Center City Reports: Philadelphia Retail

1

CENTER CITY REPORTS:

PHILADELPHIARETAIL

CENTER CITY DISTRICT &CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION

FIND MORE REPORTS AT:

CENTERCITYPHILA.ORG

DECEMBER 2015

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

2015 ACCOLADES FOR PHILADELPHIASecond Best Shopping City in the World Condé Nast Traveller

America's Next Great Food City Travel + Leisure Magazine

#3 on 52 Places to Visit in 2015 New York Times

UNESCO World Heritage City

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

More than 183,000 residents, 294,000 workers, 3.1 million occupied hotel room nights and 116,000 college students have made Center City a vibrant, 24-hour downtown. Together they generate more than $1 billion in retail demand within the down-town core and immediately surrounding neighborhoods.

Several thousand new housing units and nine hotels are under construction. As Center City’s purchasing power continues to increase, so does demand for retail goods and services. Center City’s expanding affluent and highly educated demographic has attracted more than 33 national retailers since 2013. These stores augment a strong base of local boutiques and independents, making Philadelphia a national retail destination.

Walkability and diversified land use foster a strong live-work dynamic. More that 40% of residents living in the neighborhoods between Tasker Street and Girard Avenue work within these same boundaries; 61% get to work without a car.

Center City’s density, diversity and accessibility create opportunities for retailers seeking to capitalize on changing preferences that are now favoring urban cores in America. Currently, local and national developers are investing $6.7 billion in major projects that are underway or planned for completion within the downtown core by 2018.1 More than 2.3 million square feet are dedicated to retail as older shopping streets are being redeveloped and Philadelphia’s prime retail district continues to expand.

City Hall

CORE CENTER CITY

GREATER CENTER CITY

19130 19123

19103

1910

2

19146 19147

19107 19106

CENTER CITY: A NATIONAL RETAIL DESTINATION

1: According to a Center City District’s report, “Center City Philadelphia Developments 2014 – 2018,” as of the end of Q4 2014 there were 61 projects between Spring Garden and South Streets that were either completed in 2014 or in the pipeline for completion by 2018 and represented $6.7 billion in project costs.


1: According to a Center City District’s report, “Center City Philadelphia Developments 2014 – 2018,” as of the end of Q4 2014 there were 61 projects between Spring Garden and South Streets that were either completed in 2014 or in the pipeline for completion by 2018 and represented $6.7 billion in project costs.2: CBRE’s report “Surging Demand for Urban Retail” found that Center City’s retail rents have grown the second fastest of 10 major U.S. cities since 2008.

SINCE 2013 MORE THAN 33 NATIONAL RETAILERS HAVE ADDED CENTER CITY LOCATIONS, AUGMENTING A STRONG BASE OF LOCAL BOUTIQUES.


Source: US Census Bureau, American Community Survey

226 APPAREL

159 JEWELRY/WATCHES

137 FOOD OR DRINK

117 HOME & GARDEN

108 ART/COLLECTIBLES/ HOBBIES

44 ELECTRONICS

41 BEAUTY/HEALTH/FITNESS

37 PHARMACY

25 OPTICAL

19 BOOKS/MAPS

18 MUSIC/VIDEO/VIDEO GAMES

86 OTHER

1,017TOTAL RETAILERS

RETAIL: MARKET SNAPSHOT

Retail rents in Center City have increased more than any peer city except for Miami in a retail market comparison conducted by CBRE.2 As space becomes scarce on Walnut Street, both local and national retailers are migrating to adjacent streets, creating a renaissance on West Chestnut Street. The latest retailers to announce a West Chestnut Street address include Bloomingdale’s Outlet, Old Navy, California Closets and Target Express, who will be joining Uniqlo, Nordstrom Rack, Indochino, Five Below, Banana Republic Factory Outlet and Forever 21, all of whom opened within the last year. The Uniqlo, Five Below, and Old Navy stores are all flagship locations.

Other national entries to the Center City market included Michael Kors, New Balance, and Under Armour along Walnut Street, as well as MOM’s Organic on East Market Street. Retailers announcing a second Center City location in 2015 included Aldo, Sweetgreen, Five Below, Old Navy and an ad-ditional Target Express on East Chestnut. This past year was also a big year for local retailers, with Skirt and Shop Sixty Five opening Rittenhouse boutiques, Lapstone & Hammer and Rikumo opening east of Broad and Cella Luxuria adding a second location on South Street. Though new retailers have typically clustered near Rittenhouse Square, along Walnut and Chestnut Streets, in 2015 there have been several leases signed east of Broad Street (see map on page 6).

