COULD PA. ENACT RIGHT-TO-WORK? AVOID BAD DECISIONS DURING HOLIDAYS
MAYOR NUTTER’S CHINA TRIP: GOOD INVESTMENT FOR CITY
REGION’S BUSINESS
PHILADELPHIA EDITION
A JOURNAL OF BUSINESS AND POLITICS
2013 REAL ESTATE: AS USUAL, IT’S ALL ABOUT LOCATION Several factors have created an upbeat outlook for the real estate market, but the optimism is tied very closely to location.
CORBETT SAYS NO TO STATE HEALTH INSURANCE EXCHANGE WHAT THE POST OFFICE CAN TEACH US ABOUT OBAMACARE MUSEUM LOOKS PAST MAYAN APOCALYPSE RegionsBusiness.com $2.00 U.S.
13 DECEMBER 2012
13 DECEMBER 2012
REGIONSBUSINESS.COM
CONTENTS
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3
Optimism based on location
Several factors have created an upbeat feeling about the 2013 real estate market, but it comes with a caveat as the market can change drastically depending on a property’s location. Center City is hot, some other spots are not.
!
OBAMA HAS BEEN UNWILLING TO EVEN HINT THAT HE’LL ASK THE SAME COMPROMISE FROM HIS LIBERAL BASE AS HE EXPECTS BOEHNER TO EXTRACT FROM CONSERVATIVES.’ BRAD TODD ON POLITICO 9 DECEMBER 2012
stress could 15 Holiday lead to bad decisions
Right To Work 18 Could Happen Here in Pa.?
! Controlling emotions during the holidays can help you avoid making bad decisions and mistakes that could sidetrack you from your goals.
! As the right-to-work movement spreads into Michigan, is there any chance Pennsylvania could soon follow?
26
Time running out to see if Mayans were right
! The man at the helm of the Penn Museum has plans beyond the end of the year, even if the current exhibit on the Mayans prophecy of the world’s end this month turns out to be correct.
on 30 Lessons Obamacare
29
Nutter in China: Trip made good business sense
Critics were quick to jump on the mayor for spending time in China, but taxpayers didn’t foot the bill and creating interest in investments for the city is just the type of thing he should be doing. !
! We can learn plenty from the U.S. Post office.
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PRG welcomes National Penn Bank to their newest center city location at the corner of 21st and Market. Occupancy is scheduled for the Spring 2013 while the apartments above have begun delivery, totaling 282 units. PRG would also like to thank Metro Commercial Real Estate and Joe Dougherty for their efforts representing the Tenant.
PRESIDENT AND PUBLISHER James D. McDonald
1,000-7,000 SF premier retail space 22 residential apartments above Corner space available on 5th and Bainbridge Tremendous Signage/Exposure in the heart of Queen’s Village
EDITORIAL DIRECTOR Karl M. Smith ASSOCIATE EDITOR Terrence Casey CONTENT TEAM Emily DiCicco, Victoria Marchiony CONTRIBUTORS Carisa Chappell, Eric Boehm, Timothy
Holwick, Don Lee ADVERTISING DIRECTOR Larry Smallacombe DIRECTOR OF BUSINESS DEVELOPMENT Jim Bauer ACCOUNT MANAGER Rachel Sollberger
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13 DECEMBER 2012
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EDITOR’S DESK
Invest Time To Raise Level of Political Rhetoric
Karl Smith is the Editorial Director for Region’s Business. You can contact him at ksmith@regionsbusiness.com.
Like most people, I use Facebook mainly for sharing life’s little victories (“my son made the jazz band!”) and silly jokes. Every so often, though, I find myself in a back and forth about politics or news, which I usually regret, but sometimes find enlightening. Lately, that’s happened with one person in particular. He’s a hardcore Libertarian, who loathes President Obama with an intensity that exceeds most measuring devices. Several times, both before and after the election, he went off on a screed about the media. His posts varied, but the theme was similar - the media is hiding things. My responses were succinct and also had a similar theme - what media are you consuming? I pressed him on this when he went
on a post-election tirade about the fiscal cliff, stating that the media had buried the issue until after President Obama won re-election. I don’t consider myself a heavy consumer of media - maybe more than average, I guess - but I told him I had heard a regular stream of analysis and news about the situation. More specifically, I had heard (I say heard because I listen to a lot of radio sitting in traffic on the turnpike) how the situation might be dealt with if President Obama won or if Mitt Romney won. While surfing the web (an occupational hazard), I came across plenty of perspectives on both sides of the issue. The news is out there, I said. But you have to go get it. It wasn’t until an office discussion, during which I was identified as a potential “closet liberal” (I can categorically deny
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that, but that’s another story), that I realized there are two issues in play here. The first is the intense polarization of political discussion in the country. Most folks distill political issues down to “you’re either for me, or against me,” which leaves little room for discussion. There’s no middle ground. And there’s not room to really discuss, either, because both sides are painted by opponents as idiots. This is fed by the second issue, which is that Americans, in general, don’t want to invest time in issues and want things to be simple. It’s easier to say “Obama is a moron, it’s his fault,” than to look deeper into an issue and see where the president may have fallen short and where his counterparts in the GOP have also contributed to a problem. That would require effort, some-
thing we, collectively, have shown little interest in when it comes to the big issues that face our country. Things like healthcare reform, the fiscal cliff and the country’s tax code are complex items and we shouldn’t be forming our opinions based on 30-second rants by heavily biased talking heads. Sadly, while Americans seem to have no problem investing hours in following the antics of Honey Boo Boo and the Kardashians, as an electorate, we seem adamant in our staunch opposition to investing even a few minutes consider two sides of any political issue. The result is the simple-minded state of political debate across the country. The volume increases as the intelligence level of the conversation drops and, for the most part, the volume is set at 10. It’s time to turn that around.
13 DECEMBER 2012
REGIONSBUSINESS.COM
WEEKLY BRIEFING
5
NATIONAL CONSTITUTION CENTER
LOWER BUCKS COUNTY CHAMBER
Jeb Bush Named Chair of Constitution Center
Chamber Selects New Leadership
Bill Clinton is handing over the keys to the National Constitution Center to former Florida Governor Jeb Bush. “I am honored to have this opportunity and am humbled to follow in the footsteps of my beloved father, President George H.W. Bush, who first exemplified to me what it means to be a good citizen and to uphold the ideals expressed within the U.S. Constitution,” said Mr. Bush in a press release. “I will do my best to advance the Center’s mission and continue the vision set forth by President Clinton’s leadership these last three years.”
The leadership of the Lower Bucks County Chamber of Commerce has decided to name businessman Dan Bates as president, effective January 1, 2013. Mr. Bates has been serving as interim president since the February resignation of longtime president Clark Shuster, and has been a member of the chamber for more than a decade. Mr. Bates currently serves as president and founder of the Business Marketing Alliance, an organization that develops marketing and business strategies for companies and nonprofit organizations and as a consultant to Bucks County. He plans to step away from these posts to take on the chamber job and focus the chamber.
NASA
SUPERSTORM SANDY
ECONOMY Despite the physical and economic toll taken by Superstorm Sandy, the economy is doing better than analysts predicted.
7.7%
MEDIA
Inquirer, Daily News to Launch Own Sites The Philadelphia Inquirer and Philadelphia Daily News, after years of sharing Philly.com as a common online presence, are launching individualized websites as early as the first quarter of next year. Philly.com VP and GM Steve Alessi told NetNewsCheck that the sites will have paywalls, but the exact fee has not been finalized. “It became increasingly apparent that having an Inquirer.com destination would be fully embraced,” Mr. Alessi said in an email with NetNewsCheck. According to Mr. Alessi, Philly.com will still function; however, there are some changes in the works. Among other things, its video features will most likely be expanded. BUSINESS
DCED Lowers Rates The Department of Community and Economic Development (DCED) is lowering rates for the Machinery and Equipment Loan Fund (MELF), the Small Business First Program (SBF), the Pollution Prevention Assistance Program (PPAA), and the Export Financing Program (EFP) will be decreased from 2.75 percent to 1.50 percent.
Unemployment rate, the lowest in nearly four years (however, many people stopped looking for work)
12M
Unemployed Americans in November
146,000
Jobs added in November
Obama Seeks Aid With just weeks to go before Congress adjourns, President Barack Obama submitted a request to Congress for more than $60 billion in federal aid to the Northeast states affected by Superstorm Sandy. The storm left a total of at least 125 dead. It damaged or destroyed more than 72,000 homes and businesses in New Jersey alone. Governor Tom Corbett said the damage in Pennsylvania alone will cost at least $16 million. The money will help recovery and rebuilding projects in the states hit, as well as provide funds to protect against future natural disasters. However, the impending fiscal cliff may cause approval of the request to be a long time coming, with legislators looking for spending cuts wherever they can. The federal government has already spent about $2 billion in the 11 states struck by the storm.
JOBS
TRANSPORTATION
Firm Adding 200
Spirit Adds Dallas Flight
Online reputation management firm Reputation Changer, which employs proprietary technology to improve the online reputation of businesses and individuals, announced it will hire 200 new staffers and open its first Philadelphia office in early 2013. The expansion follows the company’s acquisition of 1,000 media sites to launch a news enterprise that will complement its core service of improving clients’ online standing.
Spirit Airlines will begin offering daily nonstop flights between Philadelphia and Dallas-Fort Worth April 4. The planned schedule for the flights will add an outgoing flight from Philadelphia at 12:45 p.m. and a return flight that leaves DFW at 7:40 a.m. There will also begin offering Dallas-to-Minneapolis-St. Paul flights that day.
