovation Center, which has played a Penn’s research and development expenditures ranked third in significant role in turning ideas into successful entrepreneurial the nation in 2016, after increasing by 50% since 2015. Overall, ventures in the Boston area, will open in the new University City Philadelphia’s $924 million in National Institutes of Health Science Center space at 3675 Market St. Establishing stronger grants in 2017 puts the city in fourth place nationally behind connections between Philadelphia's research institutions Boston, New York, and Seattle. and industry, capital, and local suppliers has the potential to significantly boost job growth. While the University City Science Center, Pennovation Center and the Drexel Innovation District are all part of strategic initiatives to foster Philadelphia’s ability to transfer academic research into economic development, Philadelphia has a lot of catching up to do. In the Boston area, for example, the Massachusetts Institute of Technology alone launched 25 THE HEALTHCARE AND EDUCATION startups, applied for 470 patents and generated $49.4 million in active licenses. Nine of the top 30 pharmaceutical companies SECTOR PROVIDES 33% OF ALL nationally are physically clustered around MIT’s Cambridge campus. By contrast, the Greater Philadelphia area ranks sixth JOBS IN THE CITY AND 20% OF ALL among the nation’s biopharma clusters, behind Boston, San Francisco, New York, San Diego and Washington, D.C. DOWNTOWN JOBS

PHILADELPHIA EDUCATION AND HEALTH SERVICES EMPLOYMENT

WAGE & SALARY EMPLOYMENT HEALTHCARE AND SOCIAL ASSISTANCE HIGHER EDUCATION 160,000

128,602 150,957

120,000

80,000

50,389 44,889

40,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment & Wages

16 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG GIRARDA AVE

CENTER CITY HIGHER EDUCATION AND MEDICAL INSTITUTION EMPLOYMENT

EMPLOYEES: < 50

51–100

101–250

251–500

> 500 VINE ST

Smaller Institutions

Jefferson

U Penn

CHOP

Drexel MARKET ST City Hall

Temple

Source: Children's Hospital of Philadelphia; Drexel University; Penn Medicine; Temple University;

ROAD ST

Thomas Jefferson University; Individual Institutions B

PINE ST

THOMAS JEFFERSON UNIVERSITY IS THE LARGEST PRIVATE EMPLOYER IN CENTER CITY WITH MOST OF ITS EMPLOYMENT CONCENTRATED EAST OF BROAD STREET. DREXEL UNIVERSITY IS EXPANDING ITS DOWNTOWN PRESENCE JUST NORTHWEST OF CITY HALL, WHILE TEMPLE, PENN AND CHILDREN’S HOSPITAL ARE EXPANDING THEIR DOWNTOWN FOOTPRINTS TASKER ST

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 17 HEALTHCARE & HIGHER EDUCATION

NATIONAL INSTITUTES OF HEALTH FUNDING, 2017

BOSTON $1,967,853,177

NEW YORK $1,569,784,052

SEATTLE $936,729,526

PHILADELPHIA $923,746,747

BALTIMORE $891,334,610

LOS ANGELES $766,906,932

LA JOLLA $756,174,735

SAN FRANCISCO $701,523,630

CHICAGO $646,233,064

PITTSBURGH $571,995,518

ANN ARBOR $537,149,233

0 500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 TOTAL NIH FUNDING Source: U.S. Department of Health & Human Services, National Institutes of Health

PHILADELPHIA RANKS 4TH NATIONALLY, SECURING $924 MILLION IN NIH GRANTS IN 2017

DEGREES CONFERRED BY PHILADELPHIA DEGREES CONFERRED BY TYPE COLLEGES AND UNIVERSITIES, 2016

15,000 25% HEALTH

18% STEM 12,000 17% BUSINESS

9,000 7% LIBERAL ARTS LEGAL, PUBLIC ADMIN, 6% SOCIAL SERVICES 28,568 GRADUATES 6,000 6% VISUAL AND PERFORMING ARTS 5% EDUCATION 3,000 9% ASSOCIATES 2,134 14,361 8,372 3,701 OTHER 0 7% Source: U.S. Department of Education, ASSOCIATE BACHELOR’SMASTER’SDOCTORAL National Center for Education Statistics

Source: U.S. Department of Education, National Center for Education Statistics

18 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG GIRARD AVE

TEMPLE UNIVERSITY, MAIN CAMPUS 34,034

COMMUNITY COLLEGE OF PHILADELPHIA 18,126

ROAD ST

B

VINE ST DREXEL UNIVERSITY, CC CAMPUS MOORE COLLEGE 2,159 OF ART & DESIGN PENNSYLVANIA ACADEMY 401 OF THE FINE ARTS TEMPLE UNIVERSITY, 287 SCHOOL OF PODIATRIC MEDICINE 374 TEMPLE UNIVERSITY, MARKET ST CC CAMPUS City Hall 1,004 HUSSIAN COLLEGE DREXEL 73 UNIVERSITY 15,445 JNA INSTITUTE OF THOMAS JEFFERSON THE ART INSTITUTE CULINARY ARTS UNIVERSITY OF UNIVERSITY OF PHILADELPHIA 59 7,577 PENNSYLVANIA 1,071 24,960

ACADEMY OF CURTIS INSTITUTE VOCAL ARTS OF MUSIC UNIVERSITY OF 28 173 THE ARTS PEIRCE 1,917 UNIVERSITY OF PINE ST THE SCIENCES COLLEGE 2,541 1,563

HIGHER EDUCATION ENROLLMENT, FALL 2016 FALL 2016 ATTENDANCE: Source: National Center for Education Statistics, Integrated Postsecondary Education Data System; Temple University Fact Book 2016-2017; Drexel University, Office of Institutional Research, Assessment & Effectiveness; Pennsylvania Academy of the Fine Arts Annual Report; Thomas Jefferson University; < 500 501–2,000 2,001–10,000 > 10,000 University of Pennsylvania; University of the Sciences

112,000TASKER ST STUDENTS ARE ENROLLED IN COLLEGES AND UNIVERSITIES IN AND ADJACENT TO CENTER CITY

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 19 HEALTHCARE & HIGHER EDUCATION

RESEARCH EXPENDITURES AT CENTER CITY AND ADJACENT UNIVERSITIES

EXPENDITURES (MILLIONS) 2014 2015 2016 1,500

1,200

900

600

300

0 $131.2 $128.0 $127.9 $224.1 $227.5 $246.4 $118.4 $119.6 $122.4 $828.4 $864.1 $1296.4

DREXEL UNIVERSITY TEMPLE UNIVERSITY THOMAS JEFFERSON UNIVERSITY UNIVERSITY OF PENNSYLVANIA

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

TOTAL SPENDING ON RESEARCH INCREASED FROM $1.34 BILLION IN 2015 TO $1.79 BILLION IN 2016

NEW PATENT APPLICATIONS AT CENTER CITY AND ADJACENT UNIVERSITIES

NEW PATENT APPLICATIONS 2014 2015 2016 200

150

100

50

0 78 64 68 20 38 53 18 53 24 123 175 171 DREXEL UNIVERSITY TEMPLE UNIVERSITY THOMAS JEFFERSON UNIVERSITY UNIVERSITY OF PENNSYLVANIA

Source: Association of Technology Managers, Licensing Activity Survey 2016

20 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CONVENTIONS,

Aloft Hotel Lobby | Matt Stanley Hotel Aloft TOURISM & HOTELS Major public and private investments in the hospitality sector, for 33% of the downtown’s occupied hotel room nights, surpassing including the Pennsylvania Convention Center, the Museum of commercial (31%) and group and convention business (32%). In the American Revolution, hotels and cultural institutions, as 2018, Visit Philadelphia is planning on highlighting Philadelphia’s well as advertising and marketing efforts, have repositioned best-in-class food scene, as data from Bon Appétit shows 81% Philadelphia as a national meeting and tourist destination. This of leisure travelers now travel for food. in turn has paid dividends with record-breaking visitation num- Combined, leisure and group travel demand pushed Center bers and expanded employment opportunities for city residents City’s 2017 hotel occupancy rate to a modern-day record of with the addition of more than 16,400 jobs in the leisure and 78.2%, with a total of 3.3 million occupied hotel room nights. hospitality sector since 2009. The average daily room rate (ADR) for Center City was $185, In 2017, the Pennsylvania Convention Center hosted 21 conven- slightly below levels in 2016, when the city hosted the DNC. tions and trade shows and three gate shows of 1,500 attendees While Center City’s ADR has surpassed pre-recession highs, or more, pushing attendance to 1,055,464. Of note was the NFL when adjusting for inflation, rates actually declined. This was Draft, which brought 250,000 people and generated an overall largely due to limited demand from business travelers, the economic impact of $94.9 million. Twenty-one conventions and highest rate payers, reflecting the limited number of major trade shows of 4,000 or more are slated for 2018 with anticipated corporate headquarters in the city and only modest office sector attendance of 1,155,000. job growth.

Leisure room nights, driven by Visit Philadelphia’s marketing in In 2016, 644,200 overseas visitors came to the Philadelphia region, North America and the Philadelphia Convention and Visitors generating an economic impact of $979 million. While the U.K. Bureau’s focus on overseas travel, totaled 1,092,000 in 2017, an remained the No. 1 feeder market to the region, visitation from increase of 61% from 2008 levels. Leisure travel now accounts China increased 12.4% over 2015 levels, making it the second

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 21 CONVENTIONS, TOURISM & HOTELS

largest market for overseas travelers and the fastest growing that better position the hotel to a millennial audience. Addi- overseas market for the region. While overseas visitation declined tionally, the former Omni Hotel, now known as The Franklin by by nearly 2% nationally, it grew by almost 1% in Philadelphia and Marriott, is undergoing a multimillion-dollar renovation after its is projected to grow 9.4% over the next five years. These growth acquisi­tion by Buccini/Pollin. The Independence Visitor Center projections are helped by the recent addition of new nonstop is also investing $15 million to enlarge its gift shop and terrace international flights from Reykjavik, Dublin, Zurich, Budapest, overlooking Independence Mall, to be completed by 2019. Prague and Mexico City to Philadelphia International Airport.

Increasing demand in Center City is driving 11 hotel projects that will increase downtown supply to more than 13,000 rooms by 2021. As of December 2017, the W Hotel, Element by Westin, Cambria Hotel & Suites (completed in early 2018), Four Seasons,­ Hyatt Centric, and Fairfield Inn and Suites were all under con- struction, with the Kimpton, SLS LUX, Marriott AC and Comfort Inn still in the planning phases. These will join the recently opened Aloft Hotel, located on North Broad Street next to the THE NUMBER OF HOTEL ROOMS Convention Center.

Older hotels are responding with rebranding and renovations. OCCUPIED BY LEISURE TOURISTS After the completion of an $8 million renovation, Hyatt will be repositioning The Bellevue as part of their newly launched HAS INCREASED 61% SINCE 2008 Unbound Collection, while the Hilton Philadelphia at Penn’s AND NOW MAKES UP 33% OF HOTEL Landing is undergoing a two-year, $15 million, property-wide re­design, and Le Meridien is investing $1 million in upgrades ROOM DEMAND IN CENTER CITY

OCCUPIED CENTER CITY HOTEL ROOMS BY PURPOSE OF TRIP

ROOM NIGHTS GOVERNMENT AIRLINE GROUP AND CONVENTION COMMERCIAL INDIVIDUAL LEISURE 3,500,000 62,000 86,000 3,000,000 75,358 2,500,000 97,207 1,063,000 2,000,000

1,500,000 987,894 1,029,000 1,000,000 696,940

500,000 677,215 1,092,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: CBRE Hotels - Provided by Philadelphia Convention & Visitors Bureau

3.33 MILLION TOTAL OCCUPIED ROOM NIGHTS IN 2017

22 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CONVENTIONS, TOURISM & HOTELS

AVERAGE DAILY ROOM RATE FOR CENTER CITY HOTELS

AVERAGE DAILY ROOM RATE COMMERCIAL GROUP AND CONVENTION AVERAGE DAILY RATE INDIVIDUAL LEISURE $220

$192 $200 $193 $181 $185 $174 $169 $160

$155

$100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: CBRE Hotels - Provided by Philadelphia Convention & Visitors Bureau

OCCUPANCY AT CENTER CITY HOTELS HIT 78.2% IN 2017, A MODERN-DAY RECORD

AVAILABILITY AND OCCUPANCY OF CENTER CITY HOTEL ROOMS

ROOM SUPPLY OCCUPANCY RATE

HOTEL ROOMS OCCUPANCY

11,500 78.2% 80%

11,000 76%

10,500 70.8% 72%

10,000 68%

9,500 64%

10,045 10,262 10,580 10,58610,81311,19911,21011,11911,13911,675 9,000 60% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 23 GIRARD AVE

HOTEL DEVELOPMENTS IN CENTER CITY, 2017

ROOMS: 8–100 KIMPTON HOTEL BEST WESTERN PLUS VINE ST BROAD ST 101–250 199 ROOMS 107 ROOMS COMFORT INN MARRIOTT AC 150 ROOMS 150 ROOMS 251–450

451–800 FOUR SEASONS ALOFT HOTEL 219 ROOMS 179 ROOMS

801–1,408 MARKET ST City Hall W HOTEL 295 ROOMS POD PHILLY ELEMENT 252 ROOMS BY WESTIN Proposed 460 ROOMS

Under Construction CAMBRIA HOTEL & SUITES 223 ROOMS Opened in 2017 HYATT CENTRIC FAIRFIELD INN AND SUITES BY MARRIOTT 322 ROOMS 118 ROOMS Existing Hotels SLS LUX 152 ROOMS PINE ST

Source: Visit Philadelphia; Center City District

CENTER CITY HOTEL OCCUPANCY WEEKDAY VS. WEEKEND

OCCUPANCY RATE WEEKDAY (MON THURS) WEEKEND (FRI SAT) SUNDAY

100%

80%

TASKER ST

60%

40%

20% 56.1% 0% 73.2% 74.9% 54.1% 69.8% 75.9% 51.3% 74.3% 76.3% 51.7% 74.0% 75.5% 54.4% 74.7% 80.3% 56.6% 73.6% 81.2% 57.3% 76.1% 84.4% 77.2% 84.0% 59.4% 79.9% 84.0% 57.6% 78.7% 86.1% 60.5%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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

24 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CONVENTIONS, TOURISM & HOTELS