Though national retailers have grown significantly over the last few years, Center City is differentiated from other retail districts by the diverse array of local proprietors that make up 78% of Center City’s tenant mix. Center City’s 1,017 retailers include 226 apparel stores, 159 jewelry stores, 137 food and drink retailers, and 117 home and garden establishments. One of the top dining destinations in the country, Center City’s 956 food establishments include 440 full-service restaurants and 309 takeout establishments. With 412 outdoor cafés and other retail establishments animating sidewalks, Center City continues to enjoy an increase in street vibrancy and activity.3 Center City’s large daily workforce and increasing residential population have also attracted a variety of service providers catering to their needs. However, given the recent increase in young families with children, there is a distinct opportunity for children’s retailers and child-oriented service providers to meet growing demand for children’s merchandise.

78% BOUTIQUE/INDEPENDENT/LOCAL RETAILERS

22% NATIONAL RETAILERS

CENTER CITY RETAILER TYPE, 2015

3,073TOTAL STOREFRONTS

1,017 RETAIL

1,100 SERVICES

956 FOOD ESTABLISHMENTS

CENTER CITY STOREFRONTS, 2015

Source: Retail Survey, Center City District

CENTER CITY RETAILERS, 2015


AS DEMAND FOR RETAIL AND RENTS INCREASE, MORE RETAILERS ARE BEGINNING TO OPEN LOCATIONS EAST OF BROAD STREET.

Source: Retail Survey, Center City District

1,100SERVICE PROVIDERS

233 BEAUTY

159 HEALTH

111 REAL ESTATE

100 BANK/FINANCIAL

86 LEGAL

78 LAUNDRY

53 FITNESS

20 CHILDCARE

20 INSURANCE

18 ACCOUNTING

18 TRAVEL

16 ART/COLLECTIBLES/HOBBIES

14 DELIVERY

174 OTHER

CENTER CITY SERVICE PROVIDERS, 2015

SELECTED NEW CENTER CITY RETAILERS IN 2015

Source: Center City District

956FOOD ESTABLISHMENTS

440 FULL-SERVICE RESTAURANTS

309 TAKEOUT/SANDWICH/QUICK SERVICE RESTAURANTS

84 COFFEE SHOPS

47 BARS/NIGHTLIFEESTABLISHMENTS

38 BAKERIES

25 ICE CREAM/WATER ICE/FROZEN YOGURT

13 ALL OTHERS

CENTER CITY FOOD ESTABLISHMENTS, 2015


GREATER CENTER CITY WORKERS, RESIDENTS AND OVERNIGHT VISITORS CREATE MORE THAN $1 BILLION IN RETAIL DEMAND.

RESIDENTS CORE CENTER CITY GREATER CENTER CITY

POPULATION 62,960 183,240

HOUSEHOLDS 37,331 91,073

AVERAGE HOUSEHOLD INCOME* $107,020 $86,573

% OF POPULATION MILLENNIAL (AGE 20-34) 47% 40%

CHILDREN BORN IN 2014 475 2,252

% OF POPULATION WITH A BA OR HIGHER 76% 57%

AVERAGE HOME SALE PRICE $597,875 $426,142

HOUSING UNITS COMPLETED IN 2014 665 1,983

EMPLOYMENT

TOTAL WAGE & SALARY JOBS 244,000 293,700

2013 PAYROLL $12,532,313,000 $14,004,626,000

SQUARE FEET OF OFFICE 40,300,000 SF (CORE & GREATER)

OFFICE OCCUPANCY 87% (CORE & GREATER)

VISITORS

HOTEL ROOMS 10,857

HOTELS 43

OCCUPIED HOTEL ROOM NIGHTS (2014) 3,090,000

EDUCATION

INSTITUTIONS OF HIGHER LEARNING 11

TOTAL ENROLLMENT 33,861

DOLLARS OF DEMAND OF SHOPPERS’ GOODS

OFFICE WORKERS $180,764,024 $210,949,704

OTHER WORKERS $39,203,661 $50,487,231

RESIDENTS $120,883,200 $351,820,800

OVERNIGHT VISITORS $400,916,982 $400,916,982

TOTAL DOLLARS OF DEMAND $741,767,867 $1,014,174,717

2: CBRE’s report “Surging Demand for Urban Retail” found that Center City’s retail rents have grown the second fastest of 10 major U.S. cities since 2008 (+87.5%). 3: A Center City District Report, “Outdoor Seating 2015,” documented 365 food establishments with café seating and 47 other outdoor seating locations in the core of the downtown.

