There are some richly exciting things happening with Center City residential, commercial, and transportation development, but there are also areas that beg for improvement. This was one of the takeaways from last week's panel, "The Next Cycle of Downtown Development," held by the
Central Philadelphia Development Corporation (CPDC). The program was moderated by CPDC and Center City District executive director Paul Levy, and featured executives at Liberty Property Trust, Brandywine Realty Trust, Pennsylvania Real Estate Investment Trust (PREIT), and the Parkway Corporation.
Levy delivered opening remarks that ought to have provoked optimism. These remarks served to preface the release of the
Center City District's "State of Center City Report," which is expected this week. Levy defines the "Center City core" as being the neighborhoods between Vine and Pine St., while he ambitiously defines "Center City extended" as being the communities between Girard Ave. and Tasker St. Levy reports that residential prices in the "extended" Center City zone are quite healthy, with the average value being $310,446.
The opening remarks contained more points of pride for those who live, work, take classes, shop, or play in the extended downtown. Levy saysthis area is second to only New York City in terms of the number of "cultural institutions." He adds that the hospitality sector is performing strongly in Center City, as job growth in this field "is outpacing the suburbs." Finally, Levy is ecstatic that sustainable transportation is becoming a more and more appealing alternative to driving for downtown inhabitants, as 74% of Center City "core" residents commute to work without a car.
While the executive director's remarks accentuated the positives in both the core and extended parts of Center City, they also drew attention to the area's bleeding of high-rise office jobs. Levy says that 39% of private sector jobs in Center City are in office buildings, which is the highest percent of private sector employment. Even with population growth in Philadelphia and its suburbs, these Center City offices continue to lose jobs, even while offices in Radnor, Great Valley, and elsewhere are gaining positions.
After Levy wrapped up his report, the executives on the panel began discussing how the city can draw more office jobs. John Gattuso, the senior VP and regional director at
Liberty Property Trust, hinted at a new office high-rise to be proposed within the next couple of years. He also mentioned that Three Franklin Plaza, which currently houses
GlaxoSmithKline, will be undergoing a "significant" $30 million renovation, with the installation of new bathrooms and elevators, for when Glaxo moves out. This anticipates the building at 18th and Race "will be coming to market in 2014," says Gattuso.
Joseph Coradino, president of
PREIT, also imparted some nuggets of hope on the audience. While he spent considerable time talking about PREIT's suburban development, such as at the Cherry Hill Mall, he also said good things were in store for PREIT's
Gallery at Market East. He said Philadelphia Media Network's move to 8th and Market coupled with the new digital sign allowance for Market East could signal a rebirth for the beleaguered strip. He expressed a desire to "activate The Gallery at the street level," which would mean opening sidewalk cafes at the mall.
Sources: Paul Levy, Central Philadelphia Development Corporation; John Gattuso, Liberty Property Trust; Joseph Coradino, PREIT
Writer: Andy Sharpe