tag:blogger.com,1999:blog-28004879049930077542024-03-19T05:35:36.513-04:00 Commercial District Advisor The online resource for information-sharing, ideas and strategies for successful commercial district revitalizationLarisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.comBlogger533125tag:blogger.com,1999:blog-2800487904993007754.post-82582897335662453372018-07-25T10:55:00.004-04:002018-07-25T10:55:45.152-04:00LOA has moved!Please visit our new home at <a href="http://www.larisaortizassociates.com/blog/">www.larisaortizassociates.com</a>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-2800487904993007754.post-77154759324835484822018-07-10T11:24:00.005-04:002018-07-10T11:24:44.463-04:00LOA supports strategic development and leasing efforts for Bedrock Management and Midwood Investment and Development As the world of retail continues to change, cities, downtown organizations, and private developers alike are trying to make sense of all the different shifts in consumer preferences, living arrangements, and even employment patterns that impact tenant mix and retail sales. <div>
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This past Spring, LOA worked closely with real estate developers to conduct customized retail market research and analysis in support of leasing efforts in downtown Detroit and Studio City California. In order to make strategic leasing or investment decisions, developers are increasingly relying on a wide range of data to investigate market conditions. Data is critical for <span style="background-color: white;"><span style="font-family: inherit;">developers to convince other stakeholders including potential tenants, city agencies, and investors, that the development project should be permitted, funded and/or leased. In close coordination with clients, LOA continues to tailor</span></span> industry research and key metrics based on project site, geographic location, and demographics. </div>
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<b>Client: Bedrock Management Services</b></div>
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In March, LOA conducted a like-district analysis for Bedrock Management, a full service commercial real estate firm with a portfolio totaling over fifteen million square feet in downtown Detroit and Cleveland, to better understand the opportunities and challenges Detroit faces in becoming a world-class downtown. Following the City of Detroit's lost bid to host Amazon HQ2 in 2017, LOA was tasked to provide one of the city’s largest downtown property owners a critical understanding of Detroit’s workforce and resident populations, as well as tenant mix, in comparison to ten other comparative emerging and well-established downtown markets shortlisted by Amazon. The like-district analysis, using mixed methods, compared data from cities across the country including Baltimore, Atlanta, and Portland. </div>
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This exercise was intended to help Bedrock Detroit confidently market and sell their downtown properties with impactful data and to scout potential tenants in comparative markets. </div>
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Bedrock Detroit will continue to use the analysis to inform its downtown property management</div>
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<b>Client: Midwood Investment and Development</b></div>
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LOA also worked with Midwood Investment and Development, a real estate developer and investor with a diversified portfolio comprising of retail, office, residential, and mixed-use properties. Midwood owns over 125 properties with a development pipeline of several million square feet, including signature projects One Bromfield in Downtown Crossing, Boston, Spring Street in SoHo NYC, and Center City Philadelphia. </div>
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<a href="https://4.bp.blogspot.com/-V_LJE89d0Vc/W0TOxxnp0LI/AAAAAAAABbc/1520_5fa2H0xyDpSVnBFhFx6LGAgP-04gCLcBGAs/s1600/sportsmens%2Blodge%2B3.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="649" data-original-width="1010" height="205" src="https://4.bp.blogspot.com/-V_LJE89d0Vc/W0TOxxnp0LI/AAAAAAAABbc/1520_5fa2H0xyDpSVnBFhFx6LGAgP-04gCLcBGAs/s320/sportsmens%2Blodge%2B3.JPG" width="320" /></a>To support Midwood's leasing efforts at its latest lifestyle retail development in Studio City, The Shops at Sportsmen's Lodge, LOA conducted a comprehensive market scan that provided key insights on residential, worker and visitor demand. The analysis was intended to support the merchandise plan for the property, which included over 100,000 SF of eclectic culinary offerings, high-end fashion, and modern essentials (<i>and not forgetting the Equinox gym and organic supermarket!</i>). The findings were also designed into a compelling marketing brochure used by the leasing team at one of the country's largest retail trade shows, International Council of Shopping Center's Annual RECON in Las Vegas.</div>
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LOA hopes to continue bringing our expertise to bear support to retail planning at various phases of decision making by providing clients with market-based development strategies for successful ventures. </div>
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Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-2800487904993007754.post-50163208857799794562018-06-19T11:31:00.000-04:002018-06-19T11:31:36.084-04:00Join LOA Principal Larisa Ortiz for a Discussion with Alan Mallach, Author of "The Divided City: Poverty and Prosperity in Urban America"<div>
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Discussions about poverty are never far from the work that we do at LOA, especially when working in distressed urban communities where jobs are few and far between and where business owners struggle to make ends meet. Despite these challenges, we are always inspired by the communities where we work, and in particular the residents and community leaders who continue to take action and find ways to make their neighborhoods better places. So what <i>are </i>the challenges and solutions to persistent poverty at the neighborhood level? And is "gentrification" a red herring that keeps us from recognizing the mounting problems of communities that may never see the arrival of higher income residents? These are questions with which we grapple on a daily basis. </div>
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This is why I am particularly excited to join author, advocate and Professor Alan Mallach to discuss his new book, <i>The Divided City, Poverty and Prosperity in Urban America </i>on June 25th at the Century Foundation in Lower Manhattan. Other speakers include Professor Laura Wolf-Powers of Hunter College's Department of Urban Policy and Planning and Joseph Della Fave, Executive Director of Ironbound Community Corporation in Newark, NJ. </div>
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As I dig into this book I found it to be a great read, offering historical context and deep insight into the urban challenges currently facing many post-industrial cities. For those looking for solutions to the challenges facing "magnet" cities like New York, Washington DC or San Francisco, cities that often dominate the headlines with concerns about the rapid influx of high income residents displacing those with lesser means, look elsewhere. This book is about "legacy" cities like Youngstown, OH, Trenton, NJ and Buffalo, NY, where job growth and economic development continue to lag - and where persistent and concentrated poverty continues to relegate generations of poor (often black and brown) people to cycles of poverty from which escape is increasingly unlikely. These places also happen to be places where we have worked and partnered with Community Development Corporations, Community Development Intermediaries, and local government to identify asset-based solutions to neighborhoods that struggle to retain jobs and businesses for local residents. It promises to be a lively discussion so I hope you will join us!</div>
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For tickets please click <a href="https://www.eventbrite.com/e/the-divided-city-a-discussion-with-alan-mallach-tickets-46336037335#listing-organizer">here</a>. This event is sponsored by the <a href="http://www.rpa.org/">Regional Plan Association</a> and <a href="https://tcf.org/">The Century Foundation</a>. The event will be held at 1 Whitehall Street, 15th Floor, New York, NY 10004 on June 25th from 5:30 - 7:30 pm. </div>
Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-23998354011338298002018-06-12T12:03:00.000-04:002018-06-12T12:03:46.177-04:00Is Your Post Office Being a Good Neighbor?In many communities, the local Post Office remains a critical Main Street anchor. Often located in the heart of a community, it drives visitation and pedestrian traffic throughout the day. As a result, the condition of the local post office can play a significant role in how a district is perceived. Post Office assets are often imposing civic institutions. Maintaining these key assets and ensuring they have a positive impact on local business districts is often a key component of successful community and commercial revitalization efforts.<br />
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About a year ago we completed an assessment and corridor plan for Mermaid Avenue, in Coney Island, Brooklyn, funded by the New York State Governor's Office of Storm Recovery (GOSR) . Mermaid Avenue, the business district that serves this vibrant community, had been severely impacted by Hurricane Sandy and even years after the storm the repercussions were still being felt. A relatively low-income community, Mermaid Avenue had a few clear nodes of business activity that needed some TLC. Our plan, developed with architecture firm WXY, laid out a clear plan of action for the Alliance for Coney Island, the non-profit entity formed to manage, maintain and advocate for the area.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgN-XMP_YUQ5RHNdSmJsI9M8WYnvq0WVyOY2T3v4RJ9SNqrbywaIbIpuromo-SCklCMdETdCZYtGbYWUpiOPC6G7h0DILf03ZjHoXrZqaEg6r5Lrd7M2esW_bE8_4jQpOAG-Cnf9AN0AmtH/s1600/IMG_2057.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgN-XMP_YUQ5RHNdSmJsI9M8WYnvq0WVyOY2T3v4RJ9SNqrbywaIbIpuromo-SCklCMdETdCZYtGbYWUpiOPC6G7h0DILf03ZjHoXrZqaEg6r5Lrd7M2esW_bE8_4jQpOAG-Cnf9AN0AmtH/s320/IMG_2057.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The Post Office along Mermaid Avenue, Brooklyn, NY<br />Photo Credit: LOA</td></tr>
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One key opportunity was the local Post Office, located immediately adjacent to one of the primary and most robust commercial nodes. The Post Office was clearly a destination driver in a community with very few options for secure package delivery. Yet the conditions of the building left much to be desired. Frankly, it was hard to even tell whether the Post Office was even open. Rusted gates over windows, graffiti, dead trees, litter, and weedy tree pits all contributed to a prevalent sense of insecurity for residents and visitors alike. While it is highly likely that some of these conditions were due to the storm, the opportunity for small scale improvements here was clearly evident. <span id="goog_639498811"></span><br />
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These kinds of partnerships with the local Post Office are not uncommon. In Jackson Heights, Queens, a local volunteer-led non-profit, The Jackson Heights Beautification Group, led an effort to improve the weedy, overgrown landscaping in front of the Post Office. Led by Len Maniaci, a long-time community advocate, environmentalist, and former JHBG President, the group used volunteers to develop a design, and paid for both landscaping and a new irrigation system of the "curbside garden" that would ensure the survival of the perennials that are sure to have a big impact on the corridor. All for less than $10k.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6fOOyerc3Btf4hU0ZK7qR5nB_rkm6OPIc2DIB_9taNLL1ZIHwdMz8s3bgbF3yhogrGfbuyPfKMHZ9301Pwgf4AP_7auOinMxcndgkHEd9s5OYm5AWKAT77BBI8LyVnaRicFMq9O-oIHoE/s1600/34139976_10215928079014520_6447361199720890368_n.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="960" data-original-width="716" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6fOOyerc3Btf4hU0ZK7qR5nB_rkm6OPIc2DIB_9taNLL1ZIHwdMz8s3bgbF3yhogrGfbuyPfKMHZ9301Pwgf4AP_7auOinMxcndgkHEd9s5OYm5AWKAT77BBI8LyVnaRicFMq9O-oIHoE/s320/34139976_10215928079014520_6447361199720890368_n.jpg" width="238" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The Post Office along 37th Avenue, <br />Jackson Heights, NY<br />Photo Credit: Len Maniaci </td></tr>
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The differences between these two Post Office assets could not be more stark. Clearly, community advocacy plays a role in advancing corridor improvement efforts. Along Mermaid Avenue, the Alliance for Coney Island is an excellent position to be that advocate and now they have a blueprint for action and a set of starting points from which to work. We are thrilled by their efforts and look forward to chronicling the implementation of the corridor plan over time, especially in partners with the Post Office.</div>
Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-20287213664573380082018-06-08T14:52:00.000-04:002018-06-10T20:31:46.066-04:00Neighborhood Change and Why Public Participation MattersWe have a problem in this country. While some urban communities are facing unprecedented growth, the benefits of this economic development success are not necessarily being spread evenly around. More to the point, as cities like New York continue to grow and attract residents and investors, those who have weathered the ups and downs - both residents and small business owners - are increasingly finding themselves at risk of displacement. Frankly, this should come as no surprise. The market pressures to find higher paying tenants (both residential and commercial) and the rewards for finding loopholes in the rules that protect residential tenants in particular have never been greater. (See this <a href="https://www.nytimes.com/interactive/2018/05/20/nyregion/affordable-housing-nyc.html">fantastic series in the NYTimes </a>that discusses the many challenges tenants face).<br />
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We are a victim of our own success. The problem is that none of this is in the long term best interest of our urban places. A city where those who provide critical services are unable to get to work without a long commute, or crippling transportation expenses that rob them of time and ability to manage their homes or finances, all while incurring child care costs that they can already ill afford, is a city that squanders the resources of its citizens. Not only that, but the situation deeply undermines their ability to participate in the very decision making process that affects the urban investments that potentially impact and improve their daily lives.<br />
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<i>Our client, Livingston County, NY gathered hundreds of residents to discuss downtown recommendations in November 2017. Great staff, long-standing community relationships, and strategic outreach were key to ensuring that a broad section of residents were in attendance. For those unable to attend, the County issued an electronic survey to get additional feedback.</i><br />
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<b>Why does this matter to our work? </b><br />
In our analysis of place we lean heavily on both qualitative and quantitative data to inform our assessments and recommendations. But what happens when only a small segment of a community participates in that process? People who are barely making ends meet don't have time to participate in most community planning efforts. Too frequently, the plans that inform resource allocation and public policy are not necessarily reflective of the community as a whole, but rather a small subsection of those who have the time, resources and inclination to participate. For those of us engaged in community planning efforts, we must do better and we must explore innovative ways to engage communities on their terms, not ours. It is hard work and sometimes the budget to engage communities and residents is simply not there.<br />
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Another challenge, particularly for the work we do along commercial corridors, is that the success of a business is inextricably rooted in market realities that are hard for us to change. With higher income residents come opportunities for both existing and new businesses. Generally this is good news for businesses who now have more customers with more discretionary spending. But in some markets, "improvements" come at the expense of those living there. As rents and property values increase, neighborhoods inevitably change. In New York City where I serve as one of thirteen City Planning Commissioners, I witness firsthand the skepticism that many community members bring to their public testimony - concerns that improvements that accompany rezoning efforts are precursors to displacement. The question that is often posed is "why didn't we get park improvements or streetscape improvements or really any kinds of improvements BEFORE?" As a result, residents often find themselves in the strange position of rejecting improvements that they themselves acknowledge would make their communities and lives better. But what good are those improvements if they are no longer able to afford to live there? That is the rub.<br />
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As we think about rapid changes in technology we have new opportunities to challenge our methods of engagement and explore ways to ensure that community planning is more effectively than ever before. Some great best practices can be found in the<a href="https://www.planning.org/awards/2018/achievement/"> annual awards </a>given by the American Planning Association. Making sure these great examples are not simply the exception to the rule will take time and resources - but most off all it will take a commitment to participatory planning that to date has been in limited supply.Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-15297930118685603152018-06-05T17:31:00.001-04:002018-06-05T17:42:42.576-04:00For Upstate NY Practitioners: Small Scale Real Estate Development WorkshopIf you plan to be in the Syracuse area on June 27th, this looks like a great day-long session designed to introduce the principles behind neighborhood based real estate development projects. Small scale development is a an important community development strategy - but it requires small developers! <br /><br />The workshop is conducted by the <a href="http://www.incrementaldevelopment.org/">Incremental Development Alliance</a>, a national non-profit that works to build local wealth in neighborhoods through ground-up real estate development. <br /><br />******** <br /><br /><b>Small Scale Real Estate Development Workshop </b><br /><br />WHEN: Wednesday, June 27, 2018 8a-5p<br /> WHERE: Hotel Syracuse, <a href="https://maps.google.com/?q=100+East+Onondaga+Street+Syracuse,+NY,+13202&entry=gmail&source=g">100 East Onondaga Street Syracuse, NY, 13202</a><br /> COST: <br /><ul>
<li>Early Bird Registration Rate ($170) open until Friday, June 8 </li>
<li>Regular Registration Rate ($200) open until Monday, June 25 </li>
<li>Last Minute Registration Rate is ($230) </li>
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Register today at <a href="http://www.incrementaldevelopment.org/events/syracuseworkshop">http://www.incrementaldevelopment.org/events/syracuseworkshop</a> <br /><br />Apply for a scholarship <a href="https://docs.google.com/forms/d/e/1FAIpQLSfhFPL_5XP0kOEFs9NkcIQb3MFnejeBDG2hsoTC0hht1-AURQ/viewform">here</a><br /><br />The workshop offers specialized training about how to create small projects, like 1-3 story buildings with less than 20 units, which are residential, commercial or mixed in use and 1,000-12,000 sf in size. The course assumes you know a lot about where you live, but not necessarily much about the real estate process or building development. <br /><br />Through presentations on finance, design and site selection, a hands-on practice exercise, and networking with local like-minded people, this workshop is the first step to becoming a small developer yourself or creating a supportive ecosystem for small development in your city. <br /><br />Who Should Attend? <br /><ul>
<li>Individuals in construction, design, planning or real estate looking to either enhance their current practice or make career transition </li>
<li>Volunteers or professionals in business associations, main streets associations, historic preservation groups and neighborhood improvement groups looking to champion incremental development in their communities </li>
<li>Public sector professionals in city management, economic development, planning, and related agencies who are looking to make it easier for small development projects to occur in their town </li>
<li>Professionals in non-profit development organizations, churches, and community development or housing development organizations who need new strategies for small lot development </li>
<li>Private banking professionals specializing in mortgages, commercial real estate loans or SBA loans and professionals as at Community Development Financial Institutions and Community Foundations who want to become more effective investors </li>
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Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-56022702070860549172018-05-31T16:38:00.001-04:002018-05-31T16:38:25.432-04:00Round up: State of the Cities 2018, classic American main street, free legal services, gender-free retail, steakhouse local<br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><i>Scott Landfried is Operations Manager at Larisa Ortiz Associates</i></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;"><a href="https://www.nlc.org/sites/default/files/2018-05/NLC%20State%20of%20the%20Cities%202018%20FINAL%20WEB.pdf#_ga=2.19250488.1210991685.1527797240-1198446776.1527797240" target="_blank">National League of Cities: State of the Cities 2018</a></span><o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Based on content analysis of 160 mayoral speeches between
January and April 2018, this report breaks down the top ten major topics and
discusses five subtopics of each major topic.</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;"><a href="https://www.strongtowns.org/journal/2018/5/29/what-a-steakhouse-can-teach-us-about-walkable-neighborhoods" target="_blank">What a steakhouse can teach us about walkable neighborhoods</a></span><o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The concept: restaurants, and the like, built into mixed use
residential environments become an extension of the resident's house and
guarantees a reliable customer base. It is just another demonstrated point in
the walkable/human-scale oriented versus auto-oriented debate.<o:p></o:p></span></div>
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<a href="https://3.bp.blogspot.com/-W0s67DFvBg8/WxBbcZko94I/AAAAAAAAB8s/D5NdHm06jE0WHyXrXHMLP-hcxpO0axJSwCLcBGAs/s1600/OldSteakHouse3.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="286" data-original-width="319" src="https://3.bp.blogspot.com/-W0s67DFvBg8/WxBbcZko94I/AAAAAAAAB8s/D5NdHm06jE0WHyXrXHMLP-hcxpO0axJSwCLcBGAs/s1600/OldSteakHouse3.jpg" /></a></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;"><a href="https://medium.com/sidewalk-talk/quantifying-the-death-of-the-classic-american-main-street-ded267ea6229" target="_blank">Quantifying the death of the classic American main street</a></span><o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Main street is struggling under the pressure of chain stores
and shifting economic forces. Among helpful tips to counterbalance this trend,
the story discusses eight core characteristics of the classic main street.<o:p></o:p></span></div>
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<a href="https://1.bp.blogspot.com/-ggPF_kgHumE/WxBbgbDhcLI/AAAAAAAAB8w/WyrwzgMQoXQ7f_A3FrIzF7BnGj18Ml3VwCLcBGAs/s1600/1_n05XjrW5FkwmgfL02UK6bA.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="669" data-original-width="1000" height="267" src="https://1.bp.blogspot.com/-ggPF_kgHumE/WxBbgbDhcLI/AAAAAAAAB8w/WyrwzgMQoXQ7f_A3FrIzF7BnGj18Ml3VwCLcBGAs/s400/1_n05XjrW5FkwmgfL02UK6bA.jpeg" width="400" /></a></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;"><a href="https://ny.curbed.com/2018/2/7/16981006/small-business-free-legal-assistance-nyc" target="_blank">NYC to offer free legal services to small business owners</a></span><o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Giving mom-and-pop stores some much needed help against the
many forces against them with much deeper pockets, NYC Department of Small
Business Services is offering up to 40 hours free legal services to small
businesses with issues regarding their leases. <o:p></o:p></span></div>
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<a href="https://2.bp.blogspot.com/-tVJ8Wo8Nr2s/WxBcUORboOI/AAAAAAAAB9I/oizksQts_t0ESGA1EkNrs91m1zTlufT2wCLcBGAs/s1600/634172196.0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="613" data-original-width="920" height="266" src="https://2.bp.blogspot.com/-tVJ8Wo8Nr2s/WxBcUORboOI/AAAAAAAAB9I/oizksQts_t0ESGA1EkNrs91m1zTlufT2wCLcBGAs/s400/634172196.0.jpg" width="400" /></a></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-size: large;"><a href="https://www.retaildive.com/news/nyc-retailer-offers-gender-free-experience/524044/" target="_blank">NYC retailer offers gender-free experience</a></span><o:p></o:p></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Possibly a first - a retailer offers gender non-binary
shopping experience. The retail space also includes a juice/coffee bar and
community space - an experiential space of sorts.</span><o:p></o:p></div>
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<br />Anonymousnoreply@blogger.com1tag:blogger.com,1999:blog-2800487904993007754.post-4801998985385683702018-05-28T15:01:00.002-04:002018-06-10T20:32:27.473-04:00Asset Driven Revitalization Strategies at Play in Newark's South Ward<div class="separator" style="clear: both; text-align: center;">
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<div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgafqctGB8ywZTWdutxYbZmf4EXJyGHxzraO-EWHoqxRKZcKkiUJ96yfEAb0iPoxrpBtjFoo5oxVk1XjxM4PC0LgojqkqaZI80xuw45qbRllpSc4z21K8cG8DdxyVtkzTE6wmZ5rIS1qFMr/s1600/IMG_20180510_114523.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgafqctGB8ywZTWdutxYbZmf4EXJyGHxzraO-EWHoqxRKZcKkiUJ96yfEAb0iPoxrpBtjFoo5oxVk1XjxM4PC0LgojqkqaZI80xuw45qbRllpSc4z21K8cG8DdxyVtkzTE6wmZ5rIS1qFMr/s320/IMG_20180510_114523.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;">Beth Israel Medical Center is centrally located in Newark's South Ward<br />
and is seeking strategies to support improved corridor conditions. </td></tr>
</tbody></table>
Economic development, particularly in lower-income communities, is frequently fraught with challenges that quickly connect to a complex set of social issues. Such was the case during a recent site visit to the South Ward of Newark, where LOA is developing an economic development strategy for the Bergen-Lyons-Clinton (BLC) Partnership, so named for the three principle streets where our efforts will be focused. It should come as no surprise that during focus groups with residents, as well as conversations with city officials, merchants and anchor institutions, the conversation quickly turned to public safety concerns, high rates of unemployment, drugs, homelessness and prostitution. One might assume these issues are beyond the scope of an economic development and small business strategy, but they clearly relate to the quality of the business environment and the ability of local businesses to survive and thrive under challenging conditions. While physical improvements to public realm, a mainstay of many corridor strategies, are important, they are wholly insufficient in this context.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZMY0fgxJhmtjIebEg53RLW4xUej31iyzf_s9QIKl1hTSY6hFx4fozC2tvZ_dzmoKGXxF8V3r9jivu-PoZ37Pq3n2jEilUiiiZDP_lcRmQ4IeZHlIxTjDsyI3unCwJh_H8omVMc-YOLc7P/s1600/IMG_5951.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZMY0fgxJhmtjIebEg53RLW4xUej31iyzf_s9QIKl1hTSY6hFx4fozC2tvZ_dzmoKGXxF8V3r9jivu-PoZ37Pq3n2jEilUiiiZDP_lcRmQ4IeZHlIxTjDsyI3unCwJh_H8omVMc-YOLc7P/s320/IMG_5951.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;">A former bank located at a prominent intersection was recently purchased by investors who are interested in rehabbing the building. Will the BLC Partnership be able to influence the owners decisions regarding who leases the space? What carrots can be used to encourage the investor to turn this eyesore into a point of pride for the community?</td></tr>
</tbody></table>
The work is being funded in part by RWJ Barnabus, a regional health care service provider and operator of Beth Israel Hospital, located in the South Ward. The hospital is an anchor with a deep interest in addressing the holistic needs of the local community. We were thrilled to use this planning opportunity to explore how RWJ, together with LISC Newark, can marshal resources and advance advocacy for improvements that go beyond the look and feel of the corridor.<br />
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<br /></div>
<div>
In many ways, our mission was one of identifying assets – many yet untapped – that could be put towards the complex challenges at hand. Early discoveries included a local church with surplus land on the main corridor and a desire to put it to work in service of community youth; LISC, a community development intermediary with deep expertise in affordable housing development and finance; Beth Israel, a hospital with a keen interest in a deeper level of community engagement; property owners willing to engage the BLC Partnership in discussions about development plans; and a public administration with a desire to see economic development activity spread more evenly across the City. These were all signs of starting points, opportunities to develop a comprehensive asset driven community development strategy that leans heavily on a set of place-based interests and resources, all unique to this particular neighborhood at this particular point in time. <br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjl5AY1iFiLqkbuHr5XVE4gBPBfLqTcwHUZS0dbNUGDpJHH9IonTl819DqGJZcdLp36DMgj4TmfpAgekDAguvl3tpEVyKdGFBN2BxFOZwoQ1akpljhBUEja9-SGV100MGDHR8vidEqlJ_qJ/s1600/IMG_20180510_140435.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1600" data-original-width="1200" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjl5AY1iFiLqkbuHr5XVE4gBPBfLqTcwHUZS0dbNUGDpJHH9IonTl819DqGJZcdLp36DMgj4TmfpAgekDAguvl3tpEVyKdGFBN2BxFOZwoQ1akpljhBUEja9-SGV100MGDHR8vidEqlJ_qJ/s320/IMG_20180510_140435.jpg" width="240" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">An abandoned building located along Bergen Street <br />
and controlled by the local Baptist Church. <br />
Is this a development site with potential? </td></tr>
</tbody></table>
These conversations were merely a starting point. As our work progresses, we look forward to a deeper exploration of solutions that get at the root of the challenges facing small businesses and the communities they serve. </div>
</div>
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<div>
<i>Larisa Ortiz is Principal of LOA. </i></div>
Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-19780401752248271092018-05-01T15:15:00.000-04:002018-05-01T15:15:55.806-04:00Pedestrian Malls - Getting it Right<br />
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<i>Nur Asri is an
Associate at Larisa Ortiz Associates</i></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-RffegFlrSiU/Wui7MnjeWXI/AAAAAAAABW8/05cgEMB54JI7SifrIDFBHlYZinZyIn3KQCLcBGAs/s1600/charlottesville%2Bva%2B4.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="544" data-original-width="841" height="206" src="https://4.bp.blogspot.com/-RffegFlrSiU/Wui7MnjeWXI/AAAAAAAABW8/05cgEMB54JI7SifrIDFBHlYZinZyIn3KQCLcBGAs/s320/charlottesville%2Bva%2B4.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Main Mall, Charlottesville VA</td></tr>
</tbody></table>
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It’s been almost sixty years since the first pedestrian mall
in the US opened in downtown Kalamazoo, MI. Designed by Victor Gruen, the
father of the suburban shopping malls of America, the Kalamazoo mall has since
been opened to one lane of traffic after forty years of being completely
pedestrianized. The fate of the Kalamazoo mall is unlike that of hundreds of
other counterparts across the nation. In fact, according to one study, <a href="http://downtowndevelopment.com/pdf/americanpedmallexperiment.pdf">pedestrian
malls in the United States have an 89% rate of failure</a>. <o:p></o:p></div>
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Pedestrian malls are often characterized as being public
streets designated for pedestrian-only use and closed to vehicular traffic. The
predominantly downtown feature rose between the 1960s and 1980s as an attempt
to attract shoppers back to downtown cores following the flight to suburbia.
