Downtown Akron Partnership Akron, Ohio

Downtown Akron Retail Market Analysis

Retail Market Analysis for Downtown Akron

Prepared for: Downtown Akron Partnership Akron, Ohio

Prepared by: Boulevard Strategies Columbus, Ohio

Final Report February 11, 2014

Table of Contents

Page

1. Executive Summary 3

2. Project Background & Objectives 9

3. Retail Market Analysis 16

4. Market Potential For Complimentary Uses 43

5. Downtown Retail Mix & Performance 50

6. Stakeholder Perspectives 66

7. Recommendations & Conclusions 72

8. Appendix 83

1. Executive Summary

Downtown retail in Akron, like in many other Midwest cities, faces challenging trends. Since the 1980’s, big box superstores have sprawled across the northeast Ohio suburban landscape while total population barely grew. The latest threat is e-commerce, chalking up annual 15% increases year after year. Given this harsh competitive climate, it is not surprising that the number of independent retailers has declined by 14% over the past 10 years in Ohio.

On the other hand, there are 5% more independent restaurant operators in Ohio today than 10 years ago. Downtown Akron’s retail mix, almost all independents, reflects this trend with 50 foodservice operators vs. 28 non-food merchants. Downtown Akron Partnership (DAP) and a Special Improvement District were formed in the 1990s by property owners to pool business recruitment, marketing, and other efforts, such as the Downtown Ambassadors Program, launched in 2009 to promote a safe and clean downtown. In 2013, DAP hired Columbus-based Boulevard Strategies to compile a

Downtown Retail Market Analysis and Business Recruitment Strategy for Downtown Akron. As part of this effort, Boulevard Strategies worked with a Steering Committee made up of 15 DAP members and officials, met with over 40 downtown stakeholders, officials, and merchants, surveyed 443 downtown residents and employees about downtown retail issues. Best practices in ten similar Ohio and American cities were reviewed for applicable lessons to Downtown Akron. A few highlights of these efforts are summarized below.

a. Downtown Retail Market Study Highlights

Overall, Downtown Akron retailers and restaurants collectively occupy an estimated 190,000 square feet of first floor space with sales of about $38 million per year (or $200/square foot). Downtown merchants employ about 400 fulltime and 400 part-time retail and foodservice workers (including owners) in downtown Akron.

Downtown Akron has five sizable and/or growing market segments for merchants to draw upon:

• 26,000 Downtown Employees: Account for 40% of Downtown Downtown Akron has about 105,000 square feet of vacant first floor retail demand; primarily spend on food and beverages; 60% of space (37% of total). Rents generally range between $10 and $18 lunch business driven by “regulars” per square foot. Restaurants pay 30% more per square foot on average but require more upfront investment in equipment and • 24,600 UA Students + 5,050 UA Faculty/Staff: 85% of fixtures than do non-food retailers. students live off-campus, including Downtown Consumer surveys indicate that several desirable food and non- • 11,000 Close-In Residents: Only 1,500 live within DAP food retail concepts are missing or under-represented in Downtown boundaries; downtown housing for young professionals poised Akron, including more fast casual fare, a small grocer with fresh to take off similar to other Midwest cities produce, or a full-service breakfast café on the food side. On the non-food side, downtown consumers (especially employees) would • 530,000 Metro Shoppers & Diners: 65% of Summit County like to see a drug store, a card and gift shop, and an upscale thrift population resides in the suburbs and townships; flock to shop. downtown for events and attractions but not as much to shop or dine

• Countless Visitors From Beyond Summit County: Convention Center, Towpath Trail, Canal Park Stadium, Locks 3 and 4, museums, library, theatres, seasonal festivals and events draw visitors; downtown hotel(s) and indoor entertainment venues needed to capture more visitor spending

b. Downtown Retail Market Study Highlights

First, create a retail brand for downtown Akron that is unique, easily identifiable, holistic, memorable, and reflective of Akron’s heritage. Once created, this brand should be reinforced over and over.

Marketing promotions will need to be developed to target each of the retail market segments outlined above. These efforts should be cooperative with local tourism groups, media, DAP, Chamber, and merchants assisting in getting the word out.

