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Monitoring Philadelphia’s Economic Recovery | 1
CENTER CITY REPORTS | APRIL 2021
Monitoring Philadelphia’s
Economic Recovery
As vaccination levels continue to increase, temperatures moderate services (down 18.3%), transportation, warehousing and utilities
and the Commonwealth and City allow the gradual return of work- (down 15.8%), and manufacturing (down 10.1%). Within leisure and
ers to their offices, Philadelphia’s economic outlook is improving. hospitality, more fine-grained employment data available through
Jobs, transit riders, pedestrian volumes and the number of occu- September suggests the largest declines were in performing arts
pied outdoor seats at cafes and streeteries in Center City have all and spectator sports (55%), museums, historical sites, zoos, and
increased since the start of the year. In the first week of April, more parks (30%), amusements, gambling and recreation (35%), accom-
people walked on Center City’s sidewalks than in any week in 2020. modation (62%), and food services and drinking places (38%).1
EMPLOYMENT UNEMPLOYMENT RATE
On a seasonally adjusted basis, Philadelphia payroll employment Following the initial stay-at-home order in March 2020, Phila-
increased by 2,400 in February to 668,500, the second consecutive delphia’s unemployment rate peaked at 18.2% in June, declined
monthly increase. While March data is not yet available at the city through the summer and fall, but increased in January to 11.2%
level, if Philadelphia continues to track national trends as it has and stayed stable between January and February. The city’s unem-
done during the last year, seasonally adjusted local employment ployment rate has remained consistently higher than the state and
likely rose by another 0.64% in March, adding 4,300 more jobs and national rates over the past year, although the gap has narrowed.
bringing Philadelphia’s job count up to 672,800. Nonetheless, in As a point of comparison, Philadelphia’s unemployment rate follow-
February 2021, there were still 81,700 fewer jobs in the city than ing the recession of 2008-2009 peaked at 12.0% in July 2012.
in February 2020. The largest year-over-year declines on a per-
centage basis remain in leisure and hospitality (down 44%), other
1: Bureau of Labor Statistics, Quarterly Survey of Employment and Wages (QCEW). QCEW provides employment and earnings data for detailed industry sectors within the
city, but are currently available only through the third quarter of 2020.
Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG2 | Monitoring Philadelphia’s Economic Recovery
PHILADELPHIA PAYROLL EMPLOYMENT BY MONTH (IN THOUSANDS)
780
749.1 750.2 746.9
740
700
662.7 666.2 666.6 665.5 662.3 666.1 668.5
660 658.1
649.4
635.8
626.8
620
580
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
Source: Bureau of Labor Statistics, Current Employment Statistics, seasonally adjusted
PHILADELPHIA CITY EMPLOYMENT TRENDS BY INDUSTRY (IN THOUSANDS)
CHANGE % CHANGE CHANGE % CHANGE
FEB 2020 JAN 2021 FEB 2021 2/20 – 2/21 2/20 – 2/21 1/21 – 2/21 1/21 – 2/21
TOTAL JOBS 750.4 659.0 669.9 -80.5 -10.7% 10.9 1.7%
Mining, Logging and Construction 11.4 11.1 11.2 -0.2 -1.8% 0.1 0.9%
Manufacturing 18.9 17.0 17.0 -1.9 -10.1% - 0.0%
Wholesale Trade 14.5 13.7 13.7 -0.8 -5.5% - 0.0%
Retail Trade 48.4 45.1 44.1 -4.3 -8.9% (1.0) -2.2%
Transportation, Warehousing, and Utilities 30.4 25.8 25.6 -4.8 -15.8% (0.2) -0.8%
Information 16.2 14.7 15.0 -1.2 -7.4% 0.3 2.0%
Financial Activities 43.0 40.3 40.1 -2.9 -6.7% (0.2) -0.5%
Professional and Business Services 106.4 99.6 99.8 -6.6 -6.2% 0.2 0.2%
Professional, Scientific, and Technical Services 61.7 60.4 60.5 -1.2 -1.9% 0.1 0.2%
Educational Services 78.1 63.3 70.1 -8.0 -10.2% 6.8 10.7%
