State of Center City, 2012: Part 1

State of Center City: 2012

Center City has been transformed into a diverse live/work 24 hour downtown

Report documents many positive signs of growth

Highlights the challenges we still need to overcome

Definitions & boundaries

Center City accounts for39% of all private sector jobs in Philadelphia

More than $12.3 billion developed in CC & UC since 2007

Largest center of employment in region $12.1 billion salaries to metro residents

143 x employment density of the suburbs

Density made possible by integrated regional transit system 295,539 riders/day take transit into downtown

4th most concentrated CBD for private sector jobs

3rd in total number private sector jobs downtown Accessible by transit as fuel costs rise

There are economic benefits of density

Density fosters innovation & creates opportunities

Density supports cultural institutions

Density supports retail & restaurants

Density reduces commuting costs

Commercial office buildings remain largest source of employment downtown

Setting for our highest wage jobs

Downtown occupancy rates (88%) held up better than suburbs

Philadelphia: #3 behind only Washington DC & NYC holding occupancy levels thru recession National trend

But office sector lagged behind the region over last decade, losing small increments of jobs steadily since 2007

Same amount of occupied office space a 35 million squa

Philadelphia has a very high concentration in education & health care employment

Philadelphia’s share is double national average of 18% in education & health

Much higher than east coast peers

Education & health care job growth outperformed suburbs

Education & health care employment added jobs in all but 6 of the last 60 months Philadelphia’s primary buffer against recession

In Center City Eds & meds is 2nd largest sector

TJU Drexel, Penn & CHOP all expanding downtown

All three hospital systemsincreasing number of patients treated

Successfully attracting research grants

Generating new products & technologies

Very strong concentration of college students 33,578 students downtown; 84,876 adjacent

58% of seniors are “somewhat” to “very likely” to stay after graduation Campus Philly survey

Leisure & hospitality 3rd largest source of jobs

Last two decades: 95% increase in hotel rooms

Nearly all within 15 minute walk

Leisure & hospitality job growth outperformed suburbs

Average daily rate for Center City hotels rebounding from Recession

Steady growth in domestic travel

Overseas visitation rebounding from recession

Airline passengers volumes up 88% over last 20 years

#1 & #2 most visited destinations in the city

Prompting investment in new hotelsNew Monaco Hotel: 5th & Chestnut Streets

Convention Center has doubled in size

Can handle more large conventions & tradeshows

Just broke ground; 246 Room: Hilton Home2Suites

Philadelphia needs another 700-800 room hotelTo maximize the investment made in expansion

Average daily rate needs to be significantly higher to support new construction

Cultural institutions have continued to grow

2nd behind only New York CityNumber of Arts & Cultural organizations downtown

Both performing arts

& museums drawing hundreds of thousands visitors

Continued to reinvest & expand

The Barnes Foundation

Will open May 17th

Franklin institute is starting construction..

New expansion on south side

Cultural institution investments are substantial

Retail benefitted from diversification of downtown

43% of expenditures of hotel guestsSpent outside hotel on shopping & dining GPTMC

Hospitality & entertainment driven demand Supplements office & residential demand

Retail has also benefitted from rising residential incomes

322% growth in fine dining restaurants 27465 in 1992

Continued growth of outdoor cafes: 273

Clothing & apparel stable despite recession

Since 1997 added 13,000 new units of housing

Housing production dropped dramaticallyfor condos & single family houses after 2008

Volume & velocity of sales are down;Extended Center City is doing quite well: townhouses

Philadelphia NOT on this list, but it is a constraint

Demographics remain strong: Report on 2010 census

10.2% increase in population since 2000 26% in core of downtown Since 1990 8 Zip codes = 7.8 sq miles 5.7% of city’s land area hold 12% = 181,003 Fastest growing Most densely settled

Center City attracting more younger people than rest of city 41% of downtown: ages 25-44; city = 28%

Center City has more than twice the national average of residents ages 25-34.

74% commute to work without a car

Diversification of CBD land-use25,000 residents now living inside CCD boundaries 25,000

Population continues to rise Core = Vine to Pine; Extended = Girard to TaskerReversing 50 year trends & pushing city into positive population growth

Center City has 20x residentialdensity of suburbs

2011 U.S. Census update

2011 US Census update

Downtown & adjacent colleges &universities help drive rental remand

As does our strong concentration of residents ages 25-34.

New rental units continue to come on-line

Rents continue to rise

Planned apartments are starting construction

Educational levels continue to riseBA Degree Graduate Degree

These are the well-educated workers that employers want Residents start to play a role in attracting business

Significant volumes of returning empty nesters have driven up housing prices

Average residential sale price: 2.26 x citywide

Younger home-buyers are moving outward

Citywide 20% of residents work downtownIn core 40-50% downtown; 11.2% in University City

Extended neighborhoods rapidly approaching 40%

These outer areas greatest increase in bike & bus commuting to work.

Sustainability is a core value for this demographic

Big opportunity: 20,553 children were born to Greater Center City parents from 2000 to 2010

Parents groups now actively involved in plans To improve playgrounds & schools

Household Income continues to rise

Average home sales price: steadily risen +325% increase over 15 years despite recessionary cycles

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State of Center City, 2012: Part 1

by Center City District on Apr 26, 2012

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