|
| |
|
| |
|
|
|
03/14/2007
What's Driving Downtown?Study finds a lot of positives, but points to challenges, too
Postal service letter carrier John Kostrzewa walks past the State Theatre as he delivers mail Tuesday afternoon in downtown Traverse City. TRAVERSE CITY — Outdoor dining, public art, evening entertainment, more parking and new stores dedicated to wine, organic foods — even cereal — are among ideas generated by a downtown market study. Traverse City's Downtown Development Authority commissioned the nearly $40,000 analysis, replete with recommendations from wacky and unexpected to commonly accepted. The study examined retail, office and housing markets. Results were unveiled this week. "We have to say, downtown is very successful,” said Christopher Brewer of Economics Research Associates. But with the cheers come challenges. Among them, the analysis found: a parking shortage, inconsistent store hours, a dwindling city population and imbalance between high rents and weaker store sales. The downtown's vacancy rate of about 2 percent within its 458,745 square feet of retail space is "incredibly low,” said Brewer. But a failure of 10 or more businesses per winter begs a question: "Are we letting people into downtown who can't handle the rent level,” he said. Leisa Eckerle Hankins owns two downtown shops and was interested in data that showed the ratio of rent to store sales. Rents for "miscellaneous” stores such as gift shops represent about 11 percent of the stores' sales. The study's authors said nationally they would expect ratios between 2 and 8 percent. "It is great that we have low vacancy, but yet we also have turnover..., so that's a concern,” said Eckerle Hankins, president of the Downtown Traverse City Association. One recommendation is to form a nonprofit foundation to work with property owners and tenants to attract and keep successful stores downtown. DDA executive director Bryan Crough said a "more hands-on approach with landlords” might be best undertaken through the private sector. Other ideas include expanding downtown's evening entertainment by attracting a multiplex cinema and opening the State Theatre. Growing the Farmers Market and carefully selecting a few national chain stores also could boost vitality. 
Bob Thompson, a Twin Bay Glass employee, removes old panels of glass during renovations of the 127 Front Street Building in Traverse City. Krissie’s Created Gems and Fine Accessories will open in the location sometime in April. The downtown has an office space vacancy of 7.5 percent, compared to the 17.1 percent vacancy rate in the rest of the city. The study suggested the city will remain an "attractive destination” for smaller companies. The downtown housing market is "limited but growing,” but the demand for units priced above $300,000 is narrow, Crough said. The focus on a walkable downtown resonated with Bob Derrer of Allure Salon, where the vast majority of clients hail from the neighborhood zip code. "I think it is huge,” he said.
|
|
