MINNEHAHA-HIAWATHA CORRIDOR MARKET ANALYSIS Prepared for Hennepin - PowerPoint PPT Presentation

MINNEHAHA-HIAWATHA CORRIDOR MARKET ANALYSIS Prepared for Hennepin County November 2008

Retail Merchandise Mix Retail Merchandise Mix Lake Street Hi-Lake Minnehaha Minnehaha & Minnehaha & Hiawatha & Establishment Type & Minnehaha Area North 38th Street 42nd Street 46th Street Total CONVENIENCE RETAIL Convenience Retail 4 2 0 1 3 3 13 Food Service 7 2 0 3 4 7 23 Convenience/Gasoline 1 2 3 Shopping Goods 13 6 2 5 1 3 30 Home Improvement 3 3 Automotive 1 1 2 Total Retail 21 9 2 9 8 12 61 SERVICES Total Services 13 5 11 15 19 10 73 TOTAL 34 14 13 24 27 22 134 Source: McComb Group, Ltd.

Average Daily Traffic Volumes Average Daily Traffic Volumes 02-04 04-06 Location 2002 2004 2006 Change Change Hiawatha Avenue North of 26th St. 50,000 43,000 51,000 (7.3) % 8.9 % South of 26th St. 36,000 29,000 39,000 (10.2) 16.0 South of Lake St. 39,000 33,000 31,500 (8.0) (2.3) North of Minnehaha Pkwy. 31,000 32,000 23,000 1.6 (15.2) South of Minnehaha Pkwy. 31,000 27,500 26,000 (5.8) (2.8) Minnehaha Avenue* South of Lake St. 10,800 10,800 12,400 (0.0) % 7.2 % North of 42nd St. 8,900 8,900 11,700 (0.0) 14.7 South of 42nd St. 8,280 8,750 11,000 2.8 12.1 South of 46th St. 4,200 5,400 7,800 13.4 20.2 * Minnehaha Avenue numbers are for 2003, 2005 and 2007. Source: Minnesota Department of Transportation.

Survey Participants GLA Survey Participants GLA Minnehaha/ Hiawatha Minnehaha North Minnehaha & 42nd Hiawatha Corridor GLA (Square Feet) & Lake and Minnehaha & 38th and Hiawatha & 46th Total Less than 1,000 13.9 % 21.2 % 13.3 % 15.8 % 1,000-1,999 19.4 15.2 24.4 20.2 2,000-3,999 2.8 21.2 20.0 14.9 4,000-6,999 16.7 21.2 11.1 15.8 7,000-9,999 2.8 - - 0.9 10,000-19,999 - - 4.4 1.8 20,000-29,999 - - - - 30,000-39,999 2.8 - - 0.9 40,000-49,999 - - - - Over 50,000 5.6 - - 1.8 Didn't Know 36.1 21.2 26.7 28.1 Total 100 % 100.0 % 100.0 % 100.0 % Source: McComb Group, Ltd.

Employees by Retail Business Type Employees by Retail Business Type Hiawatha Minnehaha Hi- Minnehaha Minnehaha Minnehaha Hiawatha Corridor Type & Lake Lake North & 38th & 42nd & 46th Total Convenience Goods 156 5 - 11 12 89 273 Food Service 34 37 - 30 67 64 232 Shopping Goods 241 69 3 9 8 11 341 Home Improvement - - - - 37 - 37 Automotive 11 10 17 23 2 2 65 Services 6 9 15 12 39 10 91 Financial and Insurance 7 1 - 7 3 12 30 Medical/Dental 46 - 15 - 5 10 76 Entertainment/Recreation 25 200 - 3 20 1 249 Total 526 331 50 95 193 199 1,394 Source: McComb Group, Ltd.

Survey Participants Employment Survey Participants Employment Hiawatha Minnehaha Minnehaha Corridor Number of Employees Lake Street North South Total 1 8.3 % 12.1 % 13.3 % 11.4 % 2-4 27.8 60.6 37.8 41.2 5-7 22.2 12.1 20.0 18.4 8-10 11.1 9.1 13.3 11.4 11-20 11.1 3.0 6.7 7.0 21-30 5.6 3.0 4.4 4.4 Over 30 13.9 - 4.4 6.1 Total 100.0 % 100.0 % 100.0 % 100.0 % Source: McComb Group, Ltd.