Downtown Akron is physically large and has a difficult topography. It needs to be redefined into smaller, more cohesive districts that make sense from a consumer standpoint. The Steering Committee has proposed the following three districts as follows:

• The Canal District: “Food Fun Energy” Accounts for 60% of Downtown sales; primarily food and beverage trade; serves UA students/faculty/staff, downtown event visitors and conventioneers

• The Historic Cultural District: “Proud Progressive Friendly” Accounts for 30% of Downtown sales; mix of shops and restaurants, serves majority of office workers; attractions include Akron Art Museum, Main Library, John S. Knight Convention Center, and numerous historic buildings

• The Northside District: “Design Décor Dining” Accounts for a 10% of Downtown sales; mix of familiar icons such as Luigi’s alongside bold new studio and culinary upstarts; has potential to become upscale destination for both locals and suburbanites

A marketing brochure (print/PDF) that targets retailers with details on the 3 districts, market data, how-to-get-started lists, and contacts needs to be developed and disseminated. DAP should be pro-active in encouraging downtown Akron merchants to form an association with promotion and marketing as its focus.

DAP should encourage landlords to be reasonable with asking rents. Few chains will go into a retail area until it has been settled by independent pioneers. Downtown Akron must continue to be affordable for local start-ups to be viable in the foreseeable future.

Also, entrepreneurs often need only small spaces to start their

businesses and landlords willing to divide and sublet spaces will find

many more potential tenants than with one large space. In fact,

DAP should work with one or two property owners in a creating retail pop-up or incubator program with temporary leases at reduced rates.

DAP should also continue to be active on a number of other downtown fronts that impact retailing conditions, including parking problems (both perceived and real), beautification, more outdoor patios and public art, signage/wayfinding, and blighted properties. Downtown housing, hotels, an indoor event facility, a permanent public market, an artists’ colony, and historic preservation are all types of development that will help retailers and restaurants.

c. Overview of Retail Recruitment Strategies

1. Define Expectations 4. Market Downtown Akron

Endorse and adopt this document. Encourage downtown Coordinate Internet marketing/collaterals with other local merchants to form an association to take the lead in marketing government/economic development/tourism agencies. downtown, assisting with special events, and advocating on Hire/assign full-time retail recruitment specialist to develop behalf of downtown. Develop incentives for property and business recruitment packet and contact property owners, business owners, including façade grants, loans, historic tax brokers, managers, and prospective tenants. Assist in credits, and others. marketing available properties through open houses, tours, and public events. 2. Involve Property Owners 5. Expedite Public Approvals Identify property and building ownership for all downtown properties. Create a detailed, searchable property facts base Create a Downtown Development Committee to review the for vacant/available and occupied spaces, organized by district, local approval and regulatory processes to identify size range, and asking rents. improvements. Educate/assist prospective tenants and building owners on code and design issues. Work with 3. Identify, Cultivate, and Attract Tenants appropriate government agencies on development programs and incentives.

Develop and maintain a targeted retail business list. Market to

targeted businesses through a coordinated program of e-mail

and direct mail collateral contacts, store visits, meetings with

brokers, social networking, and media coverage.

2. Project Background and Objectives

2. Introduction

d. Historic Overview Of Downtown Akron Retail

Strategic Location Along Ohio And Erie Canal/Towpath Key To Downtown Akron's Early Development

• The original layover captive shoppers: Canal Locks create opportunities for commerce

Rubber City: Big 4 Manufacture 90% Of America's Tires During Automotive Boom

• Akron's population tripled between 1910 and 1920 as downtown gets built in art deco era Sprawl Happens: Suburbs Spring Up In 60's, Collectively • Akron markets had 100 locations in the Akron area by 1925 Surpass Akron In Population

• My City Was Gone: 37% of Summit County residents now live Happy Days Are Here Again: Downtown Akron Flourishes in Akron vs. 57% in 1960 In Post War Heyday • Downtown department stores open satellite locations at 3 new malls on outskirts of town • Retail Cornucopia: large department stores anchor robust mix of shops, restaurants, hotels, and taverns • More upheaval and change in the 1980’s/1990’s: Wal-Mart, Target, and other big boxes race each other to expand in Akron area

• Meanwhile, all of Big-4 rubber companies stopped

manufacturing in Akron and unemployment began to rise

Long Decline: Suburban Sprawl, Massive Modern Retail Competitors, And Economic Malaise Impact Downtown Akron Merchants

