Center City has fewer vacant storefronts but occupancy rate still lags
Center City District, the business advocacy group, surveys the state of retail occupancy twice a year.
Center City’s vacant retail spaces have become fewer in recent months, as more businesses set up shop, but occupancy still lags behind 2019 levels.
Center City District says 84.2% of Center City retail spaces are filled — up from 82.6% some six months prior, according to a survey released this week by the business advocacy group.
The number of occupied storefronts has seen a net increase of 32, according to the semiannual survey.
“Occupancy held steady or improved across every major east-west corridor in the district,” Prema Katari Gupta, CCD president and CEO, said in a statement. “What we’re seeing is a retail market that is diversifying and strengthening, supported by a growing residential base and ahead of an extraordinary calendar of major events ahead for Philadelphia.”
The slight increase represents the highest retail occupancy in the last two years in Center City, the survey notes. Still, that’s behind the 89% occupancy reached in the area in 2019.
Occupancy dropped to roughly 55% during the pandemic.
While storefronts along Walnut Street are 87.5% occupied, Sansom Street reports 85.1% occupancy, and Chestnut Street is at 80%. Among the four streets the survey evaluated, Market Street reported the lowest occupancy at 71.6%.
Three of the four streets increased occupancy in the last six months.
Sansom Street West’s occupancy was unchanged while Sansom Street East saw an increase.
» READ MORE: How is Center City retail doing? It depends what street you’re on.
What kinds of businesses are opening?
“A significant factor behind the district’s sustained retail growth is Center City’s steadily expanding residential population,” the survey notes.
Businesses that opened in Center City in the last year include barber shops, salons, restaurants, and jewelry stores, which cater to residents who live and work in Center City, the survey indicates.
Recent and forthcoming additions highlighted in the report include the Jordan Brand’s “World of Flight” store; Bathhouse, a spa and sauna; Tidal Force VR, a virtual reality experiential business; and the reopened Iron Hill Brewery on Market Street.
Center City District’s survey indicates that Yemeni coffee shops are becoming popular in the area, and two brands — Haraz Coffee House and Jabal Coffee House — are set to open new shops on Chestnut, reflecting a larger trend in the city.
