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State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
State of Center City 2013 Press Briefing - Part One
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State of Center City 2013 Press Briefing - Part One

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Part one of Center City District President and CEO Paul Levy's press briefing for the State of Center City, 2013 report. It's Center City Philadelphia’s “annual report” that looks at all aspects of …

Part one of Center City District President and CEO Paul Levy's press briefing for the State of Center City, 2013 report. It's Center City Philadelphia’s “annual report” that looks at all aspects of the downtown economy and makes recommendations to enhance its attractiveness and competitiveness. Download or order a copy at http://centercityphila.org/socc/

Published in: News & Politics, Career, Business
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Transcript

  • 1. State of Center City 2013
  • 2. Headline: There are huge competitive advantagesof Center City’s density, diversity & walkability
  • 3. Highest job densities in the region167 jobs/acre; less than 1 job/acre suburbs
  • 4. 279,412 jobs: largest center of employment &opportunity in the region
  • 5. Density maximizes choice for residents ofsurrounding neighborhoods
  • 6. Facilitated by a regional transit system brings305,238 riders/day into downtown
  • 7. Distributing them to multiple locationsacross Center City
  • 8. Center City has concentration of high-skilled jobs,But 22% of jobs are held by those with no more than a HS diploma
  • 9. Density reduces transportation costs for businessesFacilitates chance encounters on street
  • 10. Greater Center City: Girard Avenue to Tasker Street233,900 core45,500extended
  • 11. 2.4 x residential density of rest of city63 persons/acre around Rittenhouse Square>2/ acresuburbs
  • 12. Extraordinary concentration of arts & cultureorganizations second only to midtown Manhattan
  • 13. Most diversified employment node in the region
  • 14. 32% office; 21% eds/meds; 21% public sector;14% hospitality & entertainment
  • 15. Diversification: greatest buffer against recession& provides greatest opportunity for growth
  • 16. 34% of all small, emerging businesses inPhiladelphia are located downtown
  • 17. Diverse sectors reinforce each other & perform differently
  • 18. Success is affected by the investments we make:Decision to put the Center at the center & not at the margins
  • 19. By the quality of services we provide
  • 20. By what we choose to tax to support those services
  • 21. By educational levels of workforce14.6%9.7%5.2%2.3%
  • 22. By macro factors like the national economy & cost of energyWe inherit a human-scale, walkable city…..
  • 23. This made us obsolete: 1950s-1970s
  • 24. 1964 VW, purchased 1970 – Full tank $3.10
  • 25. In a context of rising energy costs…
  • 26. Re-infused with value in the post-petroleum age:Dense, diverse & walkable = sustainable
  • 27. Success is contingent on how we capitalize on advantages;make strategic investments & remove barriers to growth
  • 28. Largest employment sector: 32% of downtown jobs
  • 29. .41.5 million square feet of office space
  • 30. Well-linked to the region by highway & rail
  • 31. Well served by AMTRAKSEPTA & PATCO ridership up by 3%
  • 32. 15 minutes from Philadelphia International Airport
  • 33. 88.6% occupancy rate: above national averagefor both CBD’s & suburbs
  • 34. Recovering well from the recession:Vacancy rates
  • 35. Significant number of lease transactionsprimarily west of Broad as tenants upgrade space
  • 36. Significant transactions, page 14
  • 37. Rents rising in “trophy” buildings by 16.4%
  • 38. But: 22 years of almost no growth in supply41.5 million square feet
  • 39. While we were adding Cira & Comcast