• Superblock project demolishes key downtown retail corridor in the 1970's

• Final Survivors Close: Polsky's (1885-1978), and O'Neil's (1877- 1989)

• The Mayflower, once the Hotel to the stars, becomes public housing

• Desolation Row: vacant storefronts accumulate in downtown perceived to be unsafe by the public

Mayor Plusquellic Takes Office In 1987 And Makes Downtown Revitalization A Top Priority

• Tough panhandling laws enacted

• Catalytic projects such as Aeros/Canal Park, John S. Knight Convention Center, Canal Place, and others reshape landscape

of downtown during 80's and 90's

• Vacant department stores occupied by new uses (University of

Akron, professional offices, Barley House)

• Parking decks added and maintained in key locations

Most Important Initiative Is Formation Of DAP And The SID Next On The Horizon: (42 Blocks) In 1994 To Bring All Downtown Akron Partners Together • Officials encourage more downtown housing (but not student housing) • First SID services plan targeted 4 priority areas: parking transit, business recruitment/retention, physical • Downtown hotel said to be in the works image/security, marketing/promotion • Akron Biomedical Corridor, Mayflower renovation, and • Downtown ambassador program launched in 2009 to promote Cascade Plaza improvements at top of city's to-do list a clean & safe downtown

• DAP also manages First Night Akron and other downtown events year-round

Confidence Builder: Over $1 Billion Invested In Downtown Akron Since Formation Of DAP

Office space occupancy up 3% since 1994 •

• Increases in employees, residents, students, and visitors since 1994

• Developer Tony Troppe initiates restoration of Akron's Historic District Main and Market

e. Regional Context

Akron Is Not An Island: Ohio's 5th Largest City Is Interconnected Well-Served By Vast Network Of Interstate Highways, U.S. With Remainder Of Summit County And NE Ohio In Many Ways Routes, And State Routes In Addition To Local Streets And Transit Systems

Suburbia Rules In NE Ohio: • Summit County has 50% more highway miles per square mile of land than Ohio average

Current Population (As Of 2010 Census) Team NEO Markets "Cleveland +" Region, Including Akron

Akron 199,310 Summit County 541,781 To Rest Of World

Stow 34,385 Stark County 375,586

Green 25,699 Medina County 172,332

Hudson 22,262 Portage County 161,419

Twinsburg 18,795 Akron-Canton Tallmadge 17,537 1,251,208 Market Canton 73,007

Cuyahoga Cleveland 396,815 1,280,122 County Parma 81,601

Cleveland- Lakewood 52,131 Akron-Canton 3,257,613 Market*

* 9 Counties, 15th Largest In USA

f. Local Economy

City Of Akron Has Diverse Economic Base Anchored By Large Healthcare And Manufacturing Sectors • Supported by numerous university programs, industry groups, community foundations, including the national • Over 100,000 employed in Akron (31,000 in downtown) vs. polymer innovation center 160,000 in the rest of County

• Summit County employment declined 10% from 2000 to 2010 Akron Also Serves As A Distribution Hub With Its Great Highway System • 36,000 Summit County residents work in Cuyahoga county • Major airports, rail service dozens of freight corners, numerous industrial parks and warehouses round out local Medical And Research Facilities Facilitate Economic logistics industry Comeback

• Akron General (8,600 employees), Summa Health System Education Was The Fastest-Growing (%-Wise) Sector Of (8,100 employees), and Akron Children's Hospital (4,600 Summit County Economy In 2000's employees) are key players in Akron's Biomedical Corridor • University of Akron grew from 4,200 employees on main • At the heart of corridor, Austen Bioinnovation Institute, campus in 2000 to 5,050 in 2010 (but hiring on hold at present) alliance devoted to bio-materials, medical devices, healthcare simulation and education, and clinical trials and community • Akron Public Schools lost 1,000 jobs during 00's but slack health taken up by suburban and charter schools

Manufacturing/R&D Focus Expands From Rubber To High Professional Services Is Summit County's 2nd Fastest Tech Polymers Growing Sector (+4,300 Jobs, '00-'10)

• Biomedicine applications, consumer electronics products, • Much of this growth is occurring downtown many, many other uses

