Area commerce on the rise

In the spread of just several years, Penn's campus has been transformed into an outdoor shopping mall.

"If you were a freshman four years ago, it would be night and day from a retail perspective," said John Greenwood, a top official for the University's realty company, of the changing face of Penn.

And although many business owners were initially worried that the new development would lure customers away from traditional campus mainstays like Campus Market and CVS, retailers along Walnut Street are now saying that business is better than ever.

Many officials at existing stores in the 39th and 40th streets area said that they are reaping the rewards of increased foot traffic and a surplus of people wanting to spend, spend, spend.

"We have more business because of the bookstore," noted Chennal Davis, a shift leader at Baskin Robbins, a favored campus dessert destination.

"We have done better than last year," agreed CVS Assistant Manager John Greene.

Bill Anderson, owner of the Mail Boxes Etc. near 38th and Walnut streets, said he has seen more shoppers in the area since the development of the Sansom Commons retail complex.

"My perception is that foot traffic that walks past 38th and Walnut has increased dramatically," he said. "I haven't done a count, but more people are trucking up and down the sidewalk than used to."

"I believe and know for a fact that stores are actually doing better," said Greenwood. He added that the positive outcome was not at all surprising to him.

"Often in retail when you create a critical mass... the more stores the better," he said.

Though Anderson sees the development of new retail space in the area as being beneficial, he noted the actual construction work has been an obstacle for customers.

"It has been an inconvenience," Anderson said of new construction. "But it has not been fatal to business... it does make life a bit more difficult."

According to Greenwood, the stores at Sansom Commons and the Shoppes at Penn have succeeded in creating a stronger, better overall market.

The stretch between 38th and 40th streets has become even more desirable to businesses, said Tom Lussenhop, the University's top real estate official.

"Sales are up, businesses are willing to pay higher rents, and ipso facto sales are strong," Lussenhop said.

Lussenhop said that because retail space in the Penn community is hotter than ever, University planners are able to attract better retailers.

"Retailers who are independent are looking at University City differently than they used to," he said. "It will enable us to attract and attain more stable, interesting merchants."

Anderson agreed that the area is becoming more desirable for merchants.

"There's a feeling of safety, cleanliness, and attention to detail," he noted. "The efforts are producing dramatic benefits, and making this a more attractive place."

Lussenhop said that the increased retail activity requires the University to more actively consider the use of its real estate.

"It is a challenge for us to maintain the mix of retailers who will offer a range of services and goods people in a college environment want to see," he said. "It is also important for the University to maintain rent structures so that the kinds of eclectic and idiosyncratic retailers can do business here."

Echoing the sentiments of many University merchants and business people, Anderson said he remains optimistic.

"I am extremely hopeful that all the new economic development will be positive to the University," he said.

"I haven't seen the immediate benefits yet, but we hope to flourish as a consequence of the development," he added.

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