Ways to Impact Retail Attraction
On September, 24, 2015, the Lamond-Riggs Citizens Association teamed up with Streetsense and DC’s Office of Planning (OP) to host “Vibrant Retail Streets – Fort Totten.” This is part two in a three-part series on the presentation, available here: Fort Totten – Application of DC Vibrant Retail Streets (pdf). The first part discussed the market analysis conducted by Streetsense. This post discusses suggestions made by Streetsense and OP on how residents can have an impact on retail attraction.
1. Give retail market time to prove itself: Want salad? Eat Five Guys
This area is an unproven, untapped market. Some of us may not be super thrilled about the announced retail options in phase one of Fort Totten Square (Five Guys and Subway), but they need to be supported because the success of those businesses will lead to more success. So say Streetsense and OP. That does not mean each one of us has to make hamburgers and cold cuts a regular part of our diet, but a little patronage will not hurt. On the contrary, giving dollars to those businesses will help our long-term goal of getting better retailers. If Five Guys and Subway do well, other (more desirable) retailers will see that this is a market in which they can do business.
On a personal note, this is a hard recommendation to stomach. If a developer knows that the retailers it is bringing in are not desired, then it should not be a surprise when people do not want to patronize them. If residents do not patronize them, then the conclusion becomes that the area cannot support retail when really the conclusion should be we will support the retail we want. Nevertheless, I have been repeatedly told that is the wrong attitude to have, so I will heed the advice from the experts. If we want a place to get a good salad or have a sit-down meal with drinks in the future, we should eat Subway and Five Guys . (I am not seriously knocking these places. It would have been nice to have one healthy sit-down option instead of all fast food in Fort Totten Square, but these are not bad options as far as fast food and non-sit-down options go).
2. Practical enthusiasm
Streetsense said residents should encourage developers to be ambitious in their tenanting strategies — but don’t be unrealistic. In other words, residents should have “practical enthusiasm.” I like this phrase because it nicely sums up the entire presentation. The great thing about the market analysis that was done is that we now have a better sense of what the neighborhood can support so we can manage our expectations. No, we are likely not getting a Lululemon any time soon. But we can shoot for a Panera Bread (or something like that and I know I am mixing retail categories with that example). Maybe we do not get the sit-down restaurant right away, and instead get a drugstore or dry cleaners. These are basic needs of any neighborhood, so there is room for excitement over these if they are designed well.
3. Understand tenants cannot go just anywhere, even with demand
Different retailers have different space requirements. Streetsense and OP held a full-day workshop in July that went into detail about retail economics. There, they explained the types of spaces retailers look for. For successful vibrant streets, we know that ground-floor retail space that engages the sidewalk and that is built for retail use is critical. Beyond that retailers have clear ideas about their space requirements. Retail space is classified in a few categories and share a few typical characteristics, according to Streetsense.
- Class A space:
- Located at major intersections; prominently situated among in-line establishments
- Minimum 14 feet floor-to-ceiling height
- At least 20 feet storefront width
- Depth of 45 to 90 feet
- Constructed with quality materials
- Well-maintained
- Visible from primary streets
- Properly lit exterior and display spaces
- Clear pedestrian and vehicular access
- Associated or adjacent parking
- Class B space:
- Well-situated among in-line establishments
- 12 feet or more floor-to-ceiling height
- At least 15 feet storefront width
- Well-maintained
- Class C space:
- Floor-to-ceiling height less than 12 feet
- Storefront width of less than 15 feet
- Build-to-Suit (BTS):
- Constructed for specific tenant
- Conversion to another use or tenant difficult
- McDonalds is a classic example
One thing made clear is that new construction does not automatically equate to Class A space. And having some Class B or Class C retail space is not necessarily a negative. One of the things Streetsense and OP hoped to do with this presentation and the toolkit is share some insight into how retailers make decisions so that if a developer presents a site plan with what looks to have mainly Class C space (even if it is new construction) and is promising retail that would need Class A space, then residents can engage in a conversation with the developer about how realistic the plan is and determine what may be the developer’s more realistic vision and tenant strategy.
4. Support office development when the market improves
One challenge this neighborhood presents for retailers is a low daytime population within a one mile radius of the commercial nodes. Particularly for food and beverage retailers, like the coffee shop many people want, sufficient daytime traffic is critical. Certainly there are several businesses in the neighborhood, but many of them are small businesses. There are a few medium to larger size ones like the community college and Food & Friends. One resident at the meeting thought it was curious that no forthcoming development is being marketed with office space, but apparently office projects are tough to finance right now. So Streetsense’s recommendation is that residents support office development when the market improves to bolster food and beverage demand.
I am not sure how this recommendation will fly. There have already been plenty of concerns expressed over traffic and parking. Some residents think the planned projects are too big at four and five stories and some ado has been made about wanting to maintain a low-density neighborhood. But it is clear that if residents want more food and beverage retailers, decent places to share a meal with family, friends, neighbors, then we need more people who will be able to support those businesses.
5. Identify entrepreneurial spirit among residents
OP said this is the only neighborhood in which they are making the recommendation to identify entrepreneurial spirit among neighborhood residents. There is and will be plenty of Class C space available. These spaces command less rent than Class A and B space, so they may be more accessible to residents with small businesses. We love to talk about supporting local businesses and always make a point of asking developers to keep an eye out for great local retailers.
Why not create that great retail ourselves. Residents who have given serious thought to opening their own business, whether food and beverage, some sort of maker/creative space, or any other type of small business should realize that there will be an opportunity to work in and shape the neighborhood. So work on those business plans, host a pop-up event, invite neighbors over to sample your latest recipe. Who knows, you could end up opening a great neighborhood spot.