University City District: 2023 State of University City Report

On Wednesday, April 26, University City District held its annual State of University City event at World Café Live. Key partners and stakeholders gathered for a celebration of 25 years of University City District as its new State of University City 2023 publication was released. UCD president Matt Bergheiser described key development and innovation stories from the past three years and outlined the contributions of the University City District over the last 25 years.
The State of University City 2023 documents the district’s status as a regional leader in innovation and development, and provides an in-depth guide to 50 development projects—academic, commercial, public and residential space, and more—that continue to transform University City, and other economic development indicators. Below is a report summary.
Spotlight on University City
With world-class universities and hospitals, many regional leaders in science and innovation; millions of square feet of real estate development, and cherished small businesses and cultural organizations, University City sets the pace for development and scientific discoveries in the region. It also functions as a major employment hub, is a transportation nucleus with some of the city’s best options for walking and biking, and is a destination for food lovers and culture seekers. With luxury apartments and historic Victorian homes, family-run restaurants and anchor institutions, and a tight-knit community of residents, University City is a neighborhood of growth and possibility for those who live, study, or work within its boundaries.
Real Estate Development
Permits, groundbreakings, and cranes—development in University City continues to transform Philadelphia’s skyline. Since mid-2022, 50 major real estate projects were completed, made significant progress, or moved closer to breaking ground, representing new inventory for residential, institutional, public space, medical, commercial, and mixed-use projects. Significant progress continues at three major long-term developments—City Square, Schuylkill Yards, and CHOP’s expanding campus. Other key developments, including the new headquarters for Spark Therapeutics, the reimagining of the Provident Building campus at 4601 Market, and additions to Pennovation, have made significant strides in the last year. Together, these investments, totaling nearly 33 million square feet in planned space, further cement University City’s status as a major regional hub for employment, research, and places to live.
Amtrak’s 30th Street Station
Amtrak ushered in a new era of rail in 2022, with increased service and ridership along with a renewed focus on enhancing the customer experience both on board trains and in its stations. At William H. Gray III 30th Street Station, Amtrak marked the first full year of its master development partnership with Plenary Infrastructure Philadelphia (PIP). A true public-private partnership, PIP is leading the effort to design, build, finance, operate, and maintain the station.
To date, PIP has proposed designs for the station renovation, started construction of office swing space, and developed program requirements for corporate office space. In addition, two new, local, Black-owned retailers are now open in the food court area of the station—Dillonades and Sweet T’s Bakery. Dillonades offers fresh squeezed lemonade infused with real fruit, and Sweet T’s Bakery specializes in sweet potato pies and sweet potato desserts.
When complete, the master development partnership will restore and highlight the historic fabric of the majestic station while heightening the level of customer experience by introducing new amenities, reinvigorating the structure’s retail and commercial potential, improving and expanding existing office space, and enhancing transit and pedestrian traffic flows.
This large-scale redevelopment is the first significant phase of Amtrak’s ongoing efforts toward implementing the William H. Gray III 30th Street Station District Plan, which includes nearly 500,000 square feet of renovation and modernization.
Employment
New development and institutional expansions and disruption-resistant industries contribute to University City’s continued status as a top regional employment hub. Over 20,000 job postings for positions within University City were listed in 2022, and nearly 70% of University City’s 80,000+ jobs within the neighborhood pay over $40,000 per year. University City accounts for almost 12% of all jobs within Philadelphia, despite representing only 1.69% of the city’s total footprint. The district’s local economy is dominated by positions at local hospitals and universities, but its growing innovation sector adds more positions in biotech, nascent technologies, and commercialization of research each year as more labs, offices, and commercial spaces are added to the inventory.
Office Space
University City is home to approximately five million square feet of office space, with nearly 800,000 square feet of additional space currently under construction at major development projects throughout the neighborhood. After years of below-market rent for office space, a fall 2022 report from CBRE ranked University City’s 18% increase in office rent to $49.26 per square foot per year as #1 out of 30 tech submarkets. The current asking rent per square foot represents an 18% increase since 2020, but remains more affordable than similar hubs in Boston or Vancouver. When coupled with a vacancy rate of just 9.8%, it is clear that University City’s ascendant life sciences and technology sector is spurring continued growth that sends ripple effects throughout the entire region.
Higher Education
University City is renowned worldwide for its exceptional colleges and universities. Whether they come from around the block, country, or world, over 54,000 undergraduate, graduate, and postgraduate students enrolled in programs at five institutions of higher learning: the University of Pennsylvania, Drexel University, the Community College of Philadelphia West Regional Center, the Restaurant School at Walnut Hill College, and Saint Joseph’s new University City campus.
Both the University of Pennsylvania and Drexel University fared well in recent U.S. News & World Report rankings, with Penn ranked the 7th best national university, 10th in biomedical schools, and 18th for best value, while Drexel excelled in similar lists for most innovative schools (#19) and best undergraduate engineering programs (#54), and finished #2 for its co-ops internships. Students at major local institutions of higher learning continue to be drawn to University City’s global dining scene, beautiful campuses, and prime location in a city on the eastern seaboard.
