Millennials, young families, office workers and tourists are behind the increasingly vibrant Center City Philadelphia retail scene, propelling local and national retailers to take a greater interest in the Philadelphia retail space market, a new report says.
The demand and buying power of this young clientele has brought a diverse group of retailers to the market for Philly retail space, the report by Center City District and the Central Philadelphia Development Corp. said. Downtown Philadelphia now includes 250 apparel stores, 133 food and drink establishments and 444 full-service restaurants, according to the report.
National retail chains such as Forever 21, Nordstrom Rack, Uniqlo, Michael Kors, Timberland and other national brands opened new downtown stores in 2014, drawn to the market for retail space in Philadelphia by the same young group of consumers and their buying power, the report said. Still, despite this frenzy of interest by national names, the market for retail space in Philly continues to have at its core the boutiques, independents and regional firms that currently comprise 77 percent of downtown retailers, according to the report.
The increased interest in the Philadelphia retail space market also can be seen in the larger mixed-use projects underway in Philadelphia now, all of which have provisions for new Philly retail space, the report noted. These include:
- Midwood Investment & Development’s 60,000-square-foot multi-level building at 15th and Walnut Streets, which will include multiple floors of retail space in Philly and will be anchored by a Cheesecake Factory restaurant.
- Pennsylvania Real Estate Investment Trust’s 30,000-square-foot development at 15th and Walnut, which is looking to attract new tenants to its retail space in Philadelphia to join the existing — and recently renovated — Club Monaco.
- The major overhaul of The Gallery that essentially will turn the mall inside out, putting Philadelphia retail space and restaurants back on the ground level, street side of the mall.
- Brickstone Realty’s Chestnut Street redevelopment project that will bring Philly retail space and attached luxury apartments to the area.
- National Real Estate Development’s makeover of the former Girard Square city block into the new East Market project that will feature a 17-story tower with 160,000 square feet of retail space in Philly in phase one.
As these variables remain stable, the demand for retail space in Philadelphia should continue to strengthen, the report said. “With more than $4.7 billion in development projects and residential population increasing, Center City’s retail footprint continues increasing as demand and rents rise,” the report noted.
For more information about Philadelphia retail space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm that specializes in retail space in Philly.
Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.
Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new retail space in Philadelphia with the Philadelphia commercial properties that best meets their needs. As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals. If you are looking for Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.
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