Though many college students feel that they never have a spare dollar, stores and restaurants such as Sweetgreen — which will open this May under the Radian — still find a space to cater to students. The University successfully sustains a complete retail occupancy.
Real Estate and Operations director of the University Ed Datz explained that all 340,000 square feet of potential Penn-owned retail are “100 percent occupied.”
The primary regions of this occupancy include 3401 Sansom Commons, Stouffer Triangle, Hamilton Village Shops as well as “smaller segments,” and the dual retail and housing facilities of the Radian, Domus, and the Hub.
Datz said in the late eighties, there was a “paradigm shift of what retail was.” Just over ten years ago, most retail in Penn’s vicinity catered to service-based needs. Campus Copy Center, Wawa and other strictly service-based facilities greatly outnumbered apparel and food options on campus.
Facilities and Real Estate Services lured the Gap, its first national brand, to campus in 1988.
The Gap’s arrival paved the way for additional food, beverage and “higher-end” retail. Prospective retailers learned that the target demographic was no longer West Philadelphia community members, but the faculty and students of Penn, Datz said.
In 1996, FRES solicited retail broker Madison Marquette to generate a master plan through the year 2000. Under Madison Marquette, the Inn at Penn opened its doors in 1998.
Penn’s retail further transitioned as it ventured to the outskirts of campus. Datz noted that areas farther away from Penn’s hub, such as the shops on 40th Street, were intended to “support the West Philadelphia neighborhood” as well as those affiliated with Penn.
With the emerging popularity of strip malls and co-tenants, Datz and his team hand-selected vendors to fill 40th Street with a diverse selection of stores
Greek Lady owner Dimitrios Dimopoulos praised FRES for playing an integral part in his business’s transition from food truck in 1985 to full-fledged restaurant in 2002. “They believed in us, giving us our first retail space and an opportunity,” he said.
“We were not aggressive with rent structures or driven purely by profit,” Datz remarked. “What we do is look at the health of retailers in conjunction with rental rates.”
FRES supported small businesses and continues to do so, with 50- to 60-percent of Penn’s retail in the hands of individual enterprises.
After 2000, FRES directed its attention toward strengthening food and beverage options. In 2002, Fresh Grocer became Penn’s first campus-area supermarket.
Building up the arts and culture of the area, the Bridge Cinema — now the Rave — opened in 2003.
In its post-millennium studies, FRES found that students were looking for spaces to study other than Van Pelt and Fisher Fine Arts libraries.
In the last five years, an emergence of coffee shops and cafes helped accommodate this growing demand. Megan Roberts, store manager of Artisserie Chocolate Cafe — formerly known as Naked Chocolate — said she constantly sees students studying and working in the cafe.
With so many competitors, including Starbucks and Saxbys, her primary demographic is the Penn community in the immediate vicinity: “Here, people are only willing to walk three blocks for coffee. I’m pulling from students and staff on this block.”
In 2007, FRES combined retail and living accommodations through Domus and Hub, which opened in 2007.
The demolition of Walnut Mall, a single story complex on 39th and Walnut streets, allowed the Radian apartments to be built in 2008.
The Radian features retail beyond the ground floor. City Tap House, a global brewery and restaurant, opened in May 2010.
City Tap House sales promoter Howard Hewlett noted that its location on the second floor of the complex makes the brewery all the more distinguished: “It has hurt us a little bit, but it makes us more unique,” he said.
Like other retailers, Hewlett’s market is the Penn community: “We bring a variety of culture from beers around the world to the students from around the world,” he added.
For the next five to ten years, FRES is looking to build a new strategy and begin the cycle once more. With the help of Madison Marquette, the team will explore the ways they can combat “e-buying,” as well as sustain their impressive filled occupancy.