Since its heyday, over 170 pedestrian malls across the country have been
completely removed, combined with transit, or continue to struggle. <o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">The Problem with
Pedestrian Malls<o:p></o:p></b></div>
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Since its inception, pedestrian malls have posed several
issues for downtowns including crime and safety, low retail visibility, and lack
of customer convenience. Collectively, these issues have resulted in a less
attractive shopping environment, lowering foot traffic and customer dwell times.
When these patterns emerge, the retail mix also starts to shift away from comparison
and destination goods and services, and vacancies become a common sight. <o:p></o:p></div>
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In Poughkeepsie NY, for example, the Main Mall which was in
existence from 1973 until 2001, failed to stop the decline of the downtown due
to growth of immediate suburbs and shopping malls, and also <span style="mso-spacerun: yes;"> </span>the rise of vagrancy problems on the mall.
Following the opening of the Dutchess County Department of Social Services nearby
and the lack of assistance and programming on the mall in the 1980s, Poughkeepsie
began to attract loiterers and transients on the Main Mall and was no longer a
preferred shopping destination amongst County residents.<o:p></o:p></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-65A5-DsGQxI/Wui7d43tFnI/AAAAAAAABXE/VtK0hGAI-cgF9f_-g5Y8v4PENUbVT03rACLcBGAs/s1600/third%2Bstreet%2Bpromenade%2Bentrance%2Bsignage.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="609" data-original-width="837" height="232" src="https://3.bp.blogspot.com/-65A5-DsGQxI/Wui7d43tFnI/AAAAAAAABXE/VtK0hGAI-cgF9f_-g5Y8v4PENUbVT03rACLcBGAs/s320/third%2Bstreet%2Bpromenade%2Bentrance%2Bsignage.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Third Street Promenade, Santa Monica CA</td></tr>
</tbody></table>
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Too often the design of pedestrian malls often neglects
heightening visibility of stores to various types of customers. Since malls are
closed off from the rest of downtown, enhanced store signage and increased wayfinding
is needed to direct customers towards businesses on the mall. Blade signs,
A-Frame signs, large fonts, and clear logos were often left out of
consideration. Placement of signs at every entrance to the mall was often
disregarded and ended up leaving those customers driving in cars around
downtown out of the picture.<o:p></o:p></div>
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Finally, the lack of convenient parking spaces and well-maintained
pedestrian pathways to parking structures or transit stops on the periphery of
downtown drove customers away from pedestrian malls (<i style="mso-bidi-font-style: normal;">no pun intended</i>). Even business owners operating on the malls found
their operations disrupted as they often no longer had a dedicated, convenient
spot to load/ unload goods. Accessibility of the downtowns became disrupted as
a result of pedestrian malls.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Getting the
pedestrian mall right<o:p></o:p></b></div>
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Despite these potential problems, some pedestrian malls have
managed to survive and continue to be attractive environments for shopping
downtown. And as we’ve found, there are a myriad of factors that enable these
malls to be successful.</div>
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<b><br /></b></div>
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</div>
<ul>
<li><b>Co-locate the mall near large anchor institutions and attractions</b></li>
</ul>
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-sXN372D3QqM/Wui7udlAzBI/AAAAAAAABXM/Ff2zuLFQwIkodwfg0g5rX9OzuxTNG-B5gCLcBGAs/s1600/colorado%2B16th%2Bst%2Bmall.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="615" data-original-width="862" height="228" src="https://2.bp.blogspot.com/-sXN372D3QqM/Wui7udlAzBI/AAAAAAAABXM/Ff2zuLFQwIkodwfg0g5rX9OzuxTNG-B5gCLcBGAs/s320/colorado%2B16th%2Bst%2Bmall.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">16th St Mall, Denver CO</td></tr>
</tbody></table>
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Having institutions and anchors such as universities,
hospitals, museums, convention centers, and stadiums/arenas, ensures that there
is a constantly high flow of pedestrian traffic year-round in the downtown that
is likely to spill onto the pedestrian mall. The City of Denver’s 16<sup>th</sup>
Street Mall, for example, sees large numbers of pedestrians annually thanks to
its close proximity to the Pepsi Center (home to national hockey team Colorado
Avalanche), University of Colorado, Denver Performing Arts Complex, Colorado
Convention Center, and Coors Field, home of the major league baseball team
Colorado Rockies. Last year alone, the Colorado Rockies saw close to 3 million
attendees to their games for the season.</div>
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<b><br /></b></div>
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</div>
<ul>
<li><b>Build a captive downtown audience</b></li>
</ul>
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-mb-T8q_xxDw/Wui8BMsUHcI/AAAAAAAABXY/CViuhkAn9A4NYdvModOrW1zpNo06yWPvQCLcBGAs/s1600/mixed%2Buse%2Bresidential%2Bthird%2Bstreet%2Bpromenade.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="564" data-original-width="1069" height="168" src="https://1.bp.blogspot.com/-mb-T8q_xxDw/Wui8BMsUHcI/AAAAAAAABXY/CViuhkAn9A4NYdvModOrW1zpNo06yWPvQCLcBGAs/s320/mixed%2Buse%2Bresidential%2Bthird%2Bstreet%2Bpromenade.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Upper floor housing on 2nd St, Santa Monica CA</td></tr>
</tbody></table>
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The visitors to attractions and destinations are still quite
temporary – there are ebbs and flows in their movements. However, residents and
workers have a more consistent daily pattern of movement and they’re likely to
pass through the pedestrian mall at least once a month, if not a week. In a
survey conducted in downtown Santa Monica, 82% of residents were found to visit
the Third Street Promenade at least once a month. <span style="mso-spacerun: yes;"> </span>Furthermore, making dense downtown housing
available not only creates captive shoppers for businesses, it also ensures
that residents have their eyes on the mall at night, creating a safer
environment for shoppers.<o:p></o:p></div>
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In the 1950s, Santa Monica’s Third Street Promenade mall
failed because most stores closed by 5pm when no one lived in the immediate
area and there were no late-night entertainment options and few restaurants. Today,
there are mixed-use residential buildings on adjacent streets, numerous hotels
and office buildings in the area, creating a strong day-to-night captive
audience for the pedestrian mall.</div>
<o:p></o:p><br />
<br />
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<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
</div>
<ul>
<li><b>Ensure active ground floor uses</b></li>
</ul>
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-16pdGNAG5_c/Wui74ErMRiI/AAAAAAAABXQ/_uz1NA1dRko-7ZO4DG8iuflefai-o91xACLcBGAs/s1600/IMG_20180305_165137.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://2.bp.blogspot.com/-16pdGNAG5_c/Wui74ErMRiI/AAAAAAAABXQ/_uz1NA1dRko-7ZO4DG8iuflefai-o91xACLcBGAs/s320/IMG_20180305_165137.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">AMC Theater Third St Promenade, Santa Monica CA</td></tr>
</tbody></table>
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To ensure the pedestrian malls are active and safe 18 hours
of the day, ground floor uses should be zoned for active uses that cater to a wide
range of audience. Operating hours of retailers and services on the ground
floor should be long and late-night hours should be maintained for a sizable
portion of ground floor uses. This is easy to get at when there are
restaurants, bars and entertainment venues along the pedestrian mall – just like
Pearl Street Mall in Boulder CO. Santa Monica also successfully achieved this
with a 21-screen cinema on Third Street (and zoning out cinemas from other
nearby areas – an extreme solution).</div>
<div class="MsoNormal">
<b style="text-indent: 0.5in;"><br /></b></div>
<div class="MsoNormal">
</div>
<ul>
<li><b style="text-indent: 0.5in;">Keep length of mall short</b></li>
</ul>
<br />
<div class="MsoNormal" style="text-indent: .5in;">
<o:p></o:p></div>
<div class="MsoNormal">
Of the 11% of pedestrian malls that have survived since the
1960s and continue to thrive, a hundred percent measure between one and four
blocks in length – and no more. The short blocks allow ‘minimal disruption to
traffic circulation and permit cross-traffic to pass through the mall’, solving
for issues that may arise around convenience and accessibility for shoppers and
businesses. <o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
</div>
<ul>
<li><b>Mitigate traffic diversions and design the
pedestrian experience from afar</b></li>
</ul>
<br />
<div class="MsoNormal">
If a mall is to be located on a street that already
experiences high levels of vehicular traffic, some traffic diversion will inevitably
occur and this may potentially result in the loss of customers who are driving
to the area and who are seeking convenient parking.<span style="mso-spacerun: yes;"> </span>Measures must be taken to mitigate such
impacts and may include <b style="mso-bidi-font-weight: normal;">clear signage</b>
to guide drivers to the nearest available parking lots and to guide visitors between
the mall and parking areas, <b style="mso-bidi-font-weight: normal;">well-lit and
well-maintained pathways and alleys</b> connecting the mall, <b style="mso-bidi-font-weight: normal;">distinctive entrances</b> to the mall, and <b style="mso-bidi-font-weight: normal;">large and varying store signs</b>. <o:p></o:p></div>
<div class="MsoNormal">
In addition, two-way roads should encircle pedestrian malls (instead
of one-way roads) to make adjacent roads safer for pedestrians and easier for
driving customers to turn around on.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
</div>
<ul>
<li><b>Maintain and program</b></li>
</ul>
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-0kZ7Z_hxA90/Wui8aKwqmyI/AAAAAAAABXk/1EbsSzhF-kANrygWwDYqdj18Ew0nv6gYACLcBGAs/s1600/buskers-entertaining-bourke-street-mall-melbourne-australia-group-perform-onlookers-busy-49006811.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="631" data-original-width="800" height="252" src="https://1.bp.blogspot.com/-0kZ7Z_hxA90/Wui8aKwqmyI/AAAAAAAABXk/1EbsSzhF-kANrygWwDYqdj18Ew0nv6gYACLcBGAs/s320/buskers-entertaining-bourke-street-mall-melbourne-australia-group-perform-onlookers-busy-49006811.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Busking on Bourke St Mall, Melbourne (Australia)</td></tr>
</tbody></table>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">
Finally,
pedestrian malls that have continued to thrive have been consistently clean and
well-maintained. This ensures that visitors are welcomed by an inviting public
realm. Programs and events such as busking and festivals have also been carried
out throughout the year at successful pedestrian malls in order to build
experiences for shoppers who are seeking more than just physical products.
<!--[if !supportLineBreakNewLine]--><br style="mso-special-character: line-break;" />
<!--[endif]--><o:p></o:p></div>
<br style="mso-special-character: line-break;" />
<div class="MsoNormal">
Having a centralized, coordinated management group for the
pedestrian mall enable smooth operations and program delivery and can really
contribute to the overall success of a mall. <o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Just a Word of
Caution<o:p></o:p></b></div>
<div class="MsoNormal">
Although the above factors laid out here may help you
implement a robust and integrated pedestrian mall, the mall does take a lot of
stakeholder engagement, rallying support, and A LOT of capital before it can
succeed. Remember – of the approximately 200 pedestrian malls built in the 60s
and 80s, only 11% have been successful and even then many had to re-invest and re-strategize
their malls over the years. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">Pedestrian malls aren’t for the
faint of heart. <o:p></o:p></i></b></div>
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-38412104101850482342018-04-25T16:52:00.001-04:002018-04-26T10:18:42.449-04:00Vacant Spaces: Blame it on the Bubble?<i style="background-color: white; color: #666666; font-family: "trebuchet ms", trebuchet, sans-serif; font-size: 13.2px;">Dan McCombie is a research associate at Larisa Ortiz Associates</i><br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="line-height: 115%;">In my last blog post, I briefly discussed how in
a down market some building owners choose to hold their retail spaces
vacant, holding out until the market rebounds rather than get locked in to an agreement with a lower asking rent. I closed the post by saying that regardless what tool is used to address
vacancies (whether that’s through a vacancy tax, a pop-up model, or through some thoughtful
rejiggering of lease structure) the important point
is that <i>something</i> gets in the space for the overall health of the district. But
is this too simplistic? I wanted to dig a bit further. In
particular, I wanted to better understand more of the reasons behind vacancies, especially when there are so many ways to temporarily activate the space and earn a rent roll without getting locked into a long-term deal. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="line-height: 115%;">In <a href="https://therealdeal.com/issues_articles/nycs-great-retail-facade/"><span style="color: blue;">an
article by Konrad Putzier and Marker Maurer</span></a>, writing for The Real Deal, the authors discuss how lease agreements can be structured in many different ways with varying impacts on rents. They give the example of a 27-story office
building at 650 Madison Avenue. Despite soaring property sales citywide, the ground floor retail tenant of this building had a long-term lease with a below market rent. This below market rent held resulted in a lower net operating income, and therefore a lower perceived value for the entire building. If the property owner wasn't looking to sell, it wouldn't be a problem. But in actuality, the owner was looking to take advantage of a strong real estate market. What could they do? </span><br />
<span style="line-height: 115%;"><br /></span>
<span style="line-height: 115%;">What they did was renegotiate the
terms of their lease such that the retail tenant would pay a higher rent in
exchange for cash payments from the owner. With the building showing a higher rent roll, it was able to command a higher
value on the open market—eventually selling for a 91 percent premium over the
cost of the original acquisition. And the buyer was made fully aware of the arrangement between tenant and landlord regarding the cash payments. <o:p></o:p></span></div>
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<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-chl1NTozg5c/WteE9BIFR2I/AAAAAAAAATY/5Dwm8bhXpDothCk-ecXvwg5heJO_rJOYACLcBGAs/s1600/650%2Bmadison.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="623" data-original-width="618" height="320" src="https://1.bp.blogspot.com/-chl1NTozg5c/WteE9BIFR2I/AAAAAAAAATY/5Dwm8bhXpDothCk-ecXvwg5heJO_rJOYACLcBGAs/s320/650%2Bmadison.png" width="317" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">650 Madison Avenue<br />
Source: Google street view, Oct 2017</td></tr>
</tbody></table>
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<span style="line-height: 115%;">Another negotiable concession are tenant improvements (TI). The authors of the article describe a situation where a building owner providing substantial TI is akin to the tenant taking out a low interest loan from the owners instead of seeking outside financing with a less favorable rate. In that regard its win-win. </span><br />
<span style="line-height: 115%;"><br /></span>
<span style="line-height: 115%;">The article goes on to state that this practice is not limited to retail. This is something I know to be correct, having
shopped for a rental apartment and seen the offers boasting “first month free.” In
these lease agreements, the tenant is essentially agreeing to pay the same
annual rent, but spaced over 11 larger payments instead of 12. It works well for transient tenants like students or young professionals that don't typically sign for longer than a year, and allows the building owner to show a higher rent roll. </span><br />
<span style="line-height: 115%;"><br /></span>
<span style="line-height: 115%;">This all answers to some degree the question why retail rents might be a bit "sticky" and cause vacancy rates to rise, even as news of the retail apocalypse echoes overhead. Lowering retail rent represents a direct hit to the value of a much larger asset. </span><span style="line-height: 115%;">Except the practice can perhaps buoy rents beyond what retailers are willing to pay. Today a growing number of larger retailers are realizing their rents are not pegged to anticipated sales. </span>The following quote from
the article sums it up: <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal">
<span style="line-height: 115%;"><span style="mso-spacerun: yes;"><br /></span></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://3.bp.blogspot.com/-TWIOqiJgmp0/WteIWizPY7I/AAAAAAAAATo/olVdoCEHKqMjjXExeGhuJVOoVoYM5NddwCLcBGAs/s1600/quote.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="216" data-original-width="925" height="92" src="https://3.bp.blogspot.com/-TWIOqiJgmp0/WteIWizPY7I/AAAAAAAAATo/olVdoCEHKqMjjXExeGhuJVOoVoYM5NddwCLcBGAs/s400/quote.png" width="400" /></a></div>
<blockquote class="tr_bq">
</blockquote>
<div class="MsoNormal">
<span style="line-height: 115%;">It was in March of 2017 that Urban Outfitters' CEO Richard Hayne first likened the retail environment to the housing bubble, apportioning much of the blame in store closures to eCommerce and the burden of real estate oversupply. Putzier and Maurier differ in that they see a stronger parallel between the inertia of untethered optimism in housing values, and what had been longstanding optimism in retail rents. But there are myriad ways the current retail moment and the housing bubble are different. The housing bubble burst because of the securitization of subprime mortgage debt, not because everybody discovered they could now buy their homes from Jeff Bezos. What I mean to say is we still consume housing in basically the same way as we did before the bubble. But contemporary retail consumptions feels to be a bit more avant garde with more showrooms, less inventory, rapid fulfillment, and everything in between. </span><br />
<span style="line-height: 115%;"><br /></span>
<span style="line-height: 115%;"><b>Are we seeing a correction?</b></span><br />
<br />
In <span style="color: blue;"><a href="file:///C:/Users/LOrtiz/Downloads/Manhattan_Americas_MarketBeat_Retail_Q12018.pdf">Cushman
and Wakefield’s most recent retail market report for Manhattan</a> </span>(Q1 2018),
they identified three recent trends:</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
1. Almost all retail sub-markets posted reduced asking
rents due to additional stores coming to market with lower asking rent (the only exception being the Meatpacking District).</div>
<div>
<br /></div>
2. The SoHo sub-market recorded its eighth
consecutive quarter with a drop in asking rents<br />
<br />
3. Announcements of new pop-up store openings have slowed down, signaling the trend may be losing some of its steam.<br />
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</div>
<div>
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><a href="https://3.bp.blogspot.com/-V1GTiDx9c04/WteE88WrjfI/AAAAAAAAATU/jt8HiQACkzwhd40a7PH39CeaO1BYgMrDACLcBGAs/s1600/chart.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="667" data-original-width="1237" height="215" src="https://3.bp.blogspot.com/-V1GTiDx9c04/WteE88WrjfI/AAAAAAAAATU/jt8HiQACkzwhd40a7PH39CeaO1BYgMrDACLcBGAs/s400/chart.png" width="400" /></a></td></tr>
<tr><td class="tr-caption">Source: Cushman and Wakefield, Marketbeat Manhattan Retail Q1 2018</td></tr>
</tbody></table>
</div>
<div>
Is this a correction? Are we seeing retail rents align
with a more realistic market value? Is there a direct correlation between pop-up shop announcements and retail rents? Difficult to say. It does seem to say that property owners are becoming more inured to a condition they thought would be temporary. But an <a href="https://therealdeal.com/2018/04/25/retail-asking-rents-continue-to-rise-across-majority-of-brooklyn-rebny/">article from The Real Deal</a> out today tells a different story, of rising rents in Brooklyn corridors where new development is taking place. Their narrative is one that says it's mature (and more competitive) markets that have had to adjust their rents while retail pioneers seem to still be doing alright. <br />
<br />
<b>What does this mean for district managers?</b><br />
<br />
It's important to think strategically when approaching vacancies. If you observe a high rate in a district, you might now wonder if it stems from a lack of customer demand, or determine if there is simply a mismatch between asking rents, the tenants who can pay those rents, and if those specific tenants are in demand. Are local property owners institutional investors, or are they longstanding residents with no debt on their property? And of course, there may also simply be an issue with the individual operator, which is a whole other discussion. These are all good and necessary questions to ask oneself. Without asking them we
cannot hope to arrive at good and necessary answers for addressing vacant spaces.<br />
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<span style="line-height: 115%;"><br /></span>
<span style="line-height: 115%;">Thanks for reading!</span></div>
<br /></div>
Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-22815200517133464162018-04-19T14:44:00.005-04:002018-04-19T14:44:52.874-04:00Food Hall Site Selection<br />
<div class="MsoNormal">
<i style="mso-bidi-font-style: normal;">Nur Asri is an
Associate at Larisa Ortiz Associates<o:p></o:p></i></div>
<div class="MsoNormal">
<i style="mso-bidi-font-style: normal;"><br /></i></div>
<div class="MsoNormal">
Earlier this month, Cushman & Wakefield released a
report titled, “<a href="http://www.cushmanwakefield.com/en/research-and-insight/2018/foodhalls-of-northamerica">Food
Halls of North America</a>”. Since their first report on the trend in November
2016, food halls have grown exponentially all over the country, and especially
in New York (see #5 of our <a href="http://commercialdistrictadvisor.blogspot.com/2018/01/heres-what-to-expect-in-2018-and-beyond.html">2018
trends list</a>).<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The report lists twenty five different food halls in New
York City (<i style="mso-bidi-font-style: normal;">we’ve left out Essex Street
Market because it’s an institution we’re more familiar with as a public market,
more on this in a <a href="http://commercialdistrictadvisor.blogspot.com/2017/05/a-response-to-apa17-dangers-of-calling.html">previous
blog</a></i>) but guess where they’re mostly located? That’s right, Manhattan. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>80% of the city’s food halls are located in Manhattan. </b><o:p></o:p></div>
<br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-VrZqKHzQK9A/WtjRjZzWpUI/AAAAAAAABUE/pFze4Q7Hg_08qiMwRyMPgGiARAn23x-zACLcBGAs/s1600/Close%2Bup%2Blocation%2Bof%2Bfood%2Bhalls%2Bin%2BNYC.PNG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="654" data-original-width="830" height="315" src="https://4.bp.blogspot.com/-VrZqKHzQK9A/WtjRjZzWpUI/AAAAAAAABUE/pFze4Q7Hg_08qiMwRyMPgGiARAn23x-zACLcBGAs/s400/Close%2Bup%2Blocation%2Bof%2Bfood%2Bhalls%2Bin%2BNYC.PNG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: LOA</td></tr>
</tbody></table>
<div class="MsoNormal">
Drawing a 5-minute walking radius
around each of the food halls, I took a closer look at the demographics and
worker populations surrounding these food halls to figure out why Manhattan is
continuing to draw this attraction.</div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
<o:p></o:p></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-Gs1u1Ph-5wE/WtjRs9ZIAhI/AAAAAAAABUI/p0hQR3za-FM83UcL8TE99GFGznBT66CXwCLcBGAs/s1600/Walk%2BTime%2Bto%2BFood%2BHall.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="653" data-original-width="931" height="280" src="https://4.bp.blogspot.com/-Gs1u1Ph-5wE/WtjRs9ZIAhI/AAAAAAAABUI/p0hQR3za-FM83UcL8TE99GFGznBT66CXwCLcBGAs/s400/Walk%2BTime%2Bto%2BFood%2BHall.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: LOA</td></tr>
</tbody></table>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
<br /></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
When compared with food halls
located in Brooklyn and the Bronx, those in Manhattan were situated in
neighborhoods with <b style="mso-bidi-font-weight: normal;">higher population
density</b>,<span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;">higher median household incomes</b>, <b style="mso-bidi-font-weight: normal;">higher educational attainments</b>, and <b style="mso-bidi-font-weight: normal;">higher proportions of Millennials aged 25-40</b>. These are unsurprising
facts for anyone who lives in the city but if you’re elsewhere looking to
attract a food hall operator; these are just some of the criteria your downtown
or neighborhood may need to offer. <o:p></o:p></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
<br /></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
The psychographic tapestry
segments that dominated the food hall neighborhoods in both Manhattan and
Brooklyn were <b style="mso-bidi-font-weight: normal;">‘<a href="http://downloads.esri.com/esri_content_doc/dbl/us/tapestry/segment10.pdf">Laptops
and Lattes’</a>, ‘<a href="http://downloads.esri.com/esri_content_doc/dbl/us/tapestry/3C_Trendsetters_TapestryFlier_G79488_2-18.pdf">Trendsetters</a>’,
</b>and<b style="mso-bidi-font-weight: normal;"> ‘<a href="http://downloads.esri.com/esri_content_doc/dbl/us/tapestry/segment11.pdf">Metro
Renters’</a></b> . These groups, as you can imagine, are all made up of high-earning,
well-educated young professionals who are socially and environmentally
conscious, technologically savvy, and enjoy discovering local art and culture
and dining out. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://4.bp.blogspot.com/-IwplvH_bFsw/WtjiF5QVOSI/AAAAAAAABVY/wXpHSOoeCPAM3hMzK1hZXp4tHBmMsGuSACLcBGAs/s1600/laptops%2Band%2Blattes%2Bfood%2Bhall.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="960" height="300" src="https://4.bp.blogspot.com/-IwplvH_bFsw/WtjiF5QVOSI/AAAAAAAABVY/wXpHSOoeCPAM3hMzK1hZXp4tHBmMsGuSACLcBGAs/s400/laptops%2Band%2Blattes%2Bfood%2Bhall.jpg" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
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<br /></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
Given that food halls are
highly-curated cultural hubs for new and old restaurateurs to test food concepts
and set trends, having an educated audience that seeks this type of experience
and is hyper aware of the nutritional value of their food would be highly
beneficial and complementary to the mission of food halls. These are the same
customers that will likely come in to a food hall and <i style="mso-bidi-font-style: normal;">Instagram </i>their meal and night out, driving greater marketing and sales.
