What is the Secret of Suburban Downtown Success?

Peekskill, NY - a quintessential suburban downtown

New research in the field of commercial revitalization can be hard to come by. So I love coming across reports that help practitioners in their daily decision making about what to do - and what not to do - when it comes to advancing the cause of downtown economic development. To that end, the Delaware Valley Regional Planning Commission recently released a report ("Revitalizing Suburban Downtown Retail Districts: Strategies and Best Practices") on Suburban Downtown Retail Districts that I found quite interesting. The study considered 71 suburban downtown districts in the Greater Philadelphia region and sought to determine what strategies had the most impact on efforts to revive the districts and to further their economic development goals. 

What Doesn't Work

Before we get to that part, I particularly enjoyed reading the sidebar on what things DON'T work...they called this piece "Polices that Impede Downtown Retail Revitalization". Here are the things you DON'T want to do if you seek a successful downtown district. 

• Constructing ring roads/bypasses 
• Creating pedestrian only zones and parking in remote lots 
• Relocating municipal functions away from downtown 
• Removing on-street parking 
• Creating one-way streets 
• Losing a key retailer 
• Opening of new shopping center 
• Not addressing petty crime 
• Failing to maintain the public realm 
• Refusing national retailers/discount department stores

Source: Streetsense, 2012 via "Revitalizing Suburban Downtown Retail Districts"

What Does Work

So then...what are the elements of suburban retail district success? The study found that seven key elements were most critical to downtown retail success. These included the following:

• The presence of a BID or Merchants Association - although notably only 12.5% included a professional, paid manager
• Ample sidewalk width - i.e. wider sidewalks that accommodate more people - the average sidewalk was 8.5 feet, but went as wide as 15 to 20 feet in some markets (e.g. Princeton and Haddonfield)
• A high "Walk Score" - a walkscore over 80 using www.walkscore.com
• A low vacancy rate - less than 20% vacancy rates (with non-retail uses taking up less than 10% of space)
• Available parking options
• High traffic counts - successful districts see an average of 10,000 - 16,000 vehicles per day. 

The Main Takeaway

If we whittle this down to a few key takeaways, what I appreciate about these categories is that they reflect what other studies have shown, that there are four key areas where business district MUST focus to maintain a competitive advantage. These include ACCESS, AMENITIES, DENSITY OF RETAIL OFFERINGS and DISTRICT MANAGEMENT, which over and over again emerge as the most critical elements necessary for a successful downtown environment. 

• ACCESS measured by traffic counts and available parking. 
• AMENITIES measured by "Walk Score" which tell you how comfortable people are walking in the district. This includes the physical environment, which I define as anything "outside of the store", as well as how clean and safe the environment feels to the pedestrian. 
• DENSITY OF RETAIL OFFERINGS measured in part by "Walk Score" AND by a low vacancy rate. I would argue that a town with a great Walk Score is a place with few missing teeth or gaps in the downtown environment. And finally...
• DISTRICT MANAGEMENT. Whether you are a BID or a Main Street Program of a Merchants Association, a downtown steward is critical to manage, market and maintain a successful commercial district. 

So...are your commercial district revitalization efforts focused on addressed these four key issues? 

Detroit, MI: Reflecting on how far things have come

By Dave Feehan

Dave is Principal of Civitas Advisors and a frequent contributor to the Commercial District Advisor. In this piece, originally published in Crain's Detroit Business ("Afternoon riverfront walk reveals 'new' downtown, opportunity, Crain's Detroit, 10/20/14), he talks about his early years working in Detroit, and the astounding changes the downtown as seen since then. Enjoy!

*******

Detroit Riverwalk, a downtown amenity that
attracts visitors from around the world

In early 1994, after directing Kalamazoo's downtown organization for five years, I was offered the opportunity to return to my hometown of Minneapolis, where I was expecting to lead the city's community development agency. However, newly elected Detroit Mayor Dennis Archer called with a pitch I found too enticing to pass up. 

He said, "You can go back to Minneapolis and make a nice town even nicer, or you can come to Detroit and help me rebuild a great American city." 

I was soon working for Detroit Renaissance as executive director of downtown and community development, and wondering exactly where to start. 