AFRICAN-AMERICAN CHAMBER
Campaign Warns Against Possible Airline Merger
Leadership of the African-American Chamber of Commerce of Pennsylvania, New Jersey and Delaware recently announced the creation of “Protect Our Hub,” a new region-wide public awareness effort to educate the community about a potential merger between US Airways and American Airlines. The group says the merger threatens the viability of Philadelphia International Airport in the midst of an expansion. “From our perspective, if US Airways merges with American Airlines, our fear is that the new airline could downgrade its Philadelphia International Operations, which would mean fewer opportunities for minority- and women-owned businesses and their employees,” chamber Chairman Steve Bradley said during a press conference.
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REGIONSBUSINESS.COM
WEEKLY BRIEFING COMMERCIAL REAL ESTATE
CENTER CITY
LAW
Toll Bros. Settles Suit, Will Pay More Than $16M
National Penn Bank National Penn Bank has leased 6,186 square feet for a new branch at 2040 Market Street. This newly developed building was the former Mid-Atlantic AAA Headquarters, and has been extensively rebuilt and expanded into a luxury apartment building. The bank is expected to open in early 2013.
Allen Edmonds The U.S.-based manufacturer of premium men’s footwear and accessories has leased 1,865 square feet on the southeast corner of 18th and Chestnut streets.
Medical Rehabilitation Center of Pennsylvania Medical Rehabilitation Center of Pennsylvania will occupy a full floor of 13,038 square feet in Spring 2013 at 1608 Walnut Street.
LUSH The cosmetics and soap emporium will open a 2,355 square feet store shortly at 1525 Walnut Street, relocating from its longtime home at 1428 Walnut Street.
Federal Donuts Federal Donuts recently opened its doors on its
first Center City spot at 1632 Sansom Street, with a 635-square-foot outpost for its renowned fried chicken and donuts.
Luxury-home builder Toll Brothers Inc. has agreed to pay $16.2 million to settle claims that it misled shareholders about the company’s future prospects while collecting $615 million in revenue from company stock, Reuters reported. If approved, it would resolve claims that Toll Brothers directors worked to convince investors the company would be successful during a housing market recession. Executive defendants will pay $6.45 million of the settlement, Toll Brothers’ insurers will make up the rest, $9.8 million.
Report: Toll Bros. In at Whole Foods Developer Neal Rodin is teaming up with Toll Brothers Inc. at the Best Western site at 22nd Street and Pennsylvania Avenue, according to the Philadelphia Business Journal. The $100-million project includes 300 rental units and plans for an expanded Whole Foods. The current Whole Foods will be relocated to 21st Street and Pennsylvania Avenue.
DEVELOPMENT
Hand & Stone Massage
1318 Brauhaus
David’s Bridal The wedding retailer is expected to open its 8,164-square-foot location at the intersection of Cottman Avenue and Bustleton Avenue by the spring of 2013.
Tile Shop The Tile Shop has signed a 17,405-square foot lease in Langhorne, Pa. The store will open in the spring of 2013 at 2270 East Lincoln Highway, adjacent to the Oxford Valley Mall.
Glenolden Apartment Complex Sold for $5.35M Contemporary Village, a 126unit apartment complex at 100 E. Glenolden Ave. in Glenolden, Pa., sold to an undisclosed buyer for $5.35 million, via Auction. com, according to the Philadelphia Business Journal. Ken Wellar and Corey Lonberger, investment brokers in Marcus & Millichap’s Philadelphia office, said in a statement that they tracked the deal for two years.
Silk Factory Lofts Acquired
Hand & Stone Massage has inked a deal for 3,000 square feet at Rodin Place, 2000 Hamilton Street, part of the mixed-use complex also occupied by Whole Foods and Philadelphia Sports Club. They opened in the Fall of 2012.
1318 Brauhaus will open a 3,200-square-foot restaurant in the summer of 2013 at 1318 Chestnut Street. The new tenant, also owners of Finn McCool’s, felt this location would benefit from the renaissance that is occurring along 13th Street in the Midtown Village.
RESIDENTIAL
Spruce Street Plaza, between 33rd and 34th streets, was set to open this week after months of construction. The plaza features trees, small shrubs and a lawn, along with stainless steel benches. More greenery will be planted in the spring. The $2.5 million project was designed by Matthews Nielsen Landscape Architects. UNIVERSITY OF PENNSYLVANIA OFFICE OF FACILITIES AND REAL ESTATE SERVICES
NAVY YARD
Motorcycle Gear Shop Moves from South Philly
New Iroko Office Completed
Come February, the Philadelphia Navy Yard will be home to RevZilla. com L.L.C., an online motorcyclegear shop that features all motorcycle accessories. RevZilla was originally housed in a small warehouse in South Philadelphia. Its new location is a 50,000-square-foot property next to Tasty Baking Co. Friends Anthony Bucci, Nick Auger, and Matt Kull started the 50-employee company five years ago, without the involvement of outside investors.
Iroko Pharmaceuticals held a grand opening ceremony Wednesday for its new headquarters at 150 Rouse Boulevard in the Navy Yard. The $15.2 million office, developed by Liberty Property Trust and Synterra Partners, gives Iroko 56,000 square feet, nearly tripling its space, according to the Philadelphia Business Journal.
Real estate investment company Morgan Properties announced December 6 that it has completed its acquisition of The Silk Factory Lofts, a 116-unit apartment complex in a historic former factory in Lansdale, in a sheriff sale for an undisclosed amount. Constructed in 1922 as the Interstate Hosiery Mill, the factory was renovated in 2008 and converted into loft-style apartments. Morgan Properties already operates more than 1,000 units in and around Lansdale.
Liberty Property Buys Properties Via Online Auction Malvern, Pa.-based Liberty Property Trust is buying two Minneapolis-St. Paul area properties for between $6 million and $7 million each. Liberty found the properties through an online auction — a first for the REIT in that market, according to the Minneapolis / St. Paul Business Journal. Terms of the sales haven’t been released.
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WEEKLY BRIEFING
HEALTH CARE
HEALTH CARE
HEALTH CARE
Good Shepherd CEO to Retire
First Phase of St. Mary’s Expansion Complete
Hepatitis B Foundation Receives $125K Grant
Sally Gammon, president and CEO of Good Shepherd Rehabilitation Network since 1997, announced December 7 she will be retiring. During her time at Good Shepherd, the organization grew from a local rehabilitation provider to a regional healthcare system, from a $45 million to a $201 million organization. The organization is the majority owner of the joint venture and provides inpatient and outpatient postacute care for Penn Medicine. Good Shepherd’s board of trustees will look for her successor.
Karabots Pediatric Care Center Plans Upcoming Ribbon-Cutting The Karabots Pediatric Care Center, at 48th and Market streets in West Philadelphia, is set to open by February. The 52,000-square-foot facility should be able to handle more than 45,000 outpatient visits each year, according to CHOP.edu.
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Nicholas and Athena Karabots and the Karabots Foundation of Fort Washington, Pa., donated $7.5 million to the center. The total cost of constructing the center and its 56 examination rooms was $26 million, according to PhiladelphiaRealEstate.com.
St. Mary Medical Center, located in Langhorne, Pa., has completed the first phase of its $22 million emergency department and trauma center expansion after a year. Changes include 18 private treatment rooms with glass doors, private bathrooms, televisions and comfortable family seating, and a computer for care providers to access medical records, and small nurse stations located between treatment rooms to provide nurses closer contact with patients.
The Hepatitis B Foundation, of Doylestown, Pa., received a $125,000 grant from the Centers for Disease Control and Prevention to document and support health care advocacy work. The foundation is working to find a cure for hepatitis B, while improving the quality of life for those affected by the disease. It was recognized for its Hep B United Philadelphia campaign, a public awareness and education movement to address the growing severity of hepatitis B and liver cancer in the city.
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Life Insurance. Retirement. Long-Term Care.
13 DECEMBER 2012
REGIONSBUSINESS.COM
CYBER SCHOOLS
Cyber Schools’ Impact Detailed “Cyber charter school enrollment has an enormous impact on the School District’s budget and Five Year Financial Plan,” Superintendent William Hite wrote in testimony in the Philadelphia Public School notebook. “We expect that by 2017, cyber charter seats will cost the School District more than $75 million per year — even if no new cyber schools are approved.
WEEKLY BRIEFING
11
PHILADELPHIA SCHOOL DISTRICT
Gates Foundation Donates $25M to School District Philadelphia wil l receive $25 million from the Bill and Melinda Gates Foundation as part of an initiative to forge better relationships between charters and district schools. Six other cities will also receive multi-million dollar donations. These cities pledged in 2010 to break down barriers between traditional
LAW SCHOOL
Villanova Receives Two Years Probation
Villanova University School of Law has been put on two years of probation by the Association of American Law Schools for a 2010 scandal involving false data being submitted to the American Bar Association, according to the Philadelphia Inquirer. Faculty members at the school had improperly inflated students’ LSAT scores and median GPAs. The probation does not impact Villanova’s accreditation, according to an Associated Press report.
and charter schools. Sixteen cities total signed the contract and received a minimum of $100,000 grants from the foundation. Charter schools were never intended to compete with traditional schools; rather, they were intended as places to develop new teaching techniques to be introduced into public schools. DONATIONS
Swarthmore Receives $50M Philanthropist Eugene Lang, founder of the intellectual property firm Refac Technology Development Corporation, is donating $50 million to Swarthmore College, his alma mater. The money will be spent on new engineering and science facilities. “This $50 million gift will allow us ... to get state-ofthe-art facilities. It’s about bringing all the disciplines together around how do we design, create, support, sustain and move forward innovation in this century,” Swarthmore president Rebecca Chopp told WHYY Newsworks.
