“Harnessing Momentum” VCU Driven Retail Intervention VCU-Driven Retail Intervention Strategy for Richmond Association of University Real Estate Officers y September 23, 2013 Adam Ducker, Managing Director
WELCOME TO RICHMOND • Historic capitol of Commonwealth of Virginia • MSA population of 1.2 million— MSA l ti f 1 2 illi o 3 rd largest in Virginia o 44 th largest MSA in the United States g • Six Fortune 500 companies, but modest economic growth over the last several decades • Richmond 2015 • Richmond 2015 • Nascent urban renaissance afoot, although disjointed and unevenly spread around the city AUREO | SEPTEMBER 23, 2013 2
VIRGINIA COMMONWEALTH UNIVERSITY (VCU) ( ) • Public research university • Founded in 1838 • Founded in 1838 • Located in downtown Richmond • 31,000 students • 20,000 employees • Student body growth of 32% since 2000 • Annual budget of $2.77 billion Annual budget of $2.77 billion • Top Ranking School of the Arts • $260M sponsored research funding • Annual economic impact of $3.6 billion A l i i t f $3 6 billi • Adjacent to The Fan, one of America’s most charming in-town neighborhoods AUREO | SEPTEMBER 23, 2013 3
THE SITUATION Carytown Carytown Downtown Richmond Downtown Richmond G Grove and Libbie d Libbi B Broad Street at VCU d St t t VCU AUREO | SEPTEMBER 23, 2013 4
VCU STUDENT HOUSING SINCE 2003 Ackell Residence Total New Beds/Units Built 2003 VCU beds: 2 084 VCU beds: 2,084 394 Beds Private units: 770 Ramz on Broad Built 2004 Broad & Belvidere 88 Units 88 Units Built 2003 Schaefer & Grace 410 Beds Built 2014 Park Plaza 156 Units Built 2005 Built 2005 W. Grace North 92 Units Built 2013 388 Beds Cary–Belvidere Apts Built 2004 Built 2004 W. Grace South 90 Units Built 2012 479 Beds Cary & Belvidere Built 2008 Pine Courts II & III Pine Courts II & III 413 B d 413 Beds Built 2004 - 2007 184 Units 8 ½ Canal Street Built 2011 160 Units AUREO | SEPTEMBER 23, 2013 5
WHERE WE’VE BEEN AND WHERE WE’RE GOING 2011- 2012 2013 Current 2014 2012 Retail Study Hybrid Strategy/ Strategy/ Ongoing VCU VCU Campus Added to Master Implementation Implementation Lead Master Plan Plan Plan Plan v2.0 Implementation p AUREO | SEPTEMBER 23, 2013 6
ALIGNMENT WITH VCU “QUEST OBJECTIVES” THEME I: Become a leader among national research universities in providing providing all all students students with with high-quality high-quality learning/living learning/living experiences experiences focused on inquiry, discovery, and innovation in a global environment. Goals • I.A. Recruit and retain talented and diverse students who will graduate at a higher rate and will contribute to a highly skilled workforce. • I.D. Recruit and retain faculty, staff, and senior leadership with the skills and ec u a d e a acu y, s a , a d se o eade s p e s s a d talents to increase quality teaching and learning, high-impact research, and diversity at all levels. AUREO | SEPTEMBER 23, 2013 7
ALIGNMENT WITH VCU “QUEST OBJECTIVES” THEME IV: Become a national model for community engagement and regional impact regional impact. Goals • IV.A. Expand community-engaged scholarship and service learning. • IV.B. Create university-community partnerships with a focus on the key targeted areas of K-12 education (with a focus on middle school), access to health and economic development. ea a d eco o c de e op e • IV.C. Provide strategic leadership in addressing sustainability challenges through curricular and service innovations and green facilities and operations operations. AUREO | SEPTEMBER 23, 2013 8
THE “OPPORTUNITY ASSESSMENT” APPROACH • Demand Forecast: Measure the retail demand generated by the key market audiences—students, audiences—students faculty/staff faculty/staff, other other employees employees, nearby nearby residents residents, regional residents, visitors • Tenant Prospects: Profile the high value tenants one would like to see near VCU and that market conditions would support in this location • Identify Barriers: Isolate the obstacles to successful neighborhood retailing in the past in the past • Outline Implementation Strategies: Model and analyze several approaches or development scenarios pp p • Key Success Factors: Identify the other actions and policies that can increase the opportunities for retail success in the neighborhood AUREO | SEPTEMBER 23, 2013 9
