philadelphia investors conference: economic overview panel master presentation

8/13/2019 Philadelphia Investors Conference: Economic Overview Panel Master Presentation

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Overview of the City and Regional Economy

DISCLAIMERThe information contained herein was prepared as part of

a presentation scheduled to have been given April 18 and

April 19, 2013, at an investor conference conducted bythe City of Philadelphia, and is provided solely in response

to a Right-to-Know Request, Slaughter CP 2013-1250. No

representation is made as to the accuracy and

completeness of such information, nor shall its being

provided herewith create any implication that there has

been no change in the matters described or referred to

therein since the dates of the conference or the date as of

which particular information is given, if earlier.


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Ryan SweetSenior Economist and Philadelphia Regional Expert

Moodys Analytics

*SEE DISCLAIMER ON COVER PAGE


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Better Times AheadRYAN SWEET, SENIOR ECONOMIST

Philadelphia Investor Conference , April 18, 2013



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Tourism Hel in Fill the Void

115

=

Philadelphia County employment, index to first mo of U.S. recovery

110 Local government

Leisure/hospitality

100

105 Education/healthcare

95

90

09 10 11 12

Sources: BLS, Moodys Analytics



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The Burbs Boom; Phill Comin Back

30Philadel hia Chester Delaware

Population by county, change yr ago, ths

15

20 Bucks Montgomery

5

10

-5

0

-15-

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Sources: Census Bureau, Moodys Analytics



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Skills Ga Will Be a Test

330

Philadelphia County population holding degrees, BA or above, ths

Annual industrial demand

290

310

for educated workers

270Skills gap

230

250 Population holding degree

210

10 15 20 25 30

Source: Moodys Analytics



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More Than Eds and Meds



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Philadel hia Will Kee Pace

3

Employment, % change

1

-2

-1

-4

-3Philadelphia County U.S.

-07 08 09 10 11 12 13F 14F 15F 16F 17F 18F 19F 20F

Sources: BLS, Moodys Analytics



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Broad-Based GainsPhiladelphia Will Keep PaceAvg annual employment growth between 2013 and 2017, %

U.S. Philadelphia County

o a on arm . .

Construction 4.2 3.3

Manufacturing 0.2 1.3

Trade, Transportation and Utilities 0.8 1.6

Wholesale Trade 0.9 1.6

0.7 1.4

Transportation and Utilities 1.0 2.0

Transportation and Warehousing 1.0 2.1

Utilities 0.4 0.3

Information 2.0 1.0

Financial Activities 1.8 1.7

Professional and Business Services 3.4 3.2

Education and Health Services 2.7 2.5

Leisure and Hospitality 3.0 1.9

Other Services 1.7 1.3

Government 1.3 1.4

Federal Government-0.2 0.1

State Government 1.6 2.2

Local Government 1.5 1.9

Sources: BLS Mood 's Anal tics,



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www.economy.com

United States

121 North Walnut Street United Kin dom

Suite 500

West Chester PA 19380

+1.610.235.5299

Australia

One Canada Square

Canary Wharf

London E14 5FA

+44.20.7772.5454

Level 10

1 O'Connell Street

Sydney, NSW, 2000

Australia

+61.2.9270.8111

Prague

Washingtonova 17

110 00 Prague 1

Czech Republic

+420.22.422.2929



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Paul LevyPresident

Center City District




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Philadelphias emergence as 21st century city,

24-hour, live/work downtown




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You may know us as one of the original colonies




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Home to Declaration of Independence & Liberty Bell




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You may know us as a major industrial center

SEE DISCLAIMER ON COVER PAGE



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A place that used to make Stetson Hats




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Baldwin Locomotives




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Tell a very different story




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A city that has transformed itself



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While re-purposing & capitalizing on our history



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Beginning in 1956

While everyone was stil l demolishing the past

We renovated 567 historic structures



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Adding to downtown living for 60 years



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We removed obsolete industrial artifacts



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Defunct railroad lines



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To create the Penn Center office district



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All office buildings connected to transit



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1980s: Linked Pennsylvania & Reading Railroad

into inte rated re ional rail s stem



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Employers: easy access to 360 degree labor market

309 256 riders/da take transit into downtown



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1980s office boom:

41 5 illi f ffi 88 6%



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41.5 million sf office space; 88.6% occupancy5 points higher than the suburban average



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Rents steadily rising since the Recession



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167 jobs/acre; less than 1 job/acre suburbs



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Emerged as a center for research & health care



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Global center for education

U i it Cit d ti ll di



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University City campuses dramatically expanding



