Philadelphia

Trends Point to Accelerated Growth

Philadelphia is very well positioned to take advantage of an accelerated national trend of energy conservation because of its mass transit infrastructure, says Jerry Sweeney, president and chief executive officer of Brandywine Realty Trust. “The city is at the hub of the regional transportation network. Our 30th Street train station is second in passenger volume only to Penn Station in New York City.”

The region is served by Amtrak, major interstate highways and turnpikes, and it ranks as the least congested of the top ten U.S. metropolitan areas. The region’s largest transportation authority, SEPTA, has seen a substantial increase in its ridership in and out of Center City. Philadelphia is also recognized as one of the nation’s most walkable cities, with more residents choosing to walk or bike to work than in Chicago or Washington, D.C.

“One of the things that makes Philadelphia unique in the national development landscape is its accessibility,” says Sweeney. “That, along with a vibrant cultural environment, is important for attracting younger workers and empty nesters. It’s an essential part of making the University City area of Philadelphia an epicenter of urban transformation along the Northeast Corridor.”

Brandywine, a real estate investment trust, has its national headquarters in suburban Philadelphia. With 30 million square feet of office space, Brandywine is one of the region’s largest landlords and developers. Most of its inventory is in Philadelphia and the adjacent tristate area. The company’s recently completed 30-story Cira Centre complex is the first major office building constructed in the University City area. Its proximity to the 30th Street station, Drexel University and the University of Pennsylvania allows 80% of Cira Centre tenants to commute to work via public transportation.

The Philadelphia marketplace is poised for an infusion of investment capital when the real estate market recovers, says John A. Westrum, chief executive officer of Westrum Development Company. “Strategically located on the East Coast between Washington, D.C., and New York, Philadelphia’s direct cost of living is significantly less than that of these competing cities. Over the past ten years, the downtown area has seen a renaissance with hundreds of new businesses and restaurants opening. This has permeated into neighborhoods, and they are now seeing a significant investment.”  

Westrum Development has been actively engaged in the revitalization of Philadelphia, building environmentally sensitive townhouse and condominium communities in urban neighborhoods. CEO Westrum is a member of the Pennsylvania State Planning Board and the Philadelphia Green City Strategy Committee.

“Philadelphia is growing with single- and double-income residents without kids as well as empty nesters,” he notes. “Compared to five years ago, Philadelphia is now becoming a 24/7 city. The live-work-play environment exists now and will continue, with the trend of the younger workers preferring to live near work. Philadelphia has made a significant effort toward promoting safety within the city, and that has helped as well.”

Westrum sees the costs to live and work in the city becoming comparable to those of suburban areas. “Coupled with the city’s desire to go green and provide a sustainable environment for companies, the climate is favorable for expansion and relocation opportunities,” he says.

Residents in the Greater Philadelphia region have the third-lowest
commuting time among the country’s 12 largest MSAs (metropolitan
statistical area), with an average travel time of 27.8 minutes.

A Strong Knowledge Base

With 92 colleges and universities, including the University of Pennsylvania, Temple University and Drexel University, the Greater Philadelphia region provides a steady supply of job-ready workers. “Our wealth of educational institutions guarantees that any type of specialized education or training that companies might want is here, or could be shaped here,” says Schweiker.

The region’s major universities enhance its competitive edge in life sciences, technology, business and entrepreneurship. The University of Pennsylvania is the largest private employer in the city of Philadelphia and the second-largest employer in the commonwealth. It is also the second-largest recipient of National Institutes of Health funding in the nation.

Top researchers in neuroscience are coming to the University of Pennsylvania as a result of the recent $50 million contribution from Penn’s Health System to endow five new Penn Integrates Knowledge (PIK) professorships in neuroscience.

“This initiative will bring even more preeminent researchers in neuroscience to Penn, allowing us to better understand neurodegenerative disease,” says Penn President Amy Gutmann, Ph.D. “It builds on Philadelphia’s reputation as a powerhouse for biotech research, including genetics, stem cell, neuroscience and nanoscience. We expect the new research to have great economic benefits for Penn as well as for Philadelphia, as patents are brought to market.”

