In a previous post I talked about the benefits that parks and retail may stand to gain from being co-tenants. Today, we look at specific ways in which retail has been incorporated into our parks and open spaces. Depending on the size of your public space, you may decide to incorporate permanent retail spaces or temporary, seasonal ones that can easily be taken down to make room for more pedestrians and park users. Either way, these additional retail spaces can be great opportunities for local businesses and entrepreneurs to test new markets, if made convenient and affordable.
Case Study 1:
Times Square Plaza
Vendor: Coffeed, a
NYC-Based coffee chain
Space: 100SF, in
the center of Manhattan's most trafficked area.
Leasing: The
Times Square Alliance, the local non-profit BID, designates an area within
Times Square for interested vendors who are then required to build their own
structures. Electricity, rubbish removal services, as well as security are
provided by Times Square Alliance.
Estimated Rent: $20,000/
month with a revenue share of 8% of sales. Times Square Alliance leased the
space via Appear [here], an online listing platform that matches temporary,
pop-up retail spaces with creative brands and entrepreneurs.
Added benefits to the
vendor: Co-branding and promotional opportunities with the BID on its
social media platforms and through other initiatives that the Alliance provides
to the tourist, business and residential community.
Case Study 2: Astor Place
 |
| Photo: The Village Alliance |
Vendors: La Newyorkina and Astor Plate, NYC- based businesses that
both had existing storefronts in nearby neighborhoods like Greenwich Village
and TriBeCa
Space: 110SF (La Newyorkina) and 200SF (Astor Plate)
 |
| Photo: The Village Alliance |
Leasing: The
plaza in which the kiosks currently sit is property of the NYC Department of
Transportation (DOT). However, the local Business Improvement District (BID),
the Village Alliance, has a contract with DOT to maintain the plaza. Kiosk vendors
contract directly with the BID.
The procurement and bidding process of kiosk operators was a
long process, according to William Lewis, Marketing and Events Director of the
Village Alliance. The BID wanted to
ensure that they were tapping into existing local businesses and building
kiosks that were respectful of the surrounding environment and community. Not
only did the BID strive to keep local favorite, MUD coffee, being served at
the kiosks, the BID also ensured the design of the kiosks were contextual. For
example, the kiosk on the south end of the plaza is a metal structure that reflects the style and aesthetic of the famous Alamo sculpture (the Cube) and the kiosk design of La
Newyorkina on the northern end of the plaza features a hand-painted mural that
reflects the local neighborhood.
Like in Times Square,
selected operators built their own structures but worked closely with the
Village Alliance to finalize designs.
Ensuring success: According
to Will (Village Alliance), the kiosks are really popular and doing very well a
year since their opening. Their success lends itself to creative menus, a
variety of products, a strong daytime population, and of course strong
connections to the local neighborhood.
The location of the public plaza by new office developments
and the Cooper Union School ensures that the kiosks get strong foot traffic
throughout the day. In addition, the BID arranges outdoor tables, chairs, and
parasols (like in Times Square!) to support the congregation of large groups
and encourage outdoor dining in the warmer months.
Case Study 3: Hunters Point South Park
Vendor: LIC
Landing by NYC-Based COFFEED features a healthy selection of locally-sourced
food offerings, craft beers, fine wines, and specialty coffees and teas.
COFFEED is also a charity-minded café known for donating a percentage of its
revenue to local charities.
Space: 1,500 SF,
at Hunter’s Point South Park, Long Island City’s waterfront recreation
destination.
Leasing: The
concession spaces was designed and built during the initial development of the
park. Bids were later put out for operators by the NYC Parks department.
Case Study 4:
Union Square Park
Market: UrbanSpace
has operated the Union Square Holiday Market for over two decades
Space:
Leasing: The
market is made possible via a five-year agreement with the Department of Parks
and Recreation negotiated with the market’s operator and founder. The Parks
Department opens a round of competitive bidding, issuing a detailed request for
proposals and site visits for prospective bidders.
Selected market operators then hold open application calls
for interested vendors online.
Estimated Rent: Vendor
spaces average between $6,000-$18,000 per vendor, depending on location and size of booths. Each year, UrbanSpace has netted
around $2.7 million in vendor fees and compensated the City over $1.5 million.
Case Study 5: Downtown
Detroit Parks
Market: Winter in
Detroit is sponsored by Bedrock and Quicken Loans Family of Companies. Detroit Downtown Partnership collaborates with the nearby property
owners to organize the seasonal markets.
Space: 130SF, pre-fabricated
glass structures designed by Philadelphia-based Groundswell Design Group
Leasing: The
market operators hold open application calls for interested vendors online.
Vendors are selected based on unique and creative retail concepts, quality
products and packaging, design of booths, and originality of brand
Estimated Rent: $1,000
for the season (inclusive of electrical, lighting, heating, and security) According
to reports, the 38 selected businesses generated more than $2 million in sales
between November and January.
Regardless of retail model and leasing structure, we must
remember not to get carried away with commercializing parks and public plazas
whose first objective is to provide spaces of relief from urban living and
circulation opportunities. There is always the potential that highly-curated retail experiences with higher price points may indiscreetly exclude a segment of the population that has less disposable income and therefore is less likely to enjoy a costly park retail experience.
Incorporating free experiences with the retail activities may alleviate such impacts. Last season, at the Union Square Holiday Market in NYC, for example, there were free goodies and interactive photo booths open-to-all. Candy and cups of hot chocolate were distributed for free to all visitors- thanks to sponsorship by Citibank. These goodies were handed out at the sponsor's booth, where free mobile device charging stations and warming stations and lounge seating were also offered - much needed respite from the cold of winter.
As the weather clears up in the coming weeks *fingers crossed*, keep your eyes peeled for the growing trend of retail concepts in your local park and let us know if you think it's a much-needed public space activation strategy!
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