Health Care and Social Assistance 172.5 161.6 162.1 -10.4 -6.0% 0.5 0.3%
Hospitals 58.7 57.0 57.1 -1.6 -2.7% 0.1 0.2%
Leisure and Hospitality 74.5 38.1 41.7 -32.8 -44.0% 3.6 9.4%
Accommodation and Food Services 61.9 32.0 35.4 -26.5 -42.8% 3.4 10.6%
Other Services 29.0 23.6 23.7 -5.3 -18.3% 0.1 0.4%
Government 107.1 105.1 105.8 -1.3 -1.2% 0.7 0.7%
Federal Government 31.0 31.3 31.4 0.4 1.3% 0.1 0.3%
State Government 10.9 10.3 10.3 -0.6 -5.5% - 0.0%
Local Government 65.2 63.5 64.1 -1.1 -1.7% 0.6 0.9%
Source: Bureau of Labor Statistics, Current Employment Statistics, not seasonally adjusted.
CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development CorporationMonitoring Philadelphia’s Economic Recovery | 3
UNEMPLOYMENT CLAIMS
Since surging to more than 18,000 in April 2020, initial claims for un-
employment benefits in the city declined throughout the late spring
As the number of jobs have slowly
and summer and have since stabilized, with initial claims ranging increased, the unemployment rate
from 2,000 to 3,000 per week since August. In March, there were on
average 2,250 claims per week by city residents, 9.1% of the state- has declined from 18.2% in June
wide average.
2020 to 11.2% in February 2021.
MONTHLY UNEMPLOYMENT RATES
Philadelphia Pennsylvania USA
20%
15%
11.2%
10%
7.9%
6.0% 6.8%
5% 5.1%
4.0%
0%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
Source: Bureau of Labor Statistics, Current Population Survey and
Local Area Unemployment Statistics, not seasonally adjusted
AVERAGE WEEKLY INITIAL UNEMPLOYMENT CLAIMS, PHILADELPHIA
14,000
12,000 11,466
10,000
8,000
6,000
4,375 4,706
4,000 3,665
2,638 2,739 2,606 2,250
2,132 1,998 2,144 2,017
2,000
0
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Source: Pennsylvania Department of Labor and Industry
Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG4 | Monitoring Philadelphia’s Economic Recovery
OFFICES HOSPITALITY
In the first quarter of 2021, the impact of the pandemic on the The city levies a tax of 8.5% on hotel room charges. Revenue from
Center City office market continued with negative net absorption of this tax declined to a low point of $400,000 in June 2020, and since
211,946 square feet and an increase in the vacancy rate from 15.4% that time has recovered gradually. In February, revenue totaled $1.3
in Q4 2020 to 16.2% in Q1 2021. Total occupied space in the central million, a decline of 68% from the previous year.
business district (including University City) has declined 1.2 million
square feet since the pandemic began.2 While the market remains RETAIL AND RESTAURANTS
soft and some recent leases have reflected reduced space require-
As of CCD’s most complete survey in January, there were 1,916
ments, demand has been bolstered by startups and new-to-market
storefront businesses within Center City District’s boundaries,
tenants. Newmark predicts that the market will improve in 2021 as
including 625 restaurants, 551 retailers, 494 service businesses,
vaccination rates increase and more companies return to the office.
and 246 vacant storefronts. Among restaurants, 210 were open
What is not yet clear is how many firms will maintain their current
with seating on the premises (indoor and/or outdoor), 218 offered
square footage.
takeout or delivery only, 150 were temporarily closed, and 47 were
Average asking rents for Center City declined only slightly to $34.20 closed permanently. Among retailers, 450 were fully open, 28
per square foot. Sublease volume in the overall central business provided curbside pickup or services by appointment, and 72 were
district (which includes University City and Center City) increased closed. Within the service category, 306 establishments were fully
5% and remains high by historical standards. open, 118 were offering services by appointment or online, and 61
were closed.
