Today: releasing 2 major documents

State of Center City: 2015Comprehensive look at all aspects of downtown marketplace

Detailed profiles: 48 major projects, 2014-2018

Thanks!!!Research, graphics & communications teamCasandra DominguezLinda HarrisAbigail SaggiAmy YenchikGarrett HinckenDavid KanthorClaire SummersBonnie ThompsonRJ WhiteRichard Way

Geography: 6% of the Citys land area

Largest most dense employment node in city & region293,700 salaried employees, 4,000 self-employed

Very diversified economy39% office21% eds & meds14% public sector10% entertainment/hospitality

Place that provides job opportunities at all skill levels

Well-served by a regional transit system brings294,000 riders/day into downtown

Distributing them to multiple locations across downtown+ 42 bus routes deliver passengers across Center City

Residents from every city neighborhood & across the regionCome to work each day in Center City

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140,000 suburban

120,000 neighborhood

28,000 Center CityWho works downtown: 52% city; 48% suburban residents

Fastest growing residential section of Philadelphia+26% in core, +16% overall since 2000

61% of residents get to work without a car;39% in core walk to work

Proximity to work is the prime attraction of downtown livingCenter City is rich with cultural amenities

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2d largest concentration of arts & cultural institutionsBehind only Midtown Manhattan

Widely dispersed, with 3 major clusters

Other major live/work attraction growth in quality retail & dining

Center City largest employment sector: 38.8% of jobs

Two major buildings underway

Occupancy rates are rising

Occupancy rates up; but supply identical to 1990;New development offset by conversions to housing

Philadelphia has done well in Eds, Meds & hospitalityBut has been losing office jobs

Modest to minimal rent growth

Despite huge competitive downtown advantagesCBD premium is well below comparable cities

Rents affordable but far below comparable citiesMajor implications for tax base & school district

A commercial tax base that needs to grow Pew Charitable Trusts

Space available to accommodate growth

Suburban firms are locating downtown to be near talent & start-ups are beginning to occupy traditional office space

Positive trend: 4,000 independent workers; Un-tethered salaried workers

Driving demand for 209,000 sf of coworking space

2nd largest employment sector: health care & education: 21%

15.6% citywide growth in last decade

Four major health care institutions expanding downtown

Rising admissions & net patient revenues

14 major colleges & universities in Center City33,861 students downtown; 82,324 adjacent = 116,1851. Academy of Vocal Arts 2. Art Institute of Philadelphia 3. Community College of Philadelphia4. Curtis Institute of Music 5. Metropolitan Career Center 6. Moore College of Art & Design 7. Peirce College 8. Pennsylvania Academy of Fine Arts9. Temple University, CC10. Temple University, School of Podiatric Medicine*11. Thomas Jefferson Univer.12. University of the Arts 13. Drexel University14. Drexel College of Medicine

116,000 students drive demand for retail, restaurants & apartments + attractive to employers

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Colleges & universities attract18-24 year olds to Philadelphia

University Citys great strength in health-care & education

Those institutions are driving the next economyUniversity of Pennsylvania leading the wayMore than $900 million in research expenditures

Continued strong leisure tourism

Resumed uptrend in international tourism

Growing diversification of vistors

Convention Center drew over 1 million in 2014

Projecting 1.2 million in 2015

Room supply increased; occupancy rates rebounded from recession

ADR is flat; below competitors

On-going revival of Chestnut Street

Chestnut St pedestrian volumes catching up to Walnut St

Continuous growth in fine dining restaurants439 2005 2010 2014

400350300

65 in 1992

Flourishing of sidewalk cafes

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1995 = zero

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369 sidewalk cafes summer of 2014

Market East development is under way

Full square block development

322 units of housing

Retail walkway through to Chestnut Street

Brickstones development on 1100 ChestnutRetail, residential & new workspace

Connection to Midtown Village

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Impact on day & evening volumes