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REGIONSBUSINESS.COM
WEEKLY BRIEFING EXECUTIVE BOOKSHELF
WHO TO FOLLOW
@SteveCase Co-founder of AOL; now chairman of Case Foundation and Revolution RT @SteveCase: Arriving at Cowboy Stadium to celebrate startups. Will be on @CNBC to discuss in half hour. @StartupTX #StartupAmerica — December 7, 2012 RT @SteveCase: My answer: no RT @ npquarterly: Will @ CaseFoundation chairman @ SteveCase be the next U.S. Secretary of Commerce? — December 7, 2012
Do They Take Credit Cards in Heaven? A cover charge to get into your final resting place? The question may seem silly, but acclaimed economist Milica Bookman takes it dead seriously in her newest book, “Do They Take Credit Cards in Heaven? Economics in the Afterlife.” In it, she takes the reader on a tour through the myths surrounding the afterlife, while teaching key economic concepts. “Bookman takes two seemingly dissonant topics...and seamlessly blends them into a fascinating work that is clever and compelling,” said Miriam Van Scott, author of Encyclopedia of Heaven and Encyclopedia of Hell. “[This] is a must for anyone interested in economics, life after death or who simply craves a good read.”
MUST-HAVE APP
Glympse
RESTAURANT ROUNDUP
Iron Hill Brewery
The more business-oriented version of Foursquare, Glympse (free; Android and iOS) allows users to seamlessly share their location, stamping their check-in on their device’s calendar and instantly sending colleagues a Google Maps location box, which details your estimated arrival time. Because this information is shared via text message or email, your colleagues don’t even need to have the app. GOTTA-HAVE-IT GADGET
Lytro Camera Flipping every bit of basic photography knowledge upside down, the Lytro Camera ($399 to $499) is a mini-sized, oblong camera that encourages photo capturing first and focusing later. The camera’s light field technology allows users to take photos and then precisely choose the focal point of a photograph using a PC.
Iron Hill Brewery & Restaurant will open its 11th location in the region with a site in Ardmore Pa., opening January 2014. A Voorhees, NJ, location will open next year.
Hummus Grill Hummus Grill, currently in Ardmore and University City, will replace the Sante Fe Burrito Company near 11th and Walnut Streets by March 2013.
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REGIONSBUSINESS.COM
DEALBOOK
LEGAL
ENERGY
Construction Firm Acquiring New York Firm
Atlas Pipeline Buying Cardinal Midstream
Philadelphia-based construction law firm Cohen Seglias Pallas Greenhall & Furman said earlier this month that it will acquire New York-based Georgoulis & Associates January 1. Georgoulis has three partners and three associates and will serve as Cohen Seglias’ first fullystaffed New York office. This the second small firm Cohen Seglias, which currently has eight offices in Pennsylvania, New Jersey, New York, Delaware, Maryland and West Virginia, has acquired this year. Cohen Seglias vice president Edward Seglias said earlier this year that the firm will look to expand into North Jersey and the Maryland/Washington area when the construction market turns around. TECHNOLOGY
Beyond.com Acquires Human Capital Solutions King of Prussia, Pa.based Beyond.com Inc., announced December 10 that it has acquired Human Capital Solutions LLC, which runs the JobCircle.com website, for an undisclosed sum. Human Capital Solutions’ CEO, Joe Stubblebine, will join Beyond. com as vice president of corporate outreach. Beyond.com is a portfolio company of Wayne, Pa.-based Safeguard Scientifics Inc., which invests in technology and life-sciences companies that connects job seekers and employers.
HEALTH CARE
DreamIt, IBX, Penn Jointly Create Digital Health Accelerator
BIOTECHNOLOGY
NOX Technologies Bought for $12.5M Malvern, Pa.-based biotechnology and biodiagnostic company NOX Technologies Inc., is being bought by a subsidiary of Provo, Utah-based Nu Skin Enterprises Inc. for $12.5 million. The agreement includes the acquisition of NOX intellectual property assets, technology and patents, including previously licensed technology used in connection with Nu Skin’s antiaging research efforts and incorporated into certain ageLOC skin-care products. The deal is expected to close before the end of the year, pending approval by stockholders.
DreamIt Ventures is partnering with Independence Blue Cross and the University of Pennsylvania Health System and Venturef0rth to create a digital health accelerator, DreamIt Health. The four-month program will provide entrepreneurs with $50K in capital, office space, mentoring and coaching from industry experts and access to critical health care-specific resources. The first class will consist of up to 10 companies, but the partners hope to expand future classes to include as many as 15. Applications will be accepted through February 8. The program will end in a Demo Day, at which time all companies will present their businesses to an audience of investors and healthcare organizations. DreamIt Ventures was founded in Philadelphia, where it currently incubates 15 companies. DreamIt Health will be co-led by Karen Griffith Gryga and Dr. Elliot Menschik founder HX Technologies, a healthcare IT company that was later acquired by MEDecision.
FINANCING
LEM Capital Aligns With New York Firm
Private fund LEM Capital, located in Philadelphia’s Cira Centre, has formed a strategic alliance with New York real estate financing firm Centerline Capital Group, a subsidiary of Centerline Holding Co. LEM provides mezzanine loans, debt and other types of financing for real estate while Centerline focuses on multifamily assets. The alliance, formed earlier this year, will provide senior equity to operators pursuing value-add multifamily investment opportunities, particularly smaller transactions sized between $3 million and $10 million that might not get attention from institutional lenders.
Philadelphia-based Atlas Pipeline Partners LP announced earlier this month that it has agreed to buy Cardinal Midstream LLC for $600 million in cash. Cardinal’s assets include three cryogenic processing plants, 66 miles of gas gathering pipelines and a gas treating business, located close to Atlas Pipeline assets in the Woodford Shale, which is located in Oklahoma. Atlas Pipeline said it intended to acquire some of the cash for the purchase from a public offering of 9.25 million common units and expects to close the deal by the end of this year. RETAIL
QVC to Acquire Oodle California Voices, LLC, the exclusive owner of West Chester, Pa.-based video and e-commerce retail leader QVC Inc., has signed a definitive agreement to acquire the majority of the assets of Oodle, Inc., a social marketplace with more than 11 million users each month. Oodle allows users to buy, sell, and give with members of their social network through apps on Oodle, Facebook, iPhone, iPad, iTouch, and Android devices. The acquisition is expected to close by December 31. TECHNOLOGY
Pace Bids On Google Business in Horsham London-based television subscription technology company Pace PLC is in preliminary discussions with Google regarding Google’s Motorola Home business, which is based in Horsham, Pa., Pace announced this week. Google set December 8 as a deadline for bids from would-be buyers for the Motorola Home business for $1.5 billion while it insisted on keeping Motorola Home patents. Motorola Home, which makes television settop box units, counts Comcast and other cable TV companies among its clients and includes the old General Instruments plant in Horsham, which once employed more than 1,000 people, according to the Wall Street Journal.
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REGIONSBUSINESS.COM
IDEAS
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Avoid Bad Decisions During Holidays Ken Lindner leads the news and hosting representation firm Ken Lindner and Associates, Inc. and is the author of Your Killer Emotions: The 7 Steps to Mastering the Toxic Emotions, Urges, and Impulses That Sabotage You. More at KenLindner.com. CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
A few days before last Christmas, I was in an elevator with a prominent criminal attorney who mentioned that he is always busiest during Christmas and New Year’s. He said that generally, crimes of passion, sexual abuse, and battery rise when people are under stress. He warned, “When people are stressed-out, they make their absolute worst choices!” Toxic Emotions (e.g. feelings of sadness, hopelessness, alienation, hurt, rejection, and the like) and stress can block or dismantle your reasoning processes and the use of your best judgment, so it is essential not to make important life choices when you are under an emotional barrage or high stress. Here are some holiday suggestions to keep you under “wraps” this season when you are at the company holiday event, family reunion or amongst the hustle and bustle:
1. First and foremost: DO NOT make an important decision or choice when you are overcome by emotions or stress. Always, stop, cool down, and, as they say, “take the pause that refreshes.” Additionally, DO NOT opt for an immediate, emotional quick fix, response, or retaliation. Oftentimes, we opt for these short-term satisfactions, but these unthinking, emotion- generated reactions are often counterproductive and highly detrimental to accomplishing what we truly want for ourselves in the long term. 2. Be “Consequence Cognizant” which requires you to visualize: a) The most severe and heinous consequences that a poor/destructive emotionally-charged choice on your part can have on your life, your career and/or those you love; and b) The most positive, beneficial outcome(s) that you will secure because you took the requisite time
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to strategically choose the most constructive course of action. 3. If it is appropriate, try to truly understand where the other individual who is pushing your emotional buttons or evoking a potential toxic emotion-generated response from you is coming from. Chat with the person in issue, in an open and non-defensive manner. Oftentimes, learning where others are coming from brings understanding, as well as sympathy/empathy, which can diffuse toxic emotions. 4 Take a moment to think about all of the blessings and positives in your life. This can help you to cool down from the angst of the moment, so that you are then better able to think clearly and strategically. 5. You should NOT make important holiday choices when you are tired, experiencing high levels of stress, or have had too much caffeine. Additionally, you NEVER
want to make important choices when you are under the influence of alcohol or clarity-impairing medicinal or recreational drugs. Your goal is to be cognitively clear and precise when making holiday choices. The takeaway: We all experience high levels of stress and potentially toxic emotions during the holidays. You want to not react emotionally, but to instead, strategically and constructively choose your actions. Channel the potential negative energies that you experience into positive, life-enhancing endeavors—thereby using your emotions and their energy charges as your valuable allies. The sweet result may well be that you will make positive, lifeenhancing holiday choices, as well as gain (increased) feelings of high self-esteem, self-worth, and the core-confidence to achieve your most cherished goals.
