The State of University City 2014-2015 |
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November 18, 2014, Volume 61, No. 14 |
The University City District recently released its annual report of the State of University City.
Below are excerpts of the report. Visit http://universitycity.org to view the PDF of the report
or for hard copies of the State of University City 2014-2015 report, visit the UCD office at
3940 Chestnut Street or email ucd@universitycity.org
The State of University City 2014-2015
Matt Bergheiser, Executive Director, University City District
Sharing three data points to tell the story of a place doesn’t seem to do justice to a neighborhood of international cuisine, eclectic retail, cultural vibrancy and intellectual energy. But numbers present powerful narratives, never more so than three leading indicators of the untiring growth and vitality of University City.
The first number is easy—number one. There are 27 regional real estate submarkets and University City has the highest office occupancy rate of all of them, an astounding 96%. From venture-backed startups to clinical practices to international headquarters, University City real estate is brimming with the underpinnings of a diverse, dynamic economy—local in footprint, global in reach and impact.
The second number, 82, is extraordinary. Through this past summer, 82% of all office construction in the entire region was happening, amazingly, within University City—on just 0.02% of the region’s office market land mass. The concentration of neighborhood building activity was evident in a year filled with construction cranes in the University City sky and excitement on the ground for a place that has grown exponentially as a regional economic powerhouse.
The final number is 9.99 million. Over five years, 9.99 million square feet of real estate projects have been developed in our neighborhood. That’s a $4.5 billion investment, and when you consider our 73,000 jobs and $1 billion of R&D spending, it’s clear that the intensity and acceleration of economic activity here is virtually unrivaled across the country.
With offices and retail spaces filling promptly with sought-after tenants; civic infrastructure that attracts masses to walkable streets, public spaces, bike paths and transit; and a developing eastern edge that stitches together Philadelphia’s central business core like never before, University City is a neighborhood where quality of life, quality of talent and quality of place unite to create a virtuous cycle of growth, innovation, opportunity and possibility.
Real Estate Development and Planning
University City continues to experience unprecedented growth and development. To go along with the yearly increase in major new residential development, 2014 saw significant new office projects, including the construction of 3737 Market by the University City Science Center and groundbreaking on the FMC Tower by Brandywine Realty Trust.
Although rapid transformation and continual growth have characterized University City’s real estate sector for the past several years, it’s clear that there is still plenty of room to grow.
Thirty-two new development projects were recently advanced or completed, representing 6.9 million square feet of new office, research, residential, academic and medical facilities in addition to nearly 2.2 acres of public space. What follows is a summary of the projects continuing to transform University City’s skyline.
Economic Vitality
Business in University City continued its yearly growth, with an influx of independent and established stores and restaurants finding record success in the area. 2014 saw another increase in retail occupancy rates and pedestrian counts, and the trend is projected to continue as new commercial and residential buildings near completion and break ground at a dizzying pace. University City’s cultural scene remains robust as well, as the arts are thriving in the neighborhood. UCD aided the exposure and reach of local businesses with signature events such as University City Dining Days, the Baltimore Avenue Dollar Stroll and the 40th Street Summer Series.
Businesses see University City as a prime destination for storefronts because of the mix of customers in the college students, large employers, commuters and full-time residents who occupy the area. Businesses that have found success in other parts of the city, such as Federal Donuts, Joe Coffee, Shake Shack and Hip City Veg are selecting University City as a logical location for expansion. New ventures such as The Farmacy, Carina Tea & Waffles and Wishbone have chosen University City as the best location to start their businesses. Owners of businesses like coZara and The Fat Ham have expanded their operations and opened different concepts in University City. Nationally recognized chefs like Jose Garces and Bobby Flay have found success here and are now joined by restaurateur Rick Bayless, who chose the University City neighborhood when expanding his restaurant empire. Local community leaders are working hard to meet retail demands, too. When a survey of residents living in Spruce Hill reported that members of the community were in need of a garden center, Greensgrow Farms opened its Greensgrow West outpost. When residents cited a need for art supplies, Plaza Artist Materials & Picture Framing opened shortly thereafter. Business in University City is booming and there is more expansion and opportunity on the way.
Center of Innovation
University City is the area’s leader in science and medical resources. Discoveries coming from the region bring billions of dollars to the economy. From small companies working out of shared spaces to major leaders in scientific breakthroughs, University City is setting the pace for innovation.
The Brookings Institution, the nonprofit public policy organization based in Washington, DC, pointed to University City in a report on the rise of innovation districts. Brookings defines innovation districts as “Geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators and accelerators. They are also physically compact, transit-accessible and technically-wired and offer mixed-use housing, office and retail.” According to the report, “The rise of innovation districts aligns with the disruptive dynamics of our era and represents a clear path forward for cities and metropolitan areas... The result: a step toward building a stronger, more sustainable and more inclusive economy in the early decades of this young century.” The rest of the country is taking notice of how University City is setting the standard as the center of innovation in the region, both now and into the future.
Public Space
Philadelphia has seen a renaissance in urban design and placemaking, and University City is at the forefront of this movement. Partnerships between public, private, nonprofit and community organizations have allowed for unique presentations at our public spaces. There are a few examples of UCD projects that have brought people together through inspired urban design and community events.
Demographics
University City remains a desirable destination for students, families and young professionals. Employment rates are strong, the population grows each year and the neighborhood is one of the most diverse in the city.
About University City District
University City District (UCD) was founded in 1997 by a partnership of world-renowned anchor institutions, small businesses and residents to improve economic vitality and quality of life. Our primary mission is community revitalization. We work within a place-based, data-driven framework to invest in world-class public spaces, address crime and public safety, bring life to commercial corridors, connect low-income residents to careers and promote job growth and innovation. |