Percent of surveyed who use transit Percent of surveyed who use transit to get to work to get to work Hiawatha Minnehaha Minnehaha Corridor Response Lake Street North South Total None 47.2 % 78.8 % 60.0 % 61.4 % 1 to 9% 8.3 - 4.4 4.4 10 to 19% - 3.0 4.4 2.6 20 to 29% 11.1 - 6.7 6.1 5.6 6.1 6.7 6.1 30 to 39% Over 50% - - 4.4 1.8 Don't Know 19.4 9.1 4.4 10.5 Other 8.3 3.0 8.9 7.0 Total 100.0 % 100.0 % 100.0 % 100.0 % Source: McComb Group, Ltd.

Percent of customers who use transit Percent of customers who use transit to get to business to get to business Hiawatha Minnehaha Minnehaha Corridor Response Lake Street North South Total None 2.8 % 12.1 % 22.2 % 13.2 % 1 to 9% 11.1 9.1 24.4 15.8 13.9 15.2 11.1 13.2 10 to 19% 20 to 29% 8.3 21.2 11.1 13.2 30 to 39% 11.1 3.0 2.2 5.3 40 to 49% - - - - Over 50% 25.0 9.1 4.4 12.3 Don't Know 13.9 15.2 17.8 15.8 Other 13.9 15.2 6.7 11.4 Total 100.0 % 100.0 % 100.0 % 100.0 % Source: McComb Group, Ltd.

Strengths of location Strengths of location MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEY RESPONSES TO THE QUESTION: WHAT ARE THE STRENGTHS OF THIS LOCATION FOR YOUR BUSINESS?* Hiawatha Minnehaha Minnehaha Corridor Response Lake Street North South Total LRT 27.8 % 18.2 % 15.6 % 20.2 % Traffic (high traffic) 19.4 15.2 17.8 17.5 Conveniently Located to Minneapolis-St. Paul 11.1 18.2 20.0 16.7 Neighborhood - 27.3 20.0 15.8 Transit - not specific 16.7 15.2 8.9 13.2 25.0 6.1 4.4 11.4 Other businesses in area On bus line 16.7 12.1 2.2 9.6 Good parking 5.6 3.0 15.6 8.8 Visibility 11.1 6.1 8.9 8.8 Like location (specific to bldg) 8.3 9.1 6.7 7.9 Easy access to interstates and major highways 8.3 6.1 6.7 7.0 Rent is cheap 2.8 9.1 4.4 5.3 History/well known - 3.0 11.1 5.3 8.3 6.1 2.2 5.3 Population density Other 66.7 51.5 53.3 57.0 *Multiple responses were allowed. Source: McComb Group, Ltd.

Weakness of location Weakness of location MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEY RESPONSES TO THE QUESTION: WHAT ARE THE WEAKNESSES OF THIS LOCATION FOR YOUR BUSINESS?* Hiawatha Minnehaha Minnehaha Corridor Response Lake Street North South Total Crime 19.4 % 9.1 % 13.3 % 14.0 % Parking 13.9 3.0 8.9 8.8 LRT 5.6 3.0 15.6 8.8 No Room to Expand 5.6 12.1 8.9 8.8 5.6 6.1 11.1 7.9 No Weaknesses Not Enough Businesses 2.8 9.1 8.9 7.0 Visibility/Hidden 2.8 - 15.6 7.0 Neighborhood (tough) Demographics 11.1 6.1 2.2 6.1 Panhandlers/Vagrants 13.9 3.0 - 5.3 Don't Like Location 5.6 6.1 4.4 5.3 Too Much Low Income 2.8 6.1 6.7 5.3 Other 61.1 51.1 64.0 *Multiple responses were allowed. Source: McComb Group, Ltd.

Percent sales growth Percent sales growth MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEY RESPONSES TO THE QUESTION: WHAT HAS BEEN YOUR PERCENT SALES GROWTH SINCE 2002?* Hiawatha Minnehaha Minnehaha Corridor Response Lake Street North South Total Up 8.3 % 12.1 % 13.3 % 11.4 % 1-5% 11.1 3.0 4.4 6.1 6-10% 2.8 - 8.9 4.4 11-19% - - 2.2 0.9 20-34% 2.8 6.1 4.4 4.4 35-49% 2.8 3.0 2.2 2.6 Over 50% 8.3 12.1 2.2 7.0 Flat 5.6 3.0 13.3 7.9 Steady 2.8 9.1 6.7 6.1 Fluctuates 2.8 6.1 - 2.6 Decreasing/Down 5.6 15.2 11.1 10.5 2.8 3.0 - 1.8 Too New Don't Know 30.6 9.1 13.3 17.5 Refused - - 4.4 1.8 Other 5.6 9.1 4.4 6.1 No Response 8.3 9.1 8.9 8.8 Total 100.0 % 100.0 % 100.0 % 100.0 % * Includes stores that opened later than 2002. Source: McComb Group, Ltd.