In the early 1990s, the 40th Street commercial corridor linking Penn’s campus to University City’s residential neighborhoods was in decline. The mid-campus blocks along Walnut Street from 36th to 38th Streets held only an asphalt parking lot. Now both areas are teeming with students, neighborhood residents and visitors drawn to one of Philadelphia’s most vibrant new shopping and dining hubs. Working with local businesses and national retailers -- and guided by surveys identifying the needs of local residents and students -- Penn has invested heavily in bringing more retail activity to the area, helping transform the quality of life for those who live both on campus and in the community.

The impact of these commercial development efforts has been significant:

• Over 150,000 square feet of new retail inventory space in University City;
• More than 25 new stores have opened in less than four years;
• University City is now recognized as an attractive private investment market for retailers – with Penn’s retail vacancy rate less than 5%.
• A revitalized 40th Street Commercial Corridor that includes a 35,000 square foot grocery market, new restaurants and stores, streetscape improvements, and other visible enhancements.

The programs and projects that have helped drive this transformation of local commercial activity include:

University Square…a Campus Commercial Hub
New Life Along 40th Street
Promoting New Retail Stores

University Square
Penn invested $90 million in building University Square -- originally known as “Sansom Common” -- a 300,000-square-foot retail and hotel development on the site of former parking lot at 36th and Walnut Streets, creating a new social and commercial magnet for students, faculty and staff, as well as local residents and outside visitors.

University Square tenants include:

• A new and vastly expanded University Bookstore which is now the largest campus Barnes & Noble in the nation;
• The 228-room Hilton Inn at Penn, a first-class hotel that includes18,000 square feet of meeting space; a new faculty club.
• POD a cutting-edge restaurant developed by one of Philadelphia’s most successful restaurateurs.
• Several high-volume retailers such as Urban Outfitters, Eastern Mountain Sports and Smith Bros. , as well as a Cosi/XandO sandwich and coffee bar.

Until recently, Penn students and local residents looked primarily to Center City or other parts of the Philadelphia area to shop and dine. Having these and other newly thriving stores, cafes and restaurants adjacent to the campus has helped create a safe, lively atmosphere of day- and night-time street life, as well as generate new employment opportunities in the area. Outside of Center City itself, University City is the largest concentration of people in Philadelphia on a daily basis.

40th Street
Penn invested $40 million to revitalize the commercial corridor along 40th Street between Walnut and Spruce streets, creating a bustling shopping strip. In cooperation with the University City District, Penn helped lead improvements such as sidewalk lighting and repairs, tree plantings, building façade upgrades and signage, as well as promoting cleaning efforts.

• New Freshgrocer
  Anchoring the 40th Street corridor at Walnut Street is the new Freshgrocer supermarket, which opened its doors in May 2001. The Freshgrocer fulfills what local residents themselves said was one of University City’s greatest needs – a new, high quality supermarket. Lured by Penn’s investment in a major new commercial space and parking facility, the new 32,000-square-foot market features fresh produce, meats and seafood, prepared gourmet foods ranging from brick oven pizza to fresh sushi, as well as everyday grocery items.

  Open 24 hours a day, seven days a week, with an indoor café and sidewalk seating, the Freshgrocer is a hub for commercial and residential life. An 800-car parking garage sits atop the market, filling the need for more parking in the area. The University acted as the main developer of this project, and spent $35 million to finance it. As a result, the Freshgrocer is a key success story of the West Philadelphia Initiatives, keeping economic activity in the neighborhood while acting as a meeting place where the community and University come together.

• New Movie Theater
  The other major anchor bringing new life to the 40th Street corridor is a new multi-screen movie theater directly across the street from the Freshgrocer. The state-of-the art 8-screen cinema, opened in November 2002. The new theatre, which is a joint effort between Cinebridge and exhibition leader National Amusements, will be one of a new brand known as "The Bridge: Cinema De Lux." The Penn theatre is the second "Bridge" in the country with the inaugural site located in Los Angeles. The facility will brings a major new source of cultural life, foot traffic and commercial activity to 40th Street, while providing an important new venue for art house films in Philadelphia.

Promoting New Retail Stores
Ninety-eight percent of the available retail space in the neighborhood is now leased or committed, providing a higher quality, more diverse range of retail options for both students and local families. Penn also continues to recruit new retailers and restaurants to locate in the growing West Philadelphia market. The University has, for example, joined with local elected officials and community organizations to jump-start the planning and redevelopment of other commercial corridors along major thoroughfares such as Market Street north and west of campus and Baltimore Avenue running southwest of campus. With a number of new retailers continuing to express interest in locating in the area, University officials are continuing to expand and strengthen the marketplace by helping find the right kind of space for the commercial tenants.