OVERSEAS VISITORS TO THE PHILADELPHIA FIVE-COUNTY REGION BY COUNTRY, 2016

17% NITED INDOM 10% CHINA OVERSEAS TRAVELERS TO THE 9% ERMANY 8% INDIA PHILADELPHIA REGION ACCOUNTED 5% RANCE FOR $594 MILLION IN TOTAL 3% ITALY 644,200 3% SOTH OREA OVERSEAS VISITORS DIRECT SPENDING, GENERATING 2% SPAIN AN ECONOMIC IMPACT OF 2% NETHERLANDS 2% IRELAND $979 MILLION IN 2016 36% ALL OTHER Source: Tourism Economics Global Cities Travel - Provided by the Philadelphia Convention & Visitors Bureau

ATTENDANCE AT ATTRACTIONS ON INDEPENDENCE MALL, 2016-2017

VISITORS (MILLIONS) 2016 2017 6

5

4

3

2

1 752,658 637,752 651,719 565,917 214,021 209,674 191,985 197,979

0 5,067,511 4,765,974 2,472,357 2,725,650 2,309,247 2,243,441 INDEPENDENCE NATIONAL INDEPENDENCE LIBERTY BELL CENTER* INDEPENDENCE HALL* NATIONAL CHRIST CHURCH AND BETSY ROSS HOUSE HISTORICAL PARK VISITOR CENTER* CONSTITUTION CENTER* BURIAL GROUNDS (ALL ATTRACTIONS)* *Note: Attendance for Independence National Historical Park is an estimate of the number of unique visitors to the Park and does not represent the sum of all visits to individual Park attractions. Source: CBRE Hotels - Provided by Independence Visitor Center Corporation

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 25 CONVENTIONS, TOURISM & HOTELS

LARGEST CONVENTIONS, TRADE AND GATE SHOWS; LARGEST CONVENTIONS AND TRADE SHOWS; OTHER MAJOR PUBLIC EVENTS, 2017 OTHER MAJOR PUBLIC EVENTS, ANTICIPATED, 2018

CONVENTION & TRADE SHOWS ATTENDANCE CONVENTION & TRADE SHOWS ATTENDANCE

National Football League 250,000 Army-Navy Game 69,600 Army-Navy Game 69,600 Philadelphia Marathon 30,000 American Association for Cancer Research Philadelphia Marathon 30,000 21,000 Rock & Roll Half Marathon LIGHTFAIR International 23,000 IEEE 15,000 American Association for Cancer Research 23,000 Rock & Roll Half Marathon American Economic Association 14,000 Under Armour Northeast Qualifier 17,000 United Soccer Coaches 11,000 International Association of Chiefs of Police 14,000 Under Armour Northeast Qualifier 10,100 The Risk Management Society 12,000 Leading Age 10,000 American Water Works Association, Inc. 12,000 Rockwell Automation 10,000 American Occupational Therapy Association 10,000 NAFSA Association of International Educators 9,500 National Black MBA Association, Inc. 9,000 Public Library Association 8,000 The American Society for Cell Biology 9,000 National Electrical Contractors Association 7,000 National Association of Student EDUCAUSE 8,000 6,000 Personnel Administrators American Association of Nurse Practitioners 7,250 American Industrial Hygiene Association 6,000 Modern Language Association 7,200 American Sociological Association 6,000 American Osteopathic Association 6,000 Association for Iron & Steel Technology 6,000 PMMI - The Association for Packaging and 5,000 Processing Technologies Society of Nuclear Medicine and Molecular Imaging 5,500 National Association of Elementary School Principals 3,000 UBM, LLC 5,000 Out and Equal 3,000 American Society of Landscape Architects 5,000 Bayada Home Health Care 2,130 American College of Gastroenterology 4,000 NeighborWorks America 1,800 National Title I Association 4,000 LARGE GATE SHOW ATTENDANCE (20,000+) 603,000 Source: Philadelphia Convention & Visitors Bureau

Source: Philadelphia Convention & Visitors Bureau, Pennsylvania Convention Center

2017 TOTAL CONVENTION 2018 ANTICIPATED CONVENTION CENTER ATTENDANCE: CENTER ATTENDANCE: 1,055,464 1,155,000

Source: Pennsylvania Convention Center

26 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG ARTS, CULTURE

| J. Fusco for VISIT PHILADELPHIA® for | J. Fusco Parkway on the Benjamin Franlkin Barnes Foundation & ENTERTAINMENT In 2017, Center City’s vibrant arts and culture scene attracted attracting millennials and other visitors. The Philadelphia more than 10 million visitors from the region and around the Museum of Art transforms its space every week for Final world — not only to the venues on the Avenue of the Arts, in Old Fridays, promoted as “louder, livelier, and looser,” with live City, and around Independence National Historical Park, but music, performances, cocktails and snacks. The Franklin smaller locations distributed throughout the downtown. Institute sponsors monthly Science After Dark events with rotating themes, demonstrations and drinks. The Barnes The 243 museums, art galleries, theater and dance companies, Foundation features thematic Young Professionals Nights, and music venues in Center City, place Philadelphia third behind which often draw nearly 1,000 young art enthusiasts to only New York City and Washington, D.C. in the number of each event. arts and cultural institutions downtown and ahead of Boston, Chicago, San Francisco and Seattle. Center City is also home to 20 live music venues, both indoor and outdoor; some are solely devoted to musical performances, The Kimmel Center for the Performing Arts saw a healthy while others allow concert-goers to enjoy dinner (or lunch) and 34% jump in the number of patrons attending the wide array a show. A cross-generational appreciation for the arts is vital for of performances in Verizon Hall and the venue's other more the strength of Center City’s cultural institutions and the nearly intimate spaces. The Franklin Institute, the Philadelphia 13,000 people employed in the city’s arts, entertainment, and Chamber Music Society, the Arden Theatre Company and the recreation sectors. Mutter Museum all also saw increases in their attendance numbers. The Museum of the American Revolution saw 264,759 Center City remains a hub for public art as well. Mural Arts visitors come through its doors in the first seven months after it Philadelphia, the nation’s largest public art program, estimates opened in April 2017. that 12,000 residents and tourists visit the approximately 100 murals within Greater Center City annually, animating intimate Many of Philadelphia’s museums and cultural institutions neighborhood blocks and major thoroughfares alike. have steadily expanded their after-hours events, successfully

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 27 ARTS, CULTURE & ENTERTAINMENT

Civic spaces are continuing to be transformed in Center City. The 125-year-old Reading Terminal Market welcomed 7.2 The Center City District has steadily increased its programming million visitors in 2017, offering tastes of Philadelphia and the in Dilworth Park. Philadelphia saw the installation of a new, world inside its doors. Parks on Tap, the joint effort between 12-foot bronze statue honoring 19th century Philadelphia civil the Department of Parks and Recreation and the Fairmount rights activist Octavius Catto in 2017, on the southwest apron Park Conservancy, experienced tremendous success with a of City Hall. Robert Indiana’s LOVE sculpture has returned to 400% increase in attendees. A companion event, Barks on Tap, JFK Plaza at 16th Street and JFK Boulevard as part of the city’s brought together residents and their four-legged friends by renovation of that civic space. Across the street, the triangular installing the successful pop-up beer gardens at dog parks plaza at the intersection of 17th and Arch streets and the throughout the city. Benjamin Franklin Parkway, home to the Holocaust Memorial and its sculptural Monument to Six Million Jewish Martyrs, is undergoing a $7 million transformation, managed by the CCD, to become the Holocaust Memorial Plaza. Additions to the memorial will include a Remembrance Wall and Eternal Flame, along with a landscape redesign to activate the space and better highlight its history. Another civic space, the elevated Rail Park in the burgeoning Callowhill neighborhood, is also being renovated by the CCD in preparation for an opening in 2018.

PHILADELPHIA’S MUSEUMS AND CULTURAL INSTITUTIONS ARE STEADILY EXPANDING THEIR AUDIENCES WITH AFTER-HOURS EVENTS THAT ATTRACT MILLENNIALS AND OTHER VISITORS

PHILADELPHIA ARTS, ENTERTAINMENT, AND RECREATION WAGE & SALARY EMPLOYMENT

15,000

12,510 12,500 CENTER CITY IS HOME TO OVER

10,000 20 LIVE MUSIC 10,407 VENUES 7,500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Bureau of Labor Statistics, Quarterly Census of Employment & Wages 2016

28 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG ARTS, CULTURE & ENTERTAINMENT

DOWNTOWN ARTS AND CULTURAL ORGANIZATIONS, 2017

HISTORY ORGANIZATIONS (INCLUDING HISTORY MUSEUMS) MUSEUMS OTHER PERFORMING ARTS MUSIC THEATER DANCE OTHER TYPES OF ORGANIZATIONS

MIDTOWN MANHATTAN 966

DOWNTOWN MANHATTAN 302

DOWNTOWN WASHINGTON, D.C. 297 20152017 POPULATION OF EACH CITY New York City 8,537,673 CENTER CITY PHILADELPHIA 243 New York City 8,550,405 Chicago 2,704,965 Chicago 2,720,546 Philadelphia 1,567,872 DOWNTOWN SAN FRANCISCO 213 Philadelphia 1,567,442 San Francisco 870,887 San Francisco 864,816 201 CHICAGO LOOP Seattle 704,358 Seattle 684,451 Washington, D.C. 681,170 DOWNTOWN BOSTON 193 Washington, D.C. 672,228 Boston 672,840 Boston 667,137 DOWNTOWN SEATTLE 112

0 200 400 600 800 1,000

Source: National February 2018 IRS Business Master File, compiled by DataArts

GIRARD AVE

ARTS AND CULTURAL ORGANIZATIONS, 2017

ANNUAL ATTENDANCE: < 10,000 10,001–24,999

25,000–49,999 VINE ST 50,000–99,999 ST BROAD

100,000–249,999

250,000–499,999 MARKET ST City Hall

> 500,000

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

Performing Arts

Support and Advocacy

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

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 2929 ARTS, CULTURE & ENTERTAINMENT

PERFORMING ARTS ORGANIZATION ATTENDANCE SELECT MUSIC VENUES IN GREATER CENTER CITY

ORGANIZATION 2016 2017 VENUE ADDRESS TYPE

Kimmel Center 850,000 1,137,000 Electric Factory 421 North 7th St. Concert Venue

Walnut Street Theatre 365,000 351,886 Underground Arts 1200 Callowhill St. Concert Venue Arden Theatre Company 94,163 106,471 Union Transfer 1026 Spring Garden St. Concert Venue Pennsylvania Ballet 93,546 75,025 Theatre of Living Arts 334 South St. Concert Venue Opera Philadelphia 70,941 72,103 The Fillmore Philadelphia 29 East Allen St. Concert Venue FringeArts 40,000 22,670 Trocadero Theatre 1003 Arch St. Concert Venue The Wilma Theater 29,506 27,263 Coda 1712 Walnut St. Concert Venue Philadelphia Chamber Music Society 28,549 29,436 Academy of Music 240 South Broad St. Concert Venue InterAct Theatre Company 7,822 8,359 Festival Pier at 601 N Christopher Concert Venue Penn’s Landing Columbus Blvd. Source: Individual Institutions Verizon Hall 300 South Broad St. Concert Venue World Café Live 3025 Walnut St. Restaurant/Bar MilkBoy 1100 Chestnut St. Restaurant/Bar MilkBoy South Street 401 South St. Restaurant/Bar MUSEUM AND ATTRACTION ATTENDANCE Time 1315 Sansom St. Restaurant/Bar Ortlieb's Lounge 847 North 3rd St. Restaurant/Bar ORGANIZATION 2016 2017 Voltage Lounge 421 North 7th St. Restaurant/Bar Reading Terminal Market 6,734,806 7,236,205 Chris’ Jazz Café 1421 Sansom St. Restaurant/Bar Liberty Bell Center 2,309,247 2,243,441 Boot & Saddle 1131 South Broad St. Restaurant/Bar Schuylkill Banks 1,716,882 1,747,890 Connie’s Ric Rac 1132 South 9th St. Restaurant/Bar Franklin Square 1,114,950 1,113,264 South Jazz Kitchen 600 North Broad St. Restaurant/Bar

The Franklin Institute 1,034,744 1,050,846 Source: Individual Institutions Philadelphia Museum of Art 775,024 768,045 Independence Hall 752,658 637,752 National Constitution Center* 248,788 286,330 Eastern State Penitentiary 388,995 413,207 The Barnes Foundation 256,382 224,467 Academy of Natural Sciences of 246,780 208,301 Drexel University Pennsylvania Academy of the Fine Arts 238,000 250,708 University of Penn Museum of 183,921 180,513 Archaeology and Anthropology Mütter Museum 150,140 158,247 National Museum of American Jewish 108,849 108,579 History Philadelphia History Museum 25,000 20,000 Museum of the American Revolution** N/A 264,759 Parks on Tap 11,098 55,349

Source: Individual Institutions and PKF Consulting

*NCC altered the way it measured its visitor counts in 2017, relying on more conservative estimates **Year counts only measure attendance from April to December

30 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG Open House | Michael Spain Smith RETAIL Center City’s flourishing retail scene builds on more than two Globally, retailers are challenged by the need to find the right decades of diversified development, as convention, tourism, mix of online and brick-and-mortar locations, while creating entertainment and residential growth have dramatically unique environments that bring shoppers into stores. But those expanded upon the base of retail customers provided by major who find the right balance and create memorable in-store office and institutional employment. Today, more than 300,000 experiences are thriving. Center City is capitalizing on all the workers, 190,000 residents and 3.3 million occupied hotel room categories and retail concepts that are expanding nationally, nights generate more than $1 billion in retail demand annually including grocery, home and garden, wellness and beauty, value/ in the downtown and surrounding neighborhoods. outlet, online and food and beverage concepts.

Downtown Philadelphia’s growing purchasing power has The latest retailers to announce a Rittenhouse Row address attracted more than 63 national retailers since 2013. These include Rumble Boxing, The Tie Bar and Red Wing Heritage, who stores add to the existing mix of local boutiques and indepen- will be joining M.A.C., UNTUCKit, Warby Parker, Aesop, SLT NYC, dents, while creating both entry-level and higher-skilled jobs. CB2, and SPiN, all of which have opened within the last year. They also signal Center City’s growing stature as a regional Retailers seeking lower rents and larger floor plates are signing shopping destination. leases in developments in the burgeoning Center City East neighborhood, reviving Philadelphia’s historic department store While Center City is feeling the pressures that impact all retailers corridor. Tenants include PetSmart, MOM’s Organic Market, T.J. globally, occupancy on the prime retail corridors of Walnut and Maxx, Five Below, H&M, AMC Theatres, Iron Hill Brewery, P.J. Chestnut streets from Broad to 20th streets remain a healthy Clarke’s, and outlet concepts for Levi’s, Francesca’s, Sketchers 95.5%, sustained by downtown’s desirable demographic, and Columbia Sportswear. There has also been an uptick in big highly educated millennials and affluent empty nesters. By box retailers signing leases in neighborhoods surrounding the comparison, according to Reis Inc., retail vacancies hit 10% core of the downtown in larger retail developments currently nationally in 2017. under construction, including PetSmart, Sprouts Farmer’s Market, Yards Brewery and multiple Targets.