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13 DECEMBER 2012
PHILADELPHIA POLITICS
ENERGY
Proposed PGW Sale Hits First Roadblock Budget approval delays within the Philadelphia Gas Commission have brought talks of privatizing Philadelphia Gas Works to a halt, taking the utility into its third month without a new budget, the Philadelphia Inquirer reported. The commission, at the request of the city’s public advocate and PGW’s workers’ union, has withheld approval of legal, financial and communications expenses of $2.7 million, according to the report. Philadelphia cannot pursue bids for the nation’s largest municipal gas utility until its budget and consultants’ contracts are settled.
REGIONSBUSINESS.COM
CITY COUNCIL
ELECTION 2012
‘Land Bank’ Consideration Will Begin Early Next Year
‘Fact-Finding Team’ Examining Election
Since legislation giving cities permission to establish land banks has passed the General Assembly, the Nutter administration is moving forward with plans for a “land bank” to deal with the nearly 40,000 vacant lots in the city. According to the Philadelphia Inquirer, the city is hoping to fit such a bank within the Philadelphia Housing Development
Corporation. Michael Koonce was recently hired to serve as executive vice president. However, before any more moves can be made, a bill, sponsored by Councilwoman Maria Quiñones Sánchez, that gives specifics on the operations of a land bank, must pass. City Council will likely consider the bill beginning in the new year.
MIKE LINKSVAYER
Philadelphia has launched what Mayor Michael A. Nutter calls a “fact-finding team” to investigate the city’s election system. President Barack Obama was expected to win Philadelphia, but Republicans called for an investigation after a reported 59 precincts went 100 percent for the incumbent president (that number has since been adjusted to 50 precincts). “On Election Day, there were reports questioning the integrity of the voter registration lists, the supply of provisional ballots, and the preparedness of some poll workers to address new state voter laws,” Mayor Nutter said in a statement. “Some of these issues may be legitimate, and some may be unfounded.”
Council Bill Changing Face of City Advertising CITY COUNCIL MATTERS
Timothy Holwick is a freelance writer covering Philadelphia government. Find more coverage at citycouncilmatters.com. CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
The Philadelphia City Council Committee on Rules held a hearing earlier this month on several zoning changes, but one bill in particular may majorly change a Philadelphia landmark’s exterior. The Committee on Rules considered a bill allowing the block contained by 7th Street, 6th Street, Spring Garden Street and Willow Street to display “non-accessory outdoor advertising signs.” That block contains businesses such as the Electric Factory, J.D. McGillicuddy’s, and the Callowhill Center, a media and entertainment center. The signs would likely take the form of billboards or building wraps. The signs will be permitted on only one side of the building and only certain buildings qualify. To qualify, a building must be 100,000 square feet in floor area and at least 70 feet tall. Also, it cannot be a parking garage or a registered historic landmark.
The signs can be quite large, up to 10,000 square feet. The text of the legislation included some of the rationale in favor of allowing such signs on a building so easily seen from the Vine Street expressway and surrounding area. The ordinance’s text claims that “wall displays can accentuate the vibrancy of an area and heighten the public’s sense of the area as a locus of entertainment, dining, retail and hospitality activities, and thereby attract more entertainment, shoppers and tourists.” The legislation also goes on to say that large wall displays are common in entertainment areas of large cities and that the revenue from the advertising can be used for rehabilitation of nearby buildings. No alcohol or tobacco advertisements will be permitted. This version of the bill was introduced in November, but
another version was discussed in 2011. The Philadelphia City Planning Commission has argued, at both times, that non-accessory signs were not appropriate at the location. Moreover, as the Planning Commission testified yet again last week, non-accessory signs should be regulated city-wide and not on a case-by-case basis with ordinances such as this one. Councilman Greenlee, chairman of the Committee on Rules, said he never felt the size and location of the advertisements was an issue, and the City Planning Commission testified that the residents near the location may disagree. Myron Berman testified his group, Callowhill Center Associates, has owned the Callowhill Center for 26 years. He spoke of the building and neighborhood’s dilapidated state at that time and how his group has pioneered the
improvement of the area. Mr. Berman described a digital sign they plan to install, which matches the size of the billboard that existed there from 1998 to 2003. Under a community agreement, Callowhill Center Associates will give 20 percent of the proceeds from the sign to a community group, and 75 percent of that money will go to three neighborhood schools. After representatives of the school associations benefitting from the sign testified in support of the bill, several citizens testified against the bill citing its prominent visibility from Franklin Square Park as well as qualms about the way Callowhill Center Associates moved the bill through City Council. In the end, council voted in favor of the bill, as they felt the financial benefits for the nearby schools, outweighed any aesthetic drawbacks.
13 DECEMBER 2012
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
17
Appetites Change With Right-To-Work Laws On The Menu
Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
The scene in Lansing, Michigan, was reminiscent of Madison, Wisconsin a year ago. State troopers armed with riot gear protected the hallowed halls of the state Legislature. The ruckus both inside and out was union organizers apoplectic over the fact that Michigan — perhaps the most organized labor-centric state in the Union — had just passed a Right-to-Work law. The explosive nature of the protests was witness to the fact that something truly historic had happened. It was a devastating blow to union bosses who went so far as to bring in the president of the United States to inveigh against the proposal. Their arguments were typical of the language distortion (some would be so bold as to use a simpler term: lies) so common in today’s political debate. They argued that Right-to-Work laws take away collective bargaining rights. The president of the United States said as much himself. But that’s simply not true. Right to Work, already the law in nearly half the states, allows workers to join unions, but it doesn’t require them. Under the provisions of the Taft-Hartley
JOSHUA ELLER
Act, individual workers choose for themselves whether or not they want to join and pay union dues. Preventing closed union shops that coerce workers to join and pay dues may not be good for union bosses, but it’s good for workers, especially the growing number who prefer not to join their union. Right to Work not only secures worker freedom, it promotes economic growth. According to several studies, of the states with the highest rate of personal income growth, the overwhelming percentage are Right-to-Work. Those at the other end of the spectrum do not have Right-to-Work laws. The Cato Institute recently concluded that failure to enact Right to Work was a significant factor in
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causing jobs to leave compulsory union states for ones with Right to Work. The Pennsylvania business community watched the deliberations in Michigan with interest and has already begun asking whether or not it could happen here. Governor Tom Corbett has said that he doesn’t sense a legislative appetite for Right to Work. He also said he would sign a measure if one came to his desk. Gov. Corbett may be right. But appetites change. And the selffulfilling prophecy that “it can’t happen here” will undoubtedly come under increased scrutiny. After all, Michigan enacting Right to Work has to be viewed as a political bombshell. A year ago, few would have argued that
it was possible, much less likely. Michigan, the birthplace of the UAW and in the highly industrialized “Rust Belt,” has a unionized workforce of about 17.5 percent. Nationally the unionized share of the workforce is less than 12 percent and less than 7 percent of private sector workers. Organized labor has always been a political titan in Michigan. Organized labor even tried to secure collective bargaining as part of the states Constitution in the past election. They failed miserably. That may have helped galvanize Republicans in the legislature to push forward the Right to Work bill. More compelling was the job migration from Michigan, with one of the nation’s highest unemployment rates, to the states with Right to Work, including next-door Indiana, another state which recently adopted right to work. As jobs continue to migrate from Pennsylvania to the south and west where right to work tends to be the rule, the General Assembly may be willing to take a more aggressive stand on an issue that promotes economic growth, keeps jobs and expands the economy.
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13 DECEMBER 2012
PENNSYLVANIA POLITICS
REGIONSBUSINESS.COM
ECONOMY
HEALTH CARE
Casey: ‘Cliff’ Talks Could Change Cuts
Pennsylvania Won’t Set Up State-Based Health Exchange
U.S. Senator Bob Casey thinks across-the-board spending cuts may be averted in favor of more strategic cuts to avoid the “fiscal cliff.” “We still have to come up with a way to reduce spending,” he said. “But for the near term...we should avert those cuts.” The fiscal cliff is a set of tax rate increases on individuals and businesses, and federal spending cuts that would take about $300 million away from Pennsylvania, that would hit in 2013. Officials, including Gov. Tom Corbett, said going off the cliff could trigger another recession.
ELECTION 2014
Pennsylvania will not pursue a state-based health exchange under the new federal health care law, the governor announced Wednesday. Instead, the state will allow the federal government to set up the exchange. Pennsylvania is the 28th state to reject the option of having a statebased exchange.