RETAIL ENVIRONMENT Richmond Retail Environment Is Like Most American Cities: Potential In-Town Spending Leaking to the Suburbs p g g Retail Leakage/Surplus for 10-minute Walk Area Surplus Leakage Food Services & Drinking Places Building Material, etc. Shoppers come into the area to EAT Sporting Goods Motor Vehicle & Parts Health & Personal Care Stores Shoppers leave the area Clothing and Clothing Accessories to buy almost Furniture & Home Furnishings Stores everything y g else Electronics & Appliances Stores Miscellaneous Store Retailers General Merchandise Gasoline Stations Food & Beverage Stores -$25 -$20 -$15 -$10 -$5 $0 $5 $10 Source: RCLCO; ESRI Surplus / Leakage ($ Millions) AUREO | SEPTEMBER 23, 2013 10
IN-TOWN ECONOMIC DILEMMA Classic Post WW-II U.S. City Demographics: Conventional Retail Analysis Doesn’t Get “Spending Density” y p g y 0.00 – 1.50 HH/ACRE $0 - $40,000 1.51 – 3.00 HH/ACRE. $40,001 - $50,000 3.01 – 5.00 HH/ACRE $50,001 - $60,000 $60,001 - $80,000 5..01 – 15.00 HH/ACRE. 15.01+ HH/ACRE. $80,001+ Household Density by Block Group, City of Household Income by Block Group, City of Richmond, 2010. Source: RCLCO; ESRI Richmond, 2010. Source: RCLCO; ESRI AUREO | SEPTEMBER 23, 2013 11
RETAIL CONCENTRATION AREA W Broad St b/w N Lombardy and N Harrison St Major Retailers: Kroger, ABC Liquors, DTLR, Jamaica House Great Wraps Starbucks Game Stop House, Great Wraps, Starbucks, Game Stop Character of Retail: National chain strip center lack connectivity to nearby apartments and campus buildings VCU: Sports Medicine Building Siegel Center VCU: Sports Medicine Building, Siegel Center W Broad/Grace St b/w N Harrison and N Belvidere Major Retailers: Barnes and Noble, Couscous, Five Guys, Panera, Chipotle, Ramz Nails Guys Panera Chipotle Ramz Nails VCU VCU Character of Retail: Core near campus area offers Monroe Monroe numerous dining options, but little else Park Park VCU: Ackell Residence Center, Students Apartments, Welcome Center, School of the Arts Welcome Center School of the Arts C Campus Campus W Broad St b/w N Belvidere and Madison St Major Retailers: BP, Rite Aid, Moore Auto Body, 1708 Gallery Artisan Alley Gallery, Artisan Alley Character of Retail: Select appealing store fronts and “artsy feel” offset by perceived safety issues surrounding area VCU: None VCU: None AUREO | SEPTEMBER 23, 2013 12
RETAIL CONDITION IN BROAD/GRACE CORRIDOR Total Store Type # SF %SF Dining 31 34,000 33% A A D D B B C C D D Vacant 19 27,700 27% W BROAD ST. E F G H Books/Music/Electronics 7 26,000 16% J Other Retail 10 8,050 8% I K L M N Gas Gas 1 1 6,000 6,000 6% 6% W GRACE ST W GRACE ST. P Q R S Service Oriented 6 4,700 5% O Nightlife 1 2,000 2% Grocery 1 2,000 2% W FRANKLINST. Art Store Art Store 1 1 1 500 1,500 1% 1% Clothing 1 400 <1% Total 112,350 SF Vacancy Rates > 50% 25-50% 10-25% 1-10% 0% No Retail Source: RCLCO AUREO | SEPTEMBER 23, 2013 13
A MATURE RETAIL DISTRICT HAS BOTH CONCENTRATION AND MIX OF RETAILERS CONCENTRATION AND MIX OF RETAILERS CARYTOWN 250 250 214 STORES 200 200 Gifts, Stationery Shoes VCU VCU es Home Furnish. umber of Store 150 150 Health, Beauty 59 STORES 70 Accessories 60 Food- Speciality 100 100 Nu s mber of Stores Services 50 Electronics/ Services Music 40 Other Misc. Retail Restaurants 30 50 50 Nu 20 Restaurants Clothing 10 0 0 0 0 Carytown VCU AUREO | SEPTEMBER 23, 2013 14
NEAR CAMPUS RETAILER INTERVIEW FINDINGS 18 Retailers nearby campus were interviewed on November 30 th , 2011 Too dining-centric, no “destination” users • Most retailers small, “shoe string” operations • Too much dining near campus, not much of anything else • No neighborhood pride No neighborhood pride • Too many “chain” /big box restaurants • Business really depends on VCU’s academic calendar • VCU has more parking options than Carytown, but parking is still a big VCU h ki ti th C t b t ki i till bi complaint for customers • Clothing stores and other hard good retailers absent, especially stores to appeal to the VCU students “edgier/urban” style • As the #4 ranked School of Arts and Design in the country, the art students’ unique talents should be used to positively influence the areas q p y surrounding retail AUREO | SEPTEMBER 23, 2013 15
Recommend
More recommend