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 31 RETAIL

Demand is driving more than 2 million sf of retail currently While new restaurant districts continue to emerge in neigh- under development, as older shopping streets are transformed borhoods that surround the downtown, Center City has been and Philadelphia’s prime shopping district continues to expand. recognized as one of the top restaurant and dining destinations The biggest investment is happening east of Broad Street, in the country, with 453 full-service restaurants between Vine where full-block sites can accommodate large-scale projects. and South streets, river to river. CBRE found that restaurants Center City East will add more than 1 million sf of retail over comprised 40% of all Center City leases in 2016, mirroring the next few years, representing an $815 million investment national trends — food and beverage concepts have become a in an area that had lagged for decades. This critical mass of major driver for retail growth across markets. Restaurants are large-scale, mixed-use development will create a continuous also becoming an important component of the merchandising shopping and dining experience from Independence Mall to the mix of large-scale retail developments coming online in major convention center hotels adjacent to City Hall. Center City, reflecting how customers want to spend their time and money. Change is readily apparent in surging pedestrian volumes. While most of Center City’s pedestrian traffic peaks during the Center City retail growth has been strongly supported by the week around lunchtime and late afternoon, the area between Philadelphia Retail Marketing Alliance, a collaboration of the Rittenhouse Square and Broad Street peaks on weekends, CCD, City of Philadelphia, PIDC, the Philadelphia Convention pointing to its status as a regional destination for retail and & Visitors Bureau, Visit Philadelphia, and major downtown entertain­ment. Recently opened retailers have transformed retail brokers. This business attraction initiative includes direct West Chest­nut Street from a less desirable retail location into outreach to brokers and store representatives, detailed data and one where pedestrian counts have increased by almost 60% research on market trends, advertising, story placements in over 2013 volumes. With foot traffic that now surpasses that of trade publications to elevate Philadelphia’s retail profile and a West Walnut Street, West Chestnut Street's transformation is a highly promoted, online presence (www.philadelphiaretail.com) powerful indication that destination retailers can locate almost that positions Center City as an attractive retail location. anywhere in Center City’s walkable downtown and shoppers will follow.

RETAIL DEMAND FOR SHOPPERS’ GOODS, 2017 CENTER CITY RETAILER TYPE, 2017

JOB MARKET CORE CENTER CITY GREATER CENTER CITY 76% BOUTIQUE/ Office Workers 188,134 214,105 INDEPENDENT/LOCAL RETAILERS Other Workers 66,445 84,507 Total Workers 254,579 298,612 24% NATIONAL RETAILERS RESIDENTIAL MARKET Owner Occupied 22,379 79,975 76% Renter Occupied 43,443 110,441 LOCAL RETAILERS Population 65,822 190,416 VISITOR MARKET Hotel Rooms 11,042 11,042 Overnight Visitors 3,117,703 3,117,703

DOLLARS OF DEMAND Source: Retail Survey 2017, Center City District FOR SHOPPERS' GOODS Office Workers $200,174,449 $227,807,511 Other Workers $35,149,468 $44,704,307 CENTER CITY IS DIFFERENTIATED FROM OTHER Residents $126,378,240 $365,598,720 Overnight Visitors $417,772,256 $417,772,256 RETAIL DISTRICTS BY THE DIVERSE ARRAY OF TOTAL $779,474,414 $1,055,882,795 LOCAL PROPRIETORS THAT MAKE UP 76% OF

* Dollars of demand for each market segment are CCD calculations based on retail industry standards. THE DOWNTOWN’S TENANT MIX Job Market Source: OnTheMap, Local Employment Dynamics Partnership, U.S. Census Bureau; U.S. Census Bureau, American Community Survey 2012—2016; Visitor Market Source: Visit Philadelphia and Philadelphia Convention & Visitors Bureau

32 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG RETAIL

AVERAGE DAILY PEDESTRIAN ACTIVITY BY SEASON, DECEMBER 2016 – NOVEMBER 2017

PEDESTRIANS WINTER* SPRING SUMMER FALL 35,000

30,000

25,000

20,000

15,000

10,000

5,000 6,971 0 21,153 20,064 20,571 20,818 22,900 22,562 24,061 24,985 30,039 28,618 30,928 31,266 29,602 27,001 26,357 27,619 13,672 11,571 10,334 20,681 19,683 22,909 22,262 12,342 12,810 14,306 14,461 17,016 14,402 15,101 14,482

1700 BLOCK INTERSECTION OF INTERSECTION OF DILWORTH PARK 1200 BLOCK 1200 BLOCK 1100 BLOCK 800 BLOCK OF WALNUT 17TH & CHESTNUT 16TH & CHESTNUT OF WALNUT OF MARKET OF CHESTNUT OF MARKET

Source: Eco-Counter, Placemeter and Motionloft Pedestrian Counts; Center City District *Note: Winter includes December 2016, January 2017 and February 2017

RECENTLY OPENED RETAILERS HAVE TRANSFORMED WEST CHESTNUT STREET INTO A THRIVING DESTINATION AS PEDESTRIAN COUNTS HAVE INCREASED BY ALMOST 60% SINCE 2013

AVERAGE DAILY PEDESTRIAN ACTIVITY BY WEEKDAY/WEEKEND, 2017

PEDESTRIANS WEEKDAY WEEKEND 35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 19,959 21,176 24,394 21,715 32,013 24,244 30,868 23,761 10,129 9,211 22,514 17,513 14,597 11,153 16,038 11,225

1700 BLOCK INTERSECTION OF INTERSECTION OF DILWORTH PARK 1200 BLOCK 1200 BLOCK 1100 BLOCK 800 BLOCK OF WALNUT 17TH & CHESTNUT 16TH & CHESTNUT OF WALNUT OF MARKET OF CHESTNUT OF MARKET

Source: Eco-Counter, Placemeter and Motionloft Pedestrian Counts; Center City District

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 33 GIRARD AVE

VINE ST

ROAD ST

B

MARKET ST City Hall

SOUTH ST

OUTDOOR SEATING LOCATIONS

CHAIRS: 10 or Less 11–25 26–50 51–100 More than 100

Café Retail/ServicePPlaza ark

Source: Outdoor Seating Survey 2017, Center City District

433 OUTDOOR SEATING LOCATIONS TASKER ST

AVERAGE HOURLY PEDESTRIAN ACTIVITY BY TIME OF DAY, 2017

INTERSECTION OF INTERSECTION OF 1700 BLOCK 1200 BLOCK 800 BLOCK 1100 BLOCK 1200 BLOCK PEDESTRIANS 16TH & CHESTNUT DILWORTH PARK 17TH & CHESTNUT OF WALNUT OF MARKET OF MARKET OF CHESTNUT OF WALNUT 3,000

2,500

2,000

1,500

1,000

500

0 EARLY MORNING LATE LUNCHTIME LATE EVENING EVENING LATE MORNING RUSH HOUR MORNING (11AM2PM) AFTERNOON RUSH HOUR (7PM11PM) NIGHT (4AM6AM) (6AM9AM) (9AM11AM) (2PM4PM) (4PM7PM) (11PM4AM)

Source: Eco-Counter, Placemeter and Motionloft Pedestrian Counts; Center City District

34 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG GIRARD AVE

VINE ST RETAIL

ROAD ST

B

CENTER CITY STOREFRONTS, 2017 CENTER CITY RETAILERS, 2017

216 APPAREL RETAILERS MARKET ST City Hall 992 160 JEWELRY/WATCHES 988 FOOD ESTABLISHMENTS 138 FOOD OR DRINK

1,207 SERVICE PROVIDERS 118 HOME/GARDEN ART/COLLECTIBLES/ 3,187 103 HOBBIES 992 STOREFRONTS RETAILERS 39 ELECTRONICS

38 BEAUTY/HEALTH/FITNESS

36 PHARMACY

SOUTH ST 25 OPTICAL

18 BOOK/MAPS

17 MUSIC/VIDEO/VIDEO GAMES OUTDOOR SEATING LOCATIONS 84 OTHER CHAIRS: 10 or Less 11–25 26–50 51–100 More than 100

Café Retail/ServicePPlaza ark Source: Outdoor Seating Survey 2017, Center City District MILLENNIALS, ENTERING THEIR PEAK CONSUMER SPENDING YEARS, REPRESENT 40% OF THE DOWNTOWN’S POPULATION AND ARE ATTRACTING MORE FOOD AND BEVERAGE, WELLNESS, VALUE AND EXPERIENTIAL RETAILERS TO CENTER CITY TASKER ST

CENTER CITY FOOD ESTABLISHMENTS, 2017 CENTER CITY SERVICE PROVIDERS, 2017

250 BEAUTY FULLSERVICE RESTAURANTS 453 177 HEALTH TAKEOUT/SANDWICH/ 319 QUICKSERVICE RESTAURANTS 132 REAL ESTATE 95 COFFEE SHOPS 102 BANK/FINANCIAL 102 LEGAL 45 BARS/NIGHTLIFE ESTABLISHMENTS 988 73 LAUNDRY 1,207 33 BAKERIES FOOD SERVICE PROVIDERS ESTABLISHMENTS 66 FITNESS ICE CREAM/WATER ICE/ INSURANCE 29 FROZEN YOGURT 25 CHILDCARE 14 ALL OTHERS 20 18 ACCOUNTING 16 SOCIAL SERVICES

15 PET Source: Retail Survey 2017, Center City District 13 ART/COLLECTIBLE/HOBBIES 198 OTHER

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 35 70,000 SF 47,000 SF

1,912 SF

26,916 SF 8,450 SF 7,000 SF 30,000 SF 456 SF 2,965 SF 36,000 SF 2,127 SF VINE ST

397 SF RACE ST 38,000 SF 40,000 SF 900 SF CHERRY ST 2,360 SF OUTLET ARCH ST 749 SF

DELAWARE RIVER DELAWARE SCHUYLKILL RIVER SCHUYLKILL 11,895 SF 55,000 SF JFK BLVD 2,200 SF MARKET ST City Hall MARKET ST 15,266 SF 25,000 SF

I95 CHESTNUT ST 1,835 SF SANSOM ST 1,300 SF 7,636 SF WALNUT ST 2,000 SF 48,000 SF

4,500 SF BLVD COLUMBUS CHRISTOPHER LOCUST ST 2,557 SF 16,000 SF SPRUCE ST 30,000 SF 2,500 SF 12,800 SF

PINE ST 1,850 SF 650 SF LOMBARD ST 1,750 SF 2,800 SF 3,800 SF 12,000 SF 7,260 SF 20,512 SF 11,000 SF 3,280 SF SOUTH ST

16,000SF 32,000 SF 36,000 SF

9TH ST

8TH ST

7TH ST

6TH ST

5TH ST

4TH ST

3RD ST

2ND ST

21ST ST 21ST

13TH ST

12TH ST

11TH ST

10TH ST

18TH ST

17TH ST

16TH ST

15TH ST

27TH ST

26TH ST

25TH ST

24TH ST

20TH ST

19TH ST

23RD ST

22ND ST

FRONT ST FRONT

BROAD ST BROAD

JUNIPER ST

SELECT NEW CENTER CITY RETAILERS IN 2017 Source: Center City District

PRIME RETAIL RENTS, 2017

AVERAGE RENT PER SF 150

120 WITH RETAIL RENTS AVERAGING $50/SF, MARKET EAST TOPPED JLL’S LIST OF 90 THE 10 MOST AFFORDABLE

60 AND DESIRABLE PRIME

30 URBAN RETAIL CORRIDORS IN THE UNITED STATES 0 $125 $75 $60 $50 WEST WALNUT ST WEST CHESTNUT ST WEST MARKET ST EAST MARKET ST

Source: Cushman & Wakefield, JLL Research

36 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 70,000 SF 47,000 SF

1,912 SF

26,916 SF 8,450 SF 7,000 SF 30,000 SF 456 SF 2,965 SF 36,000 SF 2,127 SF VINE ST

397 SF RACE ST 38,000 SF 40,000 SF 900 SF CHERRY ST 2,360 SF OUTLET ARCH ST 749 SF

DELAWARE RIVER DELAWARE SCHUYLKILL RIVER SCHUYLKILL 11,895 SF 55,000 SF JFK BLVD 2,200 SF MARKET ST City Hall MARKET ST 15,266 SF 25,000 SF

I95 CHESTNUT ST 1,835 SF SANSOM ST 1,300 SF 7,636 SF WALNUT ST 2,000 SF 48,000 SF

4,500 SF BLVD COLUMBUS CHRISTOPHER LOCUST ST 2,557 SF 16,000 SF SPRUCE ST 30,000 SF 2,500 SF 12,800 SF

PINE ST 1,850 SF 650 SF LOMBARD ST 1,750 SF 2,800 SF 3,800 SF 12,000 SF 7,260 SF 20,512 SF 11,000 SF 3,280 SF SOUTH ST

16,000SF 32,000 SF 36,000 SF

9TH ST

8TH ST

7TH ST

6TH ST

5TH ST

4TH ST

3RD ST

2ND ST

21ST ST 21ST

13TH ST

12TH ST

11TH ST

10TH ST

18TH ST

17TH ST

16TH ST

15TH ST

27TH ST

26TH ST

25TH ST

24TH ST

20TH ST

19TH ST

23RD ST

22ND ST

FRONT ST FRONT

BROAD ST BROAD

JUNIPER ST | ©Jeffrey Totaro | ©Jeffrey of Bohlin Cywinski Jackson The Philadelphia Offices SELECT NEW CENTER CITY RETAILERS IN 2017 EMPLOYMENT Source: Center City District Since the beginning of the recovery in 2010, Philadelphia has provides 12% of all Center City jobs. Center City holds 298,612 added 55,100 jobs, 44% of them in just the last two years. wage and salaried positions with approximately 9,000 more Philadelphia added jobs in 12 of the last 13 years, the longest individuals compensated as partners, self-employed, or work- period of expansion in more than 50 years. Growth peaked in ing freelance. Located at the center of the region’s transit and the city in 2016, when 13,600 jobs were added, tapering down highway network, 47.5% of downtown’s 306,000 jobs are held with the addition of 10,700 jobs in 2017. The recovery has been by commuters from outside the city; 52.5% are held by Phila- led by education and health services, which account for 56% of delphians with the city residents' share of jobs growing as the the jobs added in industries largely exempt from real estate and downtown’s population has grown. business taxes. But growth occurred across all private sector Just to the west of Center City, accounting for another 11% of categories, except manufacturing and financial and information jobs, is the transit-accessible University City, where 80% of jobs services. The largest losses occurred in the public sector — are in education and health services. Consistent with citywide federal, state and municipal government employment — which trends, job growth in University City has averaged more than collectively shed 9,300 jobs since 2009. 2% per year, compared to a rate of less than 1% in Center City. At the center of Philadelphia’s economy is Center City, where In Greater Center City, 40% of residents work downtown and 42% of the city’s jobs are located, fully accessible by transit. another 11% work in University City with 61% of all residents Diversification is a defining strength of the downtown economy. getting to work without a car and 39% in the core able to walk Professional, business and financial services, real estate and to work. information — the prime office-using industries — comprise 40% of downtown jobs. Education and health services, the In neighborhoods outside Center City, 25% of the workers com- largest sector citywide, is second largest downtown, with 20% of mute to jobs downtown, while another 5% work in University all jobs. Entertainment, leisure, hospitality and retail hold a 16% City. In every neighborhood outside Center City, more people share, while federal, state and local government employment work downtown than in the area in which they live. This is made

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 37 EMPLOYMENT

possible by the broad range of opportunities provided by down- Baltimore’s and Memphis’s rates of growth, but behind 23 other town employers and by strong transit connections. While 37% cities, including Boston, Detroit, New York City, Washington of Center City jobs require at least a bachelor’s degree, 30% are D.C. and the national rate of growth. As a result, in nearly every accessible to those with an associate degree, while another 33% category of employment, except construction and hospitality, the require no more than a high school diploma. nation’s top cities outperformed rates of growth in Philadelphia.