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Temple University: diversifying its campuses

Fi e major instit tions e panding do nto n



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Five major institutions expanding downtown



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Center City college enrollments &

Cit id Ed & M d l t i



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Citywide Eds & Meds employment growing

ever ear throu h the Recession

1992: Diversifying downtown land-use



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1992: Diversifying downtown land use

Investments: arts & entertainment



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1990: Early 20th century office district 40% vacant



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Renovated historic theaters

Built new theaters



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Built new theaters

2002: Kimmel Center for the Performing Arts



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2002: Kimmel Center for the Performing Arts4,000 seats added

New home for Philadelphia Theater CompanyNew home for Philadelphia Theater Company



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p p yp p y

South Broad transformed into a mixed use district



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South Broad transformed into a mixed use district

Center City today is rich with cultural amenities



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Center City today is rich with cultural amenities


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Continued to reinvest & expand



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Continued to reinvest & expand

The Barnes Foundation



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The Barnes Foundation

Public investment: hospitality



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p y

Penns lvania Convention Center: 1993

Prompt private investment in new hotels:

d t b ildi



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reused vacant buildings

A 95% increase in hotel rooms



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Nearly all within 15 minute walk



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Nearly all within 15 minute walk

Convention Center has just doubled in size



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j

Generating new development



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Hotel occupancy fully rebounded from recession



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2001: New Independence Visitors Center



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2001: New Independence Visitors Center

New home for Liberty Bell



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New Constitution Center

Di if i th h it lit i d t



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Diversif in the hos italit industr

New attractions have recently openedNational Museum of American Jewish History



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National Museum of American Jewish History

Presidents House



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We have added many new reasons for people

to come to Center City



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to come to Center City


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Flourishing of sidewalk cafes



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1995 = zero



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2002



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2003



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2004



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2005



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2006



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2008



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2009



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2010: 213 outdoor cafes



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273 cafes in 2011



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296 cafes in 2012*SEE DISCLAIMER ON COVER PAGE


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People attract people



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Residential revival

. .



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Retained architect &

buildings

Survey to determine best

,window size & exposure

Detailed economic analysis

for code compliance, cost-

estimate, pro-formas.

10 year residential tax abatement



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Extraordinar costs of

converting from vacant

office or industrial to

10 year abatement on

mprovements

Available cit wide

19982012:

171 buildin s converted to residential use



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Central Business District is no longer just an off ice district

49 condo buildings with 3,871 units inside CCD



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apar men u ngs: , un s

25,000 30,000

Since 1997 added 13,409 new units of housing



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With new rental units in the pipeline



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Significant volumes of returning empty nesters



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Younger home-buyers are moving outward



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Queen Village



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Northern Liberties



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Fairmount



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Passyunk Avenue



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Southwest Center City



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Center City: Girard Avenue to Tasker Street*SEE DISCLAIMER ON COVER PAGE


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Center City has more than twice the national

average of residents ages 25-34.



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24,419 children were born to Greater Center City

arents from 2000 to 2012



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Greatest signs of change*SEE DISCLAIMER ON COVER PAGE


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Children are fil ling up our parks



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As quickly as we can build them*SEE DISCLAIMER ON COVER PAGE


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So at Dilworth Plaza*SEE DISCLAIMER ON COVER PAGE


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We are in the process of building more



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Philadelphia added population first time in 60 years*SEE DISCLAIMER ON COVER PAGE


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Driven in part bys an a no mm gra on

South Philadelphia

Eastern North Philadelphia

11% increase in population since 2000

26% in core of downtown

Since 1990



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Fastest growingMost densely settled

Population has steadily grown to 175,000



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Remain racially/ethnically diverse neighborhoods*SEE DISCLAIMER ON COVER PAGE


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42% of downtown residents work downtown

12% in University City



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75% commute to work without a car*SEE DISCLAIMER ON COVER PAGE


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42% have professional degrees



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These are the well-educated workers that employers wantBut 22% downtown jobs held by those with no more than HS diploma



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So there is the old image of Philadelphia



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And the reality that developers are selling



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Transformation of Center City into a diverse,

live/work, 24-hour downtown



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32% office; 21% eds/meds; 21% public sector;

14% hospitality & entertainment



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Setting for 34% of all the small, emerging

businesses in Philadel hia



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Dense, diverse & walkable place



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Well-linked to the region with highway & rail



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Positioned for growth



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Bob Moul

CEOArtisan Mobile, Inc.

Philly Startup Leaders

philadelphia investors conference: economic overview panel master presentation

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