The economy of Florida, especially to cities in that state, has taken some hits over the past 18 months. The rollback of property taxes, the slowing economy, and the level of existing commercial inventory have all been identified as major market influences affecting city coffers. Fortunately, the population growth and increasing income levels have provided a buffer for the market, and all indications forecast a moderate recovery coming in 2009 and a robust rebound beginning in 2010.

As our client cities have learned, now is the time that municipalities can begin making an impact on what happens 18 – 24 months in the future. Market decisions, construction, staffing, and land acquisition can all impact time to market for retailers. At Buxton, we believe strongly that now is the time for cities to take a proactive approach to positioning themselves for future growth by taking the steps to understand what retailers remain active in the region today, but also, who they should be targeting for 2009 and beyond.

Here is a link to the Florida Retail Federation’s website www.frf.org and on the right side of the page are links to their forecasts for retail in Florida. The future looks bright!

Buxton’s municipal clients continue to have great success in their efforts to market their cities. One especially active group is college/university communities. These Town/Gown communities include cities like South Bend, Indiana (Notre Dame), Norman, Oklahoma (Oklahoma University), Blacksburg, VA (Virginia Tech), Clemson, SC (Clemson), Murray, Kentucky (Murray State University), Bryan, Texas (Texas A&M) and many others. As can often be the case, demographic data does not consider student populations favorably – primarily due to their lack of income. But municipal leaders in these cities understand that students are spenders and can have a dramatic impact on the types of retailers selecting the market.

Through our years of experience assisting retailers to select store locations and municipalities to recruit retailers, Buxton has developed the methodologies necessary to understand the impact students have on market dynamics. In addition, Buxton has worked closely with these cities to understand the demand associated with their student populations. This information can be taken further by the associated university.

• What types of meeting space can the institution support?
• What types of households are our students coming from and can we actively market ourselves to similar families?
• What is the impact of commuter students on the market?
• What retailers or retail concepts will be successful in the market?

Several of our client cities are active in Town/Gown organizations and this year a national meeting will be held on the campus of Texas A&M University with the theme “From Campus to Council: Blending the Best of Both Worlds.” The conference is scheduled for June 16 – 19.

Here is a link to the Town & Gown Network, an online Forum that others may be helpful.

Recently I have been receiving a lot of questions in regards to traditional shopping malls. These questions are in a worried manner that their mall is going to die out because it is no longer the trend. Or, they hear about power and lifestyles being the new era in retail, and fear that their commercial sector will fail because they don’t have the available space or money for such a center.

First off, you cannot worry about what others are doing that is not possible for your city at this time. Focus on the things you do have and utilize them to strengthen the retail opportunities in your control.

If you have a traditional mall that is currently losing stores, it is time to focus on bringing in the right stores for the people of your community. Don’t waste time worrying about the wrong stores that are leaving. Think of it as an opportunity to use the newly freed up space to fill in some gaps in your retail market. Focus your efforts on the things you do have control over, and be determined to do what is in your power to make positive changes in your community.

Following is a link to the monthly newsletter the City of Clemson, SC publishes for those interested in retail development in their city. Clemson is a great example of how cities are taking pro-active roles in retail development today, and thinking of new methods to generate excitement about the retail opportunities in their trade areas. Enjoy!

Read the newsletter from the City of Clemson, SC (in PDF)

This article highlights a great trend in the Birmingham retail market that can strongly affect many of our client communities in the Birmingham area.

The report showed a nearly 90 percent occupancy rate for the retail sector last year, a more than 86 percent occupancy rate for the industrial sector and a 93 percent occupancy rate in the office market.

Overall, the retail market absorbed nearly 1.7 million square feet, with more than 900,000 of that being absorbed in the fourth quarter. That’s a marked difference from 2006, which had more than 206,000 square feet of negative absorption. Weighted average rental rates were $13.52 per square foot.

Read the Article (requires subscription)

There are many different companies seeking to provide expertise in the economic development world. As it relates to retail, there are a few key things you should be seeking in finding your retail partner:

Retail Expertise

1. Demonstrated retail clients. Check the website for client lists, case studies and testimonials.
2. Leadership in the retail world. Look for recognition and awards. Check major retail conferences they attend with a large presence.
3. A good variety of retail clients seeking the firm’s expertise on their day-to-day real estate decisions.
4. Published articles in retail publications.

Proven Methodology

1. Public sector case studies where retailers have selected the community as a result of using targeted information.
2. Client references that can attest to how they have used the information for attraction and retention of retailers.
3. Data set that is grounded in understanding the uniqueness of your consumers and the changing face of retail.
4. Recent consumer data and data that is widely accepted and understood in the retail world.

Executable Study

Regardless of the dollar amount, ensure that you can execute on the results:

1. Do you have a program that allows for regular data updates?
2. Do you have a way to showcase your retail environment to key developers, brokers and retailers in real time?
3. Do you have a clear understanding of your retail supply/demand?
4. Do you have specific targeted retailers to chase?
5. Do you have a way to contact those retailers?
6. Do you have someone you can call to ask questions or get more information if a retailer requests more information?
7. Do you have the ability to look at your trade area, retail corridor, downtown, etc. in a way that is custom and unique to the dynamics of your community?
8. Do you have the ability to benchmark yourself against other regional or national areas?
9. Do you have the ability to incorporate tourism (if applicable)?
10. Do you have the ability to incorporate your transit oriented center? (more…)
    Posted by Amy Wetzel

Still relying on demographic data to “sell” your community to potential developers and retailers?

The new census data appears to already have some flaws. The following article by the Associated Press speaks of the inaccuracies of the new census. Why rely on inaccurate data? Flawed or inaccurate data can keep a potential retailer from locating in your community. With the competitive nature of retail, is that a risk you can afford to take?

Read the article here.

WalMart. You either love them or hate them. For many of our public sector clients they love to hate the 800lb gorilla. Frequently the complaint is the perception of lower paying employment opportunities and potentially making it more difficult for smaller business owners. Those who love to hate WalMart may be interested to learn that their $4 prescription drug program has been estimated to save the nation more than $1Billion, for more about this report read here:

http://eastbay.bizjournals.com/eastbay/stories/2008/03/10/daily86.html

The slowdown pace of the economy seems to be causing a trend toward cut backs in Cities, Retailers, Consumers and Developers. As consumers spend less, retailers have begun announcing bankruptcies, closings or slow expansion plans. Therefore, it is more critical than ever to be pro-active and strategic in recruitment efforts for Cities. There are still many opportunities for growth and success in many diverse markets. The boom in immigration, for example has presented a unique opportunity for ethnic retailing. Cities looking to grow and expand their retail base could pursue the ethnic opportunity by targeting this underserved market.

Read more at Retail Traffic Magazine

There is a controversy in marketing. As always, it’s the same question: how, where, who, when, and why do we market to the people we want?

The following article from London (via a Utica, NY news network) discusses how business sectors are becoming more reliant on online sales, which begs the question “What is the best way to get someone to our website?” There are some interesting statistics found in this article, including one regarding social networking sites, and how they appeal to the 18-24 year old bracket. The quote by Amanda Ling, data intelligence director for Response One, at the end of this article sums up the correct mix that marketers need to take for getting people to their website.

“This study punctures the received wisdom that online advertising is the best means of driving web visits and purchases. Marketers still need to be using a mixture of direct mail and above-the-line advertising, as well as ensuring that they are communicating in a relevant and compelling fashion with their existing customers over the email and through existing lines of communication such as bills and statements.”

Read the article here