PHILADELPHIA—In the midst of all the shopping center promotion and leasing that will take place next week at the International Council of Shopping Centers’ annual New York National Conference, look for a major city promoting its downtown – and a baby boom.
A group of key representatives will be promoting Philadelphia’s Center City as a retail location at a booth at the conference, to be held December 5 and 6 at the New York Hilton and Sheraton New York. The goal: to attract the interest of retailers, developers and investors in the city’s downtown.
“We’ve been putting our resources together, including everything from event marketing to public relations, helping retailers from beginning to end,” says Anne Nevins, VP of market development for the Philadelphia Industrial Development Corp.
The group began attending the meeting, ICSC’s second largest after RECon in Las Vegas, in 2008, at the beginning of the downturn. In some respects, that timing was advantageous, says Michelle Shannon, VP of marketing and communications for Center City District/Central Philadelphia Development Corp. “We had a new administration and were looking for ways to work together,” Shannon says. “We know this isn’t a short run. It’s a marathon, and getting on the radar screen doesn’t happen overnight. We set about to plant the seed.”
Center City’s population has grown by 10% in the last decade, with some 179,000 residents calling the trade area home, the city says. Greater Center City experienced a 53% increase in median household income between 2000 and 2010. According to the just-released Center City District (CCD) annual retail report 2011 Center City Reports: Retail, demand for shoppers’ goods is $710.95 million within one mile of City Hall, up from $491 million in 2010. Adding to that market is a growing tourism base, with three new hotels already under construction and a fourth slated to begin building by yearend.
“We are looking for new and better to retail so supplement what we have,” Shannon says. “There are people who have an outdated perception of the city.”
Existing retail, including more than 125,000 square feet that has opened this year, has included a mini-British Invasion with Jack Wills, Dr. Martens, and Barbour. Brands as Apple, Athleta and Jonathan Adler and the Children’s Place have enjoyed strong sales, the group says. And restaurants also are expanding, including Starr Restaurant’s Il Pittore, its 19th restaurant in the city.
“We’re very focused on the two spans of the city, Market Street and Broad Street,” says Brian Flanagan, Chief of Staff to the Deputy Mayor for Economic Development for the City of Philadelphia.
Perhaps most appealing is the surprising increase of children living downtown, resulting from urban professionals declining to move to the suburbs once they begin a family. In the three catchment areas corresponding to Center City Core, the number of school-age children rose 15.7% in the last decade. And with 20,553 children born to Greater Center City parents between 2000 and 2010, the city expects a 66% increase in potential school age children.
The group also looks to meet with developers and investors to tout the central business district.“There seems to be a real retrenchment into core investments,” Flanagan says. “Philadelphia is well-positioned.”
What they are not doing is leasing, Shannon adds. “We’re out here selling people on Philadelphia,” she says. “It’s the brokers’ jobs to lease space.”
Nor is the fact that they’ll be surrounded by the owners of major suburban malls a negative. Many Center City residents don’t even own a car, so accessing the malls outside of town isn’t an option. “What sets us apart is the host of entrepreneurs with boutiques that offer the unique,” Shannon says. “Philadelphia is made up of neighborhoods, not just residential but of retail. That’s our strength against the suburbs."
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