In a letter to Kathleen Sebelius, secretary of the U.S. Department of Health and Human Services, Governor Tom Corbett said the department had not provided adequate information to address his questions about how the exchange would be setup and operate. PAINDEPENDENT.COM
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$474,600 $4.72M
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I BELIEVE [HE] IS VULNERABLE.’ —MONTGOMERY COUNTY COMMISSIONER BRUCE CASTOR, WHO COULD CHALLENGE GOV. TOM CORBETT IN A PRIMARY ELECTION
Schwartz Exploring Challenge
Report: PLCB Advertising Favored State Wine, Spirits Money spent advertising five of the LCB’s private brands
POLITICSPA.COM
It looks like Rep. Allyson gomery, outgoing finance Schwartz (D-Montgomery) director for the Pa. Demois exploring her options cratic Party, to help her for a bid for governor raise funds. in 2014. She has the She has $3.1 million campaign cash to make in her federal account a serious run. that she can transfer to The Philadelphia a campaign account for Inquirer reported Rep. governor. Schwartz hired Aubrey MontPOLITICSPA.COM
Right-to-Work Unlikely In Pennsylvania
Eric Boehm is bureau chief for PA Independent, an online political news organization.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
HARRISBURG — Michigan is the latest Midwest state to become a battleground between Republicans and labor unions, following in the footsteps of Ohio, Indiana and Wisconsin. But as Governor Rick Snyder and the Wolverine State move closer to approving so-called “right-to-work” legislation, what are the odds Pennsylvania could be next? Not good. For the uninitiated, right-towork laws free workers from the requirement of paying union dues to work in certain industries. Twenty-three states have such laws on the books, and Michigan is one very important signature away from becoming the 24th to do so. The right-to-work laws allow workers to find the best price for their own labor, as they are able to negotiate one-on-one with employers instead of relying on
the structure of the union. And they no longer are required to give a cut of their pay to the union bosses. Such laws also have an immediate effect on states’ economies, with studies consistently showing businesses are more likely to start up or relocate in right-towork states. But the most important political consequence of right-to-work laws is that they significantly weaken the ability of unions to exert influence over policy in the state. It works like this: Since people are not required to pay union dues, at least some choose not to do so, undercutting the unions’ stream of revenue from dues — the annual cut of salary that workers pay in order to be part of the union. As more people opt out of paying the union dues, the union has fewer resources to use for
political activities and lobbying, which in turn makes the union less powerful and gives even more workers an incentive to stop paying dues to it. Those workers opt out, the union gets weakened again and the process starts over. As it stands now, unions are the primary force blocking some of Governor Tom Corbett’s biggest agenda items for next year — including privatizing the state liquor stores and reforming pension plans. Surely, the governor and majority Republicans would face an easier road to accomplishing those goals if right-to-work was included in their plans. But Gov. Corbett said Monday that Pennsylvania doesn’t have the will to pass right-to-work legislation, and the fact is — he’s probably right. Last session, fewer than 50 of the 253 members of the General
Assembly signed onto proposals to make Pennsylvania a rightto-work state. That’s not even a majority among Republican members. Even with a 20-seat majority in the state House and a six-seat edge in the state Senate, Republicans in Pennsylvania are unlikely to embrace policy that is so strongly opposed by the state’s labor unions — because the unions have their claws deep inside leadership on both sides of the aisle, a fact that Republican staffers and business lobbyists will rather freely admit in their more candid moments. If that changes, perhaps someday Pennsylvania will be the next Wisconsin, Ohio or Michigan. For now, Pennsylvania Republicans and business leaders will have to continue to battle with the unions and settle for a piecemeal approach to reform in the Keystone State.
13 DECEMBER 2012
REGIONSBUSINESS.COM
READY TO TAKE OFF A recovering housing market combined with expected job growth and apparent resolve in Washington to avoid the fiscal cliff have helped set upbeat expectations for the 2013 real estate market.
T
he New Year is looking bright for Philadelphia's commercial and residential real estate. As talks of a housing market recovery gains steam and more companies begin to work their way back up from the boughs of the recession, many parts of the city are witnessing a real estate renaissance. “Commercial real estate should be strong in 2013,” said Frank L. DeFazio, realtor and founder of the Center City Team at Prudential Fox & Roach, adding that once the fiscal cliff and debt ceiling issues are resolved retail and office leasing should pick up even more. Carl Dranoff, president and CEO of Dranoff Properties agrees. “Along with the housing market, commercial real estate in Philadelphia is getting stronger each day, especially in Center City. I believe the real estate market in 2013 will be extremely robust - there are a lot of great development projects in the works”, according to Mr. Dranoff. Nationally most major commercial real estate sectors are improving and are easily able to fill the relatively small amount of new vacant space that is becoming available, according to the National Association of Realtors' (NAR) Commercial Real Estate Outlook, a quarterly commercial real estate forecast. Job creation has been one of the primary factors holding back commercial real estate, according to NAR’s chief economist, Lawrence Yun. “With the elections behind us and Washington apparently resolved to prevent a fiscal cliff, it’s hoped that ambiguity over regulatory issues will clear relatively soon so employers can understand the rules of the game and the layout of the field,” Mr. Yun said. He added that vacancy rates are expected to decline over the next four quarters in the office, industrial, retail, and multifamily markets. He noted that the main impediment to commercial in the near future is the tight credit environment, especially problematic for smaller properties. However, while real estate is coming back, industry experts are quick to warn that it’s location specific with properties in Center City being the prime beneficiary of both a residential and commercial real estate resurgence. Mr. DeFazio said that more homeowners are looking to make Center City their home.
STORIES BY CARISA CHAPPELL ILLUSTRATION BY DON LEE
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REGIONSBUSINESS.COM
B
usinesses are also looking to make Center City their home, especially so-called trophy properties. Those desirable buildings in prime locations are the driving force of the downtown office market. In fact, Philadelphia has one of the lowest downtown office vacancies across the country, according to a report from Jones Lang LaSalle. This is especially true in the Market Street area, particularly Market West, where Sean Coghlan, research analyst with Jones Lang LaSalle Americas, Inc. said rental rates have increased by up to 30 percent. He said that many of the professional and financial services companies are located in that particular area. “Market West has the higher quality assets and larger blocks of space but those spaces are seeing less availability,” he said, adding that coming out of the recovery there were select tenants trying to take advantage of stability in market condition and that has had a significant leasing activity on trophy assets. “Over the last two years we probably saw select tenants moving from Market Street East to Market Street West,” Mr. Coghlan said. “This trend has slowed down and we're not expecting that to increase significantly or much next year as well, but you're seeing most of the demand come in the Market Street West sub sector,” Mr. Coghlan said. There have been a number of relocations from the suburbs to the downtown area including IHS Global relocating from Delaware to downtown, Bentley Systems opened an additional building downtown and Fiberlink Communications relocated from Plymouth Meeting to Center City, according to Mr. Coghlan. “So we have seen migration from select tenants relocating from the suburbs to the central business district (CBD), we're seeing some increase in tenants looking to relocate,” he said. One of the office projects in the works includes Brandywine Realty Trusts’ plans to commence construction on its Cira Centre south two-building complex at 30th Street. The company has secured the University of Pennsylvania as one its tenants. That project plays to the fact that location is key as it’s slated across the street from Amtrak’s 30th street station. The two towers will offer mixed use office, retail and potentially housing. CBRE noted that recent major signed transactions in downtown included two law firms. Cozen O’Connor will move
PHOTO BY B. KRIST FOR GPTMC
Office: Focus On Center City Spots Some suburban office locations remain attractive, but there’s no denying that Center City is the place to be, especially the hot spots considered ‘trophy locations.’ from 1900 Market Street to One Liberty Place, and Ballard Spahr, LLP’s renewed its space at the BNY Mellon Center. The Children's Hospital of Philadelphia has proposed a $1.2 million square foot medical research campus along the Schuylkill River near downtown, according to a report from Cushman and Wakefield. The plan calls for three 26-story
office buildings and is the result of the rapidly expanding healthcare industry. Cushman Wakefield noted that in the largest new lease of the year, Cozen O’Connor signed a long term deal at One Liberty Place. They will begin to occupy the building in 2015 after moving from 1900 Market Street. Community Behavior Health signed a lease at 801 North
Market Street and the Neat Company signed a lease at 1801 Market Street. “Activity in Philadelphia’s trophy assets will remain healthy, evidenced by an increase in ‘flight to quality’ moves by tenants like Janney Montgomery Scott and Cozen O’Connor,” said Paul Munger, regional research director for Cushman and Wakefield. He added that there are several sizable tenants in the market place looking for space downtown including Pepper Hamilton and FMC Corporation. With limited trophy space available, real estate experts said that some building owners are continuing to make capital improvements and add luxury type amenities such as outdoor seating areas, modern lobbies and fitness centers to attract quality tenants. The suburban office market, while not as strong as city center, has also had its share of transactions. The suburbs offer a nice contrast to company's preferring to avoid the hustle and bustle associated with city life. "Putting it simply, I would say over the last several years, the number one suburban market is Radnor, closely followed by Conshocken, they are really adjacent to one another," said Robert Walters executive managing director with CBRE. Mark Korman, president of Korman Commercial said Plymouth Meeting is a hot spot as the area enjoys the confluence of four highways including the Schuykill Expressway and the Blue Route. "It's a very good corporate base. Some of the biggest REITs, like Brandywine Realty Trust, have offices in Plymouth Meeting,” he said. Additional office developments in the suburbs, according to CBRE include The City Center Investment Corporation’s purchase of 645 Hamilton Street in Allentown and Brandywine Realty Trust’s investment of more than $18 million into 660 W. Germantown Pike. Vacancy rates in the office sector nationwide are projected to fall from an estimated 16.7 percent in the fourth quarter to 15.7 percent in the fourth quarter of 2013, according to the NAR. The association said that markets with the lowest office vacancy rates are Washington, D.C., at 9.6 percent and New York City, at 10.1 percent. Office rent is expected to increase 2 percent this year and 2.5 percent in 2013. Net absorption of office space in the U.S., is likely to total 21.7 million square feet in 2012 and 49.0 million next year.
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13 DECEMBER 2012
REGIONSBUSINESS.COM
Retail: Waiting Game For 2nd Casino Wherever it’s located, the city’s second casino will provide a major retail development, but there will be plenty of other activity in the meantime.