  • 40. 44 office buildings, 6.5 mil sf converted to other useYear Name Address SIZE1997 220 S 16th St 220 S 16th St 185,0001998 1600 Walnut 1600 Walnut St 86,6581998 Empire Building 1231 Walnut St 27,6801998 Exchange 1411 Walnut St 118,8791999 1220 Sansom St 1220 Sansom St 41,0001999 Avenue of the Arts Building 1338 Chestnut St 314,0001999 Pennsylvania House (Now the Ellington) 1500 Chestnut St 241,0002000 1700 Walnut 1700 Walnut St 72,0002000 Phoenix 1600 Arch St 450,0002000 PSFS 12 South 12th street 557,0002001 1835 Arch St 1835 Arch St 176,0002001 Chestnut View 1939 Chestnut St 29,9122002 1920 Chestnut St 1920 Chestnut St 45,0002002 311 S Juniper St 311 S Juniper St 75,0002002 Green Tree 400 Walnut St 64,3902002 Lofts at Liberty 1600 Chestnut St 38,0162002 Society Hill Building 116 S 07th St 160,0202003 Nippon Building 610 North Broad 225,0002003 1930 Chestnut St 1930 Chestnut St 110,0002003 415 S 19th St 415 S 19th St 30,0002003 Grande 111 S 15th 241,2912004 Victory Building 1001 Chestnut St 80,0002004 The Bank 421 Chestnut St 55,4302005 2043 Walnut St 2043 Walnut St 8,0002005 Belgravia 1881 Chesnut 35,0002006 Chelsea 1513 Locust St 55,8512007 Ayer 210 W Washington Sq 151,4352007 Western Union Building 1101 Locust St 162,8932007 White Building Condominiums 1130 Chestnut St 55,0002007 1401 Walnut 1401 Walnut St 125,4502007 1530 Chestnut 1530 Chestnut St 75,1772007 Aria 1419 Locust St 195,0002007 Bank Building 421 Chestnut St 55,4302007 Residences Two Liberty Place 1650 Chestnut St 263,0002008 Robert Morris 100 N 17th Street 100,0002008 Architects Building 100 South 17th 113,0002010 Lafayette Building 441 Chestnut 1440002011 1201 Chesnut 1201 Chesnut 1010002011 2040 Market Street 2040 Market Street 128,0002011 1616 Walnut 1616 Walnut 158,0002011 former State Building 1400 Callowhill 240,0002012 260 South Broad 260 South Broad 3300002012 Inquirer Building 400 North Broad 450,0002013 Three Franklin 1601 Race 225,000
  • 41. Conversions brought us new hotels in vacant &underperforming buildings
  • 42. Conversions brought us more residentson the streets at night
  • 43. Diversification good; but has to be accompanied by growth;Western suburbs have now grown 35% larger than CBDAdded 10 million sf in last decade while city added only 1.9 million41% regional share of office in 1993; 33.7% in 2012
  • 44. Office job growth much stronger in suburbs
  • 45. Despite our competitive advantagesOverall rents are flat in the downtownDemand is largely flat
  • 46. Our rents are much lower than comparable citiesWhich is why assessed value of commercialbuildings are not higher
  • 47. Other east coast cities have larger share oftheir economies in office employment
  • 48. A change in municipal tax policy can have major impactWe maintained tax structure left over from industrial ageWhen it was hard to move an assembly lineOr a Baldwin locomotive plant
  • 49. Laptops and cell phones, office work in general isfar more portable, flexible & footloose
  • 50. Much smaller percentage:35% in Washington DC34% in NYC18% PHL from RE TAX64% Baltimore41% NYC36% Washington DCwhere commercial sectorsare more robust66% of municipal tax revenues come from taxingwhat easily moves: wages & profits
  • 51. Pew: 2013 State of CityAn over-dependence on taxing what moves
  • 52. It may help explain this phenomenon1,326 commercialoffice jobs7,953 commercialoffice jobs
  • 53. Part of a bigger picture of loss ofregional office market share
  • 54. “Only by making a wholesale shift & lowering the burden onpeople & businesses & placing a greater emphasis on land& improvements can we guarantee a future of growth.”
  • 55. AVI has been a challenge, but need to look at wholeAll publicdiscussionfocused here
  • 56. Health care & education: a very different story
  • 57. More tied to fixed assets; labs, beds, technology, classrooms
  • 58. Exempt from 2 largest taxes on employers:property & BIRT
  • 59. Citywide Eds & Meds employment grew by 14%averaging 1.7%/year through the Recession
  • 60. Out-performed the region in job growthCity has 57.5%regional share of jobs
  • 61. 35.5% of citywide employment
  • 62. 2nd largest: 21% of Center City employment
  • 63. In-patient admissions at Center City hospitals up2010-2011
  • 64. Center City hospital revenues up by 50%in last decade
  • 65. Research expenditures up, 2010 to 2011
  • 66. Robust activity with new patent applications& patents granted
