Econsult was retained by Brandywine Realty Trust to determine the economic and fiscal impacts to the City of Philadelphia and the Commonwealth of Pennsylvania of the Cira Centre development at 30th Street Station. The Cira Centre project benefits from its inclusion in the Commonwealth of Pennsylvania’s Keystone Opportunity Improvement Zone (KOIZ). It is a 29-floor, 732,000 square foot landmark building that has dramatically enhanced the city’s skyline.
The study compared the economic and fiscal benefits associated with the Cira Centre with the fiscal “investment” made in the project, in the form of foregone taxes. Econsult measured the incremental impact of the Cira Centre with respect to economic activity, earnings, employment, office space absorption, and city and commonwealth tax revenues.
Econsult’s analysis proved that the Cira Centre had a strong net economic impact on the city and commonwealth. The construction phase produced gains in spending, earnings, and employment: a significant amount in output, supporting a large number of jobs and high earnings.
The building’s ongoing operations promised similar activity for the local economy and real estate market. The modern, state-of-the-art building added a different product to an office building inventory that is predominantly older and less attractive than the equivalent stock in the nearby suburbs. The added square footage has not depressed the local office space market; rather, it has contributed to an overall improvement in the market. Econsult’s analysis of recent trends in office rental rates, vacancy rates, and net absorption rates suggested a positive overall impact of the Cira Centre on the city’s commercial office.
