Category phl

Are “Innovation Districts” the key to Philadelphia’s growth?

 
Maybe, maybe not. But here is something to think about.

As the US population continues to choose cities over suburbs, the job landscape in cities is adjusting to meet that growing demand. People today want more (and better) choices for where they live their lives, choose their jobs, and enjoy their free time.

This is where Innovation Districts come in, and cities in general.

First, let’s define what an Innovation District is. According to Bruce Katz at the Brookings Institution, the definition of an ID is as follows:

“A geographic area where anchor institutions and companies cluster and connect small firms, start-ups, business incubators, and accelerators. The area is physically compact, transit-accessible, and technically wired. The options for mixed-use housing, office, and retail are all present.”

The two main areas in Philadelphia that meet those criteria are Center City and University City. The Navy Yard is not far behind, but it’s still lacking in the housing and retail areas (although there are plans for more of that in the near future).

To redefine, isolated campuses in the suburbs that corporations have been flocking to for decades are slowly losing their appeal. Reason being, Innovation Districts are changing the model due to both the appeal of urban areas and the need for today’s corporations to collaborate more.

So, I found this cool article, saying that University City was recently recognized as 1 of 7 IDs (in the entire US) that are “on the rise.” Katz from Brookings was quoted as saying, “We identified seven examples in our paper of districts to watch, and University City in Philadelphia, we think, has enormous potential, only a portion of which has been realized.”

Part of the reason University City was recognized was due to its accessibility to transit, its “iconic presence,” and its track record of attracting start-ups and entrepreneurs.

Good news for UC and Philadelphia!

Significant mixed-use project coming to Brewerytown

Rendering of Girard27 | Courtesy of Hidden City Philadelphia

 
If I’ve said it once, (or about 6 other times on my blog … here, here, here, here, here, and here) I’ll say it again: Brewerytown has momentum.

Not the kind of momentum where real estate developers, speculators, buyers, and tenants are guessing that Brewerytown will be one of Philadelphia’s hottest neighborhoods. Brewerytown is one of Philadelphia’s hottest neighborhoods for real estate.

Both commercial and residential alike.

If you’re already familiar with B-Town’s recent success, you’re ahead of the curve. If you’re not, here’s how I personally look at Brewerytown’s current situation.

West Girard Ave (between N 32nd St & W College Ave) is a perfectly-sized “Main Street” for the dense, historic neighborhoods that surround it (i.e. Brewerytown, Templetown, Fairmount, etc). Stretching about 6 city blocks, this swath of W Girard offers mixed-use potential, interesting architecture, reasonable rent, and a captive audience.

Not too small, and not too big.

So, why am I even mentioning this commercial strip? Because it’s potentially turning Brewerytown into the next Manayunk … the next Fairmount … the next Graduate Hospital … the next Cedar Park and Spruce Hill.

Those neighborhoods are all thriving today based on the same, traditional, old-as-time concept: community. Where the community is strong, the neighborhood is strong. And because Philadelphia was built/planned to embrace tight-knit communities, this concept still rings true today.

Now that Girard27 has been planned for N 27th St and N Taney St, and received a decent enough reception from both long-time and newbie residents, my opinion is that this corridor now has a legitimate anchor. The new Bottom Dollar supermarket was a nice touch on the western border, and the Braverman project (which is just across the street from Girard27) will only add more appeal. Also, let’s not forget about some of the other small businesses along W Girard (i.e. RyBrew, Shifty’s Taco, etc).

Needless to say, Brewerytown is coming into its own.

Although this may seem like old news to some, especially those who already live in the immediate vicinity, I felt that adding a professional real estate opinion would help bring the good news home; and also provide a different perspective from someone on the outside, looking in.

For those who have never been to Brewerytown, or have not visited for a while, good things are happening … and the timing seems to be perfect.

Why so much buzz lately about Market East?

PREIT’s rendering of the new Gallery at Market East

The Market East section of Philadelphia that is, not the regional transportation hub.

Maybe it’s just me, but almost everywhere I look in the local media these days, people are buzzing about Market East.

Some of those discussion topics, over the last year or so:

Girard Square

The Gallery

Market8 Casino

Times Square-esque Digital Signage

Everyone is talking, and for good reason. Out of all the original Center City neighborhoods (Logan Square/Circle, Rittenhouse Square, Washington Square, Society Hill, and Old City), Market East (or Center City East) is really the only one left with copious amounts of potential.

All of the others have already been redeveloped, or are in the process of.

The reason I found this story so blog-worthy, was because of that aforementioned potential. Center City has become so prominent/noticeable in Philadelphia’s comeback story, that it has literally spawned an entire army of coveted neighborhoods.

Graduate Hospital

Passyunk Square + East Passyunk

Newbold

Pennsport

Fairmount

Francisville

Northern Liberties

Fishtown

The #1 reason why these varying and unique neighborhoods have caught fire within the local real estate market, is because of Center City’s success (and University City’s too, if you want to get technical).

Original Center City has become expensive and is short on supply, which is why the spillover demand has landed in these neighborhoods. In reality, there was really no where else to go but to follow the concentric circles.

Now, it’s not just because of CC + UC that Philadelphia has changed so much over the last 20+ years.

Manayunk

Roxborough

East Falls

Chestnut Hill

Mount Airy

Kensington

Templetown

As you can now see, the demand is spreading all over town, into historic neighborhoods, and for different reasons. Main Streets, universities, small businesses, networking groups, night markets, food trucks, and everything in between.

Market East may currently be the trendiest name in town, but it sure is not the last.