Job Market Source: U.S. Census Bureau, Local Employment - Household Dynamics 2011 Residential Market Source: U.S. Census Bureau , American Community Survey 2009 - 2013 Visitor Market Source: Visit Philadelphia

Dollars of demand for each market segment are CCD calculations based on retail industry standards. Office Market data: Newmark Grubb Knight Frank

*CPI Adjusted


THREE QUARTERS OF CENTER CITY RESIDENTS HOLD A BACHELOR’S DEGREE OR HIGHER. HOUSEHOLD INCOMES AVERAGE OVER $100,000.


DEMAND DRIVERS:RESIDENTS Demand for retail is driven by steady residential growth in Cen-ter City. Since 2000, the population between Tasker Street and Girard Avenue, river to river, has increased 16%, to over 183,000, as well-educated workers choose to live close to office, universi-ty and health-service employers and take advantage of the broad array of cultural, entertainment and dining options. Residents within this area generate more than $351 million in retail de-mand. With household incomes averaging more than $107,000 and 76% of residents in the core holding at least a bachelor’s degree, Center City’s purchasing power continues to increase.

Millennials, entering their peak consumer-spending years,4 rep-resent 40% of the downtown’s population. Since 2006, Philadel-phia’s share of millennials has increased the fastest among the 10 largest U.S. cities (+6.3%).5 Residential growth and purchas-ing power has also been driven by an increase in the number of young families choosing to live downtown. Since 2000, more than 29,025 children were born to Center City parents and the 2010 Census documented a 42% increase in the number of children under the age of five.

The other demographic group moving back into the city are empty-nesters. No longer needing large suburban homes and tiring of auto-commuting times, they are drawn to high-end, full-service condominium or rental units and the convenience of being close to Center City’s cultural institutions, entertainment and dining options. This affluent group has contributed to Center City’s growing household incomes.

CHILDREN &TEENAGERS(0–19)

MILLENNIALS(20–34)

MID-CAREERADULTS(35–54)

EMPTYNESTERS(55+)

CORE CENTER CITY

GREATERCENTER CITY

PHILADELPHIA METRO AREA USA

0%

20%

40%

60%

80%

100%

8%

47%

20%

26%

14%

40%

24%

23%

26%

26%

25%

23%

26%

20%

28%

26%

27%

21%

27%

26%

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

14%

28%

53%

42%

42%

10%

15% 28%

14%

20%

18% 11%

13%

10%

29%

23%

24%

29%

33% 43%HIGH SCHOOL OR LESS SOME COLLEGE BACHELOR’S DEGREE ADVANCED DEGREE

CORE CENTER CITY

GREATER CENTER CITY

PHILADELPHIA

METRO AREA

USA

POPULATION BY AGE

EDUCATIONAL ATTAINMENT, POPULATION 25 AND OLDER

47% OF CORE CENTER CITY’S POPULATION ARE MILLENNIALS ENTERING THEIR PEAK CONSUMER SPENDING YEARS.

4: In its report, “Millennials: Coming of Age in Retail,” Goldman Sachs estimates Millennial spending in apparel will increase by 20%-25% in the next five years.5: JLL Research

Source: U.S. Census Bureau, American Community Survey 2009 - 2013


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11TH ST.STATION

9,642

PATCO15,195

5TH ST.STATION

3,2198TH ST.STATION13,448

JEFFERSONSTATION13,365

13TH ST. STATION14,711

CITY HALL STATION32,010

WALNUT-LOCUST STATION

6,506

LOMBARD-SOUTH STATION

2,650


19TH ST. STATION

2,238

22ND ST. STATION

2,238

SUBURBANSTATION24,775

RACE-VINESTATION

2,315

WORKERS Downtown Philadelphia provides opportunities for 293,700 salaried workers who generate more than $261 million in retail demand and $14 billion in payroll. Another 7,000 partners, freelancers, and independent entrepreneurs make Center City their home. Center City employment makes up 43.3% of all city jobs and draws workers from across the region. Center City’s location at the center of the region’s transportation network enables 109,000 residents from surrounding counties in Penn-sylvania, South Jersey and Delaware to commute downtown each day.

