> Columnist Al Heavens
Building Successful Retail In Cities Is Possible
by Al Heavens
Despite numerous obstacles that can block redevelopment of urban neighborhood retail projects, such areas can be successfully revived with careful planning and commitment from the public and private sector. That's the message the Urban Land Institute (ULI) is trying to get across in its new booklet, "Ten Principles for Rebuilding Neighborhood Retail." The 23-page booklet offers several ideas for filling the demand for retail development, especially poorer areas of older cities, which tend to be underserved for a variety of debatable reasons. It is the latest in the organization's series on redeveloping different segments of the market. The challenges of rebuilding persist not only in low-income neighborhoods, but in other urban locations where retailing never recovered from the shift of buying habits that led people to suburban shopping centers, the ULI believes. Rebuilding neighborhood retail streets differs significantly from developing a suburban shopping center or re-establishing downtown shopping districts, so innovative strategies must be employed, according to the ULI. Neighborhood retail streets have been "forgotten or purposely avoided" by retailers and developers because they believe that people who live in these areas don't have the money to buy what is needed to keep retail stores in the black. Developers also believe that more-affluent areas are better bets for profitable retail. What's more, they consider low-income areas unsafe and expect to spend a considerable amount more to prevent shoplifting and theft than in wealthier areas of the city or the suburbs. However, the ULI believes the timing is right to rebuild neighborhood retail streets, based on its reading of current demographic and economic trends that are redirecting growth to existing communities, including: The growing popularity of urban lifestyles among young professionals and empty nesters. The draw of immigrants seeking to open small businesses. The saturation of retail in suburban locations. The increasing appeal of pedestrian-friendly, street-front retail among consumers. A decline in inner-city crime. The increased use of public incentives to encourage market-based real estate investment in urban settings. The booklet is the result of a ULI study in June 2003 of three neighborhood shopping streets in the Washington, D.C., metropolitan area. The evaluations were conducted by three teams of commercial developers, public planners, nonprofit developers, architects, economic consultants and property advisors. The 10 principles were developed as a guide to communities, developers, retailers and residents in rebuilding their neighborhoods: Great streets need great champions. Every revitalization project needs someone to initiate the process, ensure it is done right and follow through to completion. It takes a vision. Successful rebuilding will be incremental, so it must be based on a shared vision that provides a strategic framework for imagining, analyzing, judging and implementing each step. Think residential. Successful retail depends on successful residential neighborhoods. Where residential growth and revitalization is occurring, retail is primed to follow; it simply will not occur the other way around. Honor the pedestrian. Build for people, not cars. Recognize that street patterns affect walkability; construct parking to enhance the pedestrian experience rather than detract from it; and encourage multiple entrances to serve pedestrians as well as those driving to the area. Parking is power. Size the street's parking requirements realistically and recognize that parking needs change. Provide on-street as well as off-street parking through innovative designs in accessible, user-friendly locations. Merchandise and lease proactively. Attract and retain the right tenant mix to preserve the street's unique character and provide diversity among the retailers. Make it happen. In many communities, market conditions that caused neighborhood commercial streets to decline are still in place, and it takes an aggressive commitment by the public and private sector to address negative influences before retail revitalization can be sustained. Be clean, safe and friendly. If neighborhood shopping is clean, safe and friendly, customers will be drawn to it even though the street as a whole may still be in the transition from failure to success. Extend day into night. Longer hours equal stronger sales, and strong sales define a successful shopping street. Identify, plan for, and tap multiple markets to keep the cash register jingling throughout the day and after the sun goes down. Manage for change. Rebuilding a neighborhood retail street is a long reinvestment process, and market realities will change throughout its evolution. Be prepared to support change in perpetuity. "Ten Principles for Rebuilding Neighborhood Retail" is available here. | 