Major new Center City leases in the first quarter include Baker-
Hostetler, a relocation from the Cira Center to 1735 Market Street; To gauge the impact of the changing restrictions, CCD staff has
Corporate Suites, a new tenant at 123 South Broad; relocation continued to survey restaurants within CCD boundaries. With the
of Fort Robotics to 1608 Walnut; a renewal by Nemours at 833 slow lifting of indoor seating limits and improving weather condi-
Chestnut; and a relocation of Morgan & Morgan to 2005 Market. tions, restaurants have continued to capitalize on outdoor and road-
Savills reports that 48% of top regional transactions in Q1 were way seating. Total outdoor seats on the sidewalk and at streeteries
renewals, and that the health care sector represented 34% of increased from 3,653 in February to 4,406 in March.
major transactions.3
To support restaurants that may not have outdoor seating, CCD
Effective April 4, the City and State dropped the telework mandates launched a new campaign in January to promote takeout. For a full
that had been in place since the start of the pandemic. Workers update on retail trends, see centercityphila.org/research-reports/
are still required to follow CDC guidelines regarding masks and ready-for-the-return-of-customers-center-city-restaurants-and-
social distancing, and new City guidelines recommend that density retail-v1. In May, Philadelphia will launch a seasonal Restaurant
be limited to two employees per 1,000 square feet.4 As vaccination Week promotion.
rates rise, tenants expect to begin a gradual return to their offices
throughout the balance of the spring and summer.
CENTER CITY OFFICE MARKET TRENDS, 2020
Q4 2020 Q1 2021
TOTAL ASKING TOTAL VACANCY NET ABSORPTION TOTAL ASKING TOTAL VACANCY NET ABSORPTION
SUBMARKET
RENT (PRICE/SF) RATE (SF) RENT (PRICE/SF) RATE (SF)
East Market $31.38 15.6% -357,416 $32.89 15.7% -2,767
Independence Square $31.96 17.1% -57,493 $31.96 16.8% 14,720
Walnut/South Broad $30.75 20.2% -33,514 $30.99 21.6% -55,084
West Market $36.31 14.2% -88,113 $35.93 15.3% -168,815
CENTER CITY $34.53 15.4% -536,536 $34.20 16.2% -211,946
Source: Newmark
2: Newmark, Philadelphia Office Market, Research Q1 2021.
3: Savills, Philadelphia Market in Minutes, Q1 2021.
4: City guidelines are available at: https://www.phila.gov/programs/coronavirus-disease-2019-covid-19/guidance/guidance-documents/office-guidance/
CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development CorporationMonitoring Philadelphia’s Economic Recovery | 5
HOTEL TAX REVENUE ($ IN MILLIONS)
2019 2020 2021
$10
$8
$6
$4
$1.4
$1.3
$0.9
$2
$1.0
$0.4
$0.4
$4.4
$4.6
$6.4
$4.2
$4.2
$6.5
$6.3
$5.2
$8.2
$8.2
$3.5
$7.0
$7.2
$7.7
$1.9
$1.9
$1.9
$1.8
$1.8
$7.1
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: City of Philadelphia Department of Revenue
RESTAURANT OPERATING STATUS, JANUARY 2021
Open for Takeout,
210 Pickup or Delivery Only
As the weather warmed, the
Open for eating
218 On-Premises number of outdoor seats at
(indoor and/or outdoor)
150 Temporarily Closed 625 restaurants quickly rose from
47 Permanently Closed Restaurants 3,653 in February to 4,406 by
Source: Center City District Survey
mid-March.
