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, now favoring urban cores in America, are drawn to downtown Philadelphia's density, accessibility and a demographic rich both 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 downtown core 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 an $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.
Download JLL's report here [PDF].
Large-Scale Retail Developments Under Construction on Market East
East Market, Philadelphia: eastmarket.com
National Real Estate Development's $600-million-plus mixed-use project will span an entire city block and add 562 rental 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. Phase I of the project is slated to open later this year.
Fashion Outlets Philadelphia: fashionoutletsphiladelphia.com/Redevelopment
PREIT and Macerich are investing $325 million to redevelop a 3-block, formerly 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 District Reports
State of Center City
Download the Central Philadelphia Development Corporation and Center City District's annual State of Center City report, which 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.
Center City Philadelphia Developments: 2017
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.