A
number of retail and new developments are also on the horizon for the area including the city’s second casino. However, the Pennsylvania’s Gaming Control Board’s chief counsel, R. Douglas Sherman, said it could take a year before a decision is made on plans for the city’s second casino. The first rounds of informational hearings are reported to begin in February 2013. PREIT is purchasing and renovating 901 Market Street giving the company, which already owns 801 Market Street, a huge chunk of Market Street near the Gallery. The overall project is reported to cost about $300 million and plans include a transformation of the Gallery into an updated upscale urban retail mall. Plans have not yet been made public on the project. The closing of Daffy’s on 1700 Chestnut Street in September has also reportedly prompted calls from retailers about the nine-story space. While the outlook for the retail industry remains uncertain nationally and executives from the International Council of Shopping Center’s said that stores will continue to shrink, as they have been among big-box retailers, certain types of retailers are immune from that uncertainty. Retailers that specialize in either value or luxury are in good shape but the mid-range retailers may face a few challenges. When it comes to retailers, there have been a couple of new entrants into Philadelphia. In the third quarter retail activity was robust on Walnut Street which saw several new retail lease signings and store openings. Cushman and Wakefield reported that Ulta signed a 13,467 lease to occupy three stories at 1619 Walnut Street, the former location of Brasserie Perrier’s. Bettie Page, also new to the city, moved in to 1605 Walnut Street, once occupied by
Planned development may change the face of the city’s Italian Market.
Bubble Hair Salon, according to Cushman and Wakefield. “Philadelphia’s Center City retail market has become increasingly attractive to both national and boutique retailers, evidenced by the more rapid turnaround to fill vacant space compared to the more sluggish pace over the last couple of years,” said Paul Munger, regional research director with Cushman and Wakefield. Experts said that drugstores and other premium single-tenant retail assets are in especially short supply. As a result the activity on Walnut and Chestnut streets includes Walgreens, which is expected to begin renovation on the 25,498 square foot space formerly occupied by Border’s. Mr. Munger noted that they are expected to open their new “high end” concept store in 2013. There are also plans to develop an Italian Marketplace in the large vacant lot behind Anastasi Seafood that would help give the Italian Market neighborhood a facelift. The Philadelphia Business Journal reported that New York-based Midwood Investment
& Development has plans to turn the sprawling corner property into a large retail center with 31,000 square feet of underground parking and at least one restaurant. The Cushman and Wakefield report also noted that there are rumors of a 90,000 square foot, four story retail building at the corner of 15th and Walnut Street that may become home to the Cheesecake Factory and Uniqlo. Retail vacancy rates across the country are expected to ease from 10.8 percent in the fourth quarter to 10.6 percent in the fourth quarter of 2013, according to the NAR. The association pointed out those markets with the lowest retail vacancy rates include San Francisco and Fairfield County, Conn., both at 3.9 percent; Long Island, N.Y., 5.1 percent; and Orange County, Calif., 5.4 percent. Average retail rent should increase 0.8 percent this year and 1.4 percent in 2013. Net absorption of retail space is estimated to be 9.1 million square feet this year and 19.8 million in 2013.
PHOTO BY R. KENNEDY FOR GPTMC
Vying To Build Philly’s Second Casino The six applicants, according to the Center City Development Corporation, include Tower Entertainment, LLC (The Provence) at 400 North Broad Street; Market East Associates (Casino Philadelphia) at Eighth and Market Streets; Wynn PA, Inc. (Wynn Philadelphia) at 2001 Beach Street, and 2001 through 2005 Richmond Street; PHL Local Gaming, LLC (Casino Revolution) at 3333 South Front Street; PA Gaming Ventures, LLC (Hollywood Casino Philadelphia) at 700 Packer Avenue; and Stadium Casino, LLC (Live! Hotel and Casino) at 900 Packer Avenue.
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REGIONSBUSINESS.COM
Residential: City Condos Are Hot Items P
Carl Dranoff of Dranoff Properties said that sales have been heavy at the upscale 10 Rittenhouse Square.
hiladelphia's housing market continues to improve as talks of a nationwide housing recovery become stronger. With a decreased inventory in the number of homes on the market, experts say the tides are gradually turning from a buyer’s market to a seller's market. Frank L. DeFazio, realtor and founder of the Center City Team at Prudential Fox & Roach, agrees that the residential real estate market is also strong. “Inventory is extremely low as are interest rates and that has created a quasi-seller's market in Philadelphia such that when a home that is priced well and move in ready hits the market it usually sells quickly, with multiple offers at or above asking price, “ he said. Kevin Gillen, a senior research consultant at the University of Pennsylvania’s Fels Institute of Government, recently spoke about the state of the Philadelphia Housing Market during the Greater Philadelphia Association of Realtors annual meeting this past November. He said that home prices in 2012 will be up about 7 percent, taking away a good chunk of the 21 percent of value that has been lost during its peak. He also added that inventory is down substantially, condo sales look healthy and the luxury market is strong. He said leading indicators continue to suggest that both Philadelphia’s and the nation’s housing markets will continue to recover. Philadelphia’s price-to-rent ratio remains stable, as both falling prices and rising rents have pushed this ratio ... YOUNG back in line with its historic average. In a report compiled in late Novem- PROFESSIONALS ber for Prudential Fox & Roach, it was AND EMPTY noted that inventories of homes for sale NESTERS ARE continue to significantly decline for FLOCKING TO condos, although they still are declining THE CITY...’ slowly for single-family houses. From their peak of just over 4,000 units sev- —FRANK L. DEFAZIO eral years ago, the number of condos listed for sale has fallen by 35 percent. “People realize that the housing market has stabilized and it’s on the upswing. It’s not as severe an upswing as it was in 2000-2006, but confidence has definitely returned to the housing market,” said Carl Dranoff, president and CEO of Dranoff Properties. However, the report noted that there continues to be a significant divergence in home prices between the city and the suburban market. While house prices declined by only 0.6 percent in Philadelphia County in the third quarter, house prices in the suburban counties fell by an average of 1.3 percent; more than double the decline of the city’s. From their peak in 2007, house prices in Philadelphia County have fallen by an average of 18 percent, compared to a 22 percent decline in Philadelphia’s suburbs. The disparity among home values remain even as it now appears
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REGIONSBUSINESS.COM
that housing has begun its recovery. Not only did homes in Philadelphia County retain more of their value than suburban homes during the downturn, but the reported said they also appear to be recovering their lost value at a faster pace than most suburban homes. Similar to the current commercial real estate cycle, most of the talks of a housing market recovery are occurring in the city center area, and that means condominiums are hot right now. CBRE said that residential conversion of class B and class C office buildings downtown continue to help tighten the office market while helping to meet the growing demand of prospective homeowners looking to buy condos in the city. “Real estate in Philadelphia is a localized market, sales vary by specific neighborhoods,” said Mr. Dranoff. “10 Rittenhouse [a Dranoff property] on Rittenhouse Square is incredibly hot right now, with more than 54 sales for a dollar volume of more than $82 Million in 2012 alone.” He said the type of home people will choose to buy depends on the situation of the person purchasing the home. While many young professionals, single people and empty nesters prefer the convenience of a condo because of the amenities and the low maintenance, families typically gravitate towards a single-family home for the additional square footage. “Right now, Center City and the Main Line are showing the strongest home sales. The success in those areas really comes down to the desirable location,” Mr. Dranoff said. “The old adage ‘location, location, location’ is stronger than ever today. Buyers want to purchase homes that are in close proximity to public transportation, quality dining, shopping and for those with children, a great school system. Mr. DeFazio said Center City is popular because “young professionals and empty nesters are flocking to the city as opposed to a few years ago when the suburbs were more appealing. Residential vacancy is ultra low.” Mr. Dranoff said buyers are showing confidence, and with good reason. “Today, buyers are not worried that they made a bad investment when purchasing a home. The value of their home may not skyrocket right away, but the declines have stopped. Homes and condos are more realistically priced now and interest rates are very low, so buyers have a lot of purchasing power,” he said. He added that if inventory continues to be low prices should continue rising in Philadelphia, he said that he number of total transactions should be give or take at the same number as 2012. However, he pointed out that the trend of increased home sales and prices are expected to grow in 2013 due to the changing demographics of the population. “On one end you have Baby Boomers who are looking to downsize and sell their big homes,” Mr. Dranoff said. “On the opposite side, you have a huge
Industrial: Vacancies Continue To Decline 2012 sales activity already exceeds 2011 while leasing activity and rental rates remain stable.
The Main Line continues to attract eager home buyers. PHOTO BY B. KRIST FOR GPTMC
number of young professionals who are looking to purchase their first home.” A hot center city and surrounding locations helped move the fall and early winter market, according to Marie Meglio, realtor with Remax Main Street. “Both buyers and sellers are seeing real bargains and a good opportunity with interest rates at an all time low. Buyers seeking sleek city condos or hip new fringe neighborhood townhomes or rows. This is the high point for moving within the city,” she said. In terms of new development, Mr. Dranoff said that Dranoff Properties has some upcoming projects in the pipeline. “On the condo front, we are selling 10 Rittenhouse and Symphony House, and we are extremely excited to break ground on our newest premier rental property, Southstar Lofts, on the corner of Broad and South. The 85-unit building is set to open in early 2014 and will be a candidate for a LEED Silver certification, providing an electric car charging station and more than 100 bike racks for residents,” he said. While the housing market is growing, apartments are enjoying increased demand and rental rates. Newer apartments are coming to the market fast to keep up with the growing demand from those would-be homeowners who have been forced out of the housing market or residents who choose the flexibility of renting over the homeowners’ lifestyle. “There is also a surge in young professionals renting, coined ‘generation rent.’ They want the luxury and high-end living space, but without the commitment that comes with owning,” he said.
