posted on October 06, 2009 17:36
By Dace Koenigsknecht
Economic Restructuring Specialist
Michigan Main Street Center
Michigan State Housing Development Authority
As promised, this blog continues defining the amorphous cloud of Economic Restructuring. Below I will finish describing the first cog in the wheel, Downtown Monitoring, by detailing what’s involved in Monitoring & Reporting Current Economic Performance.
Downtown Monitoring
A brief recap: Downtown Monitoring is simply understanding and constantly evaluating the economic health of the commercial district. The Baseline Assessment, described in my previous blog, has been completed, and the current condition of the district has been documented. What now?
Monitor & Report Current Economic Performance: Utilizing the Baseline Assessment as the foundation, constant evaluation of the district’s business climate allows for identification of changes in the district - whether positive or negative. For example, answers are sought for the following questions: ‘What businesses and/or retail activities are most successful?’, or ‘What customers do we attract?’
Tour the District. Often times, during our everyday business in the commercial district, we’re not really paying attention to our surroundings. Take time to walk around and look at the downtown with fresh eyes. While the Main Street Design committee deals directly with the exterior of the building, the Economic Restructuring committee is concerned with the interior space and its occupants.
Occupied Space: Look at how the space is utilized, whether: efficient or haphazard, inviting or sterile, well merchandised or cluttered, etc. Overall, is the space being used profitably?
Unoccupied Space: NOT to be seen as a liability, but rather as an opportunity. Healthy commercial districts need some vacant space for new or expanding businesses, however the goal being only minor turnover. Is the unoccupied space move-in ready or require construction? Why did the previous tenant/owner leave the space? And, most importantly, are there potential businesses that could use this space?
Inventory Existing Buildings. While the MS Design committee is the lead for this project, the ER committee will be assisting with data collection and entry. It is necessary for the building inventory to be kept up-to-date so the information is on hand to share with potential investors (business or property) - being organized assists your community’s sales pitch.
Collect all relevant information: on vacant spaces and/or businesses for sale within the commercial district. Then, be ready and willing to share that information when inquiries come in. Be proactive at advertising the opportunity when there is not a confidentiality issue – be sensitive to owner needs.
Gather Primary Information. An interactive survey process by which answers to the following questions (among many) are sought:
- Identify groups of businesses that appear to be doing well, and not so well – what are their issues and roadblocks?
- Identify types of customers who currently shop in the district, and the desired ones that do not frequent local businesses – why and what can the district do differently to attract them?
Detailed Business Information. Based on the primary data collected above, all relevant business information needs to be maintained in a database for easy maintenance and reporting. While information like store hours and product mix is important, the crucial answer lies in Technical Assistance – find out what issues these people have so that proper training or incentives can be provided in the future.
Identify Business Clusters. Simply stated, a technique for leveraging your existing or potential niches by spatially arranging them to generate the most foot traffic, and to positively impact sales. A lesson to be learned from mall management where anchor businesses are located with smaller attractions in between. Ideally, complementary businesses are located next door to each other. For example, hair salons next to dress shops. The ladies visit next door while waiting for their stylist to finish the previous appointment.
Clustering requires more education of property owners; as working to spatially arrange the businesses may benefit the district as a whole more than them personally – at least in the short run.
Provide Information & Data to Everyone. And I mean everyone: from existing businesses that can use the data for merchandise & inventory alignment (or expansion!) to potential businesses and property owners, and from developers and public officials to customers and the general public. That last group should not be overlooked, as nothing spreads faster than word-of-mouth - whether good or bad - so make positive use of it. Besides, you never know who-knows-who.
Why do all this work? The goal is for targeted recruitment (or expansion) based on the district’s unique business mix and market. It’s about doing homework before legwork. It’s all about setting the stage for success.
Feel free to add your thoughts regarding this topic below.