At the same time, sustained job loss outside Center City, If local growth since 2009 had been robust enough just to University City and the Navy Yard means that every day, another make us average, attaining the 2.3% per year rate of growth 40% of working residents of neighborhoods outside the down- of America’s largest cities, Philadelphia would have added an town (211,000 Philadelphians) reverse commute to jobs located extra 45,400 jobs on top of existing growth of 55,100 for a total in the suburbs. Philadelphia’s wage tax is structured so that of 100,500 new job oppor­tunities. The impact of that additional regardless of where a city resident works, their employer is ob- growth on Philadelphia’s persistently high unemployment and ligated to withhold the full city wage tax. Thus, the commute to poverty could be significant, expanding Philadelphia’s tax base the suburbs carries with it an incentive to move to the suburbs and generating additional tax revenue for the city and schools and population has continued to decline north of Girard Avenue without raising rates. and west of Broad Street, as well as in West Philadelphia and The federal government is steadily reducing the social safety net. portions of the Northeast. State resources are constrained as well. So if Philadelphia is This is occurring because the job growth in Philadelphia’s three, going to make any impact on its 26% poverty rate, the highest of post-industrial nodes is still not strong enough to offset decline America’s 10 largest cities, it simply has to grow jobs at a faster elsewhere in the city, nor to lift private sector job numbers in rate. The city’s unemployment rate dropped from above 10% in 2017 above 1990 levels. Private sector employment is still 1% the depths of the Great Recession to 6.2% in 2017 — still two below 1990 levels, while public sector employment has declined percentage points higher than regional and national averages. by 25% in the last 18 years, leaving the city still 5% below total Not counting people who have left the workforce, an average of 1990 job levels and 25% below 1970 levels. 43,600 Philadelphians were on the employment rolls through- out 2017. Philadelphia needs to commit not only to its public While private sector growth was particularly strong in 2016 schools, but to comprehensive tax reform to grow jobs citywide. and 2017, with the city’s rate surpassing that of the region and Otherwise, despite growth downtown, educated residents of nearly catching up with the nation as a whole, Philadelphia has many neighborhoods will continue to leave for opportunities in not kept pace with the rate of job growth in America’s largest the suburbs. cities. Since 2009 large cities have been out-performing the national economy and adding private sector jobs at an average of 2.3% per year, compared to only 1.4% in Philadelphia. The recent positive trends were sufficient to lift Philadelphia above

AVERAGE ANNUAL GROWTH BY INDUSTRY, 2009–2017

PHILADELPHIA PHILADELPHIA MSA LARGE US CITIES AVERAGE* US NATIONAL AVERAGE

Total Private 1.4% 1.1% 2.3% 1.7% Mining, Logging, and Construction 2.2% 1.5% 2.5% 1.6% Manufacturing -3.0% -1.0% 0.5% 0.6% Transportation, Utilities, and Wholesale Trade 1.0% 0.6% 2.0% 1.4% Retail Trade 0.9% 0.4% 1.7% 1.1% Financial Activities and Information -1.0% 0.0% 1.5% 0.7% Professional and Business Services 2.3% 1.7% 3.2% 2.7% Education and Health Services 1.8% 2.1% 2.7% 2.1% Leisure and Hospitality 3.2% 2.4% 3.4% 2.6% Other Services 0.6% 0.2% 1.3% 0.9%

This includes the 26 largest cities, with size determined by the number of jobs. Source: Bureau of Labor Statistics, Current Employment Statistics

38 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG EMPLOYMENT

PHILADELPHIA EMPLOYMENT BY AREA

FAR NORTHEAST 7.2%

ROXBOROUGH/ MANAYUNK GERMANTOWN/ OLNEY/ 1.4% CHESTNUT HILL OAK LANE NEAR NORTHEAST 3.7% 3.6% 6.0%

NORTH BRIDESBURG/ PHILADELPHIA KENSINGTON/ RICHMOND 5.7% 6.1% WEST UNIVERSITY PHILADELPHIA CITY CENTER CITY’S JOBS ARE 3.0% GREATER 10.5% CENTER CITY ACCESSIBLE BY PUBLIC 42.2% TRANSIT TO RESIDENTS

SOUTHWEST SOUTH PHILADELPHIA PHILADELPHIA OF EVERY NEIGHBORHOOD 4.8% 5.8%

Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015

GREATER CENTER CITY WAGE & SALARY WHERE DOWNTOWN WORKERS LIVE EMPLOYMENT

PROFESSIONAL/ GREATER CENTER CITY 23.4% OFF 11.1%

BUSINESS SERVICES ICE JOB 41.4% ELSEWHERE IN 16.3% FINANCIAL ACTIVITIES/ PHILADELPHIA REAL ESTATE/ S INFORMATION 47.5% OUTSIDE PHILADELPHIA 20.0% EDUCATION AND HEALTH SERVICES 12.1 % PUBLIC ADMINISTRATION 298,612 52.5% TOTAL JOBS LIVE IN PHILADELPHIA 11.6% ENTERTAINMENT/ LEISURE/HOSPITALITY 5.7% TRANSPORTATION/ UTILITIES/WHOLESALE TRADE 4.3% RETAIL 1.8% CONSTRUCTION +9,000 0.5% MANUFACTURING PARTNERS, FREELANCERS & SELF EMPLOYED Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015 Source: U.S. Census Bureau, Local Employment-Household 4.5% OTHER SERVICES Dynamics, 2015; Bureau of Labor Statistics, Current Employment Statistics; CCD Estimates

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 39 EMPLOYMENT

WHERE CITY RESIDENTS COMMUTE TO WORK

FAR NORTHEAST

17%

14% 48% VOLUME OF WORKERS OLNEY/OAK LANE 19% LIVING IN AREA ROXBOROUGH/ GERMANTOWN/ NEAR NORTHEAST CIRCLE SIZE ON THE MAP MANAYUNK CHESTNUT HILL 22% IS RELATIVE TO THE NUMBER OF WORKERS LIVING IN 23% 19% 24% 47% 5% 41% 6% THE AREA 7% 40% 18% 8% 28%28% 42% 11% PERCENT OF WORKERS 22% BRIDESBURG/ EMPLOYED IN KENSINGTON/ 26% NORTH PHILADELPHIA RICHMOND Greater Center City WEST 24% 22% PHILADELPHIA University City 36% 39% 27% 9% 11% Same Area 39% 8% 28% 25% 7% Rest of Philadelphia 20% GREATER CENTER CITY

22% Outside Philadelphia UNIVERSITY 42% 16% CITY 20% 32% 40%

Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015 17% 11% SOUTHWEST SOUTH PHILADELPHIA PHILADELPHIA 27% 34% 37% 34% 9% 19% 8% 5% 14% 12%

PERCENT OF JOBS BY LEVEL OF EDUCATION, WORKERS 30 AND OLDER

HIGH SCHOOL OR LESS SOME COLLEGE/ASSOCIATE BACHELOR’S DEGREE OR MORE

GREATER CENTER CITY

33% 30% 37%

PHILADELPHIA

35% 30% 34%

METRO AREA

36% 30% 34%

0 20 40 6080 100

Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015

40 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG EMPLOYMENT

PHILADELPHIA ANNUAL CHANGE IN JOBS, 1990–2017

CHANGE IN JOBS (THOUSANDS) 20 13.6 10 10.7 10 8.2 4.5 2.9 2.3 2.9 0

10

20

30

40 1990 1995 2000 2005 2010 2015 2017

Source: Bureau of Labor Statistics, Current Employment Statistics

PHILADELPHIA HAS ADDED JOBS FOR 12 OF THE LAST 13 YEARS WITH THE STRONGEST GROWTH IN EDUCATION AND HEALTH SERVICES

TOTAL JOB CHANGE BY SECTOR, 2009–2017 (AVERAGE EARNINGS)

JOBS IN THOUSANDS 40

30

20

10 3.1 3.5 1.3 1.9 16.2 16.4 30.8 0 -9.3 -5.5 -4.4

10 GOVERNMENT MANUFACTURING FINANCIAL ACTIVITIES OTHER SERVICESMINING, LOGGING, TRANSPORTATION RETAIL TRADEPROFESSIONAL AND LEISURE AND EDUCATIONAL AND AVERAGE AND INFORMATION AND CONSTRUCTION AND UTILITIES, BUSINESS SERVICES HOSPITALITY HEALTH SERVICES EARNINGS $66,430 $62,214 $39,224 $27,397 $103,661 $62,214 AND WHOLESALE TRADE $91,339 $31,087 $59,809 $58,096

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

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 41 EMPLOYMENT

PRIVATE SECTOR AVERAGE ANNUAL EMPLOYMENT GROWTH, 2014–2017

NEW YORK CITY 2.63%

USA 2.02% PHILADELPHIA’S RATE OF WASHINGTON, D.C. 2.01% GROWTH HAS SURPASSED PHILADELPHIA 1.96% THE SURROUNDING SUBURBS PHILADELPHIA SUBURBS 1.70% IN THE LAST THREE YEARS BALTIMORE CITY 1.57%

0 1 2 3

RANKED BY COMPOUND ANNUAL GROWTH RATE 2014 2017 CHANGE PCT CHANGE AVG ANNUAL GROWTH New York City 3,585 3,875 290 8.09% 2.63% USA 117,076 124,303 7,227 6.17% 2.02% Washington, D.C. 518.1 549.9 31.8 6.14% 2.01% Philadelphia 571.3 605.6 34.3 6.00% 1.96% Philadelphia Metro Area 2,443 2,575 1,316 5.39% 1.76% Philadelphia Suburbs 1,872 1,969 97.3 5.20% 1.70% Baltimore City 286.2 299.9 13.7 4.79% 1.57%

Source: Bureau of Labor Statistics, Current Employment Statistics

PRIVATE WAGE & SALARY PERCENT CHANGE, 1990–2017

PERCENT CHANGE USA PHILADELPHIA METRO AREA PHILADELPHIA

4

1.8% 2 1.7% 1.6%

0

2

4

6 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Bureau of Labor Statistics, Current Employment Statistics

42 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG

4

2

0

2

4

6 EMPLOYMENT

PRIVATE WAGE & SALARY JOBS AVERAGE ANNUAL CHANGE, 2009–2017

AUSTIN 4.4% NASHVILLE 3.7% SAN FRANCISCO 3.6% SAN JOSE 3.3% SAN ANTONIO 3.0% CHARLOTTE 2.9% DALLAS-FORT WORTH 2.8% DENVER 2.7% NEW YORK CITY 2.6% ATLANTA 2.5% SEATTLE 2.4% PHOENIX 2.4% JACKSONVILLE 2.4% CITIES AVERAGE 2.3% COLUMBUS 2.3% HOUSTON 2.2% WASHINGTON, DC 2.2% DETROIT 2.2% SINCE THE RECESSION, INDIANAPOLIS 2.1% SAN DIEGO 2.0% PHILADELPHIA’S RATE BOSTON 1.9% EL PASO 1.8% OF GROWTH HAS BEEN LOS ANGELES 1.8% NATIONAL AVERAGE 1.7% SLOWER THAN 23 OTHER CHICAGO 1.4% PHILADELPHIA 1.4% MAJOR CITIES BALTIMORE 1.4% PHILADELPHIA MSA 1.1% PHILADELPHIA SUBURBS 1.0% MEMPHIS 1.0%

AVERAGE ANNUAL GROWTH RATE 0 1 2 3 4 5

Source: Bureau of Labor Statistics, Current Employment Statistics

PERCENT CHANGE OF PUBLIC & PRIVATE SECTOR JOBS, 1990–2017 PRIVATE TOTAL PUBLIC 0 1%

5 5%

10

15

20

25 25%

30 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Bureau of Labor Statistics, Current Employment Statistics

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 43 EMPLOYMENT

UNEMPLOYMENT RATE, 1990–2017 PHILADELPHIA MSA USA

12

10

8

6.2% 6

4.4% 4 4.2%

2

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics

PHILADELPHIA NEIGHBORHOOD UNEMPLOYMENT RATES, 2017 JOB GROWTH HAS BEEN SUFFICIENT TO LOWER CENTRAL NORTH 9.9% LOWER/CENTRAL NORTHEAST 8.8% THE FORMAL RATE UPPER NORTH 8.3% PHILADELPHIA AVERAGE 6.2% OF UNEMPLOYMENT, WEST/WEST PARK 6.1% WEST/SOUTHWEST 6.0% BUT NOT ENOUGH TO GET NATIONAL AVERAGE 4.4% NORTHWEST 4.4% PHILADELPHIA BACK TO 1990 PHILA MSA 4.2% SOUTH 4.1% JOB LEVELS, NOR TO REDUCE PHILA SUBURBAN AVERAGE 3.6% FAR NORTHEAST 3.1% A VERY HIGH POVERTY RATE CENTER CITY 2.9%

0 2 4 6 8 10

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics, ACS 2016, CCD Estimates

44 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG EMPLOYMENT

POVERTY RATES AMONG THE TOP 10 LARGEST US CITIES

PHILADELPHIA 25.7% HOUSTON 20.8% PHOENIX 20.3% LOS ANGELES 19.5% DALLAS 19.4% CHICAGO 19.1% NEW YORK 18.9% SAN ANTONIO 18.5% SAN DIEGO 13.1% SAN JOSE 10.7%