<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
<span style="mso-spacerun: yes;"><br /></span></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
Speaking of dining out – I also
found that residents living near food halls in Manhattan <b style="mso-bidi-font-weight: normal;">spend more eating out annually</b> than those in the outer boroughs.
The exception lies in DUMBO, Brooklyn where the upcoming Time Out Market is <a href="https://ny.eater.com/2018/3/28/17172130/time-out-market-nyc-food-hall-dumbo">slated
to open later this year</a>. Within a 5-minute walk of the soon-to-be-opened
food hall, households are spending an average of $6,091 annually on eating out.
This is even higher than those residents living near Canal Street Market,
American Market by Todd English, and Gotham West Market!<o:p></o:p></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
<br /></div>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
The <b style="mso-bidi-font-weight: normal;">high density of worker populations</b> is another trait food halls seem
to prefer. All the food halls located in Manhattan have between 20,000 to over
100,000 daytime workers within a five minute walking radius. In comparison, the
food hall with the greatest day time worker density in an outer borough is
Gotham West Market at the Ashland (Brooklyn) with only 16,353 workers within a five
minute walk. <o:p></o:p></div>
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<br /></div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-_cjyEVi27K8/WtjUPNzbHEI/AAAAAAAABUk/xE8c6RLTfxcArtk1xAEauROsrnGihXhgwCLcBGAs/s1600/37172557715_7ec5e531c3_o.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://2.bp.blogspot.com/-_cjyEVi27K8/WtjUPNzbHEI/AAAAAAAABUk/xE8c6RLTfxcArtk1xAEauROsrnGihXhgwCLcBGAs/s320/37172557715_7ec5e531c3_o.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo: Lou Stejskal (Flickr)</td></tr>
</tbody></table>
<div class="MsoNormal" style="tab-stops: 283.5pt;">
Meanwhile, in Manhattan, the top
three food halls with highest worker population densities are all located in
and around Grand Central Station (Urbanspace at 570 Lexington, Urbanspace Vanderbilt,
and Great Northern Hall), where there is a strong cluster of banks and financial
services offices and over 100,000 daytime workers. Furthermore, most of these <b style="mso-bidi-font-weight: normal;">workers earn more than $3,333 per month</b>,
indicating strong spending potential particularly during lunchtime and after
work.<o:p></o:p></div>
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Even within New York City, there
are nuances with where food halls are growing. Food halls in the west side of
Manhattan– from Chelsea up to Midtown West – appear to be riding on the wave of
<b style="mso-bidi-font-weight: normal;">high population growth rates</b>.
Populations around Gotham West Market and Hudson Yards Food Hall, for example,
are expected to grow between 14-15% in the next five years (some of the highest
rates in the city!). And the same can be said of the growth in food halls in
the outer boroughs. Aside from Industry City, all the food halls in the Bronx and
Brooklyn are located in neighborhoods with rates of population growth higher
than their respective County levels.<o:p></o:p></div>
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So it appears that even if your
downtown doesn’t quite have the traits that we’ve seen with the food halls in
Manhattan (i.e. high population densities, high worker densities, etc.) but is
undergoing a renaissance and seeing an impressive development pipeline of
residential homes and offices, then maybe attracting a food hall operator is
not completely out of order. <o:p></o:p></div>
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Like attracting all other tenants,
however, it is crucial to first consider the types of residents and workers
that will be entering these new developments, what their spending patterns are
like, and if these align with the traits that food halls are craving.<o:p></o:p></div>
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<i style="mso-bidi-font-style: normal;">Are their disposable incomes high?<o:p></o:p></i></div>
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<i style="mso-bidi-font-style: normal;">Are they trend-seeking consumers? <o:p></o:p></i></div>
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<i style="mso-bidi-font-style: normal;">Are they younger, digitally-apt customers that will continue to support
and market the food hall? <o:p></o:p></i></div>
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After all, as we’ve seen, the food
hall is not for everyone. And it’s certainly not for every neighborhood. <o:p></o:p></div>
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-2513413519241362812018-04-13T09:45:00.001-04:002018-04-13T19:28:40.850-04:00Retaining "Mom-and-Pops" in the New Retail Reality<br />
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<span style="line-height: 115%;"><i style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, sans-serif; font-size: 13.2px;">Dan McCombie is a research associate at Larisa Ortiz Associates</i></span></div>
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<span style="line-height: 115%;"><span style="font-family: inherit;">Lots of
rumblings lately about the statement New York Mayor Bill de Blasio made on local
radio WNYC, wherein he spoke about his receptiveness to a commercial vacancy
tax to address rising vacancy rates in the city. The issue is decisive to say
the least. Certainly we don’t need to go into detail about all the reasons why
retail vacancies are problematic (apologies if you’re new to CDA). Nor should
we fail to recognize that using public policy to regulate private property is nothing
short of a perennial third-rail. What’s the right move? <o:p></o:p></span></span></div>
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<span style="line-height: 115%;"><span style="font-family: inherit;">My purpose
in this blog post is not to wade into the vacancy tax debate. It's a complicated issue. Yes, vacancies are
problematic and in many instances can create a chain reaction to eventual
blight. But policy prescriptives, even with the best intentions, can also be
clumsy tools. You want to save mom-n-pops so you tax the vacant space. But if
the landlord decides to swallow the cost, or brings in a Verizon Store instead,
what did you really solve for?</span></span><br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-4lhqDl30F5E/Ws_L2KGMRHI/AAAAAAAAASw/EcNA4eYxaKw_6k0F87wttX_LzhWvBt22ACLcBGAs/s1600/vacant.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://2.bp.blogspot.com/-4lhqDl30F5E/Ws_L2KGMRHI/AAAAAAAAASw/EcNA4eYxaKw_6k0F87wttX_LzhWvBt22ACLcBGAs/s320/vacant.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo: <a href="https://www.flickr.com/photos/essygie/5257728480/">essygie</a></td></tr>
</tbody></table>
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<span style="line-height: 115%;"><span style="font-family: inherit;"> <o:p></o:p></span></span></div>
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<span style="line-height: 115%;"><span style="font-family: inherit;">For me, the
interesting part of this debate is in understanding how developers and property
owners are exploring how to tenant retail spaces with local and regional
independents instead of nationals. Why? Because these classes of tenants are
typically less "credit-worthy" than your Bank of Americas, Verizons, and Dunkin
Donuts, and therefore carry more risk for investors and owners. But they also have the capacity to bring much more in the way of unique character
to a commercial district. So what can be done to mitigate against the credit risk? I found the following example telling...<o:p></o:p></span></span></div>
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<h4>
<b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%;"><span style="font-family: inherit; font-size: large;">The Market Line – Lower East Side, MH</span></span></b></h4>
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The following statement came from Essex Crossing marketing material and can also be found on the <a href="https://marketline.nyc/"><span style="color: blue;">Market Line website</span></a>:</div>
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<blockquote class="tr_bq" style="margin-bottom: 10.0pt; margin-left: .5in; margin-right: .5in; margin-top: 0in;">
<span style="background: white; line-height: 115%;"><span style="font-family: inherit;">“Anchored by the new Essex Street Market,
The Market Line will extend three full blocks from Essex Street to Clinton
Street. With over 100 vendors and 150,000 sf of gross floor area, The Market
Line will be one of the largest markets in the world, reminiscent of iconic
locales like Boqueria, Borough Market, the Grand Bazaar, and Pike Place Market.
While there will be an unparalleled collection of prepared foods, this will not
be a food hall, but a market. <i style="mso-bidi-font-style: normal;">The Market
Line will be a microcosm of the Lower East Side with an eclectic</i> <i style="mso-bidi-font-style: normal;">mix of local food purveyors, artists,
gallerists, musicians, and designers</i>…” (emphasis added)</span></span></blockquote>
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<span style="line-height: 115%;"><span style="font-family: inherit;">The emphasis
on the local independent tenant mix is worth noting. The other day I spoke with an
individual with some knowledge regarding the tenanting strategy for the Market
Line, and I posited the question: “How does one tenant a space with local and
regional operators when many investors perceive them as carrying more risk?” The
response was fairly simple:</span></span></div>
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<ol>
<li><span style="font-family: inherit;">Provide smaller floor plates with shorter-term
leases</span></li>
<li><span style="font-family: inherit;">Partner with architects/designers to create
and curate attractive turnkey spaces</span></li>
<li><span style="font-family: inherit;">Seek out tenants with a proven record
of success</span></li>
</ol>
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<span style="line-height: 115%;"><span style="font-family: inherit;">Again, none
of this feels surprising. But it helps to contextualize these tenanting
strategies within larger trends. Retailers across the board are right-sizing
into smaller spaces, which may be more costly on a PSF basis, but cheaper on
the whole. And a whole new industry is sprouting up around the design,
buildout, and brokering of flexible pop-up spaces. The Market Line seems to demonstrate how these play out at the ground level. Yes, having a short term lease may be untenable for many, but the property owner can certainly mitigate against this by providing more upfront support through tenant improvements so the merchant doesn't feel like their throwing their money away on the build out. To understand this further let me present two more cases...<o:p></o:p></span></span><br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/--PKN8oS2DW0/Ws-biLdAOmI/AAAAAAAAASc/TvQkdgS4cjYLK_UiBwa1lgbGHYFOUUBWACLcBGAs/s1600/marketline2.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="418" data-original-width="752" height="221" src="https://3.bp.blogspot.com/--PKN8oS2DW0/Ws-biLdAOmI/AAAAAAAAASc/TvQkdgS4cjYLK_UiBwa1lgbGHYFOUUBWACLcBGAs/s400/marketline2.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo Credit: The Market Line</td></tr>
</tbody></table>
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<h4>
<b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%;"><span style="font-family: inherit; font-size: large;">Williamsburg, BK</span></span></b></h4>
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<span style="font-family: inherit;"><span style="line-height: 115%;">Consider the
case of the impending L-Train subway shutdown and the Williamsburg neighborhood in Brooklyn. Fears are that
without a direct link to Manhattan, merchant performance is going to take a hit
during track work, and so many of them have left or attempted to negotiate
lower rents. Rather than bring down rents to offset the hit, some landlords
have opted instead to weather the storm until the work finishes, believing an
empty storefront is preferable to signing a long-term lease with a myopic rent.
As a result, the retail vacancy rate in the neighborhood was recently </span><span style="line-height: 115%;"><span style="color: blue;"><a href="https://www.amny.com/transit/l-train-shutdown-explained-facts-figures-proposals-and-more-1.11761564" style="color: blue;">reported to be at 13%</a>, </span><span style="color: blue;">which is definitely cause for concern. Are the property owners right to hold tight until business as usual returns? Next example...</span></span></span><br />
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<span style="font-family: inherit;"><span style="line-height: 115%;"><a href="https://4.bp.blogspot.com/-k42edbaMqgc/Ws_L2cOlVKI/AAAAAAAAAS0/x1Sdp8k4Zo8emTo9A2ZHot1hXEaSrgqKACEwYBhgL/s1600/l%2Btrain%2Bshutdown.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="266" src="https://4.bp.blogspot.com/-k42edbaMqgc/Ws_L2cOlVKI/AAAAAAAAAS0/x1Sdp8k4Zo8emTo9A2ZHot1hXEaSrgqKACEwYBhgL/s400/l%2Btrain%2Bshutdown.jpg" width="400" /></a></span></span></div>
<span style="font-family: inherit;"><span style="line-height: 115%;"> <o:p></o:p></span></span></div>
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<h4>
<b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%;"><span style="font-family: inherit; font-size: large;">The Shay – Washington, DC</span></span></b></h4>
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<span style="font-family: inherit;"><span style="background: white; line-height: 115%;">A relatively new mixed-use retail
development in the Shaw neighborhood of DC, “The Shay,” has also been </span><span style="background: white; line-height: 115%;"><span style="color: blue;"><a href="https://www.washingtonian.com/2018/04/03/many-shops-closed-shay/"><span style="color: blue;"><span id="goog_820468826"></span>struggling with retaining retailers</span><span id="goog_820468827"></span></a></span></span><span style="background: white; line-height: 115%;">. The primary reason for this is that the tenanting strategy
from the outset was admittedly a risky one. Jay Klug, executive vice president
of retail at JBG Smith (the developer), confirms that instead of focusing on
restaurants and national chains (low-risk) they would seek smaller stylish
brands looking to expand into the DC market. In order to entice these tenants,
the developer negotiated percentage rent agreements. Steve Gaudio, VP at JBG is
quoted as saying “There was a risk that their percent of sale would never be
that high, so there were different flexibilities for both the landlord and the
tenant to determine, if this didn’t work out, that they could walk away.” As
might be expected, many tenants didn’t hit their marks and did walk away. But
notably, many of those tenants were soft-goods brands like Kit and Ace and
Steven Alan, and were subsequently replaced by businesses like “The Shop” hair
salon and “Turning Natural” smoothies shop. This is not to imply that
soft-goods and apparel/accessories can’t survive; the Shay also houses the
first DC location of Warby Parker and the fourth Bonobos location in the region,
both of which have been said to be performing at a high level. What it says to
me is this development may want more high-end neighborhood-serving uses and
less comparison goods. In any event, the mix needed to be tweaked a bit, especially for a new concept still establishing an identity.<o:p></o:p></span></span><br />
<span style="font-family: inherit;"><span style="background: white; line-height: 115%;"><span style="mso-spacerun: yes;"><br /></span></span></span></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-JJh7nHMpIfI/Ws9w0mWhILI/AAAAAAAAARs/VZNyrSYQvm4YvwKOxOg8T-YmNEt26JQYQCEwYBhgL/s1600/23760438670_eb722244eb_o.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1248" data-original-width="1600" height="249" src="https://4.bp.blogspot.com/-JJh7nHMpIfI/Ws9w0mWhILI/AAAAAAAAARs/VZNyrSYQvm4YvwKOxOg8T-YmNEt26JQYQCEwYBhgL/s320/23760438670_eb722244eb_o.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo Credit: The Shay</td></tr>
</tbody></table>
<h4>
<b style="mso-bidi-font-weight: normal;"><span style="background: white; line-height: 115%;"><span style="font-family: inherit; font-size: large;"><br />The Takeaway</span></span></b></h4>
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<span style="line-height: 115%;"><span style="font-family: inherit;">The Market
Line tenanting strategy has flexibility built into both the lease and the space
itself so that if a tenant isn’t working out, the arrangement can be modified
expediently. The Shay, adopting a similar tenanting strategy, uses a different
mechanism with percentage rent agreements. In Williamsburg, some owners are simply holding their breath. Are any of these success stories? Hard to
say. The Market Line hasn’t opened yet, and The Shay is still struggling with
vacancies. Both are big (150K SF and 120K SF, respectively) and
have the benefit of a single entity curating the space, and lots of design muscle
behind them to make the spaces attractive to tenants. And even Williamsburg is a bit of a snowflake; it's an iconic neighborhood so it may be able to hold on after all. For that reason, I caution against making too hard and fast a conclusion.</span></span><span style="font-family: inherit;"> But the one thing that seems to have unanimous consent these days
is that retail has changed, and likely changed irrevocably. As a result, we
need to be creative with how we tenant spaces and not be afraid to tweak not only the
mix, but the way spaces are constructed and agreements are negotiated. And there’s no way to know what works when the space is empty. </span></div>
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<span style="font-family: inherit;">Thanks for reading!</span></div>
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<span style="font-family: inherit;"><u>Related blog posts: </u></span><br />
<a href="https://commercialdistrictadvisor.blogspot.com/2017/12/the-original-food-hall.html">The Original Food Hall</a><br />
<a href="https://commercialdistrictadvisor.blogspot.com/2018/01/heres-what-to-expect-in-2018-and-beyond.html">Here's What to Expect in 2018 and Beyond</a><br />
<a href="https://commercialdistrictadvisor.blogspot.com/2017/09/when-skyrocketing-rents-dont-always.html">When Skyrocketing Rents Don't Always Mean the Death of Small Business</a></div>
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<br />Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-43481787365101118222018-04-06T15:57:00.004-04:002018-04-11T13:26:44.007-04:00HOW TO: Retail in Public Spaces<i>Nur is an Associate at Larisa Ortiz Associates.</i><br />
<br />
In a <a href="http://commercialdistrictadvisor.blogspot.com/2018/02/parks-open-space-and-retail.html">previous
post</a> 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.<br />
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<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><u>Case Study 1:
Times Square Plaza<o:p></o:p></u></b></div>
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<a href="https://1.bp.blogspot.com/-6Na49C9INt4/WsfQHKCmsPI/AAAAAAAABR8/0c3tjPIoqB8nmXKm_jjZtcjQUA70ziljACLcBGAs/s1600/situ-studio-times-square-customer-ordering-blips-0917.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="544" data-original-width="770" height="226" src="https://1.bp.blogspot.com/-6Na49C9INt4/WsfQHKCmsPI/AAAAAAAABR8/0c3tjPIoqB8nmXKm_jjZtcjQUA70ziljACLcBGAs/s320/situ-studio-times-square-customer-ordering-blips-0917.jpg" width="320" /></a><b style="mso-bidi-font-weight: normal;">Vendor:</b> Coffeed, a
NYC-Based coffee chain<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Space: </b>100SF, in
the center of Manhattan's most trafficked area. <o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Leasing: </b>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.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Estimated Rent: </b>$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.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Added benefits to the
vendor: </b>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.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><u>Case Study 2: Astor Place<o:p></o:p></u></b><br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-ul8grjzkxsY/Ws4wg4m37uI/AAAAAAAABTE/dTWRfbdYVqY-s9tKebo5mmHYMx9GjyFuwCLcBGAs/s1600/Astor%2BPlate%2B2.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1067" data-original-width="1600" height="213" src="https://4.bp.blogspot.com/-ul8grjzkxsY/Ws4wg4m37uI/AAAAAAAABTE/dTWRfbdYVqY-s9tKebo5mmHYMx9GjyFuwCLcBGAs/s320/Astor%2BPlate%2B2.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo: The Village Alliance</td></tr>
</tbody></table>
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<b>Vendors: </b>La Newyorkina and Astor Plate, NYC- based businesses that
both had existing storefronts in nearby neighborhoods like Greenwich Village
and TriBeCa<o:p></o:p></div>
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<b>Space: </b>110SF (La Newyorkina) and 200SF (Astor Plate)<o:p></o:p></div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-uiyXYEDDF0Q/Ws4wfJkItcI/AAAAAAAABTA/DVBsJkWy2HIoWpb-hiF8988cFt3STBwBwCLcBGAs/s1600/La%2BNewyorkina%2BMural.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://4.bp.blogspot.com/-uiyXYEDDF0Q/Ws4wfJkItcI/AAAAAAAABTA/DVBsJkWy2HIoWpb-hiF8988cFt3STBwBwCLcBGAs/s320/La%2BNewyorkina%2BMural.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo: The Village Alliance</td></tr>
</tbody></table>
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<b>Leasing: </b>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. <o:p></o:p></div>
<div class="MsoNormal">
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. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Like in Times Square,
selected operators built their own structures but worked closely with the
Village Alliance to finalize designs. <o:p></o:p></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
<b>Ensuring success: </b>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. <o:p></o:p></div>
<b style="mso-bidi-font-weight: normal;">
</b><br />
<div class="MsoNormal">
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.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><u>Case Study 3: Hunters Point South Park</u></b></div>
<b style="mso-bidi-font-weight: normal;"><u><br /></u></b></div>
<div class="MsoNormal">
<a href="https://3.bp.blogspot.com/-UJ9EZ8JIpWM/WsfQG_H-SFI/AAAAAAAABR4/U2SeI9wqTmU6D-XFzhSVmgzkQy_TSoCuwCLcBGAs/s1600/coffeed%2Blic%2Blanding.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="530" data-original-width="1100" height="154" src="https://3.bp.blogspot.com/-UJ9EZ8JIpWM/WsfQG_H-SFI/AAAAAAAABR4/U2SeI9wqTmU6D-XFzhSVmgzkQy_TSoCuwCLcBGAs/s320/coffeed%2Blic%2Blanding.jpg" width="320" /></a><b style="mso-bidi-font-weight: normal;">Vendor: </b>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. <b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Space: </b>1,500 SF,
at Hunter’s Point South Park, Long Island City’s waterfront recreation
destination. <o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Leasing: </b>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. <b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><u>Case Study 4:
Union Square Park<o:p></o:p></u></b></div>
<div class="MsoNormal">
<a href="https://3.bp.blogspot.com/-QnPoshDLvxE/WsfQGT_DHRI/AAAAAAAABR0/353vAX9zBN0SKcZ8k2d91wmwa0hVRqXNwCLcBGAs/s1600/Union-Square-Holiday-Market-NYC-Untapped-Cities.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="534" data-original-width="800" height="213" src="https://3.bp.blogspot.com/-QnPoshDLvxE/WsfQGT_DHRI/AAAAAAAABR0/353vAX9zBN0SKcZ8k2d91wmwa0hVRqXNwCLcBGAs/s320/Union-Square-Holiday-Market-NYC-Untapped-Cities.jpg" width="320" /></a><b style="mso-bidi-font-weight: normal;">Market: </b>UrbanSpace
has operated the Union Square Holiday Market for over two decades<o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Space:</b> <o:p></o:p><span style="font-family: inherit;">30,000SF
with about 100 vendors, of which 75% are NYC-based. Individual booth sizes
range from half-booths (50SF) to double booths (200SF)</span></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Leasing: </b>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. <o:p></o:p></div>
<div class="MsoNormal">
Selected market operators then hold open application calls
for interested vendors online. <o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Estimated Rent: </b>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. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><u>Case Study 5: Downtown
Detroit Parks<o:p></o:p></u></b></div>
<div class="MsoNormal">
<a href="https://1.bp.blogspot.com/-xLa-7J55FeQ/WsfQGemUEBI/AAAAAAAABRw/qzJwUrM0jJw8UkSmAEiRJxDwo-J_bdxfgCLcBGAs/s1600/cadillac%2Bsquare_i_i.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="960" height="213" src="https://1.bp.blogspot.com/-xLa-7J55FeQ/WsfQGemUEBI/AAAAAAAABRw/qzJwUrM0jJw8UkSmAEiRJxDwo-J_bdxfgCLcBGAs/s320/cadillac%2Bsquare_i_i.jpg" width="320" /></a><b style="mso-bidi-font-weight: normal;">Market: </b>Winter in