The Wharton School of Business at Penn has been a preeminent presence for more than two decades. Its Small Business Development Center serves a dual mission, engaging management and consulting students to help local small-business owners succeed.

Since 1995, Drexel University, led by President Constantine Papadakis, Ph.D., has had a long history of excellence in technology and cooperative education that translates into advantages for local employers.

In 1983, Drexel became the first major university to require the use of microcomputers by all students, and in 2000 it became the first major university to operate a fully wireless network. In 1998, Drexel’s library became the nation’s first to make the strategic decision to migrate to an electronic-only journal collection. Most recently, Drexel’s School of Education partnered with Apple, Inc., to provide free iPods to incoming freshmen. The students are exploring ways to incorporate iPods in elementary and secondary education.

Drexel’s new Edmund D. Bossone Research Enterprise Center, designed by I.M. Pei, is home to the Drexel Research Resources Center, a central materials characterization facility containing Raman spectroscopes, high-resolution transmission-and-scanning electron microscopes and atomic-force microscopes. Staffed by expert technicians, the Research Resources Center is available for use by regional organizations and the academic and corporate communities of greater Philadelphia.

Students contribute to the local workforce by completing their cooperative education requirement — experience-based learning through which students alternate periods of classroom study with full-time, paid professional-level employment. Drexel law students provide pro bono services to the local community. Through civic engagement programs, Drexel students and employees volunteer thousands of hours of community service.

Philadelphia high school students are getting new opportunities for exposure to the business world through a forward-thinking partnership with local companies. Over the past two years, the business community has provided nearly 3,000 paid summer internship opportunities for high school students who otherwise would not have exposure to a business environment.

“The business community is supporting Mayor Nutter’s workforce development goals and recognizes its responsibilities to support them,” says Independence Blue Cross’ Frick. “We have taken steps in partnership with city leaders and members of Philadelphia’s renowned academic community to seed the next generation of Philadelphia’s workforce.”

Twenty-first-century business skills are the goal of a pilot program launched in 2008 for Philadelphia high school juniors. The School District of Philadelphia teamed up with the Project Management Institute (PMI) Educational Foundation, DeVry University and the PMI Delaware Valley Chapter to underwrite the effort. The program engages students in college-level study of project management practices along with lessons in global literacy, problem solving, innovation and creativity.  

“The Philadelphia region is a great place to do business. We have many thriving companies, a world-class convention and tourism industry, a high quality of life and a lower cost of living than many other cities. We are making great progress by creating a more business-friendly government, growing our global brand and lowering taxes. We have a thriving community. Philadelphians love where they live, play and work.”

- Deputy Mayor Andrew Altman

 
Philadelphia Success Stories

Philadelphia has proven its success in attracting new and expanding companies of all sizes. Instrumental to many of these gains is the city’s systematic reduction of its wage and business taxes in an effort to improve the business climate and encourage more investment and jobs.

AgustaWestland, an Italian helicopter manufacturing company, recently chose to locate and expand in Philadelphia with an investment that now tops $100 million. “AgustaWestland came here because of all Philadelphia has to offer,” says Deputy Mayor Andrew Altman. “We’re within 300 miles in any direction of a massive East Coast market; we have an excellent transportation system, from highways and the port to the Philadelphia International Airport, which has excellent service to Europe.”

A new project on brownfield land at the Philadelphia Navy Yard aligns well with the city’s sustainability efforts as well as its economic health goals. The Exelon Epuron Solar Center will generate 1 MW to 1.4 MW of clean, renewable energy. “Economic development can go hand in hand with environmental progress,” says Mayor Nutter. “This innovative solar project will take land that has been idle and turn it into an asset for the commonwealth, creating energy, jobs and a stable, reliable supply of electricity to serve our families and businesses.”