This dense concentration of employment (203 jobs per acre in the downtown core versus less-than-one job per acre in the surrounding suburbs) is made possible by a multi-modal transit system that brings 295,000 passengers downtown each day.

The number of workers within a walkable one-mile radius of City Hall is 14 times higher than the number of workers within a one-mile radius of Cherry Hill Mall and seven times greater than the number of workers surrounding King of Prussia Mall. Sixty percent of the workers within a mile of City Hall earn more than $3,333 in monthly wages, compared to 55% surrounding King of Prussia Mall and 33% around the Cherry Hill Mall.

Philadelphia’s central business district has a diverse employ-ment base, with 39% in office sector jobs, 21% in education and healthcare, 10% in entertainment, leisure and hospitality, 14% in public administration and 6% in transportation and utilities. Forty percent of Center City workers have a BA or higher, creat-ing a highly educated workforce that helps attract employers to Center City. Twenty-one percent of downtown workers are under the age of 29, 59% between 30 and 53, and 20% age 55 or older.

CENTER CITY IS THE REGION’S LARGEST & MOST DENSE EMPLOYMENT NODE. IT’S AT THE CENTER OF A REGIONAL TRANSIT NETWORK THAT BRINGS 295,000 PASSENGERS DOWNTOWN EACH WEEKDAY.

6: Longwoods International/Tourism Economics for Visit Philadelphia7: Longwoods International/Tourism Economics for Visit Philadelphia

8: Visit Philadelphia9: Visit Philadelphia


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

HIGH SCHOOL OR LESS SOME COLLEGE BACHELOR’S DEGREEOR HIGHER

GREATER CENTER CITY

PHILADELPHIA (NOT INCLUDING GREATER CENTER CITY)

USA

30.1% 29.8% 40.1%

35.7% 30.7% 33.6%

33.3% 30.7% 36%

23% PROFESSIONAL/BUSINESS SERVICES

21% EDUCATION/ HEALTH SERVICES

16% FINANCIALACTIVITIES/REAL ESTATE/INFORMATION

14% PUBLICADMINISTRATION

10% ENTERTAINMENT/ LEISURE/HOSPITALITY

6% TRANSPORTATION/UTILITIES/WHOLESALE TRADE

4% OTHER SERVICES

4% RETAIL

2% CONSTRUCTION

1% MANUFACTURING

293,700TOTAL JOBS

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11TH ST.STATION

9,642

PATCO15,195

5TH ST.STATION

3,2198TH ST.STATION13,448

JEFFERSONSTATION13,365


CITY HALL STATION32,010

WALNUT-LOCUST STATION

6,506

LOMBARD-SOUTH STATION

2,650


19TH ST. STATION

2,238

22ND ST. STATION

2,238

SUBURBANSTATION24,775

RACE-VINESTATION

2,315

Source: U.S Census Bureau, Local Employment-Household Dynamics 2011Source: U.S Census Bureau, Local Employment-Household Dynamics 2011

EDUCATIONAL ATTAINMENT, FOR WORKERS 30 AND OLDER GREATER CENTER CITY WAGE & SALARY EMPLOYMENT, 2013

AVERAGE WEEKDAY RIDERSHIP AT CENTER CITY STATIONS , 2014

Source: SEPTA & PATCO 2014


VISITORSWith more than 1 million convention attendees and a record 3.1 million occupied hotel room nights in 2014, Center City over-night visitors augment residential and employee retail demand in the downtown. Five of Center City’s top six visitor destinations are located near Independence Mall, with Independence Na-tional Historical Park attracting more than 3.5 million visitors in 2014. Strong attendance numbers at Philadelphia’s historic sites and the Pennsylvania Convention Center are helping lure more retailers and retail development to the Market East retail corridor.

Of the 40 million domestic visitors to the region in 2014, a majority are from the mid-Atlantic (58%), with the next largest cohort representing the South Atlantic region (23%).6 Forty-one percent stay overnight and 59% are daytime visitors.7 Domestic overnight visitors to the region are well-educated (64% having a BA or higher), affluent (average household income of $75,000) and spend an average of 2.5 nights in the region.8 Overnight leisure visitors spent approximately $4 billion in the region in 2014, with top visitor activities comprising shopping (35%) and fine dining (26%).9 In terms of international visitation, 673,000 visitors came from outside the United States to the Philadelphia region in 2013, with more than 16% coming from China, India, South Korea, and Japan.