Detroit is sponsored by Bedrock and Quicken Loans Family of Companies<b>. </b>Detroit Downtown Partnership collaborates with the nearby property
owners to organize the seasonal markets.</div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Space: </b>130SF, pre-fabricated
glass structures designed by Philadelphia-based Groundswell Design Group<o:p></o:p></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Leasing: </b>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<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Estimated Rent:</b> $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.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://3.bp.blogspot.com/-0CNiJHbWAoo/WsfQ9Mo3HrI/AAAAAAAABSM/OWogMq1eZjc17VWt8N12r7LWnJo59Ui_gCLcBGAs/s1600/citi%2Bholiday%2Blounge.PNG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="760" data-original-width="1147" height="212" src="https://3.bp.blogspot.com/-0CNiJHbWAoo/WsfQ9Mo3HrI/AAAAAAAABSM/OWogMq1eZjc17VWt8N12r7LWnJo59Ui_gCLcBGAs/s320/citi%2Bholiday%2Blounge.PNG" width="320" /></a></div>
<div class="MsoNormal">
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. </div>
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<br /></div>
<div class="MsoNormal">
<a href="https://1.bp.blogspot.com/-YoSJKXWQa-o/WsfQGLe2JjI/AAAAAAAABRs/UgpbjRf3VaQRvkZGj0y7hOMRKwrQWDIXgCLcBGAs/s1600/HolidayMarkets_110%2Bcadillac%2Blodge.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="533" data-original-width="800" height="213" src="https://1.bp.blogspot.com/-YoSJKXWQa-o/WsfQGLe2JjI/AAAAAAAABRs/UgpbjRf3VaQRvkZGj0y7hOMRKwrQWDIXgCLcBGAs/s320/HolidayMarkets_110%2Bcadillac%2Blodge.jpg" width="320" /></a>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.</div>
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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!</div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-12897589186489018492018-04-02T11:32:00.000-04:002018-04-02T11:32:30.978-04:00The Real Impacts of Downtown Sporting Venues<div class="MsoNormal">
<span style="font-family: inherit;"><i>Nur Asri is an Associate at Larisa Ortiz Associates.</i></span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">The 2018 Major League Baseball season is upon us. Like every
other major professional sport, the season reminds us of the vast impacts– both
good and bad – that sport has on our cities and downtowns. Across the country,
downtowns are becoming choice sites for sports arenas. In 2016, the Brookings
Institution found that 45 stadiums and arenas for the four major professional
sports — football, baseball, basketball, and hockey — were constructed/renovated
in the United States from 2000 to 2014 with a large majority of these being
built in urban centers. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">This
map shows a concentration of sports teams (and by extension, their stadiums) by
city from 2012.</span> <o:p></o:p></span></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://4.bp.blogspot.com/-qxLKrZWxJMk/WsJIhAMG0mI/AAAAAAAABQI/mpwF0XqT2P8UAuHyYIzB0xjej52BtzObgCLcBGAs/s1600/525px-Number_of_NFL%252C_NBA%252C_MLB_and_NHL_teams_by_City%252C_2012.svg.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="406" data-original-width="525" height="308" src="https://4.bp.blogspot.com/-qxLKrZWxJMk/WsJIhAMG0mI/AAAAAAAABQI/mpwF0XqT2P8UAuHyYIzB0xjej52BtzObgCLcBGAs/s400/525px-Number_of_NFL%252C_NBA%252C_MLB_and_NHL_teams_by_City%252C_2012.svg.png" width="400" /></a></div>
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;">Communities around the country are often told by political
leaders of the potential economic effects of building these stadia or arenas;
however the reality is often a lot less rosy. Sure, these attractions are
bringing in visitors downtown in large numbers like no other business might.
Last year, the average attendance to any Major League Baseball game in the US
was approximately 30,000. In 2016, the Yankee Stadium in the Bronx saw over 3.5
million spectators enter their doors. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://3.bp.blogspot.com/-dJKdKk0U6Ig/WsJJe7i3juI/AAAAAAAABQQ/XgH_a4OBGV8G0Yqxgik0XY_EWr3mj7tMwCLcBGAs/s1600/23755008_10154416748902824_3572594080532797756_n.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="960" data-original-width="720" height="320" src="https://3.bp.blogspot.com/-dJKdKk0U6Ig/WsJJe7i3juI/AAAAAAAABQQ/XgH_a4OBGV8G0Yqxgik0XY_EWr3mj7tMwCLcBGAs/s320/23755008_10154416748902824_3572594080532797756_n.jpg" width="240" /></a></div>
<span style="font-family: inherit;">As a result, local bars and restaurants might see hikes in
foot traffic due to pre- and post- game crowds seeking replenishment. In
Downtown Sacramento, pedestrian traffic in the immediate area of the NBA Kings
stadium grew by 10%, according to the Downtown Sacramento Partnership. Many bars
have even leveraged these pedestrian counts by hosting parties that coincide
with game days and even hired special DJs or introduced sport-themed menu items
to lure passing crowds. Unfortunately, the same impact is unlikely for
retailers offering goods and services unrelated to entertainment, dining, or
sports and wellness. So the jewelry store, hair salon or local book store aren’t
naturally going to be the biggest fans of a stadium.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<b><span style="font-family: inherit;">The No-Trickle Effect</span></b></div>
<div class="MsoNormal">
<span style="font-family: inherit;">In recent years, stadiums themselves have become increasingly
mixed-use and entertainment-focused attractions. This means that the
developments are inward-looking and offer amenities and attractions that responsive to what already exists in adjacent areas. In particular, the
retail and food and beverage offerings found within stadiums are driving
visitors with busier schedules to completely skip stopping by outside bars and
restaurants before games and spending their dollars directly in these arenas. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;">In an <a href="http://www.fieldofschemes.com/news/archives/2012/03/4870_bronx_merchants.html">anecdote</a>
from 2012, owner of the Yankee Tavern in the Bronx, Joe Bastone, stated that
his business was not really making more money as a result of the new Yankee Stadium’s
opening. He claimed that the stadium in fact killed local business because once
inside, “visitors can choose from 444 souvenir shops, eateries and concession
stands, nearly 50 percent more options than in the old stadium. From hot dogs
to Cuban sandwiches and sushi, and from pennants to pinstriped jerseys, Yankees
fans can find it all without setting foot outside the stadium.”<o:p></o:p></span></div>
<div class="MsoNormal">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-eSlkIr9hos0/WsJLJ-u7PVI/AAAAAAAABQs/pAZ-z3BCec0aGUMHsrCjh_CIwpIZ3IoRgCLcBGAs/s1600/2012-09-28-concessions-4_3.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="401" data-original-width="534" height="240" src="https://3.bp.blogspot.com/-eSlkIr9hos0/WsJLJ-u7PVI/AAAAAAAABQs/pAZ-z3BCec0aGUMHsrCjh_CIwpIZ3IoRgCLcBGAs/s320/2012-09-28-concessions-4_3.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo: USA Today</td></tr>
</tbody></table>
</div>
<div class="MsoNormal">
<span style="font-family: inherit;">Some stadiums have carefully curated concession stands to
offer local fare and structured vendor deals with local restaurants. For
example, the Barclays Center in the Prospect Heights neighborhood of Brooklyn,
home to the Nets basketball team and Islanders hockey team, offers
Brooklyn-based Williamsburg Pizza, Café Habana Cuban sandwiches, and of course
Brooklyn Lager on tap. However, stadium and sports arena developments still have
much more to do in terms of growing partnership with small businesses and
downtown associations and to enhance cross-shopping opportunities outside the
arenas to support adjacent economies. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;">Furthermore, having tens of thousands of bodies arrive all
at once in a concentrated geography doesn’t always bode well for businesses and
residents. The hordes of spectators entering and leaving the downtown can be
noisy and disorganized, and will certainly impede the regular operations of a
business. To mitigate the impacts of human and vehicular congestion on game
days, downtown associations are taking a few precautionary measures: <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><u>Educating potential visitors on available parking options
and street closures.</u> Partner with local news outlets to publish day-of
articles that include details on how to get to sporting venues by car or by
public transit. This information helps visitors plan their trip ahead of time
and reduces frustration on the day of the game.<o:p></o:p></span></div>
<div class="MsoNormal">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/--oN0z5hN2Eo/WsJMbWwuD6I/AAAAAAAABQ0/OvnllLVtxT8MHlwTFsQ55wQMBjGAJzM_gCLcBGAs/s1600/uber-pins-400x400.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="400" data-original-width="400" height="320" src="https://4.bp.blogspot.com/--oN0z5hN2Eo/WsJMbWwuD6I/AAAAAAAABQ0/OvnllLVtxT8MHlwTFsQ55wQMBjGAJzM_gCLcBGAs/s320/uber-pins-400x400.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Uber at Coors Fields, CO</td></tr>
</tbody></table>
<u style="font-family: inherit;">Partnering with ride-share services to manage people and
vehicle flow near the venue</u><span style="font-family: inherit;">. Designated Uber pick-up and drop-off areas
with clear signage and instructions should be made available to riders to
reduce congestion near the stadium.</span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;">Detroit Tigers, for example, signed Uber as the official
ride-sharing partner for Comerica Park in downtown Detroit. The partnership not
only designates pick up areas but also offers first time riders promotional
codes. The same deal was made with the Detroit Lions and Detroit Pistons. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: inherit;"><u>Providing shuttle rides to and from transit stops or
parking lots farther away.</u> Nashville’s Bridgestone Arena partners with the
Downtown Partnership to provide such a service during event days. Again, this
helps reduce congestion near the arena and makes the experience downtown less
stressful for visitors. <o:p></o:p></span></div>
<div class="MsoNormal">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-K9KyjdNO-Qw/WsJL2LDW4wI/AAAAAAAABQw/_44NnjBF0C82WRxxaI5ojTgh6xTCdnICwCLcBGAs/s1600/Valet-Bike-Parking_-Giants-x1000.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="667" data-original-width="1000" height="213" src="https://4.bp.blogspot.com/-K9KyjdNO-Qw/WsJL2LDW4wI/AAAAAAAABQw/_44NnjBF0C82WRxxaI5ojTgh6xTCdnICwCLcBGAs/s320/Valet-Bike-Parking_-Giants-x1000.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Photo: San Francisco Bicycle Coalition</td></tr>
</tbody></table>
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;"><u>Providing convenient, attended bike parking service</u>. This strategy has in fact made driving to games the more inconvenient option for those in San Francisco. </span>A regulation passed by the San Francisco Board of Supervisors in 1999 requires monitored bicycle parking if an event incurs a street closure and anticipates more than 2,000 participants. As a result, all <span style="font-family: inherit;">San Francisco </span>Giants games played at AT&T park now provide valet bike parking services to more than 200 spectators, thanks to an arrangement with local bike advocacy group, SF Bicycle Coalition.<br />
<br /></div>
<span style="line-height: 115%;"><span style="font-family: inherit;"><i>So if you’re thinking of attracting a sports
team to make its home downtown in a new arena to catalyze further investment in
the area and attract visitors, think also about the potential impacts it will
have on foot traffic diversion and vehicular congestion. </i>Prepare small local
businesses for game days and at the same time, make sure that the arena is
responsive to and supportive of existing businesses in the area. </span></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-44907344640476031612018-03-30T09:00:00.000-04:002018-03-30T10:18:21.653-04:00Whole Foods + Daybreaker = Experiential Grocery<i style="background-color: white; color: #666666; font-family: "trebuchet ms", trebuchet, sans-serif;"><span style="font-family: inherit;">Dan McCombie is a Research Associate at Larisa Ortiz Associates</span></i><br />
<i style="background-color: white; color: #666666; font-family: "trebuchet ms", trebuchet, sans-serif;"><span style="font-family: inherit;"><br /></span></i>
<span style="font-family: "trebuchet ms" , "trebuchet" , sans-serif;"><span style="background-color: white;">**The following blog post contains a brief discussion of the state of online grocery retail, and then turns to look at an experiential company (Daybreaker) that has partnered with a grocery chain (Whole Foods) in what is a unique example of experience-based retail. At root is an exploration about how we understand customers, what they want to see in today's brick-and-mortars, and how "experiential" can have a broad range of applications.**</span></span><br />
<span style="background-color: white; font-family: "trebuchet ms" , "trebuchet" , sans-serif;"><span style="font-family: inherit;"><br /></span></span>
<span style="background-color: white; font-family: "trebuchet ms" , "trebuchet" , sans-serif;"><span style="font-family: inherit;"><b>Here we are now, almost a year out since Amazon officially announced its acquisition of Whole Foods Market</b>, the chain known for its high-quality, natural, and organic grocery store model. This $13.7BN deal fueled speculation that the e-commerce giant was making a play for a larger share of the online grocery retail market, and could feasibly change the entire way we think about food access. Sure enough, we have seen some marked changes in the way Whole Foods functions, but has the trajectory of online grocery retail changed all that much?</span></span><br />
<span style="background-color: white; font-family: "trebuchet ms" , "trebuchet" , sans-serif;"><span style="font-family: inherit;"><br /></span></span>
<span style="background-color: white; font-family: "trebuchet ms" , "trebuchet" , sans-serif;"><span style="font-family: inherit;">Some insight can be gleaned from a <a href="https://www.forbes.com/sites/neilstern/2018/03/23/online-grocery-retail-is-coming-how-and-how-fast-remain-open-questions/#367c1b135890"><span style="color: blue;">recent article by Neil Stern</span></a>, a contributing writer for Forbes, wherein he summarizes Forrester's "The State of Global Online Retail 2018" report. Here are some of the key findings from it:</span></span><br />
<br />
<ul>
<li><span style="font-family: "trebuchet ms" , "trebuchet" , sans-serif;">The global online grocery market is predicted to double from $150BN in 2017 to $334BN by 2022</span></li>
<li><span style="font-family: "trebuchet ms" , "trebuchet" , sans-serif;">The online grocery market is still wide open "as retailers race to become the default provider"</span></li>
<li><span style="font-family: "trebuchet ms" , sans-serif;">Countries differ in their adoption of online grocery based on factors like geography and economic maturity</span></li>
</ul>
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<span style="font-family: "trebuchet ms" , sans-serif;">To this last bullet point, Stern further explains that geographically concentrated (denser) markets are further ahead in their embrace of online grocery, primarily because their distribution systems are advantaged through economies of scale. They don't need nearly as much infrastructure to serve the same amount of people, whether that's based on home delivery (e.g. Fresh Direct, Peapod) or a click and collect pickup model.</span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">So does this mean that urban markets might start to see brick and mortar grocery lose ground faster than less-urbanized markets? Possibly. If that is the case, it feels like an important one. Grocery stores help support a host of smaller neighborhood services and stores. In short, they're both commercial catalysts and anchors. So any trend in the markets that impact their health is liable to have huge ripple effects. To be completely honest, I find it highly unlikely that Kroger and Publix (shout out to my friends down south) are going to disappear overnight. Nor do I think they'll all turn into Amazon fulfillment centers (or maybe they will). In any event, this got me to thinking about ways grocery stores can adapt. And if we've learned anything in recent years, for retail its either death in the middle, or death for being boring.</span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;"><b>Which brings me to Daybreaker.</b></span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">For those not familiar, Daybreaker is maybe best understood as a company that organizes and manages large, high energy, highly-attended early morning dance parts with a deep health and wellness focus (read: no drugs, no alcohol, only natural adrenaline). Though not the only company peddling the pre-work experiential dance rave model, they've definitely risen to the top with a presence in more than 20 cities worldwide, including San Diego, DC, Vancouver, Sydney, Mexico City, Berlin, Tel Aviv, Stockholm, etc. </span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">And I bring them up because on May 10th, 2017, they held one of their dance raves at the Whole Foods flagship location on Lamar Boulevard in Austin, TX (a month prior to the Amazon acquisition, for those who are wondering). The itinerary for the event consisted of a 6am-7am yoga class, followed immediately by a raucous dance party from 7am-9am. Music was provided by both a record-spinning (or is it laptop-clicking?) DJ and a "legendary husband-wife hop hop duo." It really doesn't get less boring/more experiential than that for a grocery store. Did I mention Whole Foods provided breakfast? This all brings me to my next point...</span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;"><b>Millennials. </b></span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">Daybreaker is perhaps the epitome of a company that is operated by and creates events for young Millennials.<b> </b>If you need further proof, one need only look at the event description (<a href="https://www.daybreaker.com/event/austin-launch/"><span style="color: blue;">posted here</span></a>). Give it a quick read and you'll notice the frequent use of emjois, the way "yoga session" becomes "yoga sesh" and "amazing" is spelled "uhmazing." If Gigi Hadid was a language, I think this would be it. </span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">To drive this home a little more, the following quote was culled from the Daybreaker website:</span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">"DAYBREAKER IS CREATING AN ENTIRELY NEW GENRE OF EXPERIENCE. We are a global movement driven by incredible humans who turn crazy ideas - <i>like sober early morning dance parties</i> - into reality. What began as a social experiment and art project, Daybreaker is fueling a worldwide movement to increase mindfulness, camaraderie, wellness, self-expression, and mischief."</span> </blockquote>
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<span style="font-family: "trebuchet ms" , sans-serif;">Mindfulness. Camaraderie. Wellness. Self-expression. Mischief. These are the Daybreaker core values. And personally, I think these serve as a great shorthand way to describe the Millennial shopper (depending on how you slice the age brackets). Some might quibble with that statement for reading as reductive, especially the Daybreaker apparatus itself, but often times that's an inherent challenge to understanding any customer demographic. We always prefer to collect primary data when possible, whether through first-person testimonials, surveys, focus groups, etc, but comprehensive big picture analysis also requires we look at things like U.S. Census and Bureau of Labor Statistics data, secondary syndicated sources, and other aggregated information that necessarily obscures individual nuance.</span><br />
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<span style="font-family: "trebuchet ms" , sans-serif;"><b>To summarize,</b> if you feel like you don't understand how Millennials shop, perhaps this is a good template. I don't have figures for direct economic impacts of the Daybreaker event, but without a doubt it created strong associations between an established retailer and an exciting experiential brand. </span><span style="font-family: "trebuchet ms" , sans-serif;">Nor was this the first time Daybreaker had collaborated with a large retail brand, having also partnered with Saks, Nike, IBM, Samsung, Macy's, GE Electric, Clinique, etc. </span><span style="font-family: "trebuchet ms" , sans-serif;"> It also raises an interesting paradox when you go back to Forrester report: dense urban centers where brick and mortars may be more imperiled by online retail is precisely where young Millennials concentrate, and thus where it makes more sense to explore experiential marketing opportunities.</span><br />
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<span style="font-family: "trebuchet ms" , sans-serif;"><b>Key takeaways:</b></span><br />
<br />
<ul>
<li><span style="font-family: "trebuchet ms" , sans-serif;">The Amazon acquisition has not impacted brick and mortar grocery the way many anticipated</span></li>
<li><span style="font-family: "trebuchet ms" , sans-serif;">Regardless, online grocery is a growing share of the overall market</span></li>
<li><span style="font-family: "trebuchet ms" , sans-serif;">With that in mind, retailers still need to think about how to differentiate themselves and not be boring</span></li>
<li><span style="font-family: "trebuchet ms" , sans-serif;">That means understanding your customers and what gets them up in the morning (in this case kombucha and a dance party)</span></li>
</ul>
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<span style="font-family: "trebuchet ms" , sans-serif;">For those who were good enough to make it this far in the post, I definitely recommend revisiting a past post on this <a href="https://commercialdistrictadvisor.blogspot.com/2017/06/the-future-of-physical-retail-in-age-of.html"><span style="color: blue;">blog by Mike Berne</span></a> of MJB Consulting, written in the days following the announcement of the Amazon acquisition of Whole Foods. One of Mike's main points is that Amazon's motivation for the deal was driven not so much as a way to "conquer the grocery space," but rather to gain valuable real estate in close proximity to their predominantly urban Amazon Prime customers.</span></div>
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<span style="font-family: "trebuchet ms" , sans-serif;">Thanks for reading!</span></div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-IlglYH6LdY8/Wrz-s8EXZmI/AAAAAAAAAP4/_RpYNrtNPbojR7I1kOQ7luymFpZPIr7DACLcBGAs/s1600/austin%2Blaunch.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="538" data-original-width="912" height="235" src="https://3.bp.blogspot.com/-IlglYH6LdY8/Wrz-s8EXZmI/AAAAAAAAAP4/_RpYNrtNPbojR7I1kOQ7luymFpZPIr7DACLcBGAs/s400/austin%2Blaunch.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Instagram post from the Daybreaker Austin launch <br />
Image: @dybrkr</td></tr>
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<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-Xrd_FBoGCyM/Wrz-s4-S2NI/AAAAAAAAAP8/fB8nW_3yk_sGy2totN8fojpt8hZXCT7JwCLcBGAs/s1600/building%2Bmuseum.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="543" data-original-width="913" height="237" src="https://2.bp.blogspot.com/-Xrd_FBoGCyM/Wrz-s4-S2NI/AAAAAAAAAP8/fB8nW_3yk_sGy2totN8fojpt8hZXCT7JwCLcBGAs/s400/building%2Bmuseum.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Instagram post from an event at the National Building Museum, DC <br />
Image: @dybrkr</td></tr>
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Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-88610625395035051612018-03-28T18:09:00.000-04:002018-03-28T18:09:41.829-04:00Concerns about a Census Under-count are Not a New Phenomenon<span style="font-family: inherit;"><i>Larisa Ortiz is Principal of Larisa Ortiz Associates</i></span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Yesterday the <a href="https://www.nytimes.com/2018/03/27/us/census-citizenship-question.html?ribbon-ad-idx=9&rref=us&module=Ribbon&version=context&region=Header&action=click&contentCollection=U.S.&pgtype=article">New York Times reported</a> that "at least 12 states have signaled that they would sue to block the Trump Administration from adding a question about citizenship" for fear that such a question would result in a census under-count that would threaten federal funding for communities with large immigrant communities. </span><br />