The Neat Company (formerly NeatReceipts) was founded by a father-and-son team at the University of Pennsylvania in 2002. The company developed an innovative scanner technology to digitize sales receipts and business cards. Over time, The Neat Company’s product line has evolved into tools for managing any kind of data. In 2007, the company had projected sales of $20 million. Its co-owner, Rafi Spero, was voted into the top “40 under 40” entrepreneurs by Forbes in 2006, and it was named “Best Small Company to Work For” by Philadelphia magazine in 2007.

Greater Philadelphia’s thriving life sciences cluster continues to generate success. There are more than 400 locally based life sciences companies, and the region has four times the national concentration of pharmaceutical manufacturing facilities. Philadelphia is home to Wyeth Pharmaceuticals, developers of BeneFix^®, the first drug using recombinant technology to control and prevent hemophilia B. Other groundbreaking biotech developments include research and develop-ment for a once-daily HIV treatment by Incyte, and Centocor’s REMICADE^®, the world’s only monoclonal antibody approved for Crohn’s disease and rheumatoid arthritis.

History, Sports and Weekend Getaways

“Historic Philadelphia is our primary tourism asset,” says Pennsylvania Convention Center President and Chief Executive Officer Young. “The city is rich in American history, particularly as it relates to chronicling the Colonial journey and building of the ideological infrastructure of our nation. The Liberty Bell is a leading destination, as are Independence Hall, the National Constitution Center and Independence Visitor Center. Projects such as the President’s House Commemorative Site are bringing new historic details to light.

“Business visitors are surprised when they discover how clean and friendly Center City Philadelphia is,” says Debra Diamond, Ph.D., director of research for the Greater Philadelphia Tourism Marketing Corporation (GPTMC). “It looks different than they expect. We also have learned in our research that conference visitors like the fact that downtown stays open all night. It has that characteristic because of the diversity of our population — businesspeople, students and conventioneers — so it’s lively all the time.”

“Philadelphia has always hosted a number of business visitors, but unless they are affiliated with the medical field they may not realize that life sciences is the number one employer in the region,” says Young. “As a result, Philadelphia is a world-class destination for the life sciences industry’s meetings, conventions and business opportunities.”

“When we say, ‘Our Brand is Independence,’ we emphasize that Philadelphia is accessible, fun and easy to discover on your own,” says Diamond. The city’s famed downtown historic district can be experienced with walking tours, self-guided audio trails and interactions with character actors in period dress. The Philadelphia Zoo, a longtime attraction, draws more than 1 million visitors annually. Newer destinations include the refurbished, family-friendly Franklin Square, which contains the Philadelphia Park Liberty Carousel.

The Comcast Center’s ongoing activities will generate more than $1.6 billion annually in total
expenditures, supporting more than 9,000 jobs and $600 million in total earnings for Philadelphia.

“People can come here and have a very customized experience,” Diamond adds. “It can include history, classical art, theater, restaurants and nightlife. They can find that independent flavor in our shops and restaurants, too, because for a long time, Philadelphia was ignored by the major chain stores. So we have many unique restaurants and boutiques in converted warehouses and old townhouses.”

The message is getting out: Philadelphia’s overnight and weekend leisure business has expanded dramatically, with an increase of 4 million visitors over the last ten years. “Philadelphia is an excellent getaway location with a variety of hotels with a range of price points,” says Young. “There are lots of options for family travel and a substantial network of professional sports teams. We have quite a few theaters — including neighborhood theaters — countless museums, an internationally acclaimed orchestra housed at the spectacular Kimmel Center, and awesome dance and ballet companies such as Philadanco [the Philadelphia Dance Company] and the Pennsylvania Ballet.” 

The Philadelphia Convention & Visitors Bureau (PCVB) is the official tourism promotion agency for the City of Philadelphia and the primary sales and marketing agency for the Pennsylvania Convention Center. The PCVB competes with its counterparts worldwide for convention and tourism business. The organization has departments dedicated to the multicultural, sports and life sciences markets.

Open for Business
Welcoming to outside business, eager to grow from within, clear about its goals and ready to share its history and future, Philadelphia is showing the world that it is poised to greet every new day in a bold new way.

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