Since 2005, Center City has seen a 48% increase in overnight leisure tourism, which helped increase downtown hotel occu-pancy rates to 75.5% in 2014 and is driving demand for more

hotels in the CBD. Indicative of the strength of the leisure tour-ism industry in Philadelphia is the 88.2% Saturday occupancy rate, second only to New York City (90.4%) among major north-east cities. Overnight leisure tourists are likely to spend more at restaurants and retailers and help account for the strong retail demand created by overnight visitors in Center City – overnight visitors create more than $400 million in retail demand within the core of the downtown, 54% of all retail demand within this area.

Growing visitation and occupancy numbers are increasing demand for hotel rooms. Developers are responding with nine hotel projects in the pipeline that will add more than 2,100 rooms by 2018 in the core of the downtown. The strength of the tourism economy in Center City is also luring new attractions, like Montparnasse 56’s newly opened One Liberty Observation Deck, and the Museum of the American Revolution, to open in 2016.

Further solidifying the city as an international tourism desti-nation was the announcement in November that Philadelphia was named America’s first UNESCO World Heritage City. Other accolades included Philadelphia placing third on The New York Times’ list of 52 places to visit in 2015, behind only Milan and Cuba. With the success of the Papal visit in September and the upcoming Democratic National Convention in 2016, Philadelphia will continue to have a spotlight on the international stage. As tourists increasingly view Philadelphia as a travel destination of choice, we expect that retail demand generated by visitors will continue to grow in the years to come.

Source: Longwoods International for Visit Philadelphia Source: PFK Consulting for Visit Philadelphia

$0

$20

$40

$60

$80

$100

Source: Longwoods International for Visit Philadelphia

WASHINGTON, DCPHILADELPHIA NEW YORK CITY BALTIMOREBOSTON

90.4% 88.2% 84.8% 80.7% 78.7%0%

10%

20%

30%

40%

FINE DINING

HISTORIC SITE

MUSEUM ART/THEATER

SPECIAL EVENTS

NIGHTLIFE NATIONAL OR STATE

PARK

OTHERSHOPPING

35% 26% 20% 18% 16% 14% 12% 7% 14%

OVERNIGHT LEISURE VISITORS TO THE REGION: VISITOR ACTIVITIES

SATURDAY HOTEL OCCUPANCY: NORTHEAST CITIES


CENTER CITY HAS BECOME A TRAVEL DESTINATION OF CHOICE FOR LEISURE TOURISTS WHO CREATE STRONG DEMAND FOR RETAIL, RESTAURANTS AND HOTEL ROOMS.

Source: Hospitality Snapshot, PKF Consulting - Provided by the Philadelphia Convention & Visitors Bureau

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

LEISURE BUSINESS TRAVEL GROUP & CONVENTION AIRLINE GOVERNMENT

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

OCCUPIED CENTER CITY HOTEL ROOMS BY PURPOSE OF TRIP, 2014


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TEMPLE UNIVERSITY*COMMUNITY COLLEGE

OF PHILADELPHIA

TEMPLE UNIVERSITY, SCHOOL OF PODIATRIC MEDICINE

ART INSTITUTE OF PHILADELPHIA

UNIVERSITY OF THE ARTS

THOMAS JEFFERSON UNIVERSITY

CURTIS INSTITUTE OF MUSIC

PEIRCE COLLEGE

TEMPLE UNIVERSITY, CC CAMPUS*

PENNSYLVANIA ACADEMY OF THE FINE ARTS

DREXEL COLLEGE OF MEDICINE

DREXEL UNIVERSITY

UNIVERSITYOF PENNSYLVANIA

MOORE COLLEGE OF ART & DESIGN

Less than 500

500-2,000

2,001-10,000

Greater than 10,000

FALL 2013 ENROLLMENT

Note: Data provided by Temple UniversityCenter City.

Source: Integrated PostsecondaryEducation Data System, National Centerfor Education Statistics

*

COLLEGE STUDENTSGreater Center City’s 11 institutions of higher education welcomed 34,000 students in 2013. University City’s Drexel University, University of Pennsylvania (Penn), and University of the Sciences, along with Temple University’s campuses, drew 82,000 additional students to areas immediately adjacent to downtown. This large student population seeks out apartments to rent and stores for shopping; patronizes bars, cafés and downtown restaurants; and visits museums, movie theaters, musical venues and cultural institutions.