<span style="font-family: inherit;"><br /></span>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzh14voYZpr-6c5IBZo0o-r6VEKSgoZ-pvLc7j7TEBfibFpv10JB_jp_ySIuwjuaCrk2iUZ0snjv_3Qr4M7ejuvrYKETvnydv1QFAWEKhiA7CjXbNer1BtVPJ-6odoDib-OfWfLZWH8HNU/s1600/IMG_7546.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzh14voYZpr-6c5IBZo0o-r6VEKSgoZ-pvLc7j7TEBfibFpv10JB_jp_ySIuwjuaCrk2iUZ0snjv_3Qr4M7ejuvrYKETvnydv1QFAWEKhiA7CjXbNer1BtVPJ-6odoDib-OfWfLZWH8HNU/s320/IMG_7546.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Jackson Heights, Queens, NY is a destination for immigrants, <br />
many from Central and South America. It is precisely these <br />
communities where under-counts do the most damage. </td></tr>
</tbody></table>
<span style="font-family: inherit;">The concern regarding an under-count is an old and recurring one. In fact, today I received a Facebook notification of a post I wrote <b>over eight years ago</b>. At that time, it was Mayor Bloomberg who railed against the Census, claiming that the Census under-count amounted to </span>roughly<span style="font-family: inherit;"> 2.6 percent of the City's population, mostly in communities of color. What I wrote at the time holds meaning today. </span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">"<span style="background-color: white; color: #1d2129;">For commercial district managers, a census under-count, or findings that suggests a population decrease, means more hours logged overcoming the misconception that there is decreased discretionary demand in your neighborhood. It means more time spend finding other, more credible, sources that tell the true story, that your neighborhood is teeming with people who have money to spend, but few places to spend it. A Census under-count means that retailers are more likely to forego urban opportunities, because when they pull market data, they may not like what they see at first glance.</span><span style="background-color: white; color: #1d2129;"> </span></span><br />
<span style="font-family: inherit;"><br style="background-color: white; color: #1d2129;" /></span><span style="background-color: white; color: #1d2129;"><span style="font-family: inherit;">We already know that getting retailers to urban areas is a challenge, which is why Census accuracy is so critical. In 2004, the International Council of Shopping Centers (ICSC) completed a survey of retailers in partnership with Business for Social Responsibility. When asked why they didn't invest in urban areas, the second most cited obstacle to investment was an 'insufficient concentration of the retailer’s target customer'. Too bad a Census under-count only serves to reaffirm these misconceptions."</span></span><br />
<span style="background-color: white; color: #1d2129;"><span style="font-family: inherit;"><br /></span></span>
<span style="background-color: white;"><span style="color: #1d2129; font-family: inherit;">While the contours of the concern have changed, we remain </span><span style="color: #1d2129; font-family: inherit;">somewhat accustomed to under-counts in immigrant communities. It only means that we have continue to find ways to augment the data to ensure that communities, investors and retailers have the information they need to make informed decisions. </span></span>Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-21224635361024607192018-03-19T12:11:00.000-04:002018-03-19T12:11:18.596-04:00The Store-for-Hire Model<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-1uCGwi7pAso/Wq_g14El3hI/AAAAAAAABOA/JLKk9LRTF8YoHIieKLt3QaWih5nCihYTgCLcBGAs/s1600/StoryArtboard%2B1-100.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="376" data-original-width="580" src="https://1.bp.blogspot.com/-1uCGwi7pAso/Wq_g14El3hI/AAAAAAAABOA/JLKk9LRTF8YoHIieKLt3QaWih5nCihYTgCLcBGAs/s1600/StoryArtboard%2B1-100.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: Instagram (@thisisstory)</td></tr>
</tbody></table>
<i style="font-family: inherit;"><br /></i>
<i style="font-family: inherit;">Nur Asri is an Associate at Larisa Ortiz Associates</i><br />
<span style="line-height: 115%;"><span style="font-family: inherit;"><i><br /></i></span></span>
<span style="line-height: 115%;"><span style="font-family: inherit;">As
preferences shift and consumers continue to demand experiences in retail
stores, the store-for-hire concept has become an incredibly popular strategy to
keep brick-and-mortar stores exciting and refreshing. These stores change
products and experiences constantly so that consumers are able to visit often
without getting bored of the store and its offerings. But how do these <i>pop-up-esque</i> stores operate and how can
you create one in your downtown? Let’s take a closer look at two of New York
City’s most innovative stores- for- hire – <b>Bulletin </b>and <b>Story</b>.</span></span><br />
<span style="line-height: 115%;"><span style="font-family: inherit;"><br /></span></span>
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<a href="https://1.bp.blogspot.com/-JCAnBwJshyY/Wq_eU2K0ZnI/AAAAAAAABNk/NHVrS_OqDzY5HQtKQLjQ8tRrcdpSYyepwCLcBGAs/s1600/Store%2Bfor%2BhireArtboard%2B1-100.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1411" data-original-width="580" src="https://1.bp.blogspot.com/-JCAnBwJshyY/Wq_eU2K0ZnI/AAAAAAAABNk/NHVrS_OqDzY5HQtKQLjQ8tRrcdpSYyepwCLcBGAs/s1600/Store%2Bfor%2BhireArtboard%2B1-100.jpg" /></a></div>
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With vacancy in downtown environments rising from the impact of e-commerce and rent speculation, get creative and put in-store spaces up for hire. Stores-for-hire can be a great way to regenerate interest in your downtown, especially among local entrepreneurs and makers who are still digitally-native and who can yet afford leasing an entire storefront all by themselves.</div>
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<span style="line-height: 115%;"><span style="font-family: inherit;"><br /></span></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-45254676380947983102018-03-12T09:27:00.000-04:002018-03-12T09:27:27.680-04:00Millennials' Impact on Health and Wellness in Retail <br />
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<i style="mso-bidi-font-style: normal;"><span style="background-color: white;"><span style="font-family: inherit;">Nur Asri is an Associate at
Larisa Ortiz Associates<o:p></o:p></span></span></i></div>
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<span style="background-color: white; font-family: inherit;"><b style="mso-bidi-font-weight: normal;">Health and wellness is no longer
characterized by illness or disease, but to a more holistic state of being that
considers the wellbeing of one’s mind, body, and emotions. </b></span><span style="background-color: white; font-family: inherit;">According to
Jack Ma, Chairman of China’s largest e-commerce company, Alibaba, “…today’s
customers want to be healthy and happy, no matter who they are”. </span><span style="background-color: white; font-family: inherit;"> </span><span style="background-color: white; font-family: inherit;">As a result, they are showing an increasing
preference for products, brands, and experiences that appear to promote their
overall wellbeing.</span></div>
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<span style="background-color: white;"><span style="font-family: inherit;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span></div>
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<span style="background-color: white; font-family: inherit;"><b style="mso-bidi-font-weight: normal;">Wellness has become one of the
world’s largest and fastest-growing industries</b>. </span><span style="background-color: white; font-family: inherit;">According to
Global Wellness Institute, the global wellness market is estimated to be worth
$3.4 trillion, three times the size of the global pharmaceutical industry. The
industries measured as part of the global wellness market included fitness and
mind-body, healthy eating, nutrition and weight loss, preventative and
personalized health, spa, beauty and anti-aging and alternative medicine – many
of which we now find downtown and along our commercial corridors.</span></div>
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<span style="background-color: white; font-family: inherit;"><b style="mso-bidi-font-weight: normal;">The wired and self-reliant
Millennial is</b> <b style="mso-bidi-font-weight: normal;">particularly dedicated to health and
wellness</b>. </span><span style="background-color: white; font-family: inherit;">The group’s
disillusionment with the current state of health care costs has apparently
pushed Millennials to behave differently when it comes to taking care of themselves.
They are relying on personal networks and wider ranges of products, services,
and providers to manage their health and wellness. Many are even tracking their
levels of activity and calorie consumption on mobile apps.</span></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Most
importantly, they are increasingly willing to spend money and time on ‘preventative
health care’ through exercising, eating right, and conscious living. This daily
pursuit to wellness and the subsequent lifestyle changes have influenced trends
in food and drink, fitness, and fashion, and as a result, the retail tenant mix
that we are seeing in our commercial districts. <o:p></o:p></span></span></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Here are
some key retail categories that are growing with Millennials’ pursuit of health
and wellness:<o:p></o:p></span></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="background-color: white;"><span style="font-family: inherit;">Apparel & Accessories<o:p></o:p></span></span></b></div>
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<a href="https://1.bp.blogspot.com/-m_Q7WdyMKJI/WqZ_hFhBm1I/AAAAAAAABM0/2aGW4yVnaqoM2D_w40mdVFX0XMHZLJATQCLcBGAs/s1600/outdoor%2Bvoices%2Bsf-2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1070" data-original-width="1600" height="213" src="https://1.bp.blogspot.com/-m_Q7WdyMKJI/WqZ_hFhBm1I/AAAAAAAABM0/2aGW4yVnaqoM2D_w40mdVFX0XMHZLJATQCLcBGAs/s320/outdoor%2Bvoices%2Bsf-2.jpg" width="320" /></a><span style="background-color: white;"><span style="font-family: inherit;">Millennials
are paying more for athletic gear or what is now more commonly known as,
athleisure wear. <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">According
to research firm Forrester, Millennials and Gen Zers account for 69% of all
fitness wearable owners.</span> In fact, these young consumers are wearing athletic
outfits for activities other than working out and this trend has grown rapidly with
various brand apparel retailers growing their active wear options. <o:p></o:p></span></span></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Popular
athleisure retailers that are growing in urban markets with higher shares of
Millennial customers include Lululemon, Sweaty Betty, Alo and Outdoor Voices –
each with its unique brand and community of followers. <o:p></o:p></span></span></div>
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<span style="background-color: white;"><span style="font-family: inherit;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Alo has built
its brand specifically around yoga. Its product offerings are designed for
yogis and its stores offer extensive yoga class schedules. Alo has opened three
stores in urban neighborhoods in California, where the wellness and yoga
movement is particularly strong.<o:p></o:p></span></span></div>
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<br /></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-family: inherit;">Outdoor Voices,
on the other hand, has built its brand as technical apparel for ‘recreation’ –
which really is all-encompassing. Anyone participating in a recreational
activity, whether it’s dog walking or yoga or a fun group sport, would easily identify
with the brand and its products. <span style="mso-spacerun: yes;"> </span>The
store has opened locations across the country – from Colorado to Texas and New
York. <o:p></o:p></span></span></div>
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<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="background-color: white;"><span style="font-family: inherit;">Fitness<o:p></o:p></span></span></b></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://3.bp.blogspot.com/-uok7UU6WgLg/WqZ_gtIjqmI/AAAAAAAABMs/1eerixjRM3MNpVMkuycuQozgBI_Zey-1QCLcBGAs/s1600/cait%2Bopperman%2B-%2B%2Bbloomberg.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="534" data-original-width="800" height="213" src="https://3.bp.blogspot.com/-uok7UU6WgLg/WqZ_gtIjqmI/AAAAAAAABMs/1eerixjRM3MNpVMkuycuQozgBI_Zey-1QCLcBGAs/s320/cait%2Bopperman%2B-%2B%2Bbloomberg.jpg" width="320" /></a></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Gyms have long
been tenants in many of our downtowns and commercial districts, however, in
recent years there has been a significant growth in boutique fitness concepts. <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">According to the International
Health, Racquet & Sportsclub Association, these types of spaces now account
for 42% of the entire health club market and they range from yoga, spinning and
boxing studios to grungy crossfit facilities</span>. In particular, the 2016 IHRSA
Health Club Consumer Report found that Millennials preferred specialized fitness
classes like kickboxing, barre, crossfit, and yoga as opposed to Gen Xers. They
love the personalized and community experience that these boutique fitness
concepts provide and are willing to pay more than the monthly average of $33 for
these classes. <o:p></o:p></span></span></div>
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<br /></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Like the
athleisure stores that have grown in numbers, boutique fitness concepts have
built strong brands and communities of followers that subscribe to distinct sets
of values. <o:p></o:p></span></span></div>
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<br /></div>
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<b style="mso-bidi-font-weight: normal;"><span style="background-color: white;"><span style="font-family: inherit;">Food and Beverage stores<o:p></o:p></span></span></b></div>
<div class="MsoNormal">
<a href="https://3.bp.blogspot.com/-weh_p0eTSLo/WqaAAFmpnnI/AAAAAAAABM8/70Ho1x-KdbgjAv-KIVnVnyHBjQPg0B7KwCLcBGAs/s1600/whole-foods-365-brooklyn-08.w710.h473%2Bscott%2Bheins.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="474" data-original-width="710" height="213" src="https://3.bp.blogspot.com/-weh_p0eTSLo/WqaAAFmpnnI/AAAAAAAABM8/70Ho1x-KdbgjAv-KIVnVnyHBjQPg0B7KwCLcBGAs/s320/whole-foods-365-brooklyn-08.w710.h473%2Bscott%2Bheins.jpg" width="320" /></a><span style="background-color: white;"><span style="font-family: inherit;">As part of
their shift toward holistic health and wellness, Millennials are also
increasingly spending on healthy produce<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">. According to the Organic Trade Association, 52% of
organic consumers are Millennials.</span> Furthermore, Millennials eat 52% more
vegetables than their older counterparts and about <a href="http://store.hartman-group.com/culture-of-millennials-2011/?hcampaign">12%
of this age group claimed they are totally vegetarian</a> back in 2011. These shares
may even be even larger today. <o:p></o:p></span></span></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Grocers and
convenient stores that offer organic and locally-sourced produce such as Whole
Foods, Trader Joe’s are growing fast in urban markets and in even smaller
formats. Whole Foods opened its first 365 small store concept on the east coast
in downtown Brooklyn, where the psychographic group known as the ‘Laptops and
Lattes’ has grown rapidly in recent years. This group is essentially made up of
single, affluent and well-educated Millennials with a median age of 36.9.<o:p></o:p></span></span></div>
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<br /></div>
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<b style="mso-bidi-font-weight: normal;"><span style="background-color: white;"><span style="font-family: inherit;">Food and drinking places<o:p></o:p></span></span></b></div>
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<span style="background-color: white;"><span style="font-family: inherit;">Even when they’re
eating out, Millennials continue to demand responsibly-sourced,
health-conscious food and drink options. <a href="https://portside.org/2016-10-17/developing-foods-millennials">Research
shows that Millennials look for food options that are wholesome and healthy</a>.
Organic, freshly-made, and authentic foods are all important labels to
Millennials. This has led to a strong growth in quick-service juice and salad
bars across many metropolitan cities. Sweetgreen, a fast-casual salad bar that
prides its offerings on being locally sourced and customizable, started in DC
in 2008 has since grown to 85 locations across 8 states. Again, its locations
are mostly in urban neighborhoods with strong Millennial representation. <o:p></o:p></span></span></div>
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<br /></div>
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<b style="mso-bidi-font-weight: normal;"><span style="background-color: white;"><span style="font-family: inherit;">Beauty and Personal Care Services<o:p></o:p></span></span></b></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://1.bp.blogspot.com/-7XseqPNsbUE/WqZ_gicuimI/AAAAAAAABMo/ZZwqRle48oUvmm1pvW42XyDZ57LdYfcVQCLcBGAs/s1600/The_Saks_Wellery.0.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="613" data-original-width="920" height="213" src="https://1.bp.blogspot.com/-7XseqPNsbUE/WqZ_gicuimI/AAAAAAAABMo/ZZwqRle48oUvmm1pvW42XyDZ57LdYfcVQCLcBGAs/s320/The_Saks_Wellery.0.jpg" width="320" /></a></div>
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<span style="background-color: white;"><span style="font-family: inherit;">The final retail
tenant type that has grown in many urban markets as a result of the Millennial
shift toward holistic health and wellness is beauty and personal care services.
This includes everything from spas and salons to meditation clinics. <span style="mso-spacerun: yes;"> </span>From 2007 to 2013, the spa industry grew 58%
with a 47% increase in spa locations from 71,762 to 105,591.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-family: inherit;">The truth is
Millennials want the experience of being ‘<i>transformed</i>’. Even department stores
like Saks Fifth Avenue are addressing that desire by introducing wellness
service centers in their stores such as the Wellery in New York. These wellness
centers offer spas and detox treatments, and even meditat<o:p></o:p></span></span><span style="background-color: white; font-family: inherit;">ion clinics that help
those who are constantly wired from busy lifestyles to unplug.</span></div>
<div style="height: 0px;">
<span style="background-color: white; font-family: inherit;"><br /></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-60430589803596464142018-03-07T08:00:00.000-05:002018-03-07T12:23:17.843-05:00Three Trends in Parking Management<br />
<div class="MsoNormal">
<i style="background-color: white; color: #666666; font-family: "trebuchet ms", trebuchet, sans-serif; font-size: 13.2px;"><span style="font-family: inherit;">Dan McCombie is a Research Associate at Larisa Ortiz Associates</span></i></div>
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<i style="background-color: white; color: #666666; font-family: "trebuchet ms", trebuchet, sans-serif; font-size: 13.2px;"><span style="font-family: inherit;"><br /></span></i></div>
<div class="MsoNormal">
I’ve noticed a couple of trends of late in regards to
parking and how downtowns are trying to effectively manage the demand for it. It
feels important to understand these trends because they all have implications
for how customers access downtowns, as well as the toolbox of strategies and tactics we have as district managers. In any event, I would be curious to know if what I’ve observed
tracks with what others have also seen. Here goes…</div>
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<br /></div>
<h3 style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><!--[endif]--><b style="mso-bidi-font-weight: normal;">Parking decks (as we know them) are experiencing
incremental extinction</b></h3>
<div>
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
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There was a Crain’s NY article recently talking about the <a href="http://www.crainsnewyork.com/article/20180221/FEATURES/180219923/uber-and-lyft-crushed-taxis-is-the-commercial-parking-garage-industry-next"><span style="color: blue;">challenges
being faced by Manhattan parking garages</span></a>. Operators say they’ve felt a lost
demand over the past 18 months, citing a 10% drop in the number of “transient
units” (cars that park by the day or hour). They attribute this trend to
growing patronage of car-share (Car2Go) and ride-share (Lyft and Uber), but made
all the worse by rising labor costs and recent rumblings by politicos about
possible congestion pricing in Manhattan.<span style="font-family: "calibri" , sans-serif;"><span style="font-size: 14.6667px;"> </span></span>Yet this is not unique to New York. Waning demand for structured parking is also being felt in cities
like Chicago, Philadelphia, and Boston where competition from alternative
transit choices and concerns over congestion are just as prevalent. <o:p></o:p></div>
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<br /></div>
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Uber has been unapologetic, responding that it’s all for
the better those garages disappear if that creates more space for affordable
housing and public parks. Sounds rosy, and there is some sense to it since
affordable housing--typically exempt from parking minimum--presents a
real option for infill development. But we’re also seeing cities like
Philadelphia <a href="http://www.philly.com/philly/columnists/inga_saffron/why-center-city-parking-garages-are-disappearing-20170830.html"><span style="color: blue;">incrementally
knock down their garages</span></a> and replace them with luxury housing. In other cases, owners are
getting creative and turning their underutilized parking
structures into <span style="color: blue;"><a href="http://www.philly.com/philly/columnists/inga_saffron/philadelphia-has-a-new-skyline-and-its-not-in-center-city-20170601.html"><span style="color: blue;">trendy
food hall retrofits</span></a>.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal">
To be clear, parking structures are still being built, but increasingly
with an eye towards a ten to fifteen year horizon where the use of that deck
will likely be fundamentally different based on declines in car ownership and increases in autonomous vehicle use. That means <a href="http://www.latimes.com/business/la-fi-car-future-real-estate-20170405-story.html"><span style="color: blue;">designing
for easier retrofitting</span></a> to retail or other non-residential uses, usually by
adding a few feet to ceiling heights. Or it means curbing costs and capitalizing on economies of scale by <a href="https://www.smartcitiesdive.com/news/automated-parking-garage-oakland-california/517951/"><span style="color: blue;">going
fully automated</span></a> with garages that don’t require human labor and can store more
cars in a smaller footprint.<br />
<br />
Regardless, in more and more places we’re seeing garages adapt based on the anticipation (or realization) of reduced demand.</div>
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<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-z_yKk-FLhmo/Wp7CCXSOXMI/AAAAAAAAAOY/GwdO-TsxXGg9FLoGWjW2QdTvqcFBgnXZwCLcBGAs/s1600/Manisa-Automated-Parking-Project-BRN-Architects-7.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="484" data-original-width="728" height="212" src="https://2.bp.blogspot.com/-z_yKk-FLhmo/Wp7CCXSOXMI/AAAAAAAAAOY/GwdO-TsxXGg9FLoGWjW2QdTvqcFBgnXZwCLcBGAs/s320/Manisa-Automated-Parking-Project-BRN-Architects-7.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Automated garage designed by BRN Architects in Izmir, Turkey<br />
Photo: <a href="https://inhabitat.com/fully-automated-parking-garage-helps-reduce-vehicle-emissions-in-turkey/">Inhabitat</a></td></tr>
</tbody></table>
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<br /></div>
<h3 style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><!--[endif]--><b style="mso-bidi-font-weight: normal;">On-street parking is off-brand<o:p></o:p></b></h3>
<div>
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
The literature is rich in urbanist corners about the
benefits of turning traffic lanes and on-street parking into bike lanes and
larger sidewalks. A really good example of this is the NYC DOT’s report, <i style="mso-bidi-font-style: normal;">The Economic Benefits of Sustainable Streets</i>,
commissioned during Janette Sadik-Khan’s time at the helm of the agency. The
report is notable because it seeks to draw the connection between complete streets
and economic development, and does so employing an objective methodological
approach where local business sales were monitored before and after street renovations.
