PHILADELPHIA—The fifth largest city in the U.S., the City of Brotherly Love seems to have it all—a thriving downtown that's growing among young adults, 16 colleges and universities, the country's third busiest rail station and a thriving restaurant and cultural scene. As a destination, the area hosts 40 million visitors annually. But it doesn't have a critical mass of retail. That's about to change, believes PREIT CEO Joseph Coradino. We spoke with him in anticipation of ICSC RECon about the state of retail in PREIT's hometown.
Recent and ongoing improvements in the area are giving retailers cause to slowly but surely put down stakes in Philadelphia, says Coradino. He cites research showing $1 billion of purchasing power leaving the city annually.
And there is reason for the optimism. Philadelphia's government and the many corporations based there have invested in the betterment of the city. Upon completion of Dilworth Plaza at Philadelphia's City Hall, the cumulative capital investment in public area improvements since 1997 will exceed $125 million. Media giant Comcast is building a new $1.2 billion Technology and Innovation Center, creating thousands of jobs. The Children's Hospital of Philadelphia, University of Pennsylvania, Drexel University and Thomas Jefferson University all have plans to expand as well.
With the burst of new developments it is clear that Center City Philadelphia is ripe for retail expansion, Coradino believes. And it seems to retailers are catching on, as this past year alone has seen numerous new store announcements: Allen Edmonds, Camper, American Eagle, Nordstrom Rack, Uniqlo, Michael Kors, Stuart Weitzman, Madewell, Suit Supply, Theory, Marshalls and Ulta, to name a few.
So what is PREIT bringing to this story? Next on the horizon is the opening of fashion retailer and department store Century 21. The chain recently chose The Gallery—PREIT's downtown Philadelphia property where a transformative redevelopment is underway—as the site of their first location outside of the New York market. The iconic brand meshes perfectly with PREIT's vision for the property, described by Coradino as “a transit-oriented, retail-anchored multi-use property offering accessible luxury retailing and artisan food experiences.” The Gallery sits atop the Market East Station, a major transit hub servicing over 22 million commuters per year.
“With all that Philadelphia has to offer, a retailer cannot go wrong,” Coradino concluded. This city, once cited for its lack of retail, has wind in its sails and is one to watch for retail developments in the future.
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Geoffery Metz
Geoffery Metz is the content manager for ALM's GlobeSt.com, Credit Union Times and Treasury & Risk. Before joining ALM, he spent several years overseeing the newsroom at the financial wire service Business Wire, with special focus on multimedia presentation for the web.