Downtown Detroit was on life support. More than a quarter of the commercial buildings were totally vacant, another quarter was less than 50 percent occupied. That left half the commercial real estate economically nonfunctional. Some retail stores (and there were few) were heated with kerosene space heaters. Even the better restaurants were not that good, and one, located near Harmonie Park, refused to put a sign on the exterior and kept the door locked. You had to knock to get in. 

Woodward Avenue was 10 lanes of potholes with little traffic. Pedestrian traffic was virtually nil, even at lunchtime. The Hudson's building loomed like a foreboding castle, stripped by scrappers and open to anyone who might have the courage to wander into its abyss. Islands of activity existed — City Hall, the Renaissance Center and Greektown — but they were exceptions. 

Detroit's neighborhoods were also facing massive challenges. Some community organizations, especially the Warren-Conner Development Coalition and the Southwest Detroit Business Association, struggled to overcome a tsunami of negative media coverage and failing city services, but most neighborhoods had simply lost the struggle and returned to prairie grass. 

Working with the CEO of Detroit Renaissance and city officials, I was assigned three priorities: Figure out a plan for the Hudson's building, create a new "greater downtown" organization, and provide support to community development corporations in the neighborhoods. 

Working closely with Bob Larson, CEO of the Taubman Cos., and Jim Tervo, Mayor Archer's top development adviser, we hatched a plan to acquire the Hudson's building and much of the surrounding real estate, eventually totaling about 16 acres. With commitments of $2 million from local corporations and help from the Honigman law firm and Vigliotti Realty, we secured options and purchase agreements on about 80 percent of the buildings within our target area in less than a year. Those options were transferred to the city of Detroit once the project became public, and today Compuware, Quicken Loans and many other companies occupy the site. 

Rather than attempt a merger of the four downtown organizations that existed at that time, we elected to create the Downtown Detroit Partnership with a focus on the central business district but allied with and supporting the other groups along the riverfront and up into Midtown and New Center. 

I left Detroit in 1996 to become president of the newly created Downtown Partnership in Des Moines, Iowa, a move precipitated by the death of my father in Minneapolis and the failing health of my mother. My return trips to Detroit were infrequent, most recently a few years ago to visit with Dave Blaskiewicz, who was then president of the DDP and pointed out some of the noticeable public space improvements. 

Still, nothing quite prepared me for the change I experienced when I returned for the Detroit Homecoming event. It was, in a word, stunning. 

A quick drive from Jefferson up Washington Boulevard, around the theater district and the ballparks, then to the New Center on Woodward revealed all kinds of new projects. I thought, "This is what transit-oriented development, Detroit-style, looks like." 

Once I checked in at the Westin Book Cadillac — an unbelievable transformation, and one I thought I would never see — I strolled down through Hart Plaza to see the riverfront walkway. There I met a middle-aged couple, tourists from Frankfurt. German tourists? 

Further along the "international riverfront," as it's called, I encountered another group of tourists, this time from Sweden. I walked around the Renaissance Center, where my office used to be, and into Greektown; I paused for a brief conversation with a young couple from Spain. Diversity was taking on a whole new meaning in Detroit. 

My afternoon walk lasted about three hours. Sidewalks were clean. Planters were filled with colorful flowers and decorative plants. Bikes were nearly everywhere. Despite what appeared to be a slew of apartment and condo conversions, I was told that the vacancy rate for downtown units was approaching 1 percent, and waiting lists were as long as 18 months for good apartments. Coffeehouses and appealing restaurants seemed to beckon the much-increased pedestrian traffic. 
Lunch in Eastern Market with Dan Carmody confirmed what I had been reading: Eastern Market is arguably the premier market of its kind in the country. Carmody has gained a reputation as a visionary when it comes to connecting food, public health and community development. 

In the heart of downtown, I used to see vacant lots and empty buildings and think, "What a tragedy!" I look at those same buildings and surface parking lots and I now think, "What an opportunity!" 
But what of the neighborhoods beyond downtown? While housing initiatives are to be applauded, and while urban gardens and green space will offer some respite from painfully empty blocks, a real opportunity may be present along Detroit's commercial corridors. Most cities have figured out how to revitalize downtown, but neighborhoods will not return to health until progress is also made in terms of bringing back commercial corridors such as Gratiot and Grand River. 