Healthcare
The four hospitals located within University City—Children’s Hospital of Philadelphia (CHOP), Hospital of the University of Pennsylvania (HUP), Penn Presbyterian Medical Center, and Philadelphia Veterans Affairs Medical Center—serve as a vital part of the district’s economy, employing a combined total of over 36,000 doctors, nurses, techs, and other hospital positions. Each year, Penn Medicine and CHOP fare well in both regional and national rankings: U.S. News and World Report listed CHOP as a top performer in 10 children’s specialties and ranks it at #5 overall in the list of best children’s hospitals nationally. This year, the Hospital of the University of Pennsylvania-Penn Presbyterian was not only #13 among all hospitals in the country, but also the 8th best rated hospital for cancer treatment and the 30th-best large employer in the country, according to Forbes’ 2023 rankings. University City’s hospital systems are developing cutting-edge treatment options and cures for both global and local challenges, while providing premier care for the residents living in their backyards. With the 2021 addition of the Pavilion from Penn Medicine and further expansions forthcoming from both HUP and CHOP, University City remains poised to be a national leader for years to come.
Transportation
University City’s streets, sidewalks, and transit stations combine to offer excellent options for traveling within the neighborhood or to points beyond. University City boasts scores of 90 for walking, 95 for public transportation, and 92 for biking from walkscore.com, all three of which constitute “paradise” status. Severe dips in public transit ridership occurred due to COVID-19 lockdowns and restrictions and are slowly rising again, while neighborhood foot traffic, in contrast, is up by 20% over pre-pandemic figures. In 2022, the Streets Department and PennDOT completed a major project to repave Chestnut Street from 34th to 63rd Streets to increase road safety conditions and improve traffic patterns for pedestrians, cyclists, and motor vehicles, and plans are underway for a similar effort on Walnut Street in 2023.
People
The over 53,000 residents of University City are a mix of students, families, young professionals, and residents who have called University City home for decades.
The population, which consists of a large number of university students, skews young, educated, and ethnically diverse, with 19% of residents born outside of the United States and 25% of households speaking a primary language other than English. The confluence of students also led to 12% of University City residents having moved to the neighborhood from another state in 2021, compared to just 3% citywide. The current population is up by over 9% over 2010 figures, and additional housing options currently under construction will likely lead to further increases.
Life in the Neighborhood
As a place to live, University City offers something for everyone. Over 100 acres of public space and parks provide escape from the city streets and places for people to relax, recharge, and spread out. An eclectic dining scene features a blend of longstanding mom-and-pop restaurants, cuisine from around the globe, and outposts for local and national chains. Options for housing are as varied as the residents, with historic homes, walk-up apartments, stylish high-rises, dormitories, and more inventory on the way. University City boasts a robust arts and culture scene, including theaters, art galleries, and local dance and performance groups. Active neighborhood associations and community groups inject unique character and civic pride in smaller sub-neighborhoods, and serve as a valuable resource for the community.
Innovation
The 2.4 square mile neighborhood is a bustling center for innovation and is a nationally recognized hub for advances in science, research, and medicine. Cutting-edge discoveries originate out of 1.89 million square feet of lab space in research hubs including Schuylkill Yards, City Square, Pennovation, the University City Science Center, and Drexel’s ic@3401. University City’s confluence of labs, benches, and clinics contributes to Philadelphia’s ranking as the #8 cluster for life sciences research talent according to a June 2022 report from CBRE, who also ranked University City as the top North American tech submarket for rent growth from 2020-2022. Discoveries initiated in University City spark billions of dollars in economic growth and attract international attention in fields like biotech, robotics, and medicine. In 2022, 127 patents were issued to University City businesses and institutions, who also accounted for $930 million in NIH funding and have generated over $23 billion in cumulative R&D spending. With lab spaces occupied at a rate of 95.1% and much more inventory on the way, University City is positioned to continue being a regional leader in innovation for years to come.
About University City District
University City District (UCD) is a partnership of world-renowned anchor institutions, small businesses, and residents that creates opportunities and improves economic vitality and quality of life in the University City section of West Philadelphia. UCD works within a place-based, data-driven framework to invest in public spaces, address crime and public safety, support commercial corridors, connect low-income residents to career opportunities, and promote job growth and innovation.
University City District Events
UCD plans events to bring neighbors, visitors, small businesses, and local cultural organizations together through safe, vibrant, and family-friendly activities. UCD’s wide portfolio of community offerings includes arts, music, and pop-up events like performances at the Porch, movies in Clark Park, and events at Trolley Portal Gardens; popular collaborations with local businesses, including the Baltimore Avenue Dollar Stroll and University City Dining Days; and small business networking events. After a tentative approach to event curation in 2021, UCD approached 2022 with a commitment to a full slate of outdoor programming, and helped the community come together and have fun.
To read the full report, click here.