0 5 10 15 20 25 30

Source: US Census Bureau, 2016 American Community Survey

POVERTY RATES AMONG THE TOP 25 LARGEST US CITIES

DETROIT 35.7% MEMPHIS 26.9% PHILADELPHIA 25.7% EL PASO 22.1% COLUMBUS 21.0% BOSTON 21.0% HOUSTON 20.8% PHOENIX 20.3% LOS ANGELES 19.5% DALLAS 19.4% CHICAGO 19.1% INDIANAPOLIS 18.9% NEW YORK CITY 18.9% WASHINGTON, D.C 18.6% SAN ANTONIO 18.5% FORT WORTH 17.5% NASHVILLE 15.1% JACKSONVILLE 14.9% DENVER 13.7% AUSTIN 13.5% CHARLOTTE 13.4% SAN DIEGO 13.1% SEATTLE 11.5% SAN JOSE 10.7% SAN FRANCISCO 10.1%

0 10 20 30 40

Source: US Census Bureau, 2016 American Community Survey

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 45 TRANSPORTATION

& ACCESS | James B. Abbott Concourse Park Dilworth Greater Center City is positioned at the confluence of a multimodal who utilize the PATCO Speedline or NJ Transit buses stopping along regional transit system consisting of 13 rail lines, three rapid Market Street constitute 6% of Center City’s weekday commuters. transit lines, five trolley lines and 29 bus routes that carry nearly As Center City’s economy and population have grown, so has the 309,000 riders every weekday into Greater Center City. Public number of people riding SEPTA in Philadelphia. Between 2001 and transit enables more than 1 million residents of suburban 2016, the number of passengers on the Market-Frankford Line, Philadelphia counties to live within one mile of a rail station, Broad Street Line, Regional Rail, and bus and trolley routes has connecting them to Center City’s employers, restaurants, retailers, increased by 14%. The increases have been most significant on healthcare services, and arts and cultural institutions. the Regional Rail lines (28%) and Market-Frankford Line (23%), Half of city residents can commute by transit to Center City in 30 approaching levels that are beginning to strain the capacity of minutes or less; 61% of those who live in Greater Center City can existing infrastructure, particularly as new residents of emerging get to City Hall—the geographic center of downtown—in 15 minutes neighborhoods choose public transit for their primary commutes. or less. Greater Center City now has an estimated population of 190,000, SEPTA’s Market-Frankford and Broad Street lines carry 45% of equating to 51 people per acre in the 7.7 square miles between all inbound Center City transit commuters each day. Both lines’ Girard Avenue and Tasker Street. Center City has the highest respective stations under Dilworth Park remain the busiest of concentration of residents who commute to work without a car, all Center City stations, serving a combined 60,000 passengers especially in neighborhoods closest to the West Market office each weekday. SEPTA’s bus network serves another 28% of district, which have non-auto commuting shares as high as 75%. inbound transit users each day. Regional Rail lines originating Nearly one-quarter of Greater Center City residents walk to work; from suburban Pennsylvania, New Jersey, and Delaware carry an 6% bike to work, triple the citywide average. Another 6% are additional 36,000 (12%) downtown commuters. Trolley lines serving working from home. Delaware County and West and Southwest Philadelphia bring another 8% of commuters each weekday. New Jersey residents

46 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG TRANSPORTATION & ACCESS

As the number of people who work, live, visit, shop and dine during the morning and evening rush hours, 3,000 daily are now downtown has increased, so have curbside deliveries and the using the bike share program during warm weather months, while frequency of stops by expanding ride-hailing services, like Uber and the number of average daily trips is still above 1,000 during the Lyft. Combined with increased construction activity, and minimal winter months. Installing and maintaining cycling infrastructure, commitment of public resources to traffic enforcement, these as well as enforcing the rules of the road, is becoming ever more trends have combined to increase congestion on Center City’s important. historic narrow streets. Philadelphia has affirmed its commitment Immediately adjacent to downtown, Amtrak’s 30th Street Station to multimodal transportation and safety with the introduction of connects Philadelphia to the Northeast Corridor and serves as one Vision Zero in late 2017, with the goal of eliminating all traffic- of the busiest stations in the country, with 4.4 million riders in 2017 related fatalities and severe injuries. However, more efforts will be and an average of 13,329 passengers each weekday. required in the coming years to better plan for and manage traffic congestion downtown. Philadelphia International Airport (PHL), easily accessible by both rail and car via I-95, puts half of the country’s population within two At the same time, however, Philadelphia has made significant hours flying time, supporting businesses, conventions, and leisure progress in providing alternative modes for mobility throughout travel. Philadelphia’s extensive air accessibility was a key element Greater Center City. From the time of its launch in April 2015, of the city’s pitch to Amazon and is central to the competitiveness Indego bike share reached 1.8 million total rides by the end of 2017 of the region. Nearly 30 million passengers landed at PHL in 2017 and added 11 new stations in Greater Center City last year. Today from 90 domestic and 33 international destinations. more than 100 docking stations around the city are outfitted with more than 1,000 bikes. With average daily Indego rides spiking

SEPTA ANNUAL RIDERSHIP BY MODE, 2001–2016

MODE 2001 2016 CHANGE (ANNUAL TOTAL) CHANGE (DAILY TOTAL) % CHANGE Market-Frankford Line 42,874,624 52,522,933 9,648,309 26,434 23% Broad Street Line 27,310,322 31,566,370 4,256,048 11,660 16% Regional Rail 29,440,000 37,701,000 8,261,000 22,633 28% Bus 164,391,729 182,484,615 18,092,886 49,570 11% Trolley 24,837,903 25,766,746 928,843 2,545 4% TOTAL 288,854,578 330,041,664 41,187,086 112,842 14%

Source: SEPTA

MEANS OF TRANSPORTATION TO WORK BY NEIGHBORHOOD

WORK FROM HOME WALK BIKE BUS RAIL OTHER CARPOOL DRIVE ALONE

CORE CENTER CITY 8% 38% 4% 8% 12% 4% 26%

EXTENDED CENTER CITY 5% 17% 8% 17% 8% 6% 37%

PHILADELPHIA AVERAGE 3% 8% 2% 17% 8% 8% 51%

PHILADELPHIA METRO AVERAGE 4% 4% 5% 4% 8% 73%

0 20 40 60 80 100

Source: US Census Bureau, American Community Survey 2012–2016

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 47 REGIONAL TRANSIT LINES BUCKS SERVING CENTER CITY MONTGOMERY AND UNIVERSITY CITY

SEPTA: FAR NORTHEAST Broad Street Line Market-Frankford Line Norristown High Speed Line PHILADELPHIA Regional Rail Lines OLNEY/ ROXBOROUGH/ OAK LANE MANAYUNK NEAR NORTHEAST PATCO: GERMANTOWN/ CHESTNUT HILL PATCO

Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015; BRIDESBURG/ Bureau of Labor Statistics, Current Employment Statistics; NORTH KENSINGTON/ CCD Estimates PHILADELPHIA RICHMOND WEST PHILADELPHIA UNIVERSITY BURLINGTON DELAWARE CITY 74,200 JOBS GREATER CENTER CITY 298,600 JOBS

SOUTH SOUTHWEST PHILADELPHIA PHILADELPHIA CAMDEN

GLOUCESTER

NEW CASTLE

MORE THAN HALF OF PHILADELPHIA JOBS ARE POSITIONED AT THE CENTER OF THE REGION’S MULTIMODAL TRANSIT SYSTEM

48 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG GIRARD AVE

SPRING GARDEN ST REGIONAL TRANSIT LINES BUCKS 2017 TRANSIT SERVING CENTER CITY MONTGOMERY RIDERSHIP AND AND UNIVERSITY CITY ACCESSIBILITY IN GREATER CENTER CITY SEPTA: FAR NORTHEAST RAIL LINES Broad Street Line Trolley

ROAD ST Market-Frankford Line Broad Street Line VINE ST B Norristown High Speed Line Broad-Ridge Spur PHILADELPHIA Market-Frankford Line OLNEY/ Regional Rail Lines Regional Rail Line ROXBOROUGH/ OAK LANE MANAYUNK NEAR NORTHEAST PATCO GERMANTOWN/ MARKET ST PATCO: City Hall CHESTNUT HILL Rail Transit Stations PATCO BUS LINES 10 Min or Less Source: U.S. Census Bureau, Local Employment-Household Dynamics, 2015; BRIDESBURG/ 11–15 Min Bureau of Labor Statistics, Current Employment Statistics; NORTH KENSINGTON/ More than 15 Min CCD Estimates PHILADELPHIA RICHMOND INDEGO STATIONS WEST PHILADELPHIA UNIVERSITY BURLINGTON SOUTH ST DELAWARE CITY 74,200 JOBS GREATER Note: Size of rail stations are shown CENTER CITY proportional to the average weekday 298,600 JOBS ridership; weight of bus lines shown according to weekday frequency

Source: SEPTA, PATCO, NJ Transit, Indego WASHINGTON AVE

SOUTH SOUTHWEST PHILADELPHIA PHILADELPHIA CAMDEN

TASKER ST

GLOUCESTER AVERAGE WEEKDAY RIDERSHIP, 2017 MARKET-FRANKFORD BROAD ST LINE, 22% BUS LINES, 28% NEW CASTLE LINE, 23% STATION RIDERSHIP BUS LINE RIDERSHIP City Hall 29,811 SEPTA Bus 86,748 STATION RIDERSHIP Walnut - Locust 7,864 15th Street 30,017 Spring Garden 6,350 8th Street 11,019 Tasker - Morris 5,009 11th Street 8,629 Girard 4,150 13th Street 6,231 Ellsworth - Federal 3,470 Girard 5,154 NJ TRANSIT, 1% Lombard - South 2,985 5th Street 3,986 BUS LINE RIDERSHIP 8th Street 2,945 2nd Street 3,928 NJ Transit Bus 3,253 Race - Vine 2,974 Spring Garden 3,275 Fairmount 2,050 Chinatown 240 REGIONAL RAIL, 12% TROLLEY LINES, 8% PATCO, 5% STATION RIDERSHIP STATION RIDERSHIP STATION RIDERSHIP Suburban Station 24,515 15th Street 10,877 16th & Locust 7,384 Jefferson Station 12,122 Juniper Street 7,776 8th & Market 5,615 19th Street 3,552 13th & Locust 1,858 22nd Street 2,893 10th & Locust 1,848

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 49 TRANSPORTATION & ACCESS

INDEGO: AVERAGE DAILY RIDES BY MONTH, 2017 INDEGO: CUMULATIVE RIDES, 2015–2017

MILLIONS 3,500 2.0 1,873,665

3,000

1.5 2,500

2,000 1.0

1,500

1,000 0.5

500

1,006 1,413 1,194 2,205 2,247 2,821 2,940 3,050 3,037 2,842 1,995 1,160 0 0 JANFEB MAR APRIL MAY JUNE JULY AUGSEPTOCT NOVDEC OCT 2017 OCT 2016 OCT 2015 FEB 2017 FEB 2016 JUN 2015 JUN 2017 DEC 2017 JUN 2016 DEC 2016 DEC 2015 APR 2015 APR 2017 APR 2016 AUG 201 7 AUG 2016 Source: Indego AUG 2015 Source: Indego

INDEGO’S 1.9 MILLION TRIPS ARE DRIVEN BY HIGH RIDERSHIP DURING MORNING AND EVENING WEEKDAY COMMUTES

INDEGO: AVERAGE DAILY RIDES BY HOUR, 2017

WEEKDAY WEEKEND 300

240

180

120

60

0 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 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

Source: Indego

50 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG Whole Foods Market | Matt Stanley Market Foods Whole DOWNTOWN LIVING Greater Center City has capitalized on the growing national cultural institutions and hundreds of restaurants. For those preference for diverse, walkable, live-work-play neighborhoods who are retired, the downtown also offers a broad range of and has become the fastest growing residential section of nonprofit organizations at which to volunteer and to support. Philadelphia with an estimated 190,000 residents in 2017. In Greater Center City is also becoming the location of choice the last five years, 26% of all transplants to Philadelphia have for growing numbers of families with children. In 2017, there moved to the downtown, including a sizable portion of the were 41% more newborn Philadelphians in Greater Center City largest demographic group in the country, 20- to 34-year-olds. than there were in 2000. While home to fewer households with These millennials now constitute 40% of the population in children than the rest of Philadelphia, 14% of Greater Center the downtown. City households now include children. Parents can enjoy the The high concentration of young professionals in Center City convenience of walking their children to one of the 19 Greater makes it an attractive location for businesses. In Greater Center City elementary schools, where 8,253 students were Center City, 61% of residents have a bachelor’s degree or enrolled in 2017. higher. Combined with the 15 colleges and universities in Data from the School District of Philadelphia show that 81% and around Greater Center City, this critical mass of talent is of students in public classrooms in Greater Center City come exercising a powerful draw on employers and retailers. from the downtown, a significant increase from a decade ago. An expanding cohort of empty nesters is also driving downtown An equally important metric: while many Center City parents growth. Residents over 60 years old now make up 21% of the rely on the three independent schools in Center City and those core Center City population and are driving demand for the elsewhere in the city and region, 75% of children in Greater high-end of the housing market. Living downtown offers older Center City attend public school, comparable to the citywide Philadelphians easy access to work, health care, arts and average of 80%. Bolstered by active “friends” groups who are

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 51 DOWNTOWN LIVING

supplementing School District resources, enrollment in Greater will complete the connection between Bartram’s Mile and Center City’s public elementary schools continues to rise, up the Schuylkill Banks. This section, known as the Grays Ferry 9% since 2010 with overcrowding now becoming a challenge in Crescent, is set to begin construction in 2018. some locations. Residential demand in Greater Center City remains strong. While 81% of suburban residents commute to work by car, In 2017, Greater Center City saw the completion of a record- 61% of residents in Greater Center City commute to work high 1,916 apartment units. Apartment construction is without a vehicle. Forty percent of Greater Center City expanding into the extended neighborhoods surrounding residents work in Center City and 11% work in University City, Center City, generally in areas near transit lines where higher which is easily accessible by public transit. Less reliance on density construction is allowed. In addition to apartments, 276 vehicles significantly reduces the carbon footprint of downtown condominium units and 488 single-family homes were added to residents. The household carbon footprint for Greater Center Greater Center City in 2017. Much of this for-sale construction City is 31 tCO2e/yr (metric tons of carbon dioxide equivalent per is also occurring in the extended Center City neighborhoods year) compared to 53 tCO2e/yr for suburban households, with as people who first moved to Philadelphia as students or transportation accounting for most of the difference. young professionals look to buy homes and start families. The diversity of housing types and tenures allows residents to stay With an expanding public and private investment in parks, within the 8.5 square miles of Greater Center City as their recreational facilities and waterfront trails, all residents in needs change over time. Greater Center City live within a 10-minute walk of public green space — an amenity that most suburbanites can reach only by To sustain recent population growth, Center City needs to retain car. Greater Center City residents have access to 407 acres of millennials and young families. Philadelphia will need more urban parks and 4 miles of riverfront pedestrian and bike trails. dynamic job growth and more certainty about long-term school The opening of the Rail Park in 2018 will bring a much needed funding to maximize the extraordinary competitive advantages and unique amenity to a reviving post-industrial neighborhood that exist in Center City. that previously lacked any recreational green space. Bartram’s Mile and the South Street to Christian Street extensions opened along the Schuylkill River Trail in 2017. The Department of Transportation recently allocated a $12 million TIGER grant to connect Christian Street to the Schuylkill Crossing, which