Their change in sales was controlled against sales figures for other comparable
commercial corridors within the same neighborhood. After conducting this
research, the study conclusively found that complete streets provided benefits
to businesses in all types of neighborhoods, “from the central business
district to modest retail strips in residential areas.”</div>
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<br /></div>
<div class="MsoNormal">
I bring this up because more and more people are recognizing the <a href="https://commercialdistrictadvisor.blogspot.com/search?q=pedestrian+spending"><span style="color: blue;">spending
power of pedestrian</span>s</a> while the notion of creating more space for cars feels
counterintuitive and antiquated. So while we see reports and case studies that
supports removing on-street parking to bring in a protected bike lane, the literature becomes much more
scant on whether or not it makes sense to turn a traffic lane into on-street
parking. I draw attention to this because complete streets means supporting as many competing uses as possible, but many streets simply don't have the capacity to do that. If you must choose, what is the argument for parking instead of bike lanes (if there is one)? Yes--I’m familiar with the oft-quoted fact that every on-street
parking space is responsible for some $200-$300K in revenue for nearby
businesses. I’ve seen this number quoted ad nauseam and out of its original
context. That is not to say it’s wrong, but it glosses over many of the variables that are responsible for generating that value.<o:p></o:p></div>
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<br /></div>
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On-street parking can play a valuable role for commercial
districts that goes well beyond providing direct storefront access for
shoppers. Good flexible on-street parking can also provide commercial loading
areas for vendors or serve <a href="https://www.citylab.com/transportation/2017/10/a-dc-neighborhood-rethinks-parking/543870/"><span style="color: blue;">as
designated pick-up and drop-off points for ride-share</span></a> services in an effort
to ease congestion. It can also have a “teaser” effect in that
it suggests to shoppers there is easy and available parking (thereby
inducing more shopping trips), but actually increase the utilization of garages and decks as a substitute when curbside spots are at capacity. And at the end of the day, it also can calm traffic and reduce crossing distances which also serves the pedestrian environment. <o:p></o:p>In short, flexible curbside parking has its benefits which may or may not make sense depending on the district.</div>
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<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-wxkSMzZeBGA/Wp7GgJYvz5I/AAAAAAAAAOw/KfGrVllmhJEtmwfRd3K4Tg2VrFNkN2qKwCLcBGAs/s1600/complete%2Bstreets2.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="371" data-original-width="647" height="228" src="https://4.bp.blogspot.com/-wxkSMzZeBGA/Wp7GgJYvz5I/AAAAAAAAAOw/KfGrVllmhJEtmwfRd3K4Tg2VrFNkN2qKwCLcBGAs/s400/complete%2Bstreets2.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Ninth Avenue street improvement project<br />
Image: <i>Economic Benefits of Sustainable Streets</i>; NYC DOT</td></tr>
</tbody></table>
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<br /></div>
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<br /></div>
<h3 style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -.25in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><!--[endif]--><b style="mso-bidi-font-weight: normal;">“Smart Parking” is smarter thank you might think</b></h3>
<div>
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
A common refrain in many districts is that there
is simply not enough parking to suit retail. And this assertion comes from all corners; not just customers but also property owners and merchants. But with the growth in alternative
transit choices and with Millennials owning fewer cars, more often than not we’ve
found it’s an issue with parking management and not supply. How do we address
situations where one lot is at capacity while other lots are underutilized? There are several solutions, but I'm increasingly drawn to the growing number of apps that seek to address the parking management
question. Here are a few examples: <o:p></o:p></div>
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<br /></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; line-height: normal;"><b>
</b></span></span></span><!--[endif]--><u><b>ParkMobile</b> </u>– Perhaps one of the more ubiquitous options in the market right now, it provides seamless parking payments
through an app, with the advantage of allowing the user to feed the
meter remotely when their time runs out. The company also provides a Parkmobile.io
website as a way to make reservations with parking garages and ensure a spot is
waiting for you when you arrive at your destination.</div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo2; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span><span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; line-height: normal;"><b>
</b></span></span></span><!--[endif]--><u><b>ParkWhiz</b> </u>– Similarly allows users to reserve and
pay for spaces seamlessly and allows parking operators to adjust prices and
offer deals based on real-time demand data. <o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><u>ParkBee</u></b> – This UK/Netherlands based company
created a partnership with ParkMobile that allows owners of private lots to
advertise their spaces to the public (think Airbnb for parking). <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
The value proposition for many of these apps is not just
based on convenience, but also an ability to offer competitive pricing. And
they’re being embraced through ever more channels with some car manufacturers incorporating
them into the on-board computers (e.g. BMW 2018 models use ParkMobile) and
navigation services like WAZE thinking about how they can complement their
existing platform. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
And apps are only half of the picture. A growing number of parking
data collection companies like <a href="https://www.streetline.com/"><span style="color: blue;">Streetline</span></a>
and parking management platforms like <a href="http://www.nupark.com/"><span style="color: blue;">NuPark</span></a>
are working in coordination with these apps to make getting from point A to point
B as seamless and efficient as possible through tech that allows remote gate activation and license plate recognition.</div>
<div class="MsoNormal">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-xVFxurjUAHg/Wp7J4ho4zNI/AAAAAAAAAO8/Cb3q-IZHu0A6TpjFPbftEF3fHAZOb-czACLcBGAs/s1600/Nupark.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="361" data-original-width="963" height="147" src="https://1.bp.blogspot.com/-xVFxurjUAHg/Wp7J4ho4zNI/AAAAAAAAAO8/Cb3q-IZHu0A6TpjFPbftEF3fHAZOb-czACLcBGAs/s400/Nupark.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">One of several parking management services offered by NuPark<br />
Source: <a href="http://nupark.com/">NuPark.com</a></td></tr>
</tbody></table>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<h3>
<b style="mso-bidi-font-weight: normal;">What do these trends
mean for district managers?</b></h3>
<div>
<b style="mso-bidi-font-weight: normal;"><br /></b></div>
<div class="MsoNormal">
Does your district still need a large supply of parking
decks? Should it substitute curbside parking for a protected bike lane? If there is a strain on
parking, is it based on management or supply? Different districts have different needs and there is no one size fits all
strategy here.<br />
<br />
As Kimley Horn stated in a report for their White Paper Series,
parking guidelines developed by the Institute for Transportation Engineers and
Urban Land Institute are “routinely applied in areas they should not be”, meaning
that standards for standalone shopping centers are being used for downtown Main
Streets. For that reason, any parking intervention should really be predicated on an
accurate picture of existing conditions and we have a growing number of tools
at our disposal to do that and to bring that picture into sharper relief. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As mentioned, I’m wildly curious to know if others agree
with these trends or have observed others that are as impactful.<o:p></o:p></div>
<div style="mso-element: footnote-list;">
<!--[if !supportFootnotes]--><br clear="all" />
<br />
<div id="ftn1" style="mso-element: footnote;">
<u>Source Cited:</u></div>
<div id="ftn2" style="mso-element: footnote;">
<div class="MsoFootnoteText">
<i style="mso-bidi-font-style: normal;">Parking Generation – Replacing Flawed
Standards with the Custom Realities of Park+</i>; Kimley Horn; May 2016<o:p></o:p></div>
</div>
</div>
<br />Anonymousnoreply@blogger.com1tag:blogger.com,1999:blog-2800487904993007754.post-78078023283485316172018-03-01T16:38:00.000-05:002018-03-01T16:38:25.830-05:00How to mitigate construction in your downtown<i>Nur Asri is an Associate at Larisa Ortiz Associates </i><br />
<br />
Downtowns and cities around the country are undergoing rapid physical transformations whether due to re-investment or adaptation to technological advancements. However, during the process of transformation, roads and sidewalks are often torn up and diverted, street furniture and public spaces are re-designed and replaced and the shopping environment is essentially disrupted. <br />
<br />
Regardless of the length of time in which the disruptions occurs (two months or a whole year), customer traffic for retail businesses will be affected because downtowns appear to be less accessible by car and even more difficult to navigate on foot. Furthermore, construction often occurs during the day (and during peak visitation times!) and can be loud and dusty, resulting in an overall unpleasant shopping experience. <br />
<br />
Downtown businesses associations and storeowners across the country are adopting a variety of strategies to mitigate the impacts of construction on their operations, sales and visitation.<br />
<div>
<span style="text-align: center;"><br /></span></div>
<div>
<span style="text-align: center;">Here are some steps that you can take to maintain business vitality during your downtown transformation: </span><br />
<b><br /></b>
<b>‘Still Open for Business’ Signage</b><br />
<div>
<div>
These signs help increase visibility of stores to pedestrians and vehicles passing through your downtown. Customers often assume businesses are closed during construction and are therefore quick to make the decision to drive past and go somewhere else altogether so it is crucial that accurate information is relayed to customers through these signs. Include the names of businesses that are open and directions to any alternate business access, and make sure the signs are placed at key intersections and entry points to your downtown. Some cities have also gotten really creative with their signs:</div>
<div>
<a href="https://1.bp.blogspot.com/-EXbHDlrCswY/WphsrWDnMyI/AAAAAAAABKg/VJcbaS14ijgOxwJGULISKxrNYXgmZfaPACLcBGAs/s1600/Eat-Drink-Shop-HERE-Sign-in-Construction_2016-2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: center;"><br /></a><a href="https://3.bp.blogspot.com/-y2JX1vcYM0U/WphrMSyVzEI/AAAAAAAABJk/xdNdEKm38aArTMK-n95s06ybaflc1DO7ACLcBGAs/s1600/Business%2Bsign%2B-%2BArlington%2BMA%2Bby%2BKeith%2BBedford.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="661" data-original-width="960" height="219" src="https://3.bp.blogspot.com/-y2JX1vcYM0U/WphrMSyVzEI/AAAAAAAABJk/xdNdEKm38aArTMK-n95s06ybaflc1DO7ACLcBGAs/s320/Business%2Bsign%2B-%2BArlington%2BMA%2Bby%2BKeith%2BBedford.jpg" width="320" /></a><br />
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In Arlington, MA, Capitol Square Business Association plays around with the regular text found on construction signs.<br />
<a href="https://3.bp.blogspot.com/-wQ3Y-3FD7Mc/WphrNQTl5oI/AAAAAAAABJw/bWPlia-CS-8iKfOxFCFkuJ2ylHvAEauNACLcBGAs/s1600/city%2Bof%2Bnorth%2Bbend.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: 1em; text-align: center;"><img border="0" data-original-height="1571" data-original-width="1200" height="320" src="https://3.bp.blogspot.com/-wQ3Y-3FD7Mc/WphrNQTl5oI/AAAAAAAABJw/bWPlia-CS-8iKfOxFCFkuJ2ylHvAEauNACLcBGAs/s320/city%2Bof%2Bnorth%2Bbend.jpg" width="244" /></a><br />
In the City of North Bend, where roads were being torn up for an infrastructure project to bury utility lines and replace the sidewalks and street trees, sign spinners were hired to sing, dance, and do cartwheels while holding out signs that say ‘Downtown Business are Open!’<br />
<br />
<i>Signs, however, are only one part of the solution. There are many more steps that need to be taken to ensure that downtown businesses aren’t severely impacted by the process of transformation.</i><br />
<b><br /></b>
<b>Marketing/ Promotion</b><br />
Many business associations have dedicated resources to organizing district-wide marketing campaigns to educate customers about construction work and businesses that still need their support during this time. <br />
<br />
<u>Pre- Construction</u><br />
In Madison WI, marketing efforts began two years before construction occurred in order to inform locals that stores and restaurants would remain open throughout the process. The guerilla campaign was extensive and consisted of yard signs, community newsletters, local media coverage and even a Facebook page. <br />
<br />
<u>During Construction </u><br />
<a href="https://1.bp.blogspot.com/-EXbHDlrCswY/WphsrWDnMyI/AAAAAAAABKg/VJcbaS14ijgOxwJGULISKxrNYXgmZfaPACLcBGAs/s1600/Eat-Drink-Shop-HERE-Sign-in-Construction_2016-2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://1.bp.blogspot.com/-EXbHDlrCswY/WphsrWDnMyI/AAAAAAAABKg/VJcbaS14ijgOxwJGULISKxrNYXgmZfaPACLcBGAs/s320/Eat-Drink-Shop-HERE-Sign-in-Construction_2016-2.jpg" width="320" /></a></div>
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The Myrtle Avenue Brooklyn Partnership launched an ‘Eat Drink Shop [HERE]’ Campaign. The Partnership rolled out bright yellow signs and handouts that list all of the businesses that were open during construction. </div>
<div>
<a href="http://3.bp.blogspot.com/-ojooZWsJDRM/Wphtu5XlpTI/AAAAAAAABLE/9WzPE3jxxjAI51WFW8v9-JFcWIe0BShyQCK4BGAYYCw/s1600/hh.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" height="169" src="https://3.bp.blogspot.com/-ojooZWsJDRM/Wphtu5XlpTI/AAAAAAAABLE/9WzPE3jxxjAI51WFW8v9-JFcWIe0BShyQCK4BGAYYCw/s320/hh.jpg" width="320" /></a><br />
<br />
Meanwhile, in Bangor, Maine, (and also downtown Coral Gables) happy hour events ensured that customers were still coming downtown after dark despite the facelift it was undergoing. Bars affected by the construction zone participated in the ‘Hard Hat Happy Hours’ events, which took place weekly. Customers who attended were then rewarded with highly coveted downtown parking passes and gift certificates to local businesses to drive return visits. Similarly, many other downtowns have also handed out coupon books to entice customers to continue shopping thru the construction period. <br />
<br />
<b>Valet parking</b><br />
When convenient on-street parking spaces are temporarily lost to construction activity, customers may be less than willing to patronize downtown stores if they have to park in parking garages/lots located farther away from the retail core. Every effort should be made to ease the driving customer’s journey (especially if the majority of your downtown customers are arriving by car!) and this might include a valet service. <br />
<br />
In Birmingham, MI, where construction through the city center is expected to take about 4-5 years, the city’s promotional arm Birmingham Shopping District is planning to provide valet service that would allow customers to drive to the edge of the construction site to drop off their cars before hitting the rest of the downtown on foot. <br />
<br />
<b>Painted fences/barriers</b></div>
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<a href="https://2.bp.blogspot.com/-LfzzouoYP24/WphrNO0CNhI/AAAAAAAABJs/QFsBdET7iZI4dWpHhQ3io1yVl3TJv4zSQCLcBGAs/s1600/Fencing%2Bmural%2Bby%2BHollis%2Band%2BLana%2B-%2BSeattle%2BWA.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: center;"><img border="0" data-original-height="750" data-original-width="1000" height="240" src="https://2.bp.blogspot.com/-LfzzouoYP24/WphrNO0CNhI/AAAAAAAABJs/QFsBdET7iZI4dWpHhQ3io1yVl3TJv4zSQCLcBGAs/s320/Fencing%2Bmural%2Bby%2BHollis%2Band%2BLana%2B-%2BSeattle%2BWA.jpg" width="320" /></a>Finally, there are creative ways to turn construction fencing and barriers into public art. Back in 2012, we featured <a href="http://commercialdistrictadvisor.blogspot.sg/2012/03/turning-construction-eyesores-into-art.html">Alliance for Downtown New York’s RE:Construction program</a>. Since then many more downtowns and cities have also turned to art as a way to mask the eyesore of construction. In 2013, the Downtown Ithaca Alliance put out a call for artists to adopt 8x4 plywood panels that were put up as fencing around the reconstruction of the Commons public space. Selected artists were invited to paint directly on to the panels that stayed up throughout the construction period. <br />
<br />
In downtown Seattle, WA mural artists and artist-teams have created 200-foot long murals now on view on the Civic Square construction fence. The site will be home to a mixed-use, high-rise tower and open space that will complete the city's Civic Center Campus.<br />
<i><br />While the above strategies aim to ease the impact of construction for customers, there are also steps that need to be taken to mitigate the impact on business operations. </i><br />
<br />
<b>Loading/Unloading </b><br />
Even without the complications of construction downtown, loading and unloading of delivery trucks is already a common issue faced by business owners. Without a well-thought out contingency plan, your downtown may face heavy congestion as a result of trucks double-parking on narrow side streets. <br />
<br />
To avoid this, pre-planned alternative delivery routes must be identified for affected drivers and relayed early on so that staff are alerted to the change of procedures. In addition, detour signs must be posted clearly to guide delivery drivers. Where possible, alleyways may be re-purposed for loading/unloading during construction phase.</div>
<div>
<br />
<b>Low-interest loans </b><br />
With larger-scale construction projects, many cities such as Portland, OR and Salt Lake City, UT have set precedents for dedicating resources to offer low-interest loans to affected businesses. Salt Lake City’s Economic Development Office, for example, established a revolving loan program and set aside funding for light rail construction mitigation up to $20,000 at 3% interest per applicant. Successful applicants simply had to be within one block of construction and be able to demonstrate how they were being impacted. <br />
<br />
Finally, with additional financial and technical assistance, business owners might even consider implementing another method to reach customers if they don’t already have one. Starting online delivery services can certainly nudge customers who are unable or unwilling to navigate through construction to continue to support downtown businesses. <br />
<br />
<b>Make sure your downtown transformation works for you </b><br />
The menu of strategies offered here cost lots of time and money to plan and implement. (Note: Birmingham Shopping District set aside $100,000 just to carry out a promotional campaign including free valet parking and shopping coupons). Depending on the capacity and resources of your downtown, and also the scale of construction happening, you may elect strategies that work best for your businesses. <br />
<br />
Most importantly, ensure that you start planning early and work very closely with local merchants to ensure their buy-in and support for your elected strategies. </div>
</div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-2800487904993007754.post-39188455979992918552018-02-26T11:39:00.000-05:002018-03-06T12:08:09.564-05:00Shipping Container Pop-ups: Best Practice or Best Forgotten?<div class="MsoNormal">
<i style="background-color: white; color: #666666; font-family: "trebuchet ms", trebuchet, sans-serif; font-size: 13.2px;"><span style="font-family: inherit;">Dan McCombie is a Research Associate at Larisa Ortiz Associates</span></i><br />
<br />
I caught myself typing this into my google machine the other
day: <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
“Are shipping containers still cool?”<o:p></o:p></div>
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<br /></div>
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This question has been on my mind as of late, given that the
phenomenon of turning shipping containers into pop-ups for retail, exhibition
space, offices, and even tiny homes, has been going on for quite some time now.
Many people are no doubt familiar with the well renowned downtown <a href="https://downtowncontainerpark.com/"><span style="color: blue;">Container Park</span></a> in Las Vegas,
constructed in 2013 as part of a huge reinvestment package spurred by the
relocation of online retailer Zappos to the neighborhood. And I personally
remember when back in 2011 my hometown of Christchurch (NZ) had its central
city devastated by earthquake, spurring the city to create <a href="http://restart.org.nz/"><span style="color: blue;">Re:Start</span></a> to quickly breathe life back into
the CBD. Are people still doing<span style="color: blue;"> <a href="https://www.dwell.com/article/5-best-retailers-in-upcycled-shipping-containers-1a885383">this</a>?</span>
Is it still perceived as both a savvy marketing scheme and opportunity to
catalyze revitalization? Or is the public starting to experience
container-fatigue?</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>What’s the problem
with containers?<o:p></o:p></b></div>
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<b><br /></b></div>
<div class="MsoNormal">
Admittedly, there is a part of me that sometimes looks upon
containers with disdain simply because they are so ubiquitous now. But I
stumbled upon this quote from<span style="color: blue;"> </span><a href="https://www.sfgate.com/bayarea/place/article/City-s-little-boxes-but-these-look-pretty-good-2298419.php#photo-1803449"><span style="color: blue;">an
article by John King</span></a> in an article he wrote for SFGATE.com, wherein he waxes
on the creation of “<a href="http://proxysf.net/"><span style="color: blue;">Proxy</span></a>,” another container
park constructed in 2011 in the Hayes Valley neighborhood of San Francisco:<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<i>“This isn’t about architecture so much as urban place
making: you’re less aware of the structures than of the surroundings. The
containers aren’t treated as sculptural elements, as is the case recently in
other international cities. They’re content to add layers to the landscape,
enlarging the Hayes Valley experience without making a fuss.”</i><o:p></o:p></div>
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<br /></div>
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Which I interpret to mean: “Calm down. Forget about the
medium and consider the effect.” <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
And rightly so. I actually visited Proxy when I was last in
San Francisco, when a couple of friends brought me to the beer garden there (Biergarten).
Recalling that visit and doing some background research, I learned that Proxy
was exactly as the name describes—a temporary placeholder until more permanent
development could take place, much like Re:Start in Christchurch. The site on
Octavia Street was originally an underutilized parking lot that the city sought
to redevelop for affordable housing. However, the original plan was tabled with
the advent of the economic recession. Rather than let the site lay vacant and
an eyesore on the neighborhood, the city and the Mayor’s office bid the site
out for a temporary and less costly installation, to which the
designer/developer/operator Envelope A+D responded with their plan for a
“flexible environment of food, art, culture, and retail within renovated
shipping containers.” <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Although city codes lacked precedent for a “temporary” retail
operation lasting more than 90 days (the project is due to expire in 2020),
stakeholders were able to negotiate an agreement such that project became a
reality. Now retail tenants include a mix of established brands and start-ups
taking their first incremental step towards brick and mortars. In addition to
retail offerings, the project hosts film screenings, art installations, and
serves as a performance/event space creating a bonafide neighborhood gathering
place. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>What have container
parks like Proxy meant for retail?<o:p></o:p></b></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
Proxy bucks the trend in retail in the sense that in spite
of its positive public reception and the relative success of its tenants, it
plans to shutter in a couple of years. Why remove something that seems to be a
success? Because it was always designed to be a stop-gap and of course the need
to grow the supply of affordable housing in the Bay Area is still an acute need.