300,000 regional students also represent a strong potential pipeline of highly educated workers for Philadelphia – and Center City in particular – with 64% of students choosing to stay in Philadelphia after graduation.10 Of those students who are native to Philadelphia, 76% chose to live and work in Phila-delphia after they graduated, with 51% of non-natives remaining after graduation.11

2013 Enrollment

TEMPLE UNIVERSITY 31,589

UNIVERSITY OF PENNSYLVANIA 24,630

DREXEL UNIVERSITY 23,332

COMMUNITY COLLEGE OF PHILADELPHIA 19,063

THOMAS JEFFERSON UNIVERSITY 3,635

DREXEL COLLEGE OF MEDICINE 2,800

UNIVERSITY OF THE SCIENCES 2,773

ART INSTITUTE OF PHILADELPHIA 2,494

UNIVERSITY OF THE ARTS 2,063

PEIRCE COLLEGE 1,796

TEMPLE UNIVERSITY, CC CAMPUS* 678

MOORE COLLEGE OF ART & DESIGN 484


381


299

CURTIS INSTITUTE OF MUSIC 168

TOTAL ENROLLMENT 116,185

HIGHER EDUCATION ENROLLMENT, FALL 2013

10: “Choosing Philadelphia” 2014 Report on Recent College Graduates,” Campus Philly11: “Choosing Philadelphia” 2014 Report on Recent College Graduates,” Campus Philly


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TEMPLE UNIVERSITY*COMMUNITY COLLEGE

OF PHILADELPHIA


ART INSTITUTE OF PHILADELPHIA

UNIVERSITY OF THE ARTS

THOMAS JEFFERSON UNIVERSITY

CURTIS INSTITUTE OF MUSIC

PEIRCE COLLEGE

TEMPLE UNIVERSITY, CC CAMPUS*


DREXEL COLLEGE OF MEDICINE

DREXEL UNIVERSITY

UNIVERSITYOF PENNSYLVANIA

MOORE COLLEGE OF ART & DESIGN

Less than 500

500-2,000

2,001-10,000

Greater than 10,000

FALL 2013 ENROLLMENT

Note: Data provided by Temple UniversityCenter City.

Source: Integrated PostsecondaryEducation Data System, National Centerfor Education Statistics

*

MORE THAN 116,000 STUDENTS ATTEND COLLEGE IN OR IMMEDIATELY SURROUNDING CENTER CITY. THEY LIVE, SHOP & DINE DOWNTOWN.


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Center City’s dense and diverse, 24-hour downtown has the second largest residential population in the country and gener-ates significant foot traffic on Center City retail streets. While most of Center City’s pedestrian traffic peaks during the week around lunchtime and late afternoon, the area between Ritten-house Square and Broad Street remains animated throughout the weekend and during evening hours.

West Chestnut has typically had strong pedestrian traffic during weekdays, because of its proximity to workers to the Market Street office district. However, with the critical mass of retailers that have opened stores on West Chestnut, pedestrian counts have increased. Residents and visitors looking to shop are aug-menting strong office-worker foot traffic on the street. As West Chestnut Street demonstrates, destination retailers can locate anywhere in Center City’s walkable downtown and shoppers will follow.

AN AVERAGE OF 31,700 DAILY PEDESTRIANS WALKED THE 1700 BLOCK OF WALNUT ON SATURDAYS IN THE FALL.

SENSOR LOCATIONS FOR 24-HOUR PEDESTRIAN COUNTS

THE CENTER CITY DISTRICT HAS INSTALLED 14 SENSORS THROUGHOUT CENTER CITY THAT PROVIDE 24-HOUR PREDESTRIAN COUNTS, 365 DAYS EACH YEAR.

RETAIL DRIVES TRAFFIC


800 BLOCK OF MARKET

1100 BLOCK OF CHESTNUT

1200 BLOCK OF MARKET

1200 BLOCKOF WALNUT

INTERSECTION OF 16TH & CHESTNUT


1700 BLOCK OF WALNUT

0

5,000

10,000

15,000

20,000

25,000

30,000WINTER* SPRING SUMMER FALL

AVERAGE DAILY PEDESTRIAN ACTIVITY BY WEEKDAY/WEEKEND, DECEMBER 2014 – OCTOBER 2015

2015 PEDESTRIAN ACTIVITY BY SEASON, DECEMBER 2014 – OCTOBER 2015

800 BLOCK OF MARKET



1200 BLOCKOF WALNUT




0

5,000

10,000

15,000

20,000

25,000

30,000

WEEKDAY WEEKEND

800 BLOCK OF MARKET



1200 BLOCKOF WALNUT




LATE NIGHT

(11PM-4AM)

EVENING(7PM-11PM)

EVENING RUSH HOUR(4PM-7PM)

LATE AFTERNOON(2PM-4PM)

LUNCHTIME(11AM-2PM)

LATE MORNING(9AM-11AM)

MORNING RUSH HOUR(6AM-9AM)

EARLY MORNING(4AM-6AM)

0

500

1,000

1,500

2,000

2,500

3,000

AVERAGE HOURLY PEDESTRIAN ACTIVITY BY TIME OF DAY, DECEMBER 2014 – OCTOBER 2015

Source: Eco-counter Pedestrian Counts, Center City District

* Winter includes December 2014, January 2015 and Feburary 2015


FOUR LARGE-SCALE PROJECTS ARE UNDER CONSTRUCTION THAT WILL ADD 1.8 MILLION SQUARE FEET OF RETAIL CREATING A NEW RETAIL DISTRICT EAST OF BROAD.

EAST MARKET


Strong retail and housing demand is driving development east of Broad Street, where there is space for large-scale development projects. While Center City’s prime retail district is on the west side along Rittenhouse Square, both local boutiques seeking lower rents and national tenants desiring larger floor plates are looking to locate along the burgeoning Market East retail

district. With four major retail-driven developments currently under construction or about to break ground, Market East will add more than 1.8 million SF of new retail space by 2017, repre-senting a $675 million investment in this section of Center City.

RETAIL DEVELOPMENT:CREATING CENTER CITY’S NEXT RETAIL DISTRICT

FASHION OUTLETS OF PHILADELPHIA


1) FASHION OUTLETS OF PHILADELPHIA AT MARKET EASTLocation: Northern blocks of Market Street between 8th and 11th Streets Developer: PREIT & Macerich Size: 1.5 Million SF Investment: $325 Million Completion: 2017

In July 2014, it was announced that the California-based retail developer Macerich acquired a 50% interest in The Gallery in return for investing in redeveloping the mall. PREIT and Macerich are now repositioning the urban mall into The Fashion Outlets of Philadelphia. The plan will create an open, well-lit, and easily accessible three-block corridor of approximately 125 new stores, including dining and entertainment options. The first anchor tenant is Century 21, which opened a 100,000-SF store in October 2014, the first for the retailer outside the NYC metropol-itan region.

The proposed redevelopment will capitalize on its central location where mass transit, tourism, and Center City’s office and residential districts converge. The repositioned urban marketplace will become a pillar of the new, vibrant Market East retail district and leverage other private and public invest-ments in this section of Center City. The project will benefit from the participation of Macerich, one of the nation’s top mall owners, operators and developers, with extensive experience adding value to properties located in densely populated, urban environments.

Under the proposed $325-million-redevelopment plan, the mall will undergo a top-to-bottom redesign that will reconfigure the 1.5 million square-foot, mixed-use facility as a bright, new contemporary space that welcomes shoppers and reconnects to Market Street with accessible storefronts, sidewalk cafés, a new streetscape, digital signage and graphics. The highlight of the newly reimagined space will be a stunning new glass-walled Center Court at Ninth and Market that will welcome tourists, office workers, conventioneers, and residents alike.

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EAST MARKETBETWEEN 11TH AND 12TH, MARKET AND CHESTNUT (130,000 SF.)$250,000,000 INVESTMENT

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THE CURTIS CENTER699 WALNUT ST. (50,000 SF.)$25,000,000 INVESTMENT

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1112-1128 CHESTNUT1112-1128 CHESTNUT ST. (90,000 SF.)$75,000,000 INVESTMENT

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FASHION OUTLETS OF PHILADELPHIAMARKET ST. BETWEEN 8TH AND 11TH ST. (1,500,000 SF.)$325,000,000 INVESTMENT

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RETAIL DEVELOPMENTS BY SIZE AND INVESTMENT

21CENTER CITY DISTRICT & CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION WWW.CENTERCITYPHILA.ORGFASHION OUTLETS OF PHILADELPHIA

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EAST MARKETBETWEEN 11TH AND 12TH, MARKET AND CHESTNUT (130,000 SF.)$250,000,000 INVESTMENT

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THE CURTIS CENTER699 WALNUT ST. (50,000 SF.)$25,000,000 INVESTMENT

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1112-1128 CHESTNUT1112-1128 CHESTNUT ST. (90,000 SF.)$75,000,000 INVESTMENT

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FASHION OUTLETS OF PHILADELPHIAMARKET ST. BETWEEN 8TH AND 11TH ST. (1,500,000 SF.)$325,000,000 INVESTMENT

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2) EAST MARKET Location: City block of Market and Chestnut Streets, and 11th and 12th Streets Developer: National Real Estate Development Owner: National Real Estate Advisors, JOSS Realty Partners, Young Capital, SSH Real Estate Size: 775,000 SF, including 130,000 SF of retail Investment: $250 Million (Phase I) Completion: Q2 2016 (Phase I)

East Market, a $500-million-plus mixed-use project, aims to upgrade Philadelphia’s downtown retail district east of Broad Street. The redevelopment’s prime Center City location – two blocks east of City Hall and immediately across the street from the landmark Reading Terminal Market and Pennsylvania Convention Center – is perfectly located to capitalize on the demands of a growing population, job growth and increased tourism, breathing new life into this neighborhood. The project will completely revamp the entire block between 11th and 12th, Market and Chestnut Streets, by creating and enhancing pedes-trian-oriented retail both along Market Street and former alleys on Ludlow and Clover Streets. The project will also add 322 new

residential rental apartments, 161,000 SF of office space, parking, signage, and hospitality uses.

Phase I will include the construction of two new retail build-ings with large format digital signage along Market Street with rental units above. The entire site will feature approximately 175 below-grade parking spaces and a central loading facility. Also included in Phase I is the redevelopment of 34 South 11th Street (the former Family Court Building) into modern Class A ware-house office space above new ground-floor retail. This building will house MOM’s Organic Market on the ground floor and the relocated Marketplace Design Center will occupy 48,000 SF of space above.

Phase II will include demolishing and replacing the existing mixed-use building located on the 1100 block of Chestnut Street with retail, residential, office, and parking uses. Once complete, the project will reopen Ludlow and Clover Streets, now closed to pedestrian and vehicular traffic, and create a pedestrian walkway from Market Street to Chestnut Street, revitalizing and expanding the Market East retail district, as well as connecting it to the vibrant Midtown Village retail district just south of the project.

EAST MARKET


4) THE CURTIS CENTERLocation: 699 Walnut Street Developer: Keystone Property Group, Mack-Cali Realty Corp & Roseland, a Mack-Cali Company Size: 885,000 SF, including 50,000 SF of retail Investment: $25 Million Completion: Spring 2017

The 885,000-SF Curtis Center will undergo a $25 million renovation that will transform the quiet stretch along Washington Square Park into a vibrant urban corridor and add luxury residential units as well as retail. Mack-Cali Realty Corporation and the Keystone Property Group acquired the building for $125 million in the summer of 2014. Plans include the conversion of 90,000 SF of vacant office space into 57 luxury apartments and outdoor streetscape improvements. Retail will be added on the ground floor and will include two corner restaurants with outdoor seating overlooking both Washing-ton Square and Independence National Park. The building will include a total of 50,000 SF of retail, 700,000 SF of office space and 100,000 SF of residential space.

3) 1112-1128 CHESTNUT Location: 1112-1128 Chestnut Street Developer: Brickstone Realty Size: 192,000 SF, including 90,000 SF of retail Investment: $75 Million Completion: Spring/Summer 2016

Brickstone Realty’s development on the 1100 block of Chestnut Street spans five parcels and will include 112 high-end rental units and 90,000 SF of commercial space, with dedicated park-ing for retail. Signed tenants include a 19,000-SF Target Express and a 14,000-SF state liquor store, which will include space dedicated to wholesale.

This project will be the center to a broader redevelopment plan for the East Chestnut Street corridor that looks to extend the vibrancy of the Midtown Village retail district east along Chestnut Street.

Other key properties in the vicinity acquired by the develop-er include: 1108-1110 Chestnut, where 8,000 SF of retail and 9,000 SF of office space is available; 1021 Chestnut, a 9,500-SF building Brickstone plans to convert into coworking space; 106-114 South 11th Street, a 16,000-SF, mixed-use building with 12 residential units and three retail spaces; and 15-21 South 11th Street, a 30,000-SF building that will be converted into creative office space with ground-floor retail. Once complete, this rede-velopment will create a new vibrant, mixed-use district east of Broad with a built-in office and residential customer base.

1112-1128 CHESTNUT ST

THE CURTIS CENTER


CENTER CITY DISTRICT &CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION

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