GREATER CENTER CITY POPULATION

POPULATION CORE EXTENDED GREATER CENTER CITY 250,000 GREATER CENTER CITY HAS BECOME

190,416 200,000 THE FASTEST GROWING RESIDENTIAL 173,284 157,812 SECTION OF PHILADELPHIA WITH AN 150,000 ESTIMATED 190,000 100,000 124,594 114,402 RESIDENTS IN 2017 107,927 50,000

49,885 58,882 65,822 0 2000 2010 2017

Source: U.S. Census Bureau, 2000 and 2010 Decennial Census; CCD Estimates

52 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG DOWNTOWN LIVING

FAIRMOUNT/ CALLOWHILL/ NORTHERN SPRING POPLAR LIBERTIES WHERE RESIDENTS GARDEN GO TO WORK 39% 39% 42% MAP: PERCENT OF WORKERS EMPLOYED IN GREATER CENTER CITY & UNIVERSITY CITY:

More than 55% OLD CITY 51-55% LOGAN 19102CHINATOWN SQUARE 5,849 46-50% 40% 43% 42%

40-45% 14%

RITTENHOUSE SOCIETY HILL 36% PIE: PERCENT OF WORKERS EMPLOYED IN: WASHINGTON SQUARE WEST Greater Center City 37% 43% 41% WATERFRONT University City 20% Rest of Philadelphia GRADUATE BELLA QUEEN VISTA VILLAGE Outside Philadelphia HOSPITAL 38% 44% 43% Source: U.S. Census Bureau, Local 19% Employment-Household Dynamics, 2015 GRAYS POINT PASSYUNK FERRY BREEZE SQUARE PENNSPORT 33% 42% 42% 40%

CENTER CITY IS BENEFITTING FROM A PRONOUNCED CONCENTRATION OF MILLENNIALS. RETAINING THEM AS THEIR CAREERS ADVANCE AND THEY FORM FAMILIES WILL YIELD LONG-TERM DIVIDENDS TO THE CITY

EDUCATIONAL ATTAINMENT, 25 AND OLDER

GREATER CENTER CITY PHILADELPHIA PHILADELPHIA METRO AREA

25% HIGH SCHOOL 51% HIGH SCHOOL 11% 40% HIGH SCHOOL 14% OR LESS OR LESS OR LESS 30% 25% 15% 14% SOME 23% SOME 24% SOME 40% COLLEGE COLLEGE 51% COLLEGE 21% 31% BACHELOR’S 14% 15% BACHELOR’S 23% 21% BACHELOR’S 31% 24% 30% ADVANCED 11% ADVANCED 14% ADVANCED

Sorce S Censs Brea, erican Conity Srey 2012 2016

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 53 DOWNTOWN LIVING

GREATER CENTER CITY RACIAL DIVERSITY HOUSEHOLD TYPE

SINGLE PERSON UNRELATED PEOPLE FAMILY 57% WHITE* CORE CENTER CITY 23% BLACK OR AFRICAN AMERICAN* 56% 16% 28% 10% ASIAN* EXTENDED CENTER CITY 7% HISPANIC/LATINO 43% 16% 41% OF ANY RACE 190,416 3% TWO OR MORE/ TOTAL POPULATION PHILADELPHIA AVERAGE OTHER* 39% 8% 53% *NonHispanic (Hispanics may be of any race) PHILADELPHIA METRO AVERAGE

29% 6% 65%

Source: U.S. Census Bureau, 0 20 40 60 80 100 American Community Survey 2012 - 2016 Source: US Census Bureau, American Community Survey 2012 - 2016

THE AVERAGE HOUSEHOLD INCOME IN THE CORE OF CENTER CITY IS 32% HIGHER THAN THE METRO AVERAGE WITH MORE THAN TWICE AS MANY COLLEGE GRADUATES

DEMOGRAPHIC COMPARISION CHART

CORE CENTER CITY EXTENDED CENTER CITY PHILADELPHIA PHILADELPHIA METRO

Average Household Size 1.6 2.3 2.6 2.6 Percent of Households with Children 7% 18% 27% 31% Percent Ages 20-34 46% 37% 26% 21% Percent 60 and Older 21% 15% 18% 20% Percent Bachelor's or More 79% 51% 26% 36% Average Household Income $117,607 $85,163 $58,372 $88,881 Percent Commuting without a Car 70% 57% 41% 19% Percent No Vehicle Households 45% 33% 31% 13%

Source: US Census Bureau, American Community Survey 2012 - 2016

54 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG DOWNTOWN LIVING

BIRTHS TO GREATER CENTER CITY PARENTS, 2000–2017

2,500

2,267 2,250 35,738 BABIES HAVE BEEN BORN 2,000 TO GREATER CENTER CITY PARENTS SINCE 2000 1,750

1,608 1,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Bureau of Health Statistics and Research, PA Department of Health; analysis by Philadelphia Department of Public Health

POPULATION GROWTH DOWNTOWN IS DRIVEN BY A TIME-LIMITED MILLENNIAL PEAK THAT CAN ONLY BE SUSTAINED BY THE ATTRACTION AND RETENTION OF COLLEGE STUDENTS FROM OUTSIDE THE REGION AND THE RETENTION OF EXISTING RESIDENTS

COMPARATIVE AGE DISTRIBUTION

PERCENT OF POPULATION GREATER CENTER CITY PHILADELPHIA MSA USA 20

15

10

5

0

UNDER 5 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+ MILLENNIALS Source: US Census Bureau, American Community Survey 2012 - 2016

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 55 DOWNTOWN LIVING

PHILADELPHIA K-12 EDUCATION ENROLLMENT

GREATER CENTER CITY PHILADELPHIA

75% PUBLIC 80% PUBLIC 25% PRIVATE 20% PRIVATE 12,320 237,479 TOTAL K–12 STUDENTS TOTAL K–12 STUDENTS

Source: U.S. Census Bureau, American Community Survey 2012 - 2016 Source: U.S. Census Bureau, American Community Survey 2012 - 2016

18% OF HOUSEHOLDS IN EXTENDED CENTER CITY NOW INCLUDE SCHOOL-AGE CHILDREN WHOSE PARENTS HAVE FORMED “FRIENDS” GROUPS THAT ARE ACTIVELY SUPPLEMENTING SCHOOL DISTRICT RESOURCES

K-8 PUBLIC SCHOOL ENROLLMENT GREATER CENTER CITY K-8 PUBLIC SCHOOL ENROLLMENT BY STUDENT HOME

LIVE WITHIN CATCHMENT SUMMARY OF ELEMENTARY % CHANGE 67% SCHOOL ENROLLMENT 2010 2017 2010 - 2017 14% LIVE ELSEWHERE Greater Center City Schools 7,555 8,210 9% IN GREATER CENTER CITY Schools Outside GCC 93,951 85,294 -9% 19% LIVE OUTSIDE OF PHILADELPHIA 101,506 93,504 -8% GREATER CENTER CITY Source: Philadelphia School District 67% LIVE WITHIN CATCHMENT

Source: 2017 Philadelphia School District

56 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG DOWNTOWN LIVING

CARBON FOOTPRINT OF HOUSEHOLDS IN PHILADELPHIA METRO AREA

BUCS

MONTGOMERY

CHESTER DELAARE BURLINGTON HOUSEHOLD CARBON FOOTPRINT CAMDEN TCOE/YR NE GLOUCESTER 24 - 30 CASTLE 30 - 35 SALEM 35 - 40 CECIL 40 - 65 45 - 55 55 - 60

CARBON FOOTPRINT (TCO2E/YR) TRANSPORTATION HOUSING FOOD GOODS SERVICES TOTAL HOUSEHOLD CARBON FOOTPRINT Core Center City 7 8 4 5 6 29 Greater Center City 7 10 5 4 5 31 Philadelphia 8 13 8 4 5 38 Surrounding Counties 17 15 8 6 7 53

Source: CoolClimate Maps, U.C. Berkeley Cool Climate Network

WITHIN GREATER CENTER CITY THERE ARE 407 ACRES OF URBAN PARKS AND 4 MILES OF RIVERFRONT WALKING AND CYCLING TRAILS

COMPARATIVE POPULATION DENSITY NUMBER OF VEHICLES PER HOUSEHOLD

PEOPLE PER ACRE (POPULATION-WEIGHTED AVERAGE) NO VEHICLE 1 VEHICLE 2 OR MORE VEHICLES CORE CENTER CITY 60 45% 44% 10% 50 EXTENDED CENTER CITY 40 33% 48% 20% 30 PHILADELPHIA AVERAGE

20 31% 44% 25%

10 PHILADELPHIA METRO AVERAGE

0 60 47 37 15 13% 35% 52%

CORE EXTENDED PHILADELPHIA PHILADELPHIA METRO CENTER CITY CENTER CITY AVERAGE AREA AVERAGE 0 20 40 60 80 100

Source: US Census Bureau, American Community Survey 2012 - 2016 Sorce S Censs Brea, erican Conity Srey 2012 2016

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 57 DOWNTOWN LIVING

RENTS PER SQUARE FOOT, 2011–2017

CORE EXTENDED NORTH EXTENDED SOUTH

2.50

$2.16 $2.21 $2.18 $2.12 $2.13 $2.03 $2.09

2.00

$1.55 $1.58 $1.58 $1.47 $1.49 1.50 $1.40 $1.42

$1.41 $1.32 $1.38 $1.16 $1.19 $1.23 1.00 $1.14

2011 2012 2013 2014 2015 2016 2017

Source: Zillow, Zillow Rent Index (ZRI)

WHILE RENTAL RATES HAVE MODERATED, HOUSING VALUES HAVE STEADILY APPRECIATED BY 11% ANNUALLY SINCE 2000

GREATER CENTER CITY PERCENT CHANGE IN HOUSE PRICES, 2000–2017

189% 200

150

100

50

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Econsult Solutions, Philadelphia Housing Index

58 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG DOWNTOWN LIVING

HOUSING UNIT TYPE HOUSEHOLD TENURE

SINGLE FAMILY DETACHED MULTIFAMILY (<50 UNITS) RENTER OCCUPIED OWNER OCCUPIED MULTIFAMILY (>50 UNITS) OTHER CORE CENTER CITY CORE CENTER CITY

16% 35% 49% 66% 34%

EXTENDED CENTER CITY EXTENDED CENTER CITY

57% 31% 11% 54% 46%

PHILADELPHIA AVERAGE PHILADELPHIA AVERAGE

67% 24% 9% 48% 52%

PHILADELPHIA METRO AVERAGE PHILADELPHIA METRO AVERAGE

74% 19% 6% 33% 67%

0 20 40 60 80 100 0 20 40 6080 100

Source: US Census Bureau, American Community Survey 2012 - 2016 Source: US Census Bureau, American Community Survey 2012 - 2016

SINCE 2000, A TOTAL OF 23,385 NEW RESIDENTIAL UNITS HAVE BEEN ADDED IN GREATER CENTER CITY

GREATER CENTER CITY HOUSING COMPLETIONS, 2000–2017

COMPLETED HOUSING UNITS APARTMENT CONDO SINGLE FAMILY 3,000

2,500 488 2,000 276

1,500

1,000

500

0 1,916 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: CCD/CPDC Developments Database

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 59 GIRARD AVE DOWNTOWN LIVING

COMPLETED RESIDENTIAL DEVELOPMENTS, 2017

UNIT COUNT:

1 - 5 VINE ST 6 - 25

26 - 50 ST BROAD

51 - 100 MARKET ST City Hall

101 - 200

More than 200 PINE ST

Single Family

Condo

Apartments

TASKER ST

2,680 NEW UNITS OF HOUSING WERE COMPLETED IN GREATER CENTER CITY IN 2017 WITH 71% OF NEW SUPPLY CONSISTING OF RENTAL UNITS

60 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG GIRARD AVE

COMPLETED RESIDENTIAL DEVELOPMENTS, 2017

UNIT COUNT:

1 - 5 VINE ST 6 - 25

26 - 50 ST BROAD

51 - 100 MARKET ST City Hall

101 - 200

More than 200 PINE ST

Single Family

Condo

Apartments

| We Film Philly | We Center Technology Comcast DEVELOPMENTS

TASKER ST Thirteen major development projects, totaling $1.2 billion, were completed, with another 3,817 under construction. Of the latter, completed in 2017 between Fairmount and Washington avenues, 66% are scheduled for completion in 2018, 18% in 2019 and the river to river. Another 35 projects of all types, totaling $4.8 remainder in 2020. billion in new investment, were under construction at the end of A majority of the commercial development taking place is for December 2017, while 21 more, totaling $2.9 billion, have been the expansion or relocation of Fortune 500 companies with proposed and are still in the planning phases. corporate headquarters in Center City. The largest development Of the 48 projects that were completed or under construction in the city’s history is Liberty Property Trust’s $1.5 billion in 2017, more than half involve residential components: four Comcast Technology Center. The new tower, rising at 18th are exclusively residential and 22 are mixed-use projects with a and Arch streets, adds 1.3 million square feet of trophy office substantial residential component. Remaining projects include space downtown, all of which is leased by Comcast. Aramark seven hospitality developments, six commercial/mixed-use is relocating its headquarters from Market Street East to PMC projects, four public space improvements, as well as retail, Property Group’s redevelopment of the former Marketplace healthcare, education, and cultural developments. All are Design Center, where the food services giant will occupy half categorized by type and are mapped on page 64. of that 608,000-square-foot office building. Thomas Jefferson University will take possession of the space that Aramark is Since 2000, Center City’s population has increased 21%, as vacating. A smaller cluster of creative office and nontraditional millennials, empty nesters, and families with children have workspaces are opening east of Broad Street, signaling a new chosen to live close to work as well as a broad range of dining, interest in that rapidly improving side of Center City. cultural and entertainment offerings. Developers are responding to the growing demand with mixed-use projects that include a wide variety of amenities. As of the end of 2017, 1,405 units were

