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C&W 4Q16 Market Report: National, International Retailers Continue Migration to Philadelphia CBD

| February 8, 2017 | 0 Comments

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PHILADELPHIA, Feb. 8, 2017 – Despite a rise in unemployment in the fourth quarter of 2016, Philadelphia saw its highest annual increase in retail sales since 2010, according to Cushman & Wakefield. The commercial real estate services firm’s Philadelphia research team released its fourth-quarter 2016 Retail MarketBeat report, which also projects the continued migration of national and international retailers to the market through 2017.

“Total retail sales in the Philadelphia market rose by 4.2 percent in 2016, up from a 1.9 percent growth rate the previous year,” said Jared Jacobs, Cushman & Wakefield research manager. “We expect this upward trend to continue in 2017, with a forecasted annual growth rate of 6.3 percent.”

Prime rental rates on Chestnut Street jumped by $20.00 per square foot in 2016 to $85.00 year-over-year, while rental rates on Walnut Street remained flat for the period at $135.00 per square foot.

Leasing activity was healthy on both Walnut and Chestnut Street, with multiple national tenants making moves to the Philadelphia CBD for the first time in 2016. Significant Walnut Street Lease signings included Under Armour, which finished construction and occupied a new 10,000-square-foot store in August at 1529-1533 Walnut Street; and Rag & Bone, which marked its entrance to the downtown Philadelphia market in December by taking 4,200-square-feet at 1601 Walnut Street, BCBG Maxazria’s former location.

Additional retailers that leased space on Walnut Street in 2016 included Bonobos signing a 2,600-square-foot lease at 1519 Walnut Street; Warby Parker taking 2,360 square feet at 1523 Walnut Street; Thos. Moser inking a 2,900-square-foot lease at 1605 Walnut Street; and Pandora Jewelry taking 2,350 square feet at 1613 Walnut Street.

Several big box retailers established locations on Chestnut Street in 2016. A.C. Moore signed a 30,000-square-foot lease at the Land Title Building at 100 South Broad Street, formerly occupied by F.Y.E. Its new store is scheduled to open during the first quarter of 2017. Old Navy opened a new 23,464-square-foot store in the Art Institute of Philadelphia building at 1618-1622 Chestnut Street. Target opened two new locations on Chestnut Street in 2016, a 23,302-square-foot store at 1900 Chestnut Street; and a 19,054-square-foot store at 1128 Chestnut Street, in the East of Broad submarket.

“The outlook for 2017 continues to be positive,” noted Jacobs. “With an influx of new residential development in the downtown market, the Philadelphia MSA’s total population is projected to increase by 0.6 percent by 2020. To support this growing population, we expect to see the continued migration of national and international retailers with no previous presence in the market.”

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About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

 

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Category: Cushman & Wakefield Philadelphia, News Releases, Newswire: Latest News

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