Cities such as Pittsburgh and Washington, D.C., are evolving new and creative strategies for bringing these business streets back to life, and Detroit might learn from them. No one wants to buy a home in a neighborhood where the local Main Street is abandoned and scary-looking. 

One piece of concrete advice for Detroit: Find neighborhoods where there is still some good housing stock and social fabric, then concentrate on just a couple blocks of commercial storefronts at first. Work to build an alliance between business and property owners and neighborhood residents. Try to find locally owned businesses, not Walgreens and Subways. The chain stores will come later, but build a unique set of shops if you can. And create a local organization that can do the three M's: manage, market and maintain. 

As I departed Detroit for a few days in the Upper Peninsula, I had to appreciate that with all of the actors, big and small, engaged in reviving Detroit, a corner had been turned. 

The clouds have broken, and once again, the sun is shining on Detroit.

Building Strong Leaders in Commercial Revitalization

Commercial District Advisors gladly supports Coro’s Neighborhood Leadership (NL) Program and encourages those New York City-based practitioners in the commercial revitalization field to apply for Coro’s 2015 six-month program beginning in January. 

Image via coronewyork.org

Who is the NL program targeted for?

“For those leading commercial revitalization efforts in their communities-whether working in a Business Improvement District, Merchant Association, local development corporation, Chamber of Commerce or other nonprofit organization- Coro's Neighborhood Leadership (NL) program provides the city's top talent with the resources they need to understand how to influence meaningful change and address complex challenges within their neighborhoods.”  In Coro’s NL program participants “are given the opportunity to build leadership skills through intensive training and peer-to-peer learning. Participants leave the program equipped with the knowledge and skills to drive change in their own neighborhoods, and an unparalleled network of engaged civic leaders from which to continue to build and grow.”

What are the benefits of the program?

The Coro NL program notes key benefits to this program:

• THE NETWORK: NL connects participants to an accomplished community of Coro NL alumni, City leaders and the broader Coro community, who are dedicated to supporting one another.
• THE KNOWLEDGE: NL deeply immerses participants in building individual and collaborative capacity for practicing leadership and bringing about change in their communities.
• THE SKILLS: NL uses the City of New York as a lab to explore, test and build effective commercial revitalization strategies to adapt and thrive in challenging environments. In particular, participants hone the skills needed to get things done in a multi-stakeholder environment.

Image via coronewyork.org

What is the time commitment?

Neighborhood Leadership meets January through June  and requires a significant time commitment of attendance including: A three-day overnight Opening Retreat, Saturday Leadership Retreat days (4), Bimonthly Networking Evening Events ("Coronect" evenings), Tuesday Strategy Day Sessions (5), Closing Session & Graduation (1), and one Follow-Up Session in October.  Click here to view the NL 2015 program calendar.

Who are the participants?

Approximately 20 successful nonprofit management professionals whose work is focused on commercial revitalization are competitively selected to participate each year. Selected participants reflect the demographics of New York City with at least half serving low to moderate income neighborhoods.  Those selected have interest in joining the Coro community and NL alumni network.

What is the cost?

The kicker is that there is no tuition due to the generous support of the program’s partner and funders. 

Applications for NL 2015 can be found here. The application deadline is Saturday, November 15th.

Questions/comments, contact - Garrett Lucien, Program Director of Neighborhood Leadership, at 212 248-2935 ext. 308 or glucien@coronewyork.org.

Source: http://www.coronewyork.org/corony/programs/nl/

Innovation Through Competition: Grants Available to Enhance Local Commercial Districts

Commercial District Advisor would like to share some exciting news!

The NYC Department of Small Business Services, in partnership with the New York City Economic Development Corporation  and the New York City Business Assistance Corporation, has again launched Neighborhood Challenge after a successful year in 2013. "This is a competitive grant initiative designed to encourage Business Improvement Districts (BIDs) and Community-based Development Organizations (CBDOs) throughout the five boroughs to execute innovative and forward-thinking ideas that address challenges faced in many business corridors."

Last year's initiatives included storefront improvements, district marketing campaigns, and public art installations. The winning programs and initiatives are currently being implemented in business corridors across the Bronx, Brooklyn, Manhattan, and Queens.

This year grant awards of $30,000, $60,000, and $100,000 will be given to the boldest ideas in four categories:

• Business Attraction, Retention, and Growth,
• District Planning, Streetscape Improvements, and Public Space Activation, 
• District-wide Marketing and Events,  and
• Property Activation and Development.