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 61 DEVELOPMENTS

The continued growth of overnight visitation numbers is creating MAJOR DEVELOPMENTS COMPLETED AND UNDER more demand for downtown hotel rooms. As of December 2017, CONSTRUCTION IN 2017 IN CENTER CITY BY TYPE six hotel projects were under construction, including a new Four Seasons, Cambria Hotel & Suites (completed in early 2018), AND SQUARE FOOTAGE Fairfield Inn and Suites, Hyatt Centric, W Hotel and Element by Westin. These projects will add more than 1,600 new hotel rooms, pushing the downtown supply close to 12,700 rooms 53% RESIDENTIAL/MIXEDUSE 9,231,915 SF by 2019. 19% COMMERCIAL/MIXEDUSE The combined effect of sustained job growth, a growing 3,245,975 SF residential population and increased overnight visitation has 8% RETAIL 1,400,000 SF spurred several large-scale retail projects, such as Phase 1 of NRED's East Market project and Macerich and PREIT's 8% HOSPITALITY 1,381,246 SF 17.4 MILLION redevelopment of The Gallery, both scheduled for completion TOTAL SF in 2018. This brings total retail space that was completed or 6% RESIDENTIAL 973,199 SF under construction in 2017 to 1.6 million square feet, with a 4% HEALTHCARE & majority located east of Broad Street, where there is room to EDUCATION accommodate the larger floor plates that big-box retailers prefer. 759,656 SF

In addition to the developments map on page 64, a full-color PDF 1% PUBLIC SPACE 186,927 SF with renderings and descriptions of all 69 major developments Source: Developments Database 2017, Center City District 1% CULTURAL is available at www.centercityphila.org/developments. 169,000 SF 0.2% GOVERNMENT & NONPROFIT INSTITUTIONS 40,000 SF

MAJOR PROJECTS COMPLETED AND UNDER CONSTRUCTION IN 2017 IN CENTER CITY

$6.1 BILLION 3,245,975 SF IN MAJOR DEVELOPMENTS OF COMMERCIAL/MIXED-USE 5,222 1,655,662 SF RESIDENTIAL UNITS OF NEW RETAIL 1,923 HOTEL ROOMS

Source: Developments Database 2017, Center City District Note: Several of the projects included on the map had not yet announced completion dates, development costs, or square footage as of the end of Q4 2017. As a result, these figures are not included in the respective totals.

62 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG MAJOR DEVELOPMENTS COMPLETED AND MAJOR DEVELOPMENTS IN CENTER CITY BY STATUS UNDER CONSTRUCTION IN 2017

DEVELOPMENTS 30 19% COMPLETED 51% UNDER CONSTRUCTION 25 30% PROPOSED

20

15 69 TOTAL DEVELOPMENTS

10

5 2 13 26 15 7 0 2017 2018 2019 2020 Source: Developments Database 2017, Center City District

Source: Developments Database 2017, Center City District

A MAJORITY OF THE OFFICE DEVELOPMENT TAKING PLACE IS FOR THE EXPANSION OR RELOCATION OF FORTUNE 500 COMPANIES WITH CORPORATE HEADQUARTERS DOWNTOWN

DELIVERY OF RESIDENTIAL UNITS IN MAJOR DEVELOPMENTS COMPLETED OR UNDER CONSTRUCTION IN 2017 IN CENTER CITY

RESIDENTIAL UNITS COMPLETED UNDER CONSTRUCTION 3000

2500

2000

1500

1000

500

0 1,405 2,508 697 612 2017 2018 2019 2020

Source: Developments Database 2017, Center City District

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 63 GIRARD AVE

31 FAIRMOUNT AVE 66 DEVELOPMENTS IN 3 CENTER CITY

7 28 Commercial/ 51 Mixed-Use 23 44 Cultural 19 62 69 58 Government & 27 34 42 VINE ST8 54 43 Nonprofit Institutions ST 14 37 65 Healthcare & BROAD 52 30 Education 40 24 64 46 Hospitality 21 39 4 16 38 26 20 Public Space 13 48 57 MARKET ST City Hall 50 18 5 Residential 6 53 33 1 56 11 2 10 Residential/ 36 Mixed-Use 68 32 67 35 47 55 12 49 25 15 Retail 22 41 17 60 Source: Developments Database 2017, Center City District PINE ST 59

45

9 61

WASHINGTON AVE 29 63

TASKER ST

PROPOSED MAJOR PROJECTS IN CENTER CITY $2.8 BILLION 2,520,000 SF IN MAJOR DEVELOPMENTS OF COMMERCIAL/MIXED-USE 4,299 406,856 SF RESIDENTIAL UNITS OF NEW RETAIL 903 HOTEL ROOMS

64 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG DEVELOPMENTS

PROJECTS COMPLETED OR RESIDENTIAL/MIXED-USE PROPOSED PROJECTS UNDER CONSTRUCTION IN 2017 26. The Sterling 27. Park Towne Place COMMERCIAL/MIXED-USE COMMERCIAL/MIXED-USE 28. SoNo 49. The Washington 1. The Steele Building 29. Lincoln Square 50. 1301 Market Street 2. The Hale Building 30. Bridge 51. 510 North Broad 3. Studebaker Building 31. Divine Lorraine HOSPITALITY 4. Comcast Technology Center 32. The Curtis 52. Marriott AC 5. Independence Collection 33. East Market 6. 2400 Market Street 53. Pod Philly 34. Hanover North Broad 54. Kimpton Hotel CULTURAL 35. The Beacon 36. The Harper 7. Philadelphia Museum of Art Expansion PUBLIC SPACE 37. Eastern Tower Community Center 55. Penn's Landing GOVERNMENT & NONPROFIT INSTITUTIONS 38. 218 Arch Street RESIDENTIAL/MIXED-USE 8. The Free Library of Philadelphia Parkway 39. River Walk Central Renovation 40. One Franklin Tower 56. 2012 Chestnut 41. 1401 Spruce Street 57. Lits Tower HEALTHCARE & EDUCATION 42. Heid Building 58. Renaissance Plaza 9. Children's Hospital of Philadelphia - 43. The Alexander 59. Broad + Pine Schuylkill Avenue Phase I 44. The Hamilton 60. SLS LUX Philadelphia Hotel & Residences 10. Thomas R. Kline Institute of Trial Advocacy 45. Royal Theater 61. Pier 34/35 South 62. 1600 Callowhill HOSPITALITY 46. The National 47. 1213 Walnut 63. 9th and Washington 11. W Hotel and Element by Westin 64. 142 North Broad 12. Hyatt Centric RETAIL 65. 800-830 Vine Street Master Development 13. Independence Visitor Center 48. Fashion District Philadelphia 66. 1300 Fairmount 14. Best Western Hotel Plus Philadelphia 67. The Laurel Convention Center 68. 702 Sansom 15. Cambria Hotel & Suites 69. 900-934 Callowhill 16. Aloft Hotel 17. Fairfield Inn and Suites by Marriott

PUBLIC SPACE 18. 22nd and Market Memorial 19. Rail Park, Phase 1 20. John F. Kennedy Plaza/LOVE Park 21. Cherry Street Pier

RESIDENTIAL 22. One Riverside 23. NorthxNorthwest 24. 401 Race Street 25. 500 Walnut

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 65 CENTER CITY DISTRICT | Matt Stanley Cleaning Street City District Center For 27 years, the Center City District has worked in tandem street, to provide hospitality services to visitors, workers, and with Central Philadelphia Development Corporation to ensure residents, and to offer outreach services to the homeless. Since that Center City is clean, safe, and attractive and to serve as a 1993, the combined deployment of more than 110 public and vehicle for private sector research, advocacy and leadership private uniformed security has contributed to a 44% reduction in guiding development and public-private investment in in the number of serious crimes in the district, including an the downtown. 86% drop in thefts from autos. CSRs also engaged in 159,342 sustained conversations with individuals within the district in Within the district, there are 138 uniformed sidewalk cleaners 2017. Overwhelmingly, these conversations provided information and supervisors working seven days a week, cleaning sidewalks and directions, but a full 15% were related to public safety and and removing graffiti and thousands of stickers and posters security issues. from ground floor façades, light poles, buildings and street furniture. Additionally, they are responsible for the cleanliness Eighty percent of respondents to the customer satisfaction of all CCD parks and, through contracts with SEPTA, they survey noted they feel safe while in Center City. Among the top clean and maintain the Suburban and Jefferson rail stations. priorities for improving safety downtown are a reduction in the Through contracts with civic associations, they also clean four number of panhandlers and individuals sleeping on the street. surrounding residential neighborhoods. As a result of their Through consumer marketing, the CCD works year-round to work, two-thirds of respondents to the CCD’s 2017 customer position Center City as the region’s premier retail destination. satisfaction survey rated Center City as ‘much cleaner’ than During typically slow weeks in midwinter and at the end other Philadelphia neighborhoods. of summer, Center City District’s Restaurant Week, with its The CCD deploys 42 uniformed Community Service specially-priced offerings, draws huge volumes of city and Representatives (CSRs) who work in partnership with the suburban residents as well as students. Diners spent more Philadelphia Police Department to serve as eyes on the than $22 million at participating restaurants in 2017, reflecting

66 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CENTER CITY DISTRICT the popularity of the program and its impact on the local ranging from brand activations, awareness programming for economy. In 2017, the CCD also launched Shop Center City, a nonprofit organizations, gardening workshops for adults and campaign that promotes Center City’s unique retail offerings to children, and free group fitness sessions. Dilworth Park was local shoppers in order to increase market share and sales at visited by more than 10 million people in 2017, including a downtown stores (www.shopcentercityphilly.com). record-breaking 1,272,590 visitors in the month of December alone. During the winter season, 58,000 skaters enjoyed the The CCD continues to maintain and update $146 million in Rothman Institute Ice Rink, and another 210,000 visitors capital improvements it has made to the District in the last explored the America’s Garden Capital Maze. New in 2017 at two decades. This includes the cleaning and updating of 646 Dilworth Park was the Deck the Hall Light Show presented by pedestrian and vehicular directional signs, 240 transit portal Independence Blue Cross and co-produced by 6abc. Designed signs, 85 bus shelter maps, and 55 interpretive signs along the by Klip Collective, the West Market Street portal of City Benjamin Franklin Parkway. The CCD also ensures Center City Hall was illuminated and with a choreographed light show is well-lit, maintaining 237 of the 2,189 pedestrian light poles to welcome the holiday season. The new attraction helped installed in the district (the Philadelphia Streets Department Dilworth Park, which was a barren plaza devoid of visitors prior services the remainder). Twenty-three sculptures, 12 Parkway to its renovation in 2012, experience its highest-ever average building façades, and 12 Avenue of the Arts color-changing weekend pedestrian counts to date. building façades are all illuminated and maintained through CCD investments. In 2018, the CCD Foundation (CCDF) is fundraising for the completion of Phase I of the Rail Park opening and the The CCD also maintains 750 trees, including 154 in CCD’s public art installation, Pulse at Dilworth Park. The CCDF is four parks, and maintains 323 planters on-street and within the fundraising affiliate of the CCD that further enables the CCD parks. In 2017 CCD also planted 260 vines, shrubs and CCD’s commitment to Center City’s public spaces. For more perennials and 4,600 bulbs in its parks. information on CCDF’s initiatives, visit www.supportccdf.org. Center City District’s four parks all experienced growth in the number of events held in their spaces during 2017. John F. Collins Park saw the largest jump in events attendance with the addition of the Chaddsford Wine Garden on Fridays throughout the summer. Dilworth Park hosted over 200 events in 2017,

CLEANLINESS OF CENTER CITY SIDEWALKS VS. OTHER PARTS OF PHILADELPHIA

64% MUCH CLEANER 25% ABOUT THE SAME 138 5% SOMEWHAT DIRTIER UNIFORMED CLEANING 2% MUCH DIRTIER PERSONNEL AND SUPERVISORS 5% NOT SURE 64% ‘MUCH CLEANER’ 394 GRAFFITI TAGS REMOVED FROM BUILDING FAÇADES

Source: 2017 Customer Satisfaction Survey, Center City District

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 67 CENTER CITY DISTRICT

PERCEPTIONS OF SAFETY IN CCD

CENTER CITY HAS EXPERIENCED 23% I ALWAYS FEEL SAFE 57% I FEEL SAFE MOST A SIGNIFICANT REDUCTION IN OF THE TIME 17% I OCCASSIONALY CRIME IN THE LAST 23 YEARS FEEL UNSAFE 2% I OFTEN FEEL UNSAFE 80% 1% NOT SURE FEEL SAFE “MOST OF THE TIME” OR “ALWAYS” (23-YEAR CHANGE, 1993-2017) -86% THEFT FROM AUTO -42% RETAIL THEFT Source: 2017 Customer Satisfaction Survey, Center City District -44% SERIOUS CRIMES

PART 1 CRIMES PER DAY IN THE CENTER CITY DISTRICT, 1993–2017

NONVIOLENT CRIMES VIOLENT CRIMES TOTAL PART 1 CRIMES

20 17.7 18.2 16.8 16.0 16.4

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

5

15.9 15.3 16.8 14.6 12.2 10.4 10.2 10.2 15.2 12.8 11.4 9.9 9.9 9.1 9.5 10.9 9.8 10.2 10.7 10.2 9.7 8.7 8.4 8.6 8.9 0 1.9 1.6 1.3 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 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Philadelphia Police Department

68 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CENTER CITY DISTRICT

SUGGESTED CHANGES TO IMPROVE SAFETY IN CENTER CITY

REDUCE PANHANDLERS 33%

ADD LIGHTING 26%

MORE POLICE 26%

DECREASE STREET SLEEPING 26%

IMPROVE TRANSIT SECURITY 16%

DECREASE VACANT AND DETERIORATED BUILDINGS 15%

INSTALL MORE SECURITY CAMERAS 14%

NO BIKES ON SIDEWALK 12%

TRAFFIC REGULATIONS AT CROSSWALKS 12%

INCREASE VISIBILITY OF CCD PERSONNEL 6%

OTHER 6%

0510 15 20 25 30 35

Source: 2017 Customer Satisfaction Survey, Center City District

COMMUNITY SERVICE REPRESENTATIVE CONTACTS 225 ALERTS SENT 74.4% HOSPITALITY/ AMBASSADOR 14.6% SECURITY/ 3,765 SAFETY INDIVIDUALS, BUSINESSES OR 10.0% HOMELESS/ ORGANIZATIONS RECEIVING ALERTS PANHANDLERS 0.8% PUBLIC SPACE 159,342 TOTAL CONTACTS 0.1% BUSINESS CONTACT 0.1% FIRST AID/MEDICAL 110+ POLICE OFFICERS AND COMMUNITY SERVICE REPRESENTATIVES STAND JOINT Source: 2017 Daily Activity Logs, Center City District ROLL CALL AND COORDINATE DEPLOYMENT