Vacancies continue to decline in Philadelphia’s industrial market. Vacancies dropped to 6.2 percent in the third quarter of 2012, down from 7.3 percent last year during the same time period, according to Cushman and Wakefield. New leasing activity and average asking rental rates remain almost unchanged from a year ago at $4.88 per square foot for the third quarter 2012. However, the report stated that new construction activity has been sparse throughout the industrial market consisting of only build-to-suit projects presently under construction. “The largest lease of the quarter was signed in New Castle County by Twinco Romax at One Crowell Road for 96,750 square feet,” according Paul Munger, regional research director for Cushman and Wakefield. “There was a slight uptick in activity within the manufacturing sector as several manufacturing deals closed during the quarter, most notably Metso Automation USA Inc. taking 50,000 square feet at 2750 Morris Road in Lansdale.” Sales activity in 2012 has already surpassed 2011 totals. In the largest investment sale of the quarter, the 597,232-square foot warehouse/distribution facility at 200 Birch Creek Road was purchased by Hillwood Investment Properties for $18.5 million. Several flex buildings located in the Chester Creek Business Center in Aston changed hands in a portfolio sale this quarter. Areas with the greatest demand for industrial space include Central Pennsylvania and the Lehigh Valley. Those regions are seeing more speculative projects being developed, according to CBRE. The CBRE report noted that Dollar General Corporation and PetSmart Inc., are both building their first distribution centers in Berks County. Liberty Property Trust also completed construction on a 1.2 million square foot warehouse at 2785 Commerce Center Boulevard in the Lehigh Valley. The NAR is reporting that nationally, industrial vacancy rates should decline from 10.1 percent in the fourth quarter of this year to 9.5 percent in the fourth quarter of 2013. The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 4.3 percent; Los Angeles, 4.4 percent; and Miami at 6.5 percent. Annual industrial rent is forecast to rise 1.7 percent in 2012 and 2.2 percent next year. Net absorption of industrial space nationally will probably total 93.4 million square feet this year and 89.6 million in 2013.
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13 DECEMBER 2012
FINE ESTATES PREVIEW
REGIONSBUSINESS.COM
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Q&A
13 DECEMBER 2012
REGIONSBUSINESS.COM
JULIAN SIGGERS’
HISTORICAL POSITION
The new Williams Director of the University of Pennsylvania Museum of Archaeology and Anthropology sees a legacy of success in the museum’s 125-year past and opportunity for further research and education in its future.
What is the elevator pitch for the Penn Museum? It’s the world’s greatest university museum. It actually has one of the most phenomenal collections of archaeological artifacts anywhere. The Penn Museum is one of the great treasures of Philadelphia, and at the moment it’s a bit of a hidden treasure, but we would like to change that.
It was a phenomenal event actually. We had 25 curators who were actually in the galleries telling the public about what we have here. We had flashlight tours of the Egypt galleries in the evening. We had lectures and demonstrations; it was a really wonderful event with a really great atmosphere.
a wonderful opportunity for people to come out and see if the world is really going to end.
What about the museum would you like to conserve? This museum has always been known internationally as a research museum and What are you looking to has a fantastic record for exbring to the museum? ploration and discovery. That My primary goal is to look at is something that I always our permanent collections, want to be a priority of ours. many of which are rather old — the galleries, that is — so What have you discovered I’d really like to look at ways since being in Philly? What plans do you have for in which we can revamp our This is a fantastic city with the remainder of the year major galleries and, more some of the best restaurants How was last week’s open and 2013? importantly, find ways to let and a really dynamic nighthouse celebrating the mu- Our Mayan exhibit runs un- people know what we have life and an incredibly vibrant seum’s 125th anniversary? til the end of the year, so it’s here. cultural community.
13 DECEMBER 2012
REGIONSBUSINESS.COM
OPINION
27
Demographic As The Narrative: Lessons From Obama’s Victory S Dr. Diana E. Sheets, an iFoundry Fellow and Research Scholar at the University of Illinois, writes literary criticism, political commentary, and fiction. Learn more at www.LiteraryGulag.com.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
ince 2008, commentary about presidential campaigns has been saturated in the rhetoric of narrative. However, President Obama’s 2012 presidential victory wasn’t, strictly speaking, based on narrative. So what happened? The Obama campaign focused strategically on offering specific policies or programs that targeted the new demographic. This meant ensuring a governmental mandate to address immigration, the issues of single women, the concerns of Hispanic, African Americans, Asian Americans, the rights of lesbian, gay, bisexual, and transgendered (LGBT) Americans, the supporters of trade unions, and ordinary folks struggling to find jobs or keep the ones they had. Exit polls, as Rosa Ramirez has shown, suggested the importance of the demographic. President Obama captured 71 percent of the Latino vote in contrast with only 23 percent for Mr. Romney. The president garnered 93 percent of African-American men and 96 percent of African-American women. He received 73 percent of the Asian vote. Indeed, electoral demographics have become the driving force of the last two presidential elections, a fulfillment of Peter Brimelow and Ed Rubenstein’s 1997 prophecy that “Demography is destiny in American politics.” They forecast 2008 as the year when a shift in ethnic demographics would ensure the Republican Party’s inexorable slide to “minority status.” What, then, do the demographics of the 2012 presidential election indicate? As Nancy Benac and Connie Cass illustrated, Nonwhites represented 28 percent of the 2012 electorate in contrast to just 20 percent in 2000. President Obama received 80 percent of the nonwhite vote in both 2008 and 2012. White, male voters represented only 34 percent of the votes cast in the 2012 election as compared with 46 percent in 1972 According to John Cassidy, white men chose Mr. Romney over President Obama by 27 percent (62 versus 35 percent, respectively). Caucasian women voted for Mr. Romney over President Obama by 56 versus 42 percent, respectively, a higher percentage than those
who voted for either John McCain in 2008 or George W. Bush in 2004. Today, according to Ms. Benac and Ms. Cass, single women vote Democratic by a margin of 54 percent in contrast to 36 percent of married women. The single women’s vote was strategically significant since it accounted for nearly a quarter of all voters (23 percent) in the election. White voters favored less government (60 percent), Hispanics wanted more (58 percent), and, by comparison, blacks were the most interventionist of these ethnic groups (73 percent). Hispanics represented a significant and growing share of prospective voters in the Western battleground states. In 2000, for instance, white voters constituted 80 percent of voters in Nevada. But by 2012 their percentage of the total vote had declined to 64 percent while the Hispanic vote had increased by 19 percent. Not surprisingly, 70 percent of Hispanics voted for President Obama in Nevada. The youth vote sided decisively with President Obama as Ms. Benac and Ms. Cass demonstrated. In the case of North Carolina, a battleground state that narrowly supported Mr. Romney, two-thirds of these voters supported President Obama. Younger voters are also more ethnically diverse. Of all Americans
under 30 who voted in the election, 58 percent are white as compared with 87 percent of seniors who voted. Just how significant are these numbers? As Ryan Lizza noted, three-fifths of white voters selected Mr. Romney, equaling or exceeding the support that Ronald Reagan and George H. W. Bush had received from white voters in 1980 and 1988, respectively. But if the white electorate was 87 percent of voters in 1992, by 2016 they will represent less than 70 percent of American voters. As the demographic landscape of our country changes, even conservative strongholds such as Texas will be at risk. Ted Cruz, a newly elected senator from Texas, who campaigned from a “secure-the-borders” perspective, expressed it this way to Mr. Lizza: “In not too many years, Texas could switch from being all Republican to all Democrat ... If that happens, no Republican will ever again win the White House ... If Texas turns bright blue, the Electoral College math is simple. We won’t be talking about Ohio, we won’t be talking about Florida or Virginia, because it won’t matter. If Texas is bright blue, you can’t get to 270 electoral votes. The Republican Party would cease to exist.” Barack Obama and his team of advisors ran a tactically brilliant campaign. President Obama’s victory wasn’t based on a narrative since that would have exposed the economic failings of his administration. Instead, the campaign demonized Mitt Romney by appealing to the “diversity values” of the Democratic rank-and-file while saturating the battleground states with attack advertisements. The party appealed to a multicultural mosaic: Hispanics, single woman, African-Americans, ethnic minorities, young people, as well as many of the economically disenfranchised who voted, as well as a significant number of affluent progressives and, of course, the LGBT community. The Democrats strategically targeted their demographic and the demographic became the narrative. In sports parlance, as I have noted elsewhere, President Obama’s ‘ground game’ was hard-hitting and decisive. The demonization against Mr. Romney began early and never stopped. Even before he was the designated Republican candidate, the Obama machine had Mr. Romney effectively in their sights. All is fair in political warfare. And this Democratic victory was supremely won.