SERVICE BUSINESS OPERATING STATUS, RETAIL BUSINESS OPERATING STATUS,
JANUARY 2021 JANUARY 2021
306 Fully Open 450 Fully Open
Customer Request, Appointments, Online
118 Appointments and/or 28 Sales and/or Curbside
Teleservice Pickup Only
46 Temporarily Closed 494 42 Temporarily Closed
550
24 Permanently Closed Service 30 Permanently Closed
Businesses Retailers
Source: Center City District Survey Source: Center City District Survey
OUTDOOR SEATING AT CENTER CITY DISTRICT RESTAURANTS
OUTDOOR SEATING TYPE JUNE 2020* SEPT 2020 DEC 2020 JAN 2021 FEB 2021 MAR 2021
Sidewalk Cafe N/A 2,628 2,355 1,549 1,541 1,876
Sidewalk Cafe and Streetery N/A 2,414 2,148 1,961 1,938 2,191
Streetery Only N/A 110 196 206 174 339
TOTAL 2,997 5,152 4,699 3,716 3,653 4,406
*CCD did not record seating type during first survey.
Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG6 | Monitoring Philadelphia’s Economic Recovery
HOUSING
After a decline in the second quarter, citywide residential sales re- For more information on the Greater Center City housing market,
bounded to 5,100 in the third quarter of 2020. In the first quarter of see CCD’s 2021 housing report: www.centercityphila.org/
2021 there were 4,158 residential transactions, a 15.5% year-over- research- reports/greater-center-city-housing-2021-building-
year increase. The median residential sale price in the first quarter on-resiliency
was $249,167, an 11% year-over year increase.
Within Greater Center City (the area from Girard Avenue to Tasker
Street, river to river), there were 892 residential sales in the first
quarter, including 414 in March. The median Greater Center City
home sold for $442,500 in March, an 8% year-over-year increase.
PHILADELPHIA MEDIAN RESIDENTIAL SALE PRICE, 2019-2020
$300,000
$245,000 $245,000 $249,167
$242,500
$240,000 $220,000 $219,850 $225,000
$212,000
$194,925
$180,000
$120,000
$60,000
2.6M
$0
2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1
Source: MLS
SEPTA RIDERSHIP BY MODE
Index, January 2020 = 100 Market-Frankford Line Broad Street Line Trolley Bus Regional Rail
120
100
80
60
45
40 32
32
31
20 17
0
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Source: SEPTA
CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development CorporationMonitoring Philadelphia’s Economic Recovery | 7
PUBLIC TRANSIT AIR TRAVEL
From a low point in April 2020, SEPTA ridership across all major Total passenger traffic at Philadelphia International Airport was
modes increased through the summer and fall, and declined 741,000 in February, a decline of 2.6% from the previous month and
through the winter months, but has resumed a rebound. In March, 66% below February 2020. Domestic passenger volume in February
overall ridership increased by 12% to 1,783,000, with passen- totaled 713,500, a 64% year-over-year decline, while international
ger volume increasing 19% on Regional Rail, 13% on buses, and volume was 27,800, an 86% decline.
between 8% and 9% on subways and trolleys. Since the start of
the pandemic, Regional Rail ridership has declined the most, with BIKE SHARE USAGE
average weekly ridership in March at only 17% of the January 2020
level. The Market-Frankford Line and Broad Street Line and trolleys Philadelphia’s bike share system, Indego, has more than 500 bikes
have done somewhat better, with passengers at 31% to 32% of the and 60 docking stations. In the first quarter of 2021, there were
pre-pandemic level. Bus ridership has seen the greatest recovery 96,000 Indego trips, a decline of 19% from the prior year. Overall
with March 2021 passengers reaching 45% of the January Indego ridership in 2020 totaled 735,200 trips, a modest 1.2%
2020 level. decline from 2019.