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 69 CENTER CITY DISTRICT

CENTER CITY DISTRICT STREETSCAPE CENTER CITY DISTRICT STREETSCAPE ASSETS, 2017 MAINTENANCE, 2017

STREET LANDSCAPING 1,313 LANDSCAPING Trees Pruned 185 750 STREET TREES Trees Replaced 57 323 PLANTERS Shrubs, Perennials, & Vines Planted 260 86 HANGING BASKETS 154 TREES IN 4 PARKS Bulbs Planted 4,600 LIGHTING

Pedestrian Light Poles Repaired 5 1,283 SIGNS Pedestrian Poles Relamped 45 430 PEDESTRIAN DIRECTIONAL SIGNS Parkway Sculpture Lights Relamped 16 257 DISKMAP SIGNS 240 TRANSIT PORTAL SIGNS AT 84 PORTAL ENTRANCES Parkway Façade Lights Replaced 5 216 VEHICULAR DIRECTIONAL SIGNS Avenue of the Arts Façade Light Fixtures Replaced 12 BUS SHELTER MAP SIGNS 85 SIGNS 55 PARKWAY INTERPRETIVE SIGNS Wayfinding Signs Cleaned 241

Wayfinding Signs Replaced 2

3,482 ART IN TRANSIT ADS Wayfinding Signs Updated 21

3,164 BANNERS Transit Portal Signs Cleaned 57 168 POSTERS Parkway Signs Cleaned 26 150 DIGITAL PROMOTIONS INSTALLED Bus Shelter Signs Cleaned 26

CCD PARKS

Shrubs, Perennials, & Grasses Planted 2,730 1,090 STREET FURNITURE Trees Planted 18 45 ADJUSTABLE HONOR BOX CORRALS Trees Pruned 70 27 FIXED (IN-GROUND) HONOR BOX CORRALS Bulbs Planted 19,200 17 ON-STREET BIKE RACKS 32 PARK BIKE RACKS Benches Refurbished 31 31 PARK BENCHES OTHER 766 ON-STREET BOLLARDS Newspaper Corrals Serviced 116 18 STREETSCAPE BENCHES 154 BANNER POLES Pedestrian Poles Cleaned 48 Bike Racks Cleaned 12

2,900 LIGHT FIXTURES Bus Shelter Signs Installed 26

Streetscape Benches Cleaned 6 2,189 PEDESTRIAN LIGHT POLES* 75 CITY HALL LIGHTING - 10 LOCATIONS Planter Pots Cleaned (Graffiti) 6

64 LIGHT FIXTURES ILLUMINATING 23 SCULPTURES Bollards Cleaned 14 12 LIGHTED PARKWAY BUILDING FAÇADES Banner Poles Reinstalled/Replaced 3 446 LIGHT FIXTURES ON 12 AVENUE OF ARTS BUILDING FAÇADES 114 LIGHT FIXTURES ILLUMINATING 3 UNDERPASSES Banner Poles Cleaned 57 Big Belly Trash Cans Cleaned 3,094 *Reflects total number of pedestrian light poles installed since 1996. Of these, CCD maintains 237 light poles. The remainder are maintained by the Philadelphia Streets Department. Source: Center City District

70 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CENTER CITY DISTRICT

EVENTS HOSTED IN CENTER CITY DISTRICT PARKS IN 2017

DILWORTH PARK 72

Social (Tented) 12 Brand Activation 28 IN 2017, DILWORTH PARK HOSTED 59 PUBLIC Community Access Program 15 EVENTS AND 13 PRIVATE EVENTS THAT Other 17 CLOSED A PORTION OF THE PARK FOR ONLY SISTER CITIES PARK 12

Athletic 6 3.5% OF THE PRIME, OPEN HOURS OF THE

Picnic Permit 3 PARK BETWEEN 9 A.M. AND 7 P.M.

Social 3 JOHN F. COLLINS PARK 33

Wine Garden 16

Wedding/Engagement 13

Social 3

Brand Activation 1

Source: Center City District Dilworth Park, Rothman Institute Ice Rink, 2017 | Matt Stanley Ice Institute Rothman Park, Dilworth

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 71 CENTER CITY DISTRICT

58,000 ICE SKATERS ANNUAL VISITORS TO DILWORTH PARK AT DILWORTH PARK IN 2017 2015: 8,698,000 2016: 9,621,200 210,000 VISITORS 2017: 10,036,200 TO AMERICA’S GARDEN CAPITAL MAZE AT DILWORTH PARK IN 2017

41,647 PEDESTRIANS PER WEEKEND DAY ENTERED DILWORTH PARK IN DECEMBER 2017 | Peter Tobia 2017 | Peter Winter Park, Dilworth

72 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG CENTER CITY DISTRICT

AVERAGE DAILY PEDESTRIAN ACTIVITY BY WEEKDAY/WEEKEND, 2017

PEDESTRIANS WEEKDAY WEEKEND 35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 19,959 21,176 24,394 21,715 32,013 24,244 30,868 23,761 10,129 9,211 22,514 17,513 14,597 11,153 16,038 11,225

1700 BLOCK INTERSECTION OF INTERSECTION OF DILWORTH PARK 1200 BLOCK 1200 BLOCK 1100 BLOCK 800 BLOCK OF WALNUT 17TH & CHESTNUT 16TH & CHESTNUT OF WALNUT OF MARKET OF CHESTNUT OF MARKET

Source: Eco-Counter, Placemeter and Motionloft Pedestrian Counts; Center City District

70% OF SURVEY RESPONDENTS COME TO CENTER CITY TO DINE; 57% COME TO SHOP; AND MORE THAN HALF COME TO VISIT CULTURAL INSTITUTIONS AND EVENTS

CENTER CITY DISTRICT’S RESTAURANT WEEK GENERATED $22M IN ECONOMIC IMPACT FOR CENTER CITY

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 73 CENTER CITY DISTRICT

CENTER CITY DISTRICT CAPITAL INVESTMENTS, 1997–2017

PROJECT YEAR CCD FUNDS FEDERAL CITY STATE FOUNDATIONS OTHER 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, 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, 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 1 2011-14 $75,631 $750,000 $32,649 $858,280 John F. Collins Park 2012 $8,733 $8,733 Sister Cities, Phase III Completion 2012-13 $153,600 $1,117,100 $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 2015-17 $2,800,000 $4,125,300 $2,447,500 $723,173 $10,095,973 City Hall Gates Lighting 2017 $286,777 $286,777 Dilworth Park - Pulse 2017 $10,000 $10,000 TOTAL $46,182,398 $18,255,800 $28,365,164 $27,567,639 $14,648,389 $11,622,416 $146,641,806

Source: Center City District

74 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG ACKNOWLEDGEMENTS

This annual report is produced by a dedicated team of Center City District staff working consistently over the course of many months. The State of Center City 2018 team includes Casandra Dominguez, Director of Business Attraction and Retention; Garrett Hincken, Director of Research and Transportation Policy; Joanna Joye, Research Assistant; JoAnn Loviglio, Director of Communications and Publications; Emily Seeburger, Research Analyst; Bonnie Thompson, Director of Web Development and Interactive Marketing; and R.J. White, Manager of Interactive Marketing, and was designed by team members Amy Yenchik, CCD’s Creative Director, and by 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 WWW.CENTERCITYPHILA.ORG. BULK COPIES OF THIS REPORT ARE ALSO AVAILABLE FOR SALE.

INFORMATION SOURCES National Constitution Center The Workforce Institute Aimco National Housing Preservation Database Thomas Jefferson University Alliance Partners HSP National Real Estate Development Toll Brothers Alterra Property Group Newmark Knight Frank (National) University of Pennsylvania Amtrak Newmark Knight Frank (Philadelphia) US Bureau of Economic Analysis Barnes Foundation Nightingale Group US Bureau of Labor Statistics Brickstone Realty Corporation NJ Transit US Census Bureau Brown Hill Development Opera Philadelphia Visit Philadelphia Carl Marks & Co. Parkway Corporation Wilma Theater Chestlen Development PATCO Zillow Children's Hospital of Philadelphia Pearl Properties City of Philadelphia Peirce College CCD/CPDC PUBLICATIONS Comcast Corporation Penn State Center (Philadelphia) Outdoor Seating (2017) Curtis Institute of Music Pennrose Properties Philadelphia Retail (2017) Cushman & Wakefield Pennsylvania Academy of the Fine Arts Housing Development in Perspective: 2018 (2018) DataArts Pennsylvania Ballet Keep Philadelphia Moving (2018) Delaware River Waterfront Corporation Pennsylvania Convention Center DIGSAU Philadelphia Chamber Music Society A complete list of CCD and CPDC publications is available at www.centercityphila.org. For Dranoff Properties Philadelphia Chinatown Development Corporation more information, call 215.440.5500 or email Drexel University [email protected] Philadelphia Convention & Visitors Bureau Eastern State Penitentiary Philadelphia Department of Public Health EB Realty Management Corporation CCD BOARD Philadelphia History Museum Eco-Counter John J. Connors Philadelphia International Airport Econsult Solutions Brickstone Realty Corporation - Chairman Philadelphia Museum of Art EZ Park Maureen Anastasi Philadelphia Parks & Recreation CBRE Philadelphia Forest City Residential Group PKF Consulting William M. Boone FringeArts Placemeter Marsh USA Inc. Hines PMC Property Group Ronald Bowlan Independence Visitor Center Corporation Thomas Jefferson University Post Brothers Interact Theater Julie Coker Graham PREIT Jeffrey M. Brown Associates Philadelphia Convention & Visitors Bureau Priderock Capital Partners, LLC JKRP Architects Joseph F. Coradino Property Reserve, Inc Pennsylvania Real Estate Investment Trust JLL Radnor Property Group Gregory L. DeShields, CHO, CHE JNA Capital, Inc. Realen PHL Diversity Keystone Property Group Robert Roskamp Jeffrey DeVuono KIMCO Brandywine Realty Trust School District of Philadelphia Kimmel Center for the Performing Arts Romulo L. Diaz, Jr. SEPTA Lubert-Adler PECO Energy Company Southern Land Company Midwood Investment & Development Wayne L. Fisher Temple University Newmark Knight Frank MIS Capital The Buccini/Pollin Group John S. Gattuso Moore College of Art The Free Library of Philadelphia Liberty Property Trust MotionLoft The Goldenberg Group Paige Jaffe* MRP Realty CBRE Retail The Wankawala Organization Mural Arts

CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG 75 ACKNOWLEDGEMENTS

Ernest E. Jones, Esquire John S. Gattuso Ejones Consulting, LLC Liberty Property Trust Richard H. Kenwood F Joseph W. Healy, AIA, LEED AP BD+C BOMA WRT, LLC Robert D. Lane, Jr., Esquire Branton Henderson Stevens & Lee P.C. Bank of America, North America Drew Murray Peter Kelsen Logan Square Neighborhood Association Blank Rome LLP Randall L. Scott Alan C. Kessler, Esquire Coretrust Capital Partners, LLC Duane Morris LLP Peter C. Soens Bradley A. Krouse, Esquire SSH Real Estate Klehr, Harrison, Harvey, Branzburg LLP Christophe P. Terlizzi Shawn McCaney KeyBank Real Estate Capital William Penn Foundation Tina Byles Williams Matthew N. McClure, Esquire FIS Group Ballard Spahr LLP Joseph S. Zuritsky Mark P. Merlini Parkway Corporation Brickstone Realty *Nominee Anne Papageorge, RLA University of Pennsylvania F Ex Officio Shari L. Reams-Henofer, JD, CFA

CPDC BOARD PNC Bank Mark L. Silow, Esquire Edward M. D'Alba, P.E. Fox Rothschild LLP Urban Engineers, Inc. - Chairman Eric L. Stern, Esquire James R. Pearlstein Morgan Lewis & Bockius LLP Pearl Properties, LLC - President Frederick D. Strober, Esquire Tracy Maeter Saul Ewing Arnstein & Lehr LLP JPMorgan Chase - Vice President Robert W. Walters H. Hetherington Smith CBRE, Inc. Savills Studley - Vice President Joseph S. Zuritsky John P. Derham Parkway Corporation Secretary Christophe P. Terlizzi KeyBank Real Estate Capital - Treasurer CCDF BOARD Marc D. Brookman Gerard H. Sweeney Duane Morris LLP - Emeritus Brandywine Realty Trust - Chairman Julian P. Rackow Christophe P. Terlizzi Blank Rome LLP - Emeritus KeyBank Real Estate Capital - Treasurer David G. Marshall Richard Vague Amerimar Realty Company - Gabriel Investments - Secretary Immediate Past Chairman Mariska K. Bogle Robert D. Lane, Jr., Esquire Philadelphia Hospitality Stevens & Lee, P.C. - Emeritus John J. Connors Ira A. Brown Brickstone Realty Corporation M&T Bank Michael C. Foreman Mark T. Celoni, P.E. Franklin Square Capital Partners Pennoni Julie Coker Graham Heather Crowell Philadelphia Convention & Visitors Bureau Pennsylvania Real Estate Investment Trust James L. Paterno Romulo L. Diaz, Jr. Stockton Real Estate Advisors PECO Energy Company Jane Scaccetti Harold Dichter Drucker & Scaccetti ARAMARK Corporation Daniel M. DiLella ERRATA Equus Capital Partners, Ltd. www.centercityphila.org/socc John J. Donnelly L.F. Driscoll Co., LLC Mark A. Duffy Firstrust Bank Antonio Fiol-Silva, FAIA, AICP, LEED AP BD+C SITIO architecture + urbanism

76 CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION | CENTERCITYPHILA.ORG

2018 PHILADELPHIA STATE OF CENTER CITY STATE

STATE OF CENTER CITY PHILADELPHIA 2018 CENTERCITYPHILA.ORG FSC The Center City District (CCD), Central Philadelphia Development Corporation (CPDC) and Center City District City District (CPDC) and Center Corporation Philadelphia Development Central (CCD), City District The Center In 1991 downtown. of Philadelphia’s competitiveness and the vitality enhance to together work (CCDF) Foundation services daily deliver to district improvement business the CCD CPDC created organization leadership the business 24-hour a vibrant City into Center This helped transform and safe. City clean with the goal of making Center and tourists. shoppers students, residents, businesses, to attractive downtown, 660 CHESTNUT STREET PHILADELPHIA, 19106 | 215.440.5500 | PA