But the lessons remain. What Proxy did well was create density in a vacant
space. It was consciously conceived as a means to revitalize a previously
blighted area, a parking lot that had also been the former site of a freeway.
There were other things Proxy did well—curating the mix of tenants in a
meaningful way and targeting operators that could feasibly make the jump to
brick and mortars after a period of incubation. I also appreciate that the
designers consciously eschewed the term “pop-up.” In a quote from Douglas
Burnham, founder of Envelope A+D:<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<i>“We specifically don’t use the word ‘pop-up’ because it doesn’t
really mean anything to us anymore…We think that a thoughtful insertion of
compelling temporary uses can be an effective strategy to bring vibrancy to
languishing parts of the city. There’s nothing trendy or faddish about this.” </i><o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Admittedly, one could argue it is a bit faddish to treat “pop-up”
as a pejorative term. But I think this gets back to my main takeaway. Before
you critique something for its popularity, it’s important to consider if and
why it actually has staying power. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>So…do containers have
staying power?<o:p></o:p></b></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
As far as I’ve been able to tell, the containerization of
our lives continues unabated. Large brands like Budlight, DSW, Puma,
HBO, and HP are increasingly demanding container pop-ups for experiential
retailing strategies while a growing number of companies are supplying both
specialized and turnkey options. They range from Co-Working in a Box’s
“PopBox”, Britten’s “BoxPop”, and Vacant’s mobile container truck, each providing a
range of design and consultative services to help get businesses off the ground
and engage customers in places they didn’t expect.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
And let’s not miss the fact that a whole segment of
companies have an identical model for indoor pop-ups. The shopping mall giant Macerich’s
<a href="https://www.popupexp.com/"><span style="color: blue;">Pop-Up EXP</span></a> program provides 100-300 SF
of space with micro leases, and modular components. The difference here is we’re
not talking about containers. Again—this suggests a larger trend with momentum
and that the medium (containers) is really beside the point. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>What’s on the
horizon?<o:p></o:p></b></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
Some forward-thinking folks have gone so far as to envision
containers as outparcels–parking lot satellites to larger retailers located
inside shopping malls. For example, perhaps a Nordstrom anchoring a mall uses a
container in the parking lot as a small fulfillment center so customers have
the convenience of picking up their order on the fly without the full
commitment of going inside. It’s no stretch of the imagination given the way
e-commerce has pushed the industry towards more rapid and flexible retail with
just-in-time delivery schedules. And what with autonomous vehicles ahead, these trends
will surely continue into the foreseeable future. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Personally, I’m excited to see pop-ups and container
villages keep building off of what has worked in the past. <a href="https://insight.investatlanta.com/2017/06/30/shipping-container-innovation-village-coming-to-mlk-corridor/"><span style="color: blue;">Invest
Atlanta</span></a>, the City of Atlanta’s Development Authority, approved $550K in
funding to create an “MLK Innovation Village” built out of shipping containers
in an empty parking lot adjacent to the H.E. Holmes MARTA station. The village
will include an outdoor gathering space, retail, and at least nine offices with
the intent that this “semi-temporary” project will be a catalyst for future
transit oriented development in the area. It’s the same model as Proxy and
Re:Start, but with a creative transit component that could give it possibly
massive multiplier effects. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Which is all to say, I think we still have a lot of
containers coming our way in the future.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
And that’s quite alright with me.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-iQVm9yn0av8/WpQzvznRwfI/AAAAAAAAANk/tfLfZCCzMPoaBLQhP2pByWhjU49a8ZXAwCLcBGAs/s1600/3521395564_0d5dfae62f_o.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1072" data-original-width="1600" height="214" src="https://2.bp.blogspot.com/-iQVm9yn0av8/WpQzvznRwfI/AAAAAAAAANk/tfLfZCCzMPoaBLQhP2pByWhjU49a8ZXAwCLcBGAs/s320/3521395564_0d5dfae62f_o.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Puma City<br />
Multiple Global Ports</td></tr>
</tbody></table>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><img border="0" data-original-height="1067" data-original-width="1600" height="213" src="https://4.bp.blogspot.com/-dNf5MxB6bTw/WpQzw5s_nmI/AAAAAAAAANo/WQaJVoCtFQQQ2M6lIqq7EZ92jYJ8HkdMACLcBGAs/s320/8529010599_43799cc858_o.jpg" style="margin-left: auto; margin-right: auto;" width="320" /></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Re:Start<br />
Christchurch, NZ</td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://4.bp.blogspot.com/-dNf5MxB6bTw/WpQzw5s_nmI/AAAAAAAAANo/WQaJVoCtFQQQ2M6lIqq7EZ92jYJ8HkdMACLcBGAs/s1600/8529010599_43799cc858_o.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"></a><br /></div>
<a href="https://4.bp.blogspot.com/-dNf5MxB6bTw/WpQzw5s_nmI/AAAAAAAAANo/WQaJVoCtFQQQ2M6lIqq7EZ92jYJ8HkdMACLcBGAs/s1600/8529010599_43799cc858_o.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"></a><br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-nGw7l8dWV_s/WpQzyNeTm9I/AAAAAAAAANs/hZYneVeSUSgy1mirhpBTjeJhjlBRCQ91gCLcBGAs/s1600/11461506056_7cc587e090_o.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1067" data-original-width="1600" height="213" src="https://1.bp.blogspot.com/-nGw7l8dWV_s/WpQzyNeTm9I/AAAAAAAAANs/hZYneVeSUSgy1mirhpBTjeJhjlBRCQ91gCLcBGAs/s320/11461506056_7cc587e090_o.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Proxy<br />
Hayes Valley neighborhood of SF</td></tr>
</tbody></table>
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-Sy3ofDDdodw/WpQzvoafVkI/AAAAAAAAANg/ceX0I6oM0kM3pXwQ5ZWUo7v9vR5VwHrJwCLcBGAs/s1600/12187641494_0dd56125df_o.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="681" data-original-width="1024" height="212" src="https://4.bp.blogspot.com/-Sy3ofDDdodw/WpQzvoafVkI/AAAAAAAAANg/ceX0I6oM0kM3pXwQ5ZWUo7v9vR5VwHrJwCLcBGAs/s320/12187641494_0dd56125df_o.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Container Park<br />
Downtown Las Vegas </td></tr>
</tbody></table>
Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-70095353624633479102018-02-06T15:56:00.000-05:002018-02-06T15:56:10.642-05:00Parks, Open Space and Retail<div class="MsoNormal">
<i>Nur is an Associate at
Larisa Ortiz Associates<o:p></o:p></i></div>
<div class="MsoNormal">
<br /></div>
<span style="text-align: center;">Here in New York we are fortunate to have parks and open
spaces all across the city – from the core of Midtown Manhattan to the outer
borough neighborhoods of Brooklyn, Queens, Staten Island and the Bronx. Like shopping
malls, these open spaces range in scale from neighborhood parks that primarily
serve residents within a four- or five-block radius to destination parks whose
trade areas are much greater, attracting 40-60% visitors from outside the local
area. In fact, these destination parks often attract tourists from all around the
country and the world.</span><br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
It’s not surprising then that when we take a closer look at
the retail mix in and around these open spaces, we find that they’re almost
directly correlated to the park type. After all, customers of the park are also
customers of retail. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>The Neighborhood Park
Retail Mix<o:p></o:p></b></div>
<div class="MsoNormal">
The neighborhood park’s main ‘customers’, or users, are
families with young children, pet owners, high schoolers and young
professionals (<i>depending on the
neighborhood’s demographics</i>). As such, the retail tenant mix on the
periphery of the park features more convenience-related businesses such as
grocery stores, bodegas, take-out restaurants, and cafes that meet the
day-to-day needs of the surrounding residents. <o:p></o:p></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-kY7488ertKk/WnoTF9LnYDI/AAAAAAAABFs/r2cVoSR2eNQ-7Jp_EbY69H9zwoU9Hr1AACLcBGAs/s1600/Slide2.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto; text-align: center;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://4.bp.blogspot.com/-kY7488ertKk/WnoTF9LnYDI/AAAAAAAABFs/r2cVoSR2eNQ-7Jp_EbY69H9zwoU9Hr1AACLcBGAs/s400/Slide2.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: ESRI Business Analyst Online 2017; LOA</td></tr>
</tbody></table>
<div class="MsoNormal">
<br /></div>
Sunset Park and Maria Hernandez Park in Brooklyn both have a
similar share of businesses (~10%) belonging to the retail category ‘Food and
Beverage Stores’ within a 0.25 mile radius. This NAICS category runs the gamut
from small delis to full-service grocery stores. On the southwestern corner of
Maria Hernandez Park in the neighborhood of Bushwick, for example, sits City
Fresh Market. The grocery store measures about 9,000 SF and is complemented by
a number of other smaller format grocery stores and specialty food stores such
as Foster Sundry and La Orquidea – a specialty grocer and butcher shop and a <i>tienda</i> selling authentic Mexican and
Hispanic produce.<br />
<div class="MsoNormal">
<o:p></o:p></div>
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<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://3.bp.blogspot.com/-ZFdixiNm2_g/WnoRu1zsOKI/AAAAAAAABFM/c8P-UrHbh1gO1z9LIi6YLlaMTsO-9Cv_ACLcBGAs/s1600/city%2Bfresh%2Bmarket%2B-%2Bmaria%2Bhernandez%2Bpark.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="575" data-original-width="811" height="226" src="https://3.bp.blogspot.com/-ZFdixiNm2_g/WnoRu1zsOKI/AAAAAAAABFM/c8P-UrHbh1gO1z9LIi6YLlaMTsO-9Cv_ACLcBGAs/s320/city%2Bfresh%2Bmarket%2B-%2Bmaria%2Bhernandez%2Bpark.PNG" width="320" /></a></div>
<div class="MsoNormal">
Other than grocers, the local kiosks that are set up in
these neighborhood parks also offer snacks like ice-cream and grilled corn for
the kids in the neighborhood. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>The Destination Park
Retail Mix<o:p></o:p></b></div>
<div class="MsoNormal">
The customers, or users, of destination parks however are
very different, resulting in a very different retail mix around these open
spaces. Central Park, Washington Square Park, Union Square Park, and the High
Line are some of the destination parks we have here in the city. Since its
opening in 2009, the High Line has experienced rapidly climbing visitor numbers
year-on-year with <a href="http://www.thehighline.org/blog/2017/01/10/high-line-magazine-b1g-da-a-and-parks">over
7.6 million visitors estimated in the year 2015</a>. Of this, 32% of visitors were
from outside a 45 mile radius of NYC and an additional 28% of visitors were from
outside the US. <o:p></o:p></div>
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<br /></div>
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The same trend in users can be observed with Central Park. In 2011, it was reported that Central Park
received between 37-38 million visitors (this has climbed to 42 million in 2016!)
and of that number, 12% were from outside NYC and the greater NY Metropolitan
area and an additional 16% of visitors were from outside the US. <o:p></o:p></div>
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<br /></div>
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The spillover of millions of national and international
visitors have therefore drawn a wider mix of retail to the immediate vicinity of
these destination parks that cater specifically to tourists who are seeking a
uniquely ‘New York experience’. When compared with the retail mix around
neighborhood parks, the destination parks have far greater shares of retailers selling
miscellaneous items (including book stores, souvenir/gift stores), clothing and
accessories, and sporting goods/ hobby merchandise. Even retail kiosks within
the park and along the periphery of the park offer miscellaneous items such as
books or souvenir t-shirts and tote bags.<o:p></o:p></div>
<div class="MsoNormal">
<a href="https://3.bp.blogspot.com/-sGr3Pm8vog4/WnoRvHJBhZI/AAAAAAAABFI/P0QHZVtIFg8ZYO3NbZ_WO62zl9KzxvXWwCLcBGAs/s1600/the-strand-bookstore-central-park.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="463" data-original-width="840" height="176" src="https://3.bp.blogspot.com/-sGr3Pm8vog4/WnoRvHJBhZI/AAAAAAAABFI/P0QHZVtIFg8ZYO3NbZ_WO62zl9KzxvXWwCLcBGAs/s320/the-strand-bookstore-central-park.jpg" width="320" /></a></div>
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</div>
Strand Bookstore, an iconic 86-year old independent
bookstore in NYC, operates a kiosk just outside Central Park on the corner of
60<sup>th</sup> St and 5<sup>th</sup> Avenue. The kiosk not only curates its
merchandise to offer books and materials related to the history of New York
City and Central Park, it is also a piece of NYC’s cultural history itself. The
Strand is the only surviving retailer of Fourth Avenue’s historic ‘Book Row’
shops from the 1890s to 1960s and has seen a number of artists amongst its
employees including Patti Smith. The book kiosk by Central Park indeed offers
tourists a flavor of old New York.<o:p></o:p><br />
<div class="MsoNormal">
<a href="https://1.bp.blogspot.com/-4g-m8g_Nwfs/WnoRusEgn8I/AAAAAAAABFE/nhMr1AWrjaQGsy64CgBglZhn6xAzx3SgACLcBGAs/s1600/the-high-line-%2Bshop.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="365" data-original-width="550" height="212" src="https://1.bp.blogspot.com/-4g-m8g_Nwfs/WnoRusEgn8I/AAAAAAAABFE/nhMr1AWrjaQGsy64CgBglZhn6xAzx3SgACLcBGAs/s320/the-high-line-%2Bshop.jpg" width="320" /></a></div>
<div class="MsoNormal">
Meanwhile, at The High Line, you can find a kiosk in the
park selling exclusive High Line merchandise with everything from apparel and
accessories, to placemats, water bottles, coloring books, and tea towels. These
items are all uniquely designed for the High Line and go towards supporting the
park’s operations and programs. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
While we must acknowledge that there are still residents in
the immediate vicinity of these destination parks, the share of
convenience-related businesses serving them is much smaller compared to that
near neighborhood parks. For example, within 0.25 mile of the High Line park at
14<sup>th</sup> Street, only 2.76% of businesses are food and beverage stores
and within 0.25 mile of the East 59<sup>th</sup> Street entrance of Central
Park, an even smaller share of 0.5% of businesses are food and beverage/grocery
stores. Residents are therefore likely getting groceries and convenience goods
0.25 mile in the other direction, away from the destination park.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Food, drinking, and the outdoors<o:p></o:p></b></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-_ag65GQs8-E/WnoTFzxxoFI/AAAAAAAABFo/ukbYNIv880MSC701SQDTF2OvjSCd5yB3QCLcBGAs/s1600/Slide1.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://4.bp.blogspot.com/-_ag65GQs8-E/WnoTFzxxoFI/AAAAAAAABFo/ukbYNIv880MSC701SQDTF2OvjSCd5yB3QCLcBGAs/s400/Slide1.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: ESRI Business Analyst Online 2017; LOA</td></tr>
</tbody></table>
<div class="MsoNormal">
In comparing the retail mix
across both neighborhood parks and destination parks, however, one retail
category maintained a constantly high share of businesses within 0.25 mile –
food services and drinking places. From McGolrick Park to Washington Square
Park, food services and drinking places including restaurants and bars share
between 10-18% of the total retail mix within 0.25 mile radius. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: center;">
<br /></div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-TWAljhqyjAc/WnoRuaUa5jI/AAAAAAAABFA/VMngUWbZ_08PJM1kImZ6MiPpk3kc9aKCgCLcBGAs/s1600/the%2Bhigh%2Bline%2Bterroir%2Btake%2Bout.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="400" data-original-width="600" height="213" src="https://2.bp.blogspot.com/-TWAljhqyjAc/WnoRuaUa5jI/AAAAAAAABFA/VMngUWbZ_08PJM1kImZ6MiPpk3kc9aKCgCLcBGAs/s320/the%2Bhigh%2Bline%2Bterroir%2Btake%2Bout.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The High Line Summer Terroir Pop-Up. Photo: The High Line</td></tr>
</tbody></table>
<div class="MsoNormal">
In many instances, these
restaurants and bars are located in the parks themselves, have direct views
into the parks, or are easy to take out and consume in the park. Connecting the
outdoors to food and drinking, as is possible near neighborhood and destination
parks, can be a winning formula for many restaurants and bars. In the
restaurant industry, anecdotal accounts from restaurateurs report elevated
dining experiences amongst customers by offering al fresco seating options,
resulting in increased sales. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>The Synergy between Retail and Parks <o:p></o:p></b></div>
<div class="MsoNormal">
Even with non-food service and
drinking businesses, the connection to the park and the outdoors can be a
winning formula to driving greater traffic into stores. One example is Union
Square Park, which hosts fitness events outside in the warm months to drive
traffic to both the park and its neighboring businesses. Sponsored by and
organized with local athletic apparel stores and yoga studios and gyms, the
SweatFest event illustrates the possible synergies between a park and local businesses.
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Overall, it appears that parks
can make great co-tenants of certain types of retail because they increase
dwell time in the neighborhood or area, and can increase potential sales. However, the synergy
works the other way too.<o:p></o:p></div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-vlbsW1lsyPc/WnoUm5aoH1I/AAAAAAAABGI/oLsV8GKdflswh8-vAoPrN0e0WLoFjBgowCLcBGAs/s1600/union%2Bsq%2Bmarket.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="317" data-original-width="476" height="213" src="https://1.bp.blogspot.com/-vlbsW1lsyPc/WnoUm5aoH1I/AAAAAAAABGI/oLsV8GKdflswh8-vAoPrN0e0WLoFjBgowCLcBGAs/s320/union%2Bsq%2Bmarket.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Union Square Winter Market. Photo: TimeOut NY</td></tr>
</tbody></table>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Retail can prove beneficial to parks by activating them in
the colder months. Many destination parks in NYC that see drastic drops in
visitor numbers in the Winter have introduced outdoor holiday markets with
retail to drive foot traffic into the parks. Parks like Bryant Park, Union
Square Park and even Central Park (at its Columbus Circle entrance) are opening
their arms to retail as they find ways to maintain visitation throughout the
cold months. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Finally, retail in and around parks may also have positive
impacts on park safety at night. After dusk, many parks – neighborhood and
destination – get dark and quiet. Having retail that opens later into the
evening along the periphery of parks, and facing them, ensures that lights stay
on later in the area and potentially improving the perception of safety for
those walking at night.<o:p></o:p></div>
<br />
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Planning cohesively for
parks and retail<o:p></o:p></b></div>
<div class="MsoNormal">
Given that both parks and retail can stand to gain from
being closely situated to each other, it’s important that we plan for or make
it viable for the two to co-exist. This might mean ensuring that zoning near
and around parks allows for various types of retail businesses and outdoor
seating options to flourish or it might even mean planning for Park Concessions
areas and ensuring that the application process is easy to navigate and not costly
(<a href="https://untappedcities.com/2013/07/30/daily-what-the-strand-bookstore-central-park-outpost-how-it-works/">Strand
Bookstore only pays around $46,305 annually to the Parks Department</a> for its Central Park kiosk). <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Sure the tenant mix may differ between park types, however,
the park should be used creatively as an extension of the retail and vice
versa. <o:p></o:p></div>
<br />
<div class="MsoNormal">
<br /></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-45348126379204185632018-02-05T10:48:00.000-05:002018-02-06T10:02:44.274-05:00Best Practice: Shrinking Brick-and-Mortars and DGX<i style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, sans-serif; font-size: 13.2px;"><span style="font-family: inherit;">Dan McCombie is a Research Associate at Larisa Ortiz Associates</span></i><br />
<i style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, sans-serif; font-size: 13.2px;"><span style="font-family: inherit;"><br /></span></i>
<br />
<div class="MsoNormal">
For our recent blog post on <a href="http://commercialdistrictadvisor.blogspot.com/2018/01/heres-what-to-expect-in-2018-and-beyond.html">2018
retail trends</a>, number seven on our list was the phenomenon of shrinking
retail footprints and the opportunities they provide for both retailers and for
downtowns. I thought it helpful to highlight one such retailer, perhaps an
unexpected one, who has adopted this strategy. Who is it?<br />
<br />
Dollar
General. (Really?)<o:p></o:p><br />
<br />
Really. (Tell me more!)<br />
<br />
Ok! </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In January of 2017, Dollar General announced the opening of
its new urban format store entitled Dollar General Express (or DGX) in
Nashville Tennessee, just a ways south of the company's base of operations in Goodlettsville.
