Diagnosing Economic
Development Interventions
Presentation to:
MAS NYC
Livable Neighborhoods Program
Neighborhood Based Economic Development
MAY 2013
About Me
• Larisa Ortiz, Principal of Larisa Ortiz Associates
– 15 years of national and international experience
– Visiting Professor, Pratt Institute
– Instructor, University of Shopping Centers and the
International Economic Development Council
– Editor, The Commercial District Advisor
www.commercial districtadvisor.com
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vibrant commercial districts
characteristics
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retail density
accessibility
convenience
population density
safety
attractiveness of public spaces
administrative capacity
define “vibrant”
In a 2008 econometric study of 264 Philadelphia
corridors, vibrant districts were defined by the
following metrics:
• real estate values
• retail sales
• shopper satisfaction
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What are common district
management challenges?
• Making the best use of limited resources and
defining starting points
• Building consensus for action
• Lack of “market-based” decision making
• Staff turnover and a “reinvent the wheel” strategy
time and again
• Varied professional backgrounds - “When all you
have is a hammer, everything looks like a nail”
Why do districts need to be managed?
The Elements of Customer Loyalty
"Outside the
Store", 30%
"Inside the
Store", 70%
Source: ICSC, The Verde Group
What drives vibrancy?
Outcomes
Positive correlation between
Shopper preference
Store mix
Higher real estate values
Shopping density
Retail sales growth
Access
Source: LISC, Econsult
A SMART Approach
Strategic Positioning
Market Analysis
Administrative Management
Redevelopment & Retail Sales
Tenant Mix
STEP 2:
WHO?
STEP 1:
DIAGNOSE
Administrative
STEP 3:
STARTING POINTS
Redevelopment
Retail Sales
Tenant Mix
Management
Strategic Positioning
Market Analysis
©Larisa Ortiz Associates
LOA Commercial District Diagnosis
Quadrant II: Places to shop, no
reasons to stay
Retail Density
Quadrant IV: Manage & maintain
Clean & Safe
Retail Sales
Physical Improvements
Tenant Mix
Poor
Environment
Attractive
Environment
Administrative
Management
Redevelopment
Redevelopment
Physical Improvements
Tenant Mix
Quadrant I: Starting from scratch
Retail Vacancy
Quadrant III: Great bones,
where are the people?
©Larisa Ortiz Associates
Quadrant I:
Starting from scratch
Redevelopment
Physical Improvements
Nicetown, Philadelphia, PA
Quadrant II:
Places to shop, no reasons to stay
Clean & Safe
Physical Improvements
Pitkin Avenue, Brooklyn, NY
Quadrant III:
Great bones, where are the people?
Redevelopment
Tenant Mix
Uptown, Kingston, NY
Quadrant IV:
Manage & maintain
Retail Sales
Tenant Mix
South Orange, NJ
So, what comes first?
Quadrant IV:
Tenant Mix
Retail Sales
Redevelopment
Quadrant III:
Redevelopment
Physical Improvements
Quadrant I:
Administrative
Management
So, what comes first?
Quadrant IV:
Tenant Mix
Retail Sales
Redevelopment
Quadrant III:
Clean & Safe
Administrative
Management
Physical Improvements
Quadrant II:
718-205-5116
[email protected]