Image via nyc.gov

CDA supports this initiative because the projects help solve small business challenges, generate, community and economic impact, and receive local recognition.

For all the guidelines, eligibility, and to apply visit: 

http://www.nyc.gov/html/sbs/html/neighborhood_development/neighborhood_challenge.shtml 

Applications must be submitted by Wednesday, November 5th, 2014, at 5:00 p.m.

An example of a project by 2013 Neighborhood Challenge winner:

http://impact.sva.edu/blog/impact-community-outreach/

Winners of 2013 Neighborhood Challenge:

http://www.manhattancc.org/news/newsarticledisplay.aspx?ArticleID=553

Best Practices in City-led “Parklet” Efforts

Parklets are a growing strategy that commercial district managers are using to drive traffic to their local business districts, and with good reason.  According to the 2011 San Francisco Great Streets “Parklet Impact Study,” foot traffic increased 44% in a studied area, those stopping to engage in stationary activity tripled at another, and business owners denied any decrease in business while some reported an increase.

The term “parklet” was first used in San Francisco to describe a parking spot turned mini-park and originated from the 2009 San Francisco Park(ing) Day.  A typical parklet includes a platform on pavement adjacent to a sidewalk. Many parklets include additional seating, landscape, and tables.  Parklets have now spread to many other cities, including New York, Los Angeles, Chicago, Oakland, Philadelphia, and Long Beach. (Source: Grand Rapids Parklet Manual)

Many other cities have caught on to the appeal of parklets and have begun parklet pilot programs.  Cities on the list include Seattle, Minneapolis, Miami, and Grand Rapids.

Parklets are a creative solution to the desire for wider sidewalks especially in areas with narrow sidewalks or a lack of open space.  Although parklets are not permitted to engage in direct commerce like sidewalk cafes or table-side service, a 2010 Divisidero Trial Parklet Impact Report noted they do increase foot traffic (13-37% according to the study), economic activity, bike parking, and public relaxation and socialization. http://nacto.org/docs/usdg/divisadero_trial_parklet_impact_report_pratt.pdf

Pilot programs vary from city to city, but there has been an uptick of activity. A few programs that we like here at the Commercial District Advisor include the following:

• Seattle – regulated by Seattle’s Department of Transportation, businesses and groups apply to become parklet hosts and are selected by SDOT based on their potential to provide a valuable community space, their geographic diversity, and their level of community support.  The program so far is two parklets with 13 more to come. http://www.seattle.gov/transportation/parklets_designs.htm
• Minneapolis – regulated and maintained by the Minneapolis Department of Public Works, selects sites based on criteria and logistics, provides the modular set up and materials and even provides the installation and removal. http://www.minneapolismn.gov/pedestrian/WCMS1P-130301
• Grand Rapids – a public-private partnership program, applicants are responsible for costs and fees associated with the project however they can apply for reimbursement through a streetscape improvement incentive program, has a very impressive packet/manual. http://www.downtowngr.org/news_item_files/DGRI_Parklet_Manual_April_2014.pdf
• Miami – regulated by the Miami Parking Authority, the application process appears lengthy with some fees listed in the application, applicants are scored based on criteria and top five scores proceed to the next step of program. http://www.miamiparking.com/Files/Parklet%20Application%20and%20Instructions.pdf

With many benefits and few disadvantages, withstanding the loss of one or two parking spots, parklets demonstrate the growing impetus to leave the car and gather with your community to laugh, love, relax, and to have a shared experience. 

Photo by: San Francisco Planning Department

Lessons Learned

It appears that parklets have common themes.  They generally take up one to two parking spots, have seating and landscaping, and the overall responsibility lies on the “host” to maintain.  What other lessons are there to be learned moving forward with parklets:

• Are there some places that shouldn’t do parklets? Raleigh completed a Parklet Feasability Study and noted specific locations within their city that parklets shouldn’t be.  One could induce from their results that parklets should not occur in areas with low pedestrian destination traffic, in places with sufficient plaza or open space already, high parking demand, busy or dangerous streets or streets that need reconfiguring, and streets entering residential neighborhoods. (http://www.raleighnc.gov/content/extra/Books/PlanDev/ParkletFeasibilityStudy/index.html#/30-31/zoomed, 2013)
• Do we need to ensure that someone manages them? It is important for parklets to keep up appearances, after all the purpose is to ensure a little bit of green space for public enjoyment.  The common rule is to hold “hosts” responsible for maintenance and appearance.  Most parklet programs have parameters and specific guidelines in place for hosts to maintain their parklets.
• Are they best when connected to a local business?  More studies are needed to gauge specific metrics of whether positive effects come from parklets adjacent to businesses.  All parklet programs prohibit direct service to businesses such as table-side service or café service.  Nearly every city requires parklets to be open to public use, but Long Beach, CA allows discretion on the owner whether they require patrons to make purchases (http://www.raleighnc.gov/content/extra/Books/PlanDev/ParkletFeasibilityStudy/index.html#/4-5/, 2013).
• What about the homeless?  Like most urban public plazas and parks, parklets will also have the issue of how to regulate or manage the homeless if their use of the parklet is outside of the intended purpose.   San Francisco has shut down at least one parklet because it had become a prime destination for drinking and carousing (http://www.berkeleyside.com/2013/07/08/berkeley-parklets-stir-up-excitement-apprehension/, 2013).

Image via http://www.minneapolismn.gov/

Additional Resources

• National Association of City Transportation Officials (NACTO) Urban Design Street Guide for Parklets. http://nacto.org/usdg/parklets/
• The Regional Plan Association is helping lead efforts in New Jersey to establish parklets in up to 18 New Jersey Towns.  http://www.rpa.org/spotlight/turning-parking-into-parklets
• Raleigh, NC Parklet Feasibility Study, 2013 http://www.raleighnc.gov/content/extra/Books/PlanDev/ParkletFeasibilityStudy/index.html#/1/
• Here are a few parklet design manuals to check out: Grand Rapids, MI: http://www.downtowngr.org/news_item_files/DGRI_Parklet_Manual_April_2014.pdf, Sacramento, CA: http://portal.cityofsacramento.org/Public-Works/Parking-Services/Pilot-Parklet-Program/Parklet-Manual

As Baby Boomers age, are commercial districts poised to make a comeback?

The Shoppes of Avondale, Jacksonville, FL -
are walkable mixed use communities like these poised
to see an influx of Baby Boomer residents?

Is your downtown ready to take advantage of the downsizing Baby Boomer? Downtown Seattle, specifically the area surrounding Pike Place Market is one community seeing a growth in residential development fueled by aging Baby Boomers. In August of last year, the Wall Street Journal reported ("Hip, Urban, Middle Aged", WSJ, Aug. 2013) that a 34-unit condo with prices hovering over $1 million mostly went to Baby Boomers, many of whom were leaving their larger homes in suburban areas and heading to older, more walk-able urban neighborhoods. A recent study that LOA completed in Seattle found a similar trend - the projected Median HH Income growth rate in the downtown area over the next five years is 6.6% - significantly higher than that of Seattle as a whole, which is 4.39%. These "moneyed buyers [have] created a gold rush" according to Seattle realtor Dean Jones. In Denver, one resident quoted specifically mentioned the desire to "stop driving so much". The Washington Post went so far as to announce, "The kids gone, aging Baby Boomers opt for city life"(The Washington Post, July 2013)

This specific issue - what to do as Baby Boomers age and cannot drive - is increasingly fueling planning that must, by necessity, include downtown and mixed use districts. This week, the New York Times wrote about just this kind of retirement planning, "When Planning for Retirement, Consider Transportation", NYTimes, Oct. 2014. The couple profiled live in a San Diego neighborhood where "If you don't have a car, you're stranded". They are now exploring public transportation options that are weak at best, and are considered moving, but aren't quite ready to make the leap just yet. 

Another issue is the fact that transportation - specifically personal ownership of an automobile - eats up a huge percentage of income (25% according to the Federal Dept. of Transportation). As people age and move to fixed incomes, the need to reduce these costs become necessary, and the ability to live close to work, shopping, eating can reduce transportation costs to 9% of income.  

Moving to a more walk-able neighborhood seems like a great option as people age, but how do we reconcile the fact that, according to an AARP survey, 87% of people age 65 and older want to remain in their current communities? The good news is that the study found that this preference decreased with income.  ("Home and Community Preferences of the 45+ Population, AARP, Nov. 2010). 

