Center City Philadelphia

Contact Information:
RJ White, Manager of Media Relations & Interactive Marketing
rwhite@centercityphila.org
215.440.5550

2010 State of Center City: Philadelphia Has Fared Better Than Most,
but There is Still Work to be Done

(April 15, 2010) – The story of Center City Philadelphia in 2009 is that of a downtown which has fared better than most other places in the region and many other cities during the global economic crisis, but has work ahead to insure continued vitality and growth, according to the 2010 State of Center City report, released today by the Center City District and Central Philadelphia Development Corporation. The annual report looks at virtually all aspects of work and life in the largest employment center in the region, including office and hotel occupancy, education, healthcare, arts & culture, housing and transportation.

While vacancy rates have increased in the commercial office sector, downtown's year-end occupancy rate of 89% was the highest in the region and better than all but Washington D.C. among east coast cities. Despite the recession, employment in healthcare and education actually increased city-wide by 1.5% in 2009, continuing a 57-month streak of positive growth. Housing values, which are still struggling in much of the country, are only 7% below their 2006 market peak citywide and among the nation’s largest metropolitan areas, only the Dallas housing market has retained more value than Philadelphia’s. Center City has continued its steady growth, adding more than 12,000 housing units since 1997.

“Philadelphia has fared better than most cities in the Great Recession and while our economy and city government have faced challenges, we were buffered by many of the city’s inherent strengths: a very strong education and health care sector, an office sector well-served by public transit, and a dense, mixed-use, walkable downtown that is filled with extraordinary amenities,” said Center City District President & CEO Paul R. Levy. “However, if we are to capitalize on national trends that are favoring places like Philadelphia, we are going to have to restart the process of tax-reduction and make strategic investments in infrastructure that reinforce the city’s major employment nodes."

Among the key findings for Center City:
• Housing values are only 7% below their 2006 peak, compared with losses of 20-40% in other cities. Prices in the zip codes surrounding Center City have grown by 40% since 2001.
• Center City and University City have seen more than $12.3 billion in development over the last three years.
• 17, 179 children were born to Center City parents from 2001-2008.
• The Center City area’s twelve colleges, universities and medical schools attracted $83.8 million in National Institutes of Health research grants for 2009. The largest portion, $75 million, went to Thomas Jefferson University.
• Average daily hotel rates fell between 2008 and 2009, but occupancy rates in Center City outperformed the rest of the region.
• 126 Center City arts organizations hosted 9,558,105 visitors last year.
• The retail market saw 187 new openings in 2009, helping to serve a demand of $491 million within a 30-minute walk of City Hall.
• The total number of Center City restaurants has increased 29% since 2005.
• Applications to Center City colleges and universities increased by 51% between 2002 and 2008, from 47,902 to 72,542.
• Housing sales volume was down 13% from 2008 and 34% lower than its 2006 peak.
• Sixty-six percent (66%) of survey respondents indicated that Center City is much cleaner than the rest of Philadelphia, while 77% responded that they feel safe "most of the time or always" when downtown.

The full report, State of Center City 2010, can be downloaded at http://CenterCityPhila.org/socc/.

The Center City District, a private-sector organization dedicated to making Center City Philadelphia clean, safe and attractive, is committed to maintaining Center City's competitive edge as a regional employment center, a quality place to live, and a premier regional destination for dining, shopping and cultural attractions.

The Central Philadelphia Development Corporation is a not-for-profit membership organization, supported by Philadelphia's business leaders, that has been a force in the development and diversification of Center City since 1956. It is managed by the staff of the Center City District (CCD).

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