It differed largely from existing stores in that it occupied a paltry 3,400 SF
compared to traditional store sizes of 7,300 SF, presenting a small, clean,
modern and sleek aesthetic. Its usual 10,000-12,000 SKUs were traded in for a more limited assortment of grocery, pet supply, snacks,
paper products, and home cleaning supplies, but complemented with a coffee bar,
refrigerated grab-n-go food offerings, an expanded health and beauty section, and
a “carefully-edited assortment of home, electronics and seasonal offerings.”<span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-family: "calibri" , "sans-serif"; font-size: 11.0pt; line-height: 115%;"><a href="https://www.blogger.com/blogger.g?blogID=2800487904993007754#_ftn1" title="">[1]</a></span></span><a href="https://www.blogger.com/blogger.g?blogID=2800487904993007754#_ftn1" title=""><!--[endif]--></a></span><o:p></o:p></div>
<div class="MsoNormal">
<span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><br /></span></span></div>
<div class="MsoNormal">
What explained the reasoning behind the new DGX? Dollar General representatives explained what we all already know,
that the retail business is changing and shopping is increasingly moving
online. The new DGX was felt to be a way to anchor their brand more in their
brick-and-mortars by reaching a new audience of urban and Millennial-aged
shoppers—thus the reason for choosing Nashville as their first location. The Nashville metropolitan area is expected to reach a population of 2M by the year 2020, signaling a trend of urbanization that is not likely to abate anytime soon. A
quick look in ESRI Business Analyst found that within a fifteen minute walk shed of the
store’s location, over 40 percent of the population was classified in the “Dorms
to Diplomas” tapestry segment, an inherently budget-conscious demographic of
college students with low rates of car ownership. An additional 38 percent of
residents were characterized as “Metro Renters,” college-educated Millennial
30-somethings with a preference for single household urban living. Dollar General seems to be gambling big on these cohorts by opening its second DGX location in Raleigh,
North Carolina, within the famed Research Triangle region.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
What DGX is seeking to do
goes beyond what was discussed in our 2018 trends blog post, where we pointed
to stores like City Target and Neighborhood Nordstrom in the general merchandise
category. These retailers are shrinking store sizes and reducing
inventories in order to focus on more experiential components—in essence
responding to a market correction that saw an oversupply in retail space across
the country. But Dollar General is really continuing a retail strategy that has
historically served them well. They have always been a small format chain compared
to their big-box competitors. With a smaller footprint, they’ve been able to
locate closer to budget-minded shoppers, competing on convenience and access, such that they claim they currently serve 75% of the US population. This strategy has
fueled their consistent growth with Q4 2017 sales rising at the fastest pace
seen in the past three years. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What is different is that the Dollar General site selection
strategy has grown from a focus solely on the rural customer to include the
urban. In short, Dollar General has not changed their value proposition, which
is providing affordable and accessible convenience goods. What they have
changed is their focus on primarily rural demographics to now include a growing
urban demographic. This is not to say they’ve been absent from urban areas
until now, but the new DGX stores can be shoehorned into smaller spaces in denser
environments in a way they haven’t been able to prior. That has tremendous
implications for addressing vacant spaces, improving tenant mix, and creating
engaging downtown environments. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-h3Rgfl8qL6I/Wnh8KfzrtkI/AAAAAAAAAL8/QfCVm4KN1AcWq00p--gGmI7dF3HqFK2gQCLcBGAs/s1600/DGXFoodConceptDrawing.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="509" data-original-width="934" height="217" src="https://1.bp.blogspot.com/-h3Rgfl8qL6I/Wnh8KfzrtkI/AAAAAAAAAL8/QfCVm4KN1AcWq00p--gGmI7dF3HqFK2gQCLcBGAs/s400/DGXFoodConceptDrawing.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: dollargeneral.com</td></tr>
</tbody></table>
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<br /></div>
<br />
<div>
<!--[if !supportFootnotes]--><br clear="all" />
<hr align="left" size="1" width="33%" />
<!--[endif]-->
<br />
<div id="ftn1">
<div class="MsoFootnoteText">
<a href="https://www.blogger.com/blogger.g?blogID=2800487904993007754#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-family: "calibri" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">[1]</span></span><!--[endif]--></span></a> https://newscenter.dollargeneral.com/our-story/blog-posts/dollar-general-unveils-new-dgx-concept.htm<o:p></o:p></div>
</div>
</div>
Anonymousnoreply@blogger.com1tag:blogger.com,1999:blog-2800487904993007754.post-47820834461922432852018-02-02T16:28:00.000-05:002018-02-02T17:09:46.888-05:00The Age of the Selfie<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-QPwG-g4aVKg/WnTVu-q4e0I/AAAAAAAABDY/4ibeVCXv7hM5YxUNvryHArjkMFqb5ubCACLcBGAs/s1600/greetings%2Bfrom%2Baustin%2Bmural%2Bfrom%2Byelp.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="348" data-original-width="348" height="320" src="https://2.bp.blogspot.com/-QPwG-g4aVKg/WnTVu-q4e0I/AAAAAAAABDY/4ibeVCXv7hM5YxUNvryHArjkMFqb5ubCACLcBGAs/s320/greetings%2Bfrom%2Baustin%2Bmural%2Bfrom%2Byelp.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Greetings from Austin Mural, TX. Photo: Yelp</td></tr>
</tbody></table>
<i>Nur Asri is an Associate at Larisa Ortiz Associates.</i><br />
<br />
Whether we care to admit or not, we’ve all taken one or been
forced to take one. I'm talking about selfies. Selfies are digital self-portraits that
began to really take off when smart phones became equipped with the
forward-facing camera. The photos themselves haven’t radically changed retail
or downtowns – believe me, people were taking self-portraits even when they
had film cameras. However, when the digital self-portraits are uploaded to social media platforms and tagged and shared by
users across the world, that’s when it starts to have an impact on the brand
and identity of a retailer or an entire downtown.<br />
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<o:p></o:p></div>
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The selfie is now a common tool that people – young and old –
use to share their individual experiences with others and to self-brand. The marketing
power of the selfie cannot be understated. A <a href="http://blog.htc.com/2013/08/the-selfie-phenomenon/">HTC survey</a> in
2013 of more than 2,000 mobile phone users in the UK found that about 51% of the
UK had taken a selfie, creating about 35 million photos every month. Although a
greater share of those aged 18-24 had taken a selfie, almost a third of those
aged 65 and older had also taken one, indicating that the selfie can work on a
wide range of customer segments. <o:p></o:p></div>
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Just to understand the magnitude of selfie-taking, we took a
look at the number of selfies taken on Instagram.<o:p></o:p></div>
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<a href="https://4.bp.blogspot.com/-6vmJUIUOdWU/WnTU81OqDhI/AAAAAAAABC4/awK3Qd_Ig-IwECLu_SrGb6RpI-QJaraGACLcBGAs/s1600/Slide1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://4.bp.blogspot.com/-6vmJUIUOdWU/WnTU81OqDhI/AAAAAAAABC4/awK3Qd_Ig-IwECLu_SrGb6RpI-QJaraGACLcBGAs/s400/Slide1.JPG" width="400" /></a></div>
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<a href="https://4.bp.blogspot.com/-vHjot9Y-Ta0/WnTU87Y8fUI/AAAAAAAABC0/uDW_ESRVBXcwxz3cS-_9HsGE_KcYntkQQCLcBGAs/s1600/Slide2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://4.bp.blogspot.com/-vHjot9Y-Ta0/WnTU87Y8fUI/AAAAAAAABC0/uDW_ESRVBXcwxz3cS-_9HsGE_KcYntkQQCLcBGAs/s400/Slide2.JPG" width="400" /></a></div>
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Sure, selfies are often criticized for being associated with
vanity or narcissism but selfies are often the first and last step a customer
takes in their purchasing journey. Selfies provide inspiration for those
seeking to make purchases and selfies provide validation for those who have
already bought products – it’s a near instant feedback loop for customers.
Selfies have indeed increased sharing of product information and resulted in
more educated and conscious consumers. Today, customers search for authentic
peer recommendations for a range of products and even for travel decisions so
information shared on social media has in many ways surpassed the influence of magazines
and newspapers. A 2016 TopDeck Travel Survey in 2016 found that in choosing
where to travel, 76% of Millennials surveyed said that friends’
recommendations…and social media came far ahead of travel-agent advice.</div>
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<b>How are retailers making
use of selfies?</b></div>
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Retailers in a wide range of categories have used selfies as
a leverage to raise brand and product awareness, and also boost in-store
traffic. <o:p></o:p></div>
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<a href="https://2.bp.blogspot.com/-vGiJboNNF0s/WnTVv65SD4I/AAAAAAAABDg/56QV_QHr-kgalYWpqUozFbul-7FyIccowCLcBGAs/s1600/sd_store.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="569" data-original-width="1200" height="151" src="https://2.bp.blogspot.com/-vGiJboNNF0s/WnTVv65SD4I/AAAAAAAABDg/56QV_QHr-kgalYWpqUozFbul-7FyIccowCLcBGAs/s320/sd_store.jpg" width="320" /></a></div>
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1. Drug stores/ Beauty<o:p></o:p></div>
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Interactive mirrors placed in UK drug store, Superdrug
Beauty Studio, allow customers to experiment with hair colors virtually and
take selfies after getting hair or make-up done. This helps the store’s
customers to share the quality of services being offered in-store while also
providing free marketing. To make the sharing of the selfie easier, the store
features iPads that enable customers to send the selfie to Facebook or Twitter
with the official campaign hashtag, #TreatYourSelfie.<o:p></o:p></div>
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2. Apparel<o:p></o:p></div>
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<a href="https://4.bp.blogspot.com/-N46BwglgmrU/WnTWs-E7XeI/AAAAAAAABD8/W4ju3afPKaQb_pjW4RKdq9HBQzSQkPJHwCLcBGAs/s1600/best-window-displays_ted-baker_2013_christmas_merry-kissmas_02.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="531" data-original-width="794" height="214" src="https://4.bp.blogspot.com/-N46BwglgmrU/WnTWs-E7XeI/AAAAAAAABD8/W4ju3afPKaQb_pjW4RKdq9HBQzSQkPJHwCLcBGAs/s320/best-window-displays_ted-baker_2013_christmas_merry-kissmas_02.jpg" width="320" /></a>Many apparel stores from Victoria’s Secret to French
Connection and Ted Baker have used selfies as part of their marketing campaigns.
These stores encourage shoppers to take photos in-store by creating a perfect
backdrop or setting for taking selfies. These include special installations,
interactive selfie booths and attractive storefront displays. The stores then
encourage shoppers to share the selfies on their personal Twitter and Instagram
profiles using official campaign hashtags by providing incentives like free
gifts for anyone that uploads the photo to social media or by displaying the
selfies on a public screen or storefront window. <o:p></o:p></div>
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By displaying the selfies publicly, passersby became very
engaged with the store. They were able to vote for favorite selfies using hand
sensors and were then more likely to walk into the store. </div>
<o:p></o:p><br />
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<a href="https://2.bp.blogspot.com/-EM2upCX8Z3c/WnTWtciTBOI/AAAAAAAABEA/EAVm_wS6NccXrx1tr-3BrgUt5iQxvCbfACLcBGAs/s1600/Screenshot_20180202-152753.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1600" data-original-width="900" height="320" src="https://2.bp.blogspot.com/-EM2upCX8Z3c/WnTWtciTBOI/AAAAAAAABEA/EAVm_wS6NccXrx1tr-3BrgUt5iQxvCbfACLcBGAs/s320/Screenshot_20180202-152753.png" width="180" /></a>3. Food<o:p></o:p></div>
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Even with food, selfies can happen. The phenomenon known as <i>foodstagramming</i> is the act of taking
photos of one’s food and posting them on social media. Restaurants are
certainly taking advantage of it because it can be free advertising (depending
on the photographer’s comments!). <o:p></o:p></div>
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<b>How can downtowns use
selfies?<o:p></o:p></b></div>
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Speaking of food, this week is Restaurant Week across New
York City and sure enough many business improvement districts are using food
selfies as a way to raise awareness of the district events and drive greater
traffic to the restaurants in these areas post-event. Grand Street BID in
Brooklyn, for example, is offering <i>foodstagrammers</i>
a chance to win $50 to their favorite Grand Street Restaurant if they upload a
picture of their Restaurant Week meal with the hashtag #DineOnGrand and tag the
BID in the photos. <o:p></o:p></div>
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<a href="https://4.bp.blogspot.com/-1dsm7NEdB_0/WnTVtir35fI/AAAAAAAABDE/tO2-3rE2d4AJyGGBKEAg-OIz3bgjqVASQCLcBGAs/s1600/austin%2Btx%2Bmural%2Btripadvisor.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="344" data-original-width="763" height="144" src="https://4.bp.blogspot.com/-1dsm7NEdB_0/WnTVtir35fI/AAAAAAAABDE/tO2-3rE2d4AJyGGBKEAg-OIz3bgjqVASQCLcBGAs/s320/austin%2Btx%2Bmural%2Btripadvisor.PNG" width="320" /></a>Beyond food selfies, commercial districts can also use
iconic art and signage and interactive sculptures to encourage selfies by
visitors and to reinforce their identities. In the past, we’ve <a href="http://commercialdistrictadvisor.blogspot.com/2016/12/when-city-signs-become-iconic.html">featured
the I Amsterdam sign</a> as one example of a way that signage can drive popular
images posted on social media. Many other downtowns have driven high visitation
rates with iconic selfie spots. Here are some examples:<o:p></o:p><br />
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<a href="https://2.bp.blogspot.com/-IRK_jolTHQA/WnThh-ZqLSI/AAAAAAAABEc/hks4enNO_4QI2rwXsb4s5HDKpRLKNkD7ACLcBGAs/s1600/Gateway%2Barch%2B-%2BGasLamp_Quarter_San_Diego%2B-%2BDitchingNormalCom.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="675" data-original-width="1200" height="180" src="https://2.bp.blogspot.com/-IRK_jolTHQA/WnThh-ZqLSI/AAAAAAAABEc/hks4enNO_4QI2rwXsb4s5HDKpRLKNkD7ACLcBGAs/s320/Gateway%2Barch%2B-%2BGasLamp_Quarter_San_Diego%2B-%2BDitchingNormalCom.jpg" width="320" /></a>In Austin, murals across the city have become destinations
in themselves and visitors are taking selfies in front of them and sharing images
on social media with hashtags #Austin #ATX<o:p></o:p></div>
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In San Diego, the gateway signage to the Gaslamp Quarter has
also become very iconic as a selfie spot for visitors to the area.<o:p></o:p></div>
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Creating a selfie moment in your downtown, like in a retail
store, can do wonders in attracting more visitors and customers. The rapid
sharing and outsourcing of opinions amongst consumers today can either make or
break your downtown so make sure you provide positive moments for visitors to
snap a quick and pretty selfie.<o:p></o:p></div>
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<b>How to create a successful
selfie moment downtown<o:p></o:p></b></div>
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<b><br /></b></div>
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<a href="https://1.bp.blogspot.com/-jMmVo3tClRc/WnTVvl2aBEI/AAAAAAAABDc/QAy7k_opI7kt_-3vTonSEAp0NEMyE4RIwCLcBGAs/s1600/huntsville%2Bselfie.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="519" data-original-width="933" height="178" src="https://1.bp.blogspot.com/-jMmVo3tClRc/WnTVvl2aBEI/AAAAAAAABDc/QAy7k_opI7kt_-3vTonSEAp0NEMyE4RIwCLcBGAs/s320/huntsville%2Bselfie.PNG" width="320" /></a><b>First</b>, <b>remember to create a backdrop for the
selfie to happen.</b> This means good lighting, mirrors and attractive or
significant art. Holiday lighting displays are often great backdrops, as are
large sculptures, murals and gateway signs. The backdrop should also reflect
the identity and brand of the downtown in order for the retweets and sharing of
social media posts to be fully effective in driving interest and traffic to
your downtown.<o:p></o:p></div>
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<b>Second</b>, <b>make uploading the selfie easy.</b> While
stores and retailers can easily provide ipads and devices to customers,
downtowns should instead think about providing free public wifi. From personal
experience, I’m always more likely to upload and share content when I can
easily get online. If I’m not able to instantly upload images after taking them,
I’m likely to forget doing so later.<o:p></o:p></div>
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<b>Third, provide
incentives for visitors to take the selfies</b>. With some visitors, you’ll
need to nudge. Offer a chance to win a shopping trip or discounts at downtown
stores if someone takes a selfie in the area and uploads it to social media.
Featuring selfies taken downtown on outdoor advertisements and interactive
platforms may also nudge some visitors to take photos. It’s always fun to see a
photo you’ve taken up on a public platform! <o:p></o:p></div>
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<a href="https://1.bp.blogspot.com/-ZaSUUtQQ6cw/WnTVuBAjSnI/AAAAAAAABDQ/lkTA5mrewtAMLGN1WQGKHpcnNo6ZUIlPwCLcBGAs/s1600/downtown%2Bvegas%2Bselfie.PNG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="447" data-original-width="925" height="154" src="https://1.bp.blogspot.com/-ZaSUUtQQ6cw/WnTVuBAjSnI/AAAAAAAABDQ/lkTA5mrewtAMLGN1WQGKHpcnNo6ZUIlPwCLcBGAs/s320/downtown%2Bvegas%2Bselfie.PNG" width="320" /></a></div>
<span style="font-family: inherit;"><b><span style="line-height: 107%;">Finally,
make sure you aggregate the selfies and build your downtown brand through a common
hashtag or downtown social media account that visitors can tag in their posts. </span></b><span style="line-height: 107%;">This can help you drive traffic to your downtown
website or even directly downtown! Make sure everyone on social media ‘liking’
or ‘retweeting’ posts is able to connect the selfie to your downtown.</span></span><br />
<span style="font-family: inherit;"><span style="line-height: 107%;"><br /></span></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2800487904993007754.post-28889894654151389702018-02-01T13:35:00.004-05:002018-02-02T07:28:03.244-05:00The obscure zoning regulations that might be undermining your downtown revivalWe have all heard the news. Retailers are increasingly experimenting with new business formats that blur the lines between uses that have never previously existed side by side. Things like education/instruction, production and retail now regularly occur in the same facility, making it difficult for planners to categorize these uses and creating the need for businesses to apply for expensive discretionary zoning actions for combinations that planners never dreamed of decades ago. By making it harder and more costly for businesses, particularly smaller, mom-and-pop (and often less capitalized) to open, cities are diminishing their competitive advantages and making it more likely that these businesses will locate elsewhere. As retail footprints shrink, a trend unlikely to change in the near future, successful commercial districts will be those that aggregate a diverse, robust set of uses in one place. Cities can't afford to lose interesting and unique retailers if they want to remain relevant to shoppers who can easily purchase the same goods on-line.<br />
<br />
<b>Table of Uses and Use Group Designations</b><br />
Most cities have tables or use group charts that define, with great precision, the kinds of businesses that are allowed or restricted in certain areas. This made sense when noxious manufacturing uses were not anything you wanted around residential communities, but we have come a long way since then. Consider "Maker Spaces" that allow people to collaborate, build and create products. Or consider the new Nike store along Broadway in Soho. The entire first floor is dedicated to building your own pair of sneakers. Zoning restrictions in some communities might have prevent one or both of these concepts - yet these are precisely the kind of uses that downtown managers are looking to as they try to fill vacant spaces.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgX1L0ag6A-gew00IA6WPnrlvBp1A6C6KXj8S_20HF6idx-E9M15cDRrbZboaHoiDBdjobb6GDFFbaF8RT4A5f6hApSZRIQSmW1mTI63pfu8S8bE_Tj4zvE7__p0lTJuV4S0DXQNbKpGp9f/s1600/IMG_2673.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgX1L0ag6A-gew00IA6WPnrlvBp1A6C6KXj8S_20HF6idx-E9M15cDRrbZboaHoiDBdjobb6GDFFbaF8RT4A5f6hApSZRIQSmW1mTI63pfu8S8bE_Tj4zvE7__p0lTJuV4S0DXQNbKpGp9f/s320/IMG_2673.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The Nike Store along Broadway in Soho dedicates the entire <br />
first floor to the production <br />
of sneakers. Would this use be allowed in your downtown?</td></tr>
</tbody></table>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrTMrGrU5kXfV_0DOxm5SPVNUM9rnxGqun8jD5E_BP0xpVMT-j7YP_9R0dQ_L0tWi6DGsdGcMi0KBPbKh4N68zRU-b_8vdml-7ZlEcwwjDbDm2sBRe80gqb-Uk9aixnF3pukbaSTGwgehz/s1600/IMG_2675.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1200" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrTMrGrU5kXfV_0DOxm5SPVNUM9rnxGqun8jD5E_BP0xpVMT-j7YP_9R0dQ_L0tWi6DGsdGcMi0KBPbKh4N68zRU-b_8vdml-7ZlEcwwjDbDm2sBRe80gqb-Uk9aixnF3pukbaSTGwgehz/s320/IMG_2675.JPG" width="320" /></a></div>
<br />
Other examples include things like gyms, yoga studios and artisan specialty food manufacturing and breweries, all downtown friendly uses that are blurring the line between retail, service and manufacturing and frankly causing havoc in the zoning world. This is because most zoning codes do not often recognize the nuances inherent in these business models and as a result businesses are often required to enter expensive legal processes for permitting their businesses.<br />
<br />
Here are a few concrete examples from our work that highlight the challenges...<br />
<b><br /></b>
<b>Gyms and Spas</b><br />
Times Square in the 1970's was not a place for the weak of heart. The problem, according to many, included the many adult massage parlors that operated with impunity. To fix it, the City amended the Zoning Resolution to prohibit "Physical Culture Establishments" and to require that these businesses obtain special permits to operate. Many parlors operating as gyms or health spas were closed and many credit the permit process with speeding up improvements to Times Square.<br />
<br />
Fast forward forty years and the well intention special permit now exists in an environment in which healthy living is an important part of the urban lifestyle. Uses that we now consider normal parts of our everyday lives, including gyms, spas, martial arts schools and yes, legitimate massage studios, must apply for a Physical Culture Establishment permit that takes many months and according to <a href="http://reason.com/blog/2015/08/15/physical-culture-establishment-new-york">Crain's New York Business</a> cost $50,000 or more in fees and legal costs. While the code was later amended to allow as-of-right, art, music, dance or theatrical uses under 1,500 sf, this still leaves alot of legitimate uses open to the vagaries of the discretionary permitting process.<br />
<br />
It should also be noted that as brick-and-mortar retail shrinks its footprint, these kinds businesses are precisely the kinds of uses filling many of the vacant spaces left behind. Yet expensive roadblocks like these make it harder for property owners to fill vacancies. Instead the spaces lie fallow.<br />
<br />
While your downtown may not have a permit restricting gyms, you may have other impediments to retail businesses that are interested in locating downtown but may be scared away by permitting or restrictions that will cost them significant time and money.<br />
<br />
<b>Breweries, Bakeries and Furniture Makers</b><br />
Another area of contention are retailers that do light manufacturing of some kind on-site. One of the most common is the brewery. More and more downtown's are seeing breweries as a real opportunity for downtown revitalization. We recently did some work in Morganton, NC, where no less than three popular breweries have set the stage for a full-scale downtown revival.<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj91S8WqFLyRRNg0oer-yh_Uan09R0-J791LdAPsTZAtzUbFo_7SvmSccX4KA6GGT_MTZnkSt56o5SIpiLiGHF_o9oZVl8oa0czvus3TreUeB7og1e8xVyWvIIyrwok4P4atLENFXidNLad/s1600/IMG_6467.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1600" data-original-width="1200" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj91S8WqFLyRRNg0oer-yh_Uan09R0-J791LdAPsTZAtzUbFo_7SvmSccX4KA6GGT_MTZnkSt56o5SIpiLiGHF_o9oZVl8oa0czvus3TreUeB7og1e8xVyWvIIyrwok4P4atLENFXidNLad/s320/IMG_6467.JPG" width="240" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Brown Mountain Bottleworks <br />
is located in a historic building in <br />
Morgtontown, NC.</td></tr>
</tbody></table>
<br />
However many downtown zoning codes do not allow for this use. This recently happened in the City of New Rochelle, NY. According to a local councilman, in the past year alone at least three breweries considered opening locations in downtown and all have chosen <a href="https://www.lohud.com/story/news/local/westchester/new-rochelle/2017/07/22/new-rochelle-brewery-zoning/489986001/">other locations</a>. Under the prevailing zoning at the time, breweries were relegated to certain industrial zones or in new buildings, which effectively prevented them from locating downtown, which is where many want to be. To remedy the situation, the City Council amended the zoning code to ease regulations for breweries and other artisan shops that also include elements of manufacturing, including jewelers, bakers, furniture makers and coffee roasters.<br />
<br />
<b>Educational Establishments</b><br />
Many downtowns thrive off of the presence of educational institutions that attract students. "Educational" designations can increasingly be applied to retailers who also offer instruction in their stores. In fact, some storefronts are predominantly places for classes that support minor accessory retail, rather than the other way around. In Watkins Glen, NY where we are working on the New York State Downtown Revitalization Initiative, a collective of 19 local knitters purchased a downtown business whose owner was retiring and turned it into <a href="http://www.fiberartsintheglen.com/about">Fiber Arts in the Glen</a>, a gathering space for knitting groups, classes, and to a lesser extent the purchase of yarn. In fact, someone who enters the store is often surprised to find that many of the lovely knitted goods are not for sale, they are simply samples to show off the yarn that is being sold.<br />
<br />
In some places this is precisely this kind of use that triggers changes parking requirements. <a href="https://www.practice-space.com/">Practice Space</a>, a small business in Inman Square found this out the hard way. During our work with the City of Cambridge, MA, we found that when an existing use changes and the new use is thought to increase the intensity of use, additional parking is sometimes required. Practice Space could function in its location as a retail establishment, but when they added classes they quickly found that their location in an older building along a traditional commercial corridor offered limited to no opportunities to add off-street parking. This kind of parking requirement assumes a suburban context and therefore it can effectively kill the kind of new retail concept that many retailers are exploring.<br />
<br />
As on-line retail increasingly results in stiff competition for customer dollars, our responsibility to downtown is to make sure that zoning codes and regulations do not stand in the way of innovative retail concepts that will ensure businesses survive and thrive during these challenging times.Larisa Ortizhttp://www.blogger.com/profile/08515591110095921525noreply@blogger.com0