Developers are also taking note. Toll Brothers, a home builder known more for their suburban tract housing than for their urban projects, has increasingly started developing in the urban core. Initially, they thought their projects would be filled with young people, but they sold a much larger than expected percentage to Baby Boomers. 

So it seems that yes, Boomers are creating a dynamic shift towards urban communities. Is your community seeing a similar demographic trend?

Murals on Pitkin Avenue

I had an opportunity to tour Pitkin Avenue yesterday with Daniel Murphy, the ED of the Pitkin Avenue BID. In addition to some great pizza, we enjoyed a beautiful day on the strip during our diagnostic site visit. Having completed a market study on Pitkin over three years ago before Dan's tenure, it was great to see the impact he has had in relatively short period of time. One thing caught my eye...the stunning new murals that Dan made happen (and that have remained graffiti free!), courtesy of funding from the NEA Our Town program and in partnership with Groundswell and the NYC Department of Probation. This community has seen its fair share of challenges, but these murals speak the potential and future of this incredibly diverse community.

The Economics of Fear is Not Limited to Ebola

“Economic consequences also result when fear and concern change behavior…If consumers and businesses retrench…G.D.P. growth rates will fall farther.” 

- David R. Kotok, Cumberland Advisors on the economic impact of Ebola on the African economy.

This quote was in yesterday’s New York Times about Ebola, but the truth is, it could have been written about many low-income urban communities where crime is a concern. In one east coast city where LOA recently conducted a city-wide market study, developers and business owners alike cited “crime” as the number one challenge to overcome in attracting investment. Stakeholders said it again and again, loud and clear, until both real and perceived crime diminished, investors would look the other way. The effect of this fear is one that can quickly spiral out of control, feeding on itself and creating a deeper and deeper economic hole from which it can be difficult to emerge. Consider this, if few developers invest, there are no projects to use as comps for other investors. Without comps, banks don’t have much to look at when underwriting projects, and therefore shy away from what they see as risky loans. Without private financing, the public sector often tries to kick in to make up the difference – but even that is often not enough, particularly in times of increasing fiscal austerity.

The problem has been well documented over the years. In 2004, the International Council of Shopping Centers (ICSC) together with the Business for Social Responsibility asked retailers point blank, “What factors are obstacles to entry into underserved markets?” The number one factor regarded as significant to 80% of respondents was “Crime/Perceived Crime”.

Getting crime issues under control is perhaps the most significant intervention that you can make in setting the stage for successful commercial revitalization. And turning a community around often requires changing entrenched public opinion that has hardened over time – not an easy task – but one that must be addressed if communities are to see improvements and new businesses meeting the needs of local customers.

Karl Seidman, a professor of mine from my MIT days, outlines what “Clean-and-Safe” oriented districts need to do in Revitalizing Commerce for America's Cities (one of my favorite reads). The key approaches he outlines are as follows: 

• Build relationships between the business community and the police department
• Educate businesses about public safety and crime prevention techniques (and fund them to implement these techniques when necessary)
• Apply crime prevention design principles (also known as Crime Prevention through Environment Design - CPTED) to the public realm - streets, sidewalks, public spaces, etc. 
• Establish supplemental security services (which can be funded by self-taxation mechanisms such as Business Improvement Districts - BIDS)

In his book, he describes how a few communities with significant public safety concerns addressed those issues over time. 

Another great resource for ideas about crime prevention are the Metlife Foundation and LISC CSI "Community-Policy Partnership Awards". Every year they recognize community groups that are addressing crime in creative and impactful ways. You can go back to 2002 to see information about past award winners. These winners offer practitioners a treasure trove of options for crime prevention. 

10 Tips for Aggressive Prospecting

Getting out there and meeting business owners is one of the most important elements of retail attraction. For many of the districts that we work in, attracting national chains is not really a priority. Rather, the focus is on keeping it local and attracting interesting regional independent and/or mom and pop stores to a district. When the focus on the smaller tenants, it’s important to keep in mind that these retailers are not typically out scouting for new store locations, so it’s often critical that you find them. And while e-mail blasts and social media are a good thing to do, nothing replaces the impact of an actual visit and a one-on-one conversation with an owner. 

Are you struggling to find tenants
for vacancies in your district?