• Over 400 companies with 35,000 employees in great Akron engaged in polymer activity Downtown Akron Retail Market Analysis / CONFIDENTIAL© Boulevard Strategies. All Rights Reserved, 2014. 03.12.2014 14 Downtown Akron Retail Market Analysis

Akron's Tradition Of Innovation Continues With Akron Global Accelerator (53 High Tech/Green Energy Start-Ups)

• New business starts lag Ohio averages by 10% overall per 1,000 existing businesses

• Relatively small retail trade, foodservice and lodging, and F/I/RE sectors in city of Akron

Akron In Recovery Phase From Great Recession Similar To Rest Of County, State, And USA

• City unemployment rate drops from 12.3% in January 2010 to

7.8% in April 2013, a gain of 5,000 jobs

• Akron average weekly wages growing at pace of 2.7% per year

3. Retail Market Analysis

a. Downtown Retail Trends

1. The Demise Of The Department Store

2. The Overmalling/Overstripping Of Ohio

3. The Impact Of E-Commerce

4. Downsizing Of Big Boxes

5. Retail Goes Mobile

6. Downtown's New Anchors: Restaurants

7. Convenience Is King

8. The Do-It-For-Me Society

9. Recycled Retail Resonates With New Frugality

10. Start-Up Surge

b. Downtown Retail Demand Potential

Downtown Akron Merchants Serve 5 Distinct Potential Market Segments:

• 26,000 downtown employees

• 24,600 University of Akron students +5,050 faculty/staff

• 11,000 close-in residents

• 530,000 metro shoppers/diners

• Countless visitors from outside of Summit County

26,000 Downtown Employees

• Diverse mix of large employers (City of Akron, Summit Employee Downtown Downtown County, FirstEnergy, FirstMerit, GoJo, Summa Health Care, Spending Market Sales Akron General, Akron Children's Hospital, others) and small Potential Share professional services firms Convenience $16M $7.8M 49% Goods/Services • Skew toward females, almost 2 to 1, all ages between 25 and 64, 2/3 are office workers Shopping Goods $8M $0.8M 10% Dining And $16M $8.2M 51% • Limited growth forecast for foreseeable future Entertainment

TOTAL $40M $16.8M 42% • Government sectors not expanding

• Lack of developable new office building sites

• Current office vacancy levels are low in downtown (16% vs. 20% in suburb)

• Bio-medical corridor is still growing

• Current downtown employee retail potential immediately

before, after, or during work shift estimated at $40 million per year

• Overall, downtown employees account for about 40% of downtown retail sales

24,600 University Of Akron Students + 5,050 Faculty/Staff

• Founded In 1870, 3rd largest of Ohio's 13 State Universities, • Enrollment and employment down 5% since 2011 occupying 83 buildings, 222 acres on edge of downtown • Number of high school grads slowing declining in Ohio • World leader In polymer research, Nursing, Accounting, (95% of University of Akron students from Ohio) Psychology also popular majors • 51% males, median age 21, 57% legal drinking age, 20% • $300 million construction program started In 2004 adds 9 over age 25 new buildings (including new Student Union, Rec Center), a new football stadium, closed-off streets/30 acres of green • 20,000 undergrads, 4,000 grad students, 440 law space, numerous renovations to existing structures, students purchase of Quaker Square property • 18,000 fulltime, 7,000 part-time students (half of grad • University Park Alliance (UPA) unveils plan for 5 million students are part-time) square feet of space and 6,400 residential units, including: • Retail (920,000 S.F.) • 800 fulltime faculty, 1,000 part-time faculty plus 3,500 • Office (3,100,000 S.F.) student employees, including graduate assistants • R&D (610,000 S.F.) • Hotel (180,000 S.F.) • Average faculty salary = $79,000/year • Cultural (160,000 S.F.)

