JLL’S NEW REPORT NAMES PHILADELPHIA’S MARKET EAST THE MOST AFFORDABLE PRIME URBAN RETAIL CORRIDOR IN THE COUNTRY Center City’s flourishing retail scene builds on more than a decade of diversified development, strong employment and residential growth. Retailers seeking to capitalize on changing preferences that are now favoring urban cores in America, are drawn to downtown Philadelphia’s density, accessibility and a demographic rich in millennials entering their peak consumer-spending years and affluent empty nesters. Center City’s purchasing power continues to increase, with household incomes in the core of the downtown averaging more than $110,000 and 78% of residents having a BA or higher. Retailers are also drawn to downtown Philadelphia because of its affordability relative to other major urban markets. This is particularly true of the burgeoning Market East neighborhood. An area that has long languished due to blighted buildings and an inward-facing mall is about to re-emerge as Center City’s hot new retail district. Both local boutiques seeking lower rents and national tenants desiring larger floor plates are choosing to locate in this up-and-coming area of the city including, Design Within Reach, MOM’s Organic Market, Iron Hill Brewery and Target. With retail rents averaging $50/sf, Market East topped JLL’s list of the 10 most affordable and desirable prime urban retail corridors in the United States, besting other locations in Chicago, Seattle, San Francisco, Miami and Washington D.C. Six major developments, representing a $815 million investment and 1 million square feet of retail, are about to transform Center City East into a vibrant, mixed-use district. Now is the time to sign a lease and capitalize on the transformation of Market East into a continuous shopping and dining experience that will connect Independence Mall to City Hall and Convention Center hotels. LARGE-SCALE RETAIL DEVELOPMENTS UNDER CONSTRUCTION ON MARKET EAST East Market, Philadelphia: https://www.eastmarket.com/ National Real Estate Development’s $600-million-plus mixed-use project will span an entire city block and add 562 units and 135,000 square feet of retail. Tenants include Design Within Reach, Mom’s Organic Market, City Fitness, Wawa and Iron Hill Brewery’s first urban restaurant. The project is slated to open later this year. Philadelphia Fashion Outlets: http://www.fashionoutletsphiladelphia.com/Redevelopment PREIT and Macerich are investing $325 million to redevelop a 3-block, inward-looking urban mall into a 730,000 square foot regional shopping destination that will include designer outlets, up-market flagships and destination dining and entertainment. The project is slated to open in 2018. CENTER CITY REPORTS State of Center City Download the Central Philadelphia Development Corporation (CPDC)/Center City District (CCD) annual State of Center City report that takes an in-depth look at the diverse sectors that make Center City Philadelphia the largest employment center in the region. The report documents how Center City provides jobs, education, medical, cultural and retail services for residents from across the city and region. Detailed statistics and survey results are provided about development and retail trends, including demographics, pedestrian counts and lease transactions. Development Report Download a special supplement to the annual State of Center City Report that catalogues and categorizes the more than $9 Billion of development taking place in downtown Philadelphia. This report includes a map and full-color renderings and project descriptions of all 81 major developments in Center City Philadelphia. NEWS Philly tops list of 10 most affordable retail locations, Chain Store Age: http://www.chainstoreage.com/article/philly-tops-list-10-most-affordable-retail-locations?tp=i-H55-Q5S-3ev-5SJ8k-1u-6Sx-1c-sLu-5SIS0-178sCV&utm_campaign=Daily&utm_source=Experian&utm_medium=email&cid=14069&mid=80628442# City Retail: Understanding North America’s prime urban corridors, JLL: https://mediaresources.jll.com/MediaResources/AM/Email/Retail/CityRetail-North-America-JLL-2017.pdf Fido’s dream: PetSmart to open two stores in Philly, The Philadelphia Inquirer: http://www.philly.com/philly/columnists/suzette-parmley/Fidos-dream-store-on-the-way-PetSmart-to-open-two-stores-in-the-city.html Hotel mulled for historic Girard Building at East Market development site, The Philadelphia Inquirer: http://www.philly.com/philly/business/real_estate/commercial/hotel-mulled-for-historic-girard-building-at-east-market-development-site-20170523.html Bourse owner to begin work on ground-floor fining and drinking hall, The Philadelphia Inquirer: http://www.philly.com/philly/columnists/jacob_adelman/Bourse-owner-to-begin-work-on-ground-floor-dining-and-drinking-space.html Five Below chooses Lits Building for new Center City headquarters, The Philadelphia Inquirer: http://www.philly.com/philly/business/real_estate/commercial/Iron-Hill-to-open-brew-pub-in-Center-Citys-East-Market-mixed-use-complex.html What the Philly grocery store boom is really about, Philadelphia Magazine: http://www.phillymag.com/articles/philadelphia-grocery-store-boom/?utm_campaign=EDIT%3A+Sunday&utm_source=hs_email&utm_medium=email&utm_content=36690889&_hsenc=p2ANqtz--qakkCZqDd11HLzxGV3GWn3-rz4ldOnoFv4hTUnDAQS3GM_YG8CpJY3mmZ1zzAszg_BroK_vwmzIrBhrbRZqPGHYgv6F5-wJTtqYo7V0anDhj0W7c&_hsmi=36690889 Target expands central Philly footprint with new store planned for NoLibs, The Philadelphia Inquirer: http://www.philly.com/philly/columnists/jacob_adelman/Target-coming-to-former-Destination-Maternity-site-north-of-Center-City.html Target plans sixth smaller-format Philly store at Lncoln Square on South Broad, The Philadelphia Inquirer: http://www.philly.com/philly/columnists/jacob_adelman/Target-plans-sixth-smaller-format-store-for-Philly-at-Lincoln-Square-on-S-Broad-St.html Natural grocer Sprouts seen langind in S. Philly, Moorestown in nationwide expansion, The Philadelphia Inquirer: http://www.philly.com/philly/columnists/jacob_adelman/Grocer-Sprouts-seen-to-move-on-South-Philly-Moorestown-sites-in-nationwide-expansion.html N.Y. Developer Durst buys pier sites of Dave & Buster’s, Morgan’s with eye to apartments, The Philadelphia Inquirer: http://www.philly.com/philly/columnists/jacob_adelman/NY-developer-Durst-buys-Dave--Busters-Morgans-piers-with-eye-toward-apartments.html Resurgence of Center City fueling Philly’s Evolution, The Philadelphia Inquirer: http://www.philly.com/philly/business/real_estate/commercial/20160828_HOT_AT_CORE.html?photo_7 FAST FACT: More than 1 million square feet of retail, representing an $815 million investment, is under construction East of Broad Street in Center City Philadelphia.