How do the experts do it? Here are a few tips to keep in mind.

1. Buy something on the way out the door, this will make you a customer and someone that the owner is more willing to talk to.

2. Stay up to date on who is expanding and who is contracting. Local business media and TV sometimes provide leads, so keep on top of the news.

3. Don’t rely too much on technology. Drive and walk a district and visit business owners personally. Cultivate a personal relationship over time, don’t just go when you have a space you want to market.

4. Stay active with the local Chamber and business groups. You never know who is hoping to expand and this is a good way to keep your finger on the pulse of potential new tenants.

5. Consider local business plan competition winners and partner with your City’s small business services division to help identify businesses who are seeking support and potentially looking for spaces.

6. Attend ICSC Deal-making – the representatives for many retailers change over time, so you will need to keep up with who the new representatives are.

7. Once you’ve started a conversation with a business owner, try to get a sense of when leases are up. A business may be looking to relocate and this will give you an opportunity to sell the story of why your site offers more visibility, foot traffic, etc. than where they are currently at.

8. If you know a vacancy is coming, visit nearby stores and chat with the owners. They often know about other businesses are are looking to expand.

9. Mailings are a good alternative to social media – direct-mail pieces can be a good way to get directly in front of an owner. Many owners still don’t use email, especially in local markets, so mail can be a good way to ensure they hear about opportunities in your district.

10. With a prospect you really like, do your homework about their business in advance. One way is to show them maps showing that your market has voids that their business can fill.

Brokers will say this again and again, nothing replaces pounding the pavement - so get out there and do it!

Credit: This post was developed in part an article in this month's SCT (“Prospect to Prosper”, Sept. 2014).

The shoppers of tomorrow are here today. How do you capture them?

This month’s “Shopping Centers Today” explores how teens and young adults – a growing and important customer segment – are changing the way malls and by extension, traditional commercial districts need to respond to keep them as shoppers. (“The Young and the Restless”, Sept. 2014, SCT)

American Apparel is a popular teen retailer

So what has caused this recent concern? A look at the teen-focused apparel category – including the many Mandy’s and Rainbow’s that dot the urban landscape – shows that these retailers have had a few soft years. In response, Forest City Enterprises, one of the nation’s leading owners, developers and managers of commercial property, went ahead and tackled this issue by conducting research into the shopping habits and preferences of the teen market. What they found offers both good news and bad for both malls and commercial districts alike.

The Good

• Physical presence still matters. Unlike the rest of us, younger shoppers have time to kill. 71% of expenditures by those between 13 and 17 occur in brick-and-mortar stores. 
• While they are shopping, they like to socialize. Proximity of food options, cafes, etc. can help make a place a destination. Westfield Malls in London have socialization spaces that encourage teens to linger, including couches, coffee table, etc. Free concerts are another way to create an experience. Westfield offers free concerns Thursday through Sunday to drive traffic to their malls. Forest City has offered concert tickets to shoppers. 
• The ubiquity of smartphone and on-line shopping options allow teens to browse on-line, but the good news is they still like to buy in the store. This is called “pre-shopping”. 

The Challenges

• Teens are shopping less frequently – before the recession, teens went on roughly 40 shopping trips per year. Today that number has dropped to 30 per year. 
• The teen jobless rate is 22% - and as a result teens are frugal and price-sensitive. They respond well to sales and discounts, so it is important to offer promotions to motive this group to shop. Forest City malls incorporate the Facebook and Twitter Feeds of many of the national brands in their malls. 

What Can you Do?

Mall managers are increasingly looking to offer the following to attract the teen market...

• Offer an experience. Make sure you offer activities – from live music to farmer’s markets that provide more than just shopping. 
• Offer a comfortable “third place” – a comfortable place to socialize that is not home or school. To this end, the café is an important offering. Other options include landscaped outdoor areas with benches and tables. 
• Offer discounts. Sidewalk sales events and in-store promotions (connected to school opening, for instance) can be a good way to get these price sensitive customers in the door. 
• Engage shoppers with social media. According to ICSC, the top three sites for teens are Instagram (30%), Twitter (27%) and Facebook (23%). Connect with any stores in your district that have their own feeds. 

These are simple, yet effective ways to ensure your teens are having the kind of experiences that keep them coming back to your district.