Transformation of the Gallery on Market East

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More detail in new appendix

1,983 new units of all types in 2014 (2,168 in 2014)1,358 apartments; 183 condominiums442 single family homesFor sale units up from 18% of supply in 2013 to 32% of supply, 2014

2014 west of Broad in the core; for-sale in extended

Location: 2015-2018: Significant growth East of Broad Street

Steady increase in residents who can commute without a car

Steady increase in bicycle commuters

Walk, bike & transit scores higher than northeast peers

New supply of for-sale housing supported by strong demandVolume of all sales in 2014 equal to volume in 2013Average sales price up 6%2012-2013, 18% drop in days on market; 14% drop, 2013-2014Extended neighborhoods 39% less expensive than core

Rental rates rising along with new supply

Strong demographic/household demand to support supply

Philadelphia has long done well with college gradsDue to national demographics, there are more of them + empty nesters

20-34 = 45%20-34 = 47%

Empty nesters

Center City has one of highest concentration of educated workers in city & region

Well educated residents: 76% in core; 47% in extended: BA43% in core have advanced/professional degrees

Knowledge workers drive the new economy

Much higher percentage of single person households & renters

Area remains racially diverse with substantial supply of affordable housing

Challenges to be addressed: schools ..

More dynamic job growth

Both closely connected

Despite challenges, optimism about Center CityExceeds optimism about the city as a whole

Center City managed place 365 days per year1991: CCD 1.0 clean & safe

Customer Satisfaction Survey: 83% of survey respondents See CCD personnel every time or most of the timeThey are in Center City

2,700 respondents

69% of survey respondents Say Center City much cleaner than rest of the city

81.4% feel safe most of the time or always

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Substantial long-term trend: 1995-2014

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Serious crimes declined from 18.2 to 9.6/day Even as population & activity increased downtown

More police, more lighting

CCD 2.0: 1997Landscaping, directional signs, lighting

Building faade lighting

Each year we maintain those investments

Improve sidewalks & deteriorated facades

CCD 3.0: 2008, Park renovation & managementCaf Cret on the Parkway

Collins Park, 1700 block Chestnut Street

2012: Sister Cities Park

Dilworth Park, 2014; $125 million in investment

$ 44 million in CCD resources leveraged $88 million = $132 million since 1997

80.5% workers & residents have visited CCD parks;81.6% see as very positive addition

Enhancing Competitiveness: 2013

Enhancing Competitiveness: 2014

Detailed profiles: 48 major projects, 2014-2018

18.4 million square feet of development

Spread throughout the downtown

29 projects to be completed in 2015 & 20162 biggest: Comcast & Gallery in 2017

News in Center City is very good

Across country, diverse, transit-oriented & walkable placesHeld up better in the Great Recession True for Philadelphia

What could be better?As the national economy came out of RecessionPhiladelphia job growth flattened

Suburbs are again growning more jobs than Philadelphia

Philadelphia has done well in Eds, Meds & hospitalityBut has been losing office jobs

Job growth

Every 500,000 square feet of occupied office space:Provides 3,333 office jobs, 5 building engineering, 18 cleaning and 12 security positions. Supports 11,000 hotel rooms filled with business travelers. Generates $2.8 million in retail demand. Adds 2,333 riders to SEPTA.

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2011 Regional Job Share120,000 non- Center City Phila. residents commute into Center City188,000 Philadelphia residents (37% of workforce)Reverse commute to suburbs each dayGrowing % annually since 2002By contrast only 15.3% of NYC residents commute to suburbs27%

Educational requirements in the suburbs are no different from those in the cityThey simply have more jobs

Excessively dependent on wage & business taxes68% of municipal tax revenues wage + BIRT

Philadelphia commenced tax reduction in 1996Suspended in 2009

Both 2003 & 2009 Tax Commissions: shift burden from taxing what moves (wages & business revenues) to taxing what is fixed & stable: land & improvements20152025Both RE tax

News in Center City is very good; can be even better

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