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OPINION
What The Post Office Can Teach Us About Obamacare
O
Bill Gunderson is a wealth manager, award winning author, and frequent guest on local and national financial news shows. Learn more at pwstreet.com.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
ne of the biggest employers in America is crashing. And everything the federal government is doing to fix the U.S. Postal Service is just making it worse. A lesson we should learn as we stand on the edge of the real fiscal cliff: Obama Care. The Post Office lost $15.9 billion last year. This time next year it will be insolvent, say postal officials. This is hardly a surprise: Losses at the Post Office have been predictable and inexorable for five years.They know what is wrong: Too many post offices. Not enough mail. Too many workers making too much money. The unions say not to worry: They can fix the Post Office, all they need is more money. All the while denying the Post Office has a problem. After five years, numerous commissions, pounds of reports and endless hearings, the only thing to change are the losses. They tripled. Sure they closed a few branches and consolidated a few distribution centers, but that is about it. In their latest rescue plan, officials want to stop Saturday delivery and suspend payments to the pension system. Now we wait for more hearings. More studies. The losses are not waiting. We did get something for all the effort: A lesson. Think about how FedEx or UPS would have approached the prospect of an endless series of $15.9 billion losses. What the Post Office did not do in five years, they would have done in five weeks. Or five days. The day of reckoning is at hand for the Post Office. It can be postponed. But not cancelled. This coming crash in the Post Office is even more interesting if we treat it as a peek into the future of health care. Obama Care. The Post Office does a pretty good job in delivering the mail. What it does not do is adapt to change. Too many people have too much to say and everything takes too long. Welcome to the future of health care. Need to change a medical procedure? Let’s have lots of congressional hearings until people forget why we needed the hearing in the first place. Want to fire a few people here, hire a few people there? Better not. Not before booking First Class seats to Washington D.C. to explain
it to a congressional committee on C-Span. All over America, city councils hire and fire ambulance companies based on who gets to the scene of an emergency in the shortest time. Medical people know the difference between four minutes and five minutes can be profound. Now we are on the cusp of a new system that -like the Post Office -- will take a four-day decision and turn it into a marathon lasting four weeks, four months, four lifetimes. Until some genius figures out -- inexorably -- that nothing is working and the private sector could provide health care faster, better, cheaper. And if you do not believe me, just ask your friendly neighborhood postman.
OTHER VOICES Since the Patient Protection and Affordable Care Act is now the law of the land, its results are quickly becoming apparent. Virtually none of the President’s high-profile promises concerning his health reform agenda—such as “bending the health cost curve” downward or insulating middle-class Americans from new taxation—are coming to fruition. ROBERT E. MOFFITT THE HERITAGE FOUNDATION
Many in the media reported that I said Papa John’s is going to close stores and cut jobs because of Obamacare. I never said that. The fact is we are going to open over hundreds of stores this year and next and increase employment by over 5,000 jobs worldwide. And, we have no plans to cut team hours as a result of the Affordable Care Act. JOHN SCHNATTER FOUNDER & CEO OF PAPA JOHN’S ON HUFFINGTON POST 20 NOVEMBER 2012
Obama’s federal takeover of the nation’s health insurance is unconstitutional on its face. It exceeds Congress’ power to regulate commerce among the states. It expands the federal government’s authority beyond the enumerated powers listed in the Constitution. It threatens religious liberty, and it imposes an unconstitutional tax on Americans. CHUCK NORRIS NEWSBUSTERS.ORG 6 DECEMBER 2012
13 DECEMBER 2012
REGIONSBUSINESS.COM
OPINION
29
Mayor Nutter’s Trip To China Exactly What Region Needs
P
hiladelphia Mayor Michael Nutter recently returned from a trip to China and, in true Philadelphia fashion, was thoroughly criticized in some corners. The naysayers ranged from misinformed to misguided to miserable, from outraged to confused. The misinformation began immediately with this core question: Why was Mayor Nutter using taxpayer dollars for a vacation to China when the city is going broke? Such a query could cause a political firestorm of epic proportions, if only it were true. Sadly, for the Nutter bashers, it was not true. The trip was largely paid for by Select Greater Philadelphia with some help from the International Visitors Council of Philadelphia. The lack of truth, though, didn’t stop the heated rhetoric. Another favorite criticism went something like this: He’s abandonded his job as Mayor of Philadelphia, wasting time criss-crossing the globe instead of dealing with the mound of problems at home. Such criticisms are wholly shortsighted and misguided. This quote from Mayor Nutter sums up the trip perfectly: “... I’m doing my job, which is to try to get more jobs and investment in Philadelphia.” Spot on, Mayor Nutter. The trip to China was Mayor Nutter acting more like a CEO than a political wonk, which is not only what he should be doing, but a job that the city needs to
have done and one that has been ignored for far too long. Recent years have been marked by plenty of posturing and not nearly enough economic activity. Certainly, it is Mayor Nutter’s job to set policy and, in essence, make sure “the trains run on time.” But he has a clear agenda in place and a team to execute that plan on a day-to-day basis. His time is more wisely used at looking forward, at helping Philadelphia get to the next level, and that will require outside investment. An important lesson has been learned over the past year or two. While the economy flagged, the region’s travel and tourism industry flourished, provided muchneeded energy and momentum, momentum generated by revenue from outside the region. Clearly, Mayor Nutter understands that for our region to become the vibrant economic engine it has the potential to be, investment will have to come from the outside. He also understands that the competition for such revenue is intense, as city’s across the U.S. - and around the world - compete for a finite amount of money. Instead of being criticized for the trip to China, Mayor Nutter is to be lauded and encouraged to find other ways to promote the Philadelphia region to outside investors, and bring investment and jobs to the area. When those results become apparent, the critics will likely be scarce.
REGION’S BUSINESS A JOURNAL OF BUSINESS AND POLITICS © COPYRIGHT 2012 INDEPENDENCE MEDIA 600 GERMANTOWN PIKE, SUITE 400 PLYMOUTH MEETING, PA 19462 610.940.1656 | WWW.REGIONSBUSINESS.COM
Investment in Journalism Will Restore Faith in System I have chosen to make a substantial investment in Region’s Business Newspaper. People often ask me why I became involved with a newspaper at 95 years old. I am confident that, even in these tough economic times, there remains a place for strong and motivated journalism. I firmly believe there is a clear need for investigative reporting in Pennsylvania. My personal experience has taught me the judicial system in Pennsylvania can be wrought with incompetence, ineffectiveness and ineptitude. I have encountered elected public officials who are unwilling or unable to do their job. The citizens of Pennsylvania deserve more than lethargy and ineffectiveness. I have been told by others “the system is broken, but there is nothing you can do to fix it.” Well, my experience has also shown me the power of competent
EDITORIAL BOARD CEO and President James D. McDonald Editorial Director Karl Smith Associate Editor Terrence Casey
and credible investigative reporting and it is my belief that capable, experienced and unbiased reporting will restore faith in our system. Through Region’s Business, it is my goal to hold a light up to the judiciary and our public officials --- who far too often decide issues for reasons other than fact or law. It is our goal to expose incompetent officials. We’re going to ensure the citizens of Pennsylvania receive public service and justice. Together, we will keep pushing to ensure a fair court system. We will ensure that public officials do their job and that the people of Pennsylvania receive honest and complete reporting on the issues that face all citizens of this state. I hope the readers of Region’s Business are as excited as I am to see what we can and will accomplish – together.
Raymond Perelman is an industrialist, philanthropist and investor in Region’s Business.
HOW TO CONTRIBUTE To contribute, send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business. We reserve the right to edit all submissions for content, style and length.
ho ed
ho dy e
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REGIONSBUSINESS.COM
BY THE NUMBERS
2.4%
According to the U.S. Census, the percentage of Perkasie (Bucks County) residents who spoke a language other than English while at home.
14.5%
According to the U.S. Census, the percentage of Philadelphia residents who spoke a language other than English while at home.
$1,100,000,000,000 $142,000,000,000 Federal budget deficit, projected by the Congressional Budget Office in August 2012, for fiscal 2012. Fiscal 2012 was from October 2011 through September 2012. (From The Wall Street Journal’s Washington Wire Blog)
Annual budget deficit projected by the Congressional Budget Office by 2020, if the U.S. economy goes over the fiscal cliff and automatic spending cuts and new taxes are triggered. (From The Wall Street Journal’s Washington Wire Blog)
873
38%
Average number of bicycle commuters coming into Center City northbound on odd-numbered streets between 8 a.m. and 9 a.m. in 2012, an increase of 10.5% compared to 2010.
According to the U.S. Census, percentage of downtown Philadelphia residents who walk to work.
10%
150
PENNSTATELIVE.COM
79.7%
According to the U.S. Census, the percentage of Swarthmore (Delaware County) residents 25 and older with at least a bachelor’s degree.
32.6%
According to the U.S. Census, the percentage of Philadelphia metro area residents 25 and older with at least a bachelor’s degree.
Percentage of residents of neighborhoods surrounding Center City who use a bicycle to commute to work.
Average number of bicycle commuters coming into Center City northbound on 13th Street between 8 a.m. and 9 a.m. in 2012. That’s an increase of 66.7% compared to 2010.
2
Number of northbound Center City streets with dedicated bicycle lanes - 22nd Street and 13th Street. Those two streets experience the highest volume of bicycle commuters.
161
Average number of bicycle commuters coming into Center City northbound on 22nd Street between 8 a.m. and 9 a.m. in 2012. That’s a decrease of 22.9% compared to 2010.
68%
Percentage of Center City bicycle commuters who are male.
42.8%
According to The Chronicle of Higher Education, the percentage of Pennsylvanians 25 to 34 who have completed at least a bachelor’s degree, compared to the national average of 37.8%. Washington, D.C. has the highest percentage (63.5%), followed by Massacusetts (53.4%). Arkansas has the lowest percentage at 25.9%.
1,064
Career at bats for new Phillies centerfielder Ben Revere in two years with the Minnesota Twins.
0
Career major league home runs by Ben Revere. No current major leaguer has more at bats without a home run.
688
Career at bats by Chicago Cubs pitcher Ryan Dempster, the second most at bats by a current major leaguer without a home run.
166
Career at bats by Milwaukee Brewers infielder Jean Segura, the second most at bats by a current major league position player without a home run.
78
The number of home runs Phillies slugger Ryan Howard would theoretically hit in 1,064 at bats based on his current rate of 300 home runs in 4,054 at bats.
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