2500
SEPTA TOTAL RIDERSHIP BY MONTH
Bus Market-Frankford Line Regional Rail Broad Street Line Trolley
2000
6,000,000
1500
5,000,000
4,000,000
1000
3,000,000
500
2,000,000
0
1,000,000
0
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Source: SEPTA
PASSENGER TRAFFIC, PHILADELPHIA INTERNATIONAL INDEGO BIKE SHARE TRIPS (IN THOUSANDS)
AIRPORT (IN THOUSANDS)
Domestic International 2019 2020 2021
2,500 300
275 270
250
2,000
206
200 187
1,500 166 160
150
118
1,000
97 96
100
500
50
0 0
Q1 Q2 Q3 Q4
0
0
20
0
20
20
20
0
1
20
21
20
20
20
-2
-2
-2
-2
-2
g-
c-
p-
n-
n-
n-
r-
t-
l-
ay
ar
ov
b
b
Oc
Ju
Source: Indego Open Data
Ap
De
Au
Se
Fe
Fe
Ju
Ja
Ja
M
M
N
Source: Philadelphia International Airport
Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG8 | Monitoring Philadelphia’s Economic Recovery
OFF-STREET PARKING RESIDENTS, WORKERS, AND VISITORS
Parkway Corporation reports that across their multiple off-street CCD monitors pedestrian volumes at 20 locations throughout the
garages, parking volumes since the stay-at-home order have been core of Center City. Average daily pedestrians at these locations
well below normal due to restrictions on restaurants, arts and cul- increased substantially in March to 89,205, a 35% increase from the
tural institutions and the absence of office workers. In March, parking prior month. In the first week of April, average daily volumes rose to
volumes reached 64% of 2019 (pre-pandemic) totals, an improvement 103,296, higher than any week in 2020.
over February’s performance, when volume was at 42% of the 2019
Placer.ai sorts daily visitors to the area of Center City between Vine
levels. This largely reflected increased parking demand generated by
and Lombard streets, river to river, into three categories: residents,
use of the Pennsylvania Convention Center as a vaccination site.
workers, and visitors, which includes tourists and regional shop-
pers. According to Placer, the number of people within Center City
dropped substantially after the pandemic, with the worker popu-
lation declining 76% between February and April 2020, and other
non-resident visitors declining 86%. By contrast, the number of
residents was essentially unchanged. By March 2021, the average
daily worker population increased to 58,700, but remains at only
34% of the pre-pandemic level of February 2020. The average daily
number of other visitors (those who are not residents or workers
PARKING VOLUME IN 2021 AS A PERCENTAGE OF 2019
within core Center City) has recovered more robustly, reaching
141,100 in March, 58% percent of the pre-pandemic level. The
70% average daily number of residents downtown has increased to
53,500, 14% higher than February 2020. At the beginning of April
60% 2021, Placer calculated there were 264,156 pedestrians in the area
between Vine and Lombard, approximately 60% of the 443,723
50% pedestrians present in June 2019.
40%
30%
20%
10%
44% 42% 64%
0%
January Feburary March
Source: Parkway Corportation
AVERAGE DAILY PEDESTRIANS AT 20 SELECT LOCATIONS IN CENTER CITY
120,000
100,000 91,574
86,570 89,205
76,365 75,027
80,000
65,822 64,287 66,300
56,778 59,617
60,000
43,224
40,000
28,593
23,233
20,000
0
Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Source: Center City District
CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation
2020 2021Monitoring Philadelphia’s Economic Recovery | 9
AVERAGE DAILY PEDESTRIANS IN DILWORTH PARK
2020 2021
35,000
30,000
25,000
20,000
15,000
10,000
25,522
20,961
17,540
11,404
11,404
10,107
11,284
31,314
15,951
19,512
15,175
12,175
8,303
8,061
5,000
0
January February March April May June July August September October November December
Source: Center City District
CENTER CITY PEDESTRIANS: RESIDENTS, WORKERS, AND OTHER VISITORS, AVERAGE DAILY
(IN THOUSANDS)
Residents Visitors and Shoppers Workers
250
215
200
168
150
141
100
59
50 46 54
0
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Source: Placer.ai
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