  • 67. Five major institutions expanding downtown11,000 employees3,700 students
  • 68. 14 major colleges & universities in Center City1. Academy of Vocal Arts2. Art Institute of Philadelphia3. Community College ofPhiladelphia4. Curtis Institute of Music5. Metropolitan Career Center6. Moore College of Art &Design7. Peirce College8. Pennsylvania Academy ofthe Fine Arts9. Temple University, CC10. Temple University,School of Podiatric Medicine*11. Thomas Jefferson Univer.12. University of the Arts13. Drexel University14. Drexel College of Medicine
  • 69. Students drive demand for retail, restaurants &apartments + attractive to employers
  • 70. Hospitality industry
  • 71. Big story: Convention Center has doubled in size
  • 72. Accommodating larger & simultaneous shows
  • 73. Decision to put the Center at the center& not at the margins
  • 74. With nearly all hotels within 15 minute walk
  • 75. Means that crowds inside, routinely….
  • 76. Spill out onto the sidewalks of the surrounding city
  • 77. 59% of expenditures of hotel guestsMade outside hotel on shopping & dining
  • 78. Expansion prompted other new development
  • 79. Lenfest Plaza
  • 80. 246 room: Hilton Home2Suites
  • 81. Investments in new tourism facilities yield dividends2001: New Independence Visitors Center
  • 82. New home for Liberty Bell
  • 83. New Constitution Center
  • 84. Top 2 visitor destinations in the Center City
  • 85. Monaco Hotel: 5th and Chestnut Streets
  • 86. Diversification of demand has yielded dividends
  • 87. Hotel occupancy fully rebounded from recession
  • 88. Average daily room rates almost fully rebounded
  • 89. Hospitality employment more volatile;outperformed suburbsCity has 34.8%regional share of jobs
  • 90. Big story: opening of the Barnes Foundation
  • 91. Part of major improvements on the BenjaminFranklin Parkway 2007-2014Supported Pew, William Penn, Knight FoundationsCommonwealth & the City
  • 92. Restoration of park;supported by creation of Café Cret
  • 93. Restoration Aviator Park & Sister Cities Park
  • 94. Aviator Park
  • 95. Sister Cities Park
  • 96. Restoration of Rodin Museum & gardens
  • 97. Franklin institute is under construction..
  • 98. $23.3 million expansion on south side
  • 99. Many institutions reinvesting & expanding
  • 100. Center City today is rich with cultural amenities
  • 101. 2nd behind only Midtown NYCNumber of Arts & Cultural organizations downtownOne of the major attractions of downtown living
  • 102. Attendance strong: overall up 6.7%majority seeing increases 2011 to 2012
  • 103. Arts & entertainment employment up 26%
  • 104. Retail is the beneficiary of these diverse sources of demand
  • 105. Plus impact of downtown residents$751 million in retail demand within one-mile of City Hall
  • 106. Supports broad range service & destination retail2,645 premises: 80% boutique & independent operators
  • 107. Retail occupancy trended upward to 88.4%despite recession (South Street To Vine Street)
  • 108. Continuous growth in fine dining restaurants4192005 2010 2012400350300
  • 109. Broad offering of bakeries, groceries, coffee shops,prepared food & take out
  • 110. Flourishing of sidewalk cafes
  • 111. 1995 = zero
  • 112. 2002
  • 113. 2005
  • 114. 2007
  • 115. 2010: 213 outdoor cafes
  • 116. 296 cafes in 2012
  • 117. People attract people
  • 118. Track pedestrian volumes to supportretail attraction efforts
  • 119. Installed 14 non-recording pedestrian countingcameras at end of 2011
  • 120. Growing evening peak, extending later
  • 121. Seasonal 24-hour average counts24,696 springtime peak on 1700 WalnutEast Chestnut & Market greatest opportunities for growth
  • 122. Take the vitality, energy….
  • 123. And the quality of South 13th street
  • 124. Bring it around the corner onto East Chestnut
  • 125. Make Market Street: primary hospitality &destination retail/entertainment corridor
  • 126. Transform the Gallery
  • 127. With destination & entertainment retail
  • 128. Animate the sidewalks with outdoor cafes
  • 129. Gateway & connector to Chinatown & Convention Ctr
  • 130. State of Center City 2013: Switch to part 2

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