Mayor Nutter Presents Smart City. Smart Choice. Study Which Shows Philadelphia is Business Friendly
Mayor Nutter celebrates expansion of Neiman to Center City.
Philadelphia, October 18, 2010 — Today, Mayor Michael A. Nutter presented a cost comparison study among peer cities in the northeast United States as part of the City's Smart City. Smart Choice. business attraction campaign. The cost comparison study highlights Philadelphia's relatively low real estate and labor costs that result in direct savings for businesses that wish to relocate or establish operations in the City, when compared to New York, Boston and Washington, D.C. Philadelphia's affordable office space and labor costs, convenient geographic location, abundant cultural amenities and convenient public transportation infrastructure enhances the City's appeal for new businesses that wish to locate here and contribute to the growth of the creative economy sector.
Philadelphia's multi-faceted appeal is continuing to attract businesses like Neiman, an advertising agency founded in Harrisburg that opened its first Philadelphia office in 2007 and has since outgrown their initial location and relocated to 1619 Walnut Street. Neiman received low-interest financing through the Philadelphia Industrial Development Corporation (PIDC) and well as Job Creation Tax Credits from the City's Department of Revenue. Neiman's commitment to the City was to create 10 new positions as part of the relocation and so far the company has created 17 with more to come.
"The creative economy is a vital component of Philadelphia's economic growth and Neiman has shown that even during difficult economic times businesses can still thrive and expand in our city," said Mayor Nutter. "The Smart City. Smart Choice. campaign will highlight our city's business-friendly appeal and I hope more businesses will join Neiman in their operations here in Philadelphia."
"Philadelphia has been rocket fuel for our growth," said Neiman President and CEO Tim Reeves. "Tremendous talent. A vibrant creative culture. A dynamic digital community, which is key for us. World-class office space at affordable terms, enabling lower overhead that helps us to compete successfully for national clients. And a true partner in the PIDC. They have radiated enthusiasm for helping our business to grow. Our only regret is that the resulting growth and clients have us working too hard to fully enjoy the tremendous restaurants, sports and cultural amenities that also are part of Philadelphia's magic."
The Smart City. Smart Choice. business attraction campaign focuses on the advantages and affordability of locating businesses in Philadelphia. When comparing the combined labor and real estate costs of a 100-person professional service firm occupying 25,000 square feet of office space, a business located in Philadelphia as opposed to peer cities in the Northeast corridor would realize more than $1 million in single year savings. Philadelphia offers the lowest total direct labor costs among peer cities and Class A office rent is substantially lower. When compared to New York City, office space rent is less than half in Philadelphia.
As a companion to the Smart City. Smart Choice. business attraction campaign, Mayor Nutter also introduced collateral highlighting the strength of Philadelphia's Creative Economy. According to a recent study by the City's Office of Arts, Culture and the Creative Economy, Philadelphia has more than 18,000 persons employed in the creative industries and Greater Philadelphia education institutions award 11,700 degrees related to creative economy occupations each year. Philadelphia has the fifth fastest growing creative sector in the United States and boasts a 70 percent stronger creative sector than the national baseline.