24,600 University Of Akron Students + 5,050 Faculty/Staff (Cont’d)

• About 85% of university of Akron students live off-campus • University of Akron students, faculty, and staff (before/after • Biggest concerns are safety, parking, and rents classes) represent potential retail market of $46 million for downtown merchants: • 65% would like to live in Akron after graduation if jobs available University Of Akron Downtown Downtown

• Akron's nightlife is top-rated lifestyle attribute by University of Spending Sales Market Share Akron students ("raging party scene," "best drink prices") Potential (collegeprowler.com) Convenience Goods/Services $26M $1.3M 5%

• 44% walk, 35% take Roo Shuttle, 15% drive to downtown Shopping Goods $7M $0.1M 1%

• Pleased with variety of restaurants, including late night Dining And Entertainment $13M $4.9M 38% options TOTAL $46M $6.3M 14% • Lack of parking and safety are perceived negatives about off-campus nightlife *Does not include $38 million in back to school spending (computers, backpacks, futons, jeans, etc.)

11,000 Close-In Residents

• This is number of persons who live within 1-mile radius of Main • Downtown housing for young professionals yet to take off in and Market in downtown: Akron as it has in Cleveland, Columbus, other Midwestern markets • 3,400 households, 23% owner-occupied, $26,800 median household income, few children, older housing stock • Millennials enjoy living in urban areas where the action is but still want affordability and green space • According to City of Akron Planning Department, only about 4,000 live within borders of downtown in 2,100 • Condos doubled share of new housing market over past households (high percentage of 1-person households) 15 years by appealing to single women in 30s/40s, gay/lesbian couples, and older empty nesters • Highland Square (12,500 residents) and University Park (9,000 residents) are neighborhoods close enough for • Desirable amenities including dedicated parking, downtown merchants to potentially serve a portion of washer/dryer hookups, upscale finishes, 1 bath per retail/dining needs bedroom, wireless capabilities, security presence, and fitness centers • 1,500 persons reside in the SID • Stakeholders interviewed are optimistic that number of • Bi-polar income distribution from high end (Northside downtown residents will grow if right product and price Lofts, former Y) to student and public housing points are offered

• Moratorium on off-campus housing as market shrinks • Recent housing market study indicates unmet demand for up to 1,900 new market-rate apartments in Central Akron (Downtown + University Park) over next 5 years

• Market rents range from $750-$825/month for 1 bedroom units to $1000-$1200/month for 2 bedroom units

11,000 Close-In Residents (Cont’d)

• The 11,000 close-in residents represent a potential retail market of $21 million for downtown merchants:

Close-In Residents' Downtown Downtown

Spending Sales Market Share Potential

Convenience Goods/Services $10M $2.0M 20%

Shopping Goods $8M $0.7M 9%

Dining And Entertainment $3M $1.5M 50%

TOTAL $21M* $4.2M 20%

*Reflects 60% of retail spending expected to occur within local trade area (assuming ample retail supply); students not double-counted

530,000 Metro Area Shoppers And Diners

• There are 188,000 Akron residents in 79,000 households (outside of 1-mile radius around Main & Bowery) Metro Downtown Shoppers/Diners Downtown Market Spending Sales • 20% of adults with college degree, 56% homeowner Share Potential • Median household income of $34,190, median housing Convenience value of $89,800 $15M $0.9M > 1% Goods/Services

• There are 342,000 Summit County residents in 137,000 Shopping Goods $120M $0.9M > 1% households outside of Akron in the suburbs and townships Dining And $30M $10.8M 36% Entertainment • 35% of adults with college degree, 76% homeowners TOTAL $165M* $12.6M 8%

• Median household income of $56,930, median housing *Assumes 5% of spending on shopping goods and dining & entertainment could be value of $168,100 captured downtown

• Metro residents are largest market for most downtown attractions and events but are secondary markets for many

downtown merchants

• Summit County's 530,000 metro shoppers and diners represent a potential retail market of $165 million for downtown merchants

Countless Visitors From Beyond Summit County

• Downtown Akron is easily accessible to all of NE Ohio, Visitor Downtown Downtown including Medina, Portage, and Stark Counties Spending Sales Market Share Potential • 400,000 persons from all over attend events and conventions at the knight center each year Convenience Goods/Services $4M $0.1M 3%

• The Towpath is a key regional draw Shopping Goods $10M $0.3M 3%

Dining And Entertainment $14M $1.7M 12% • Visitor market retail potential held back by lack of quality downtown hotel rooms TOTAL $28M $2.1M 8%

• According to Ohio Department of Tourism, overnight *Based on current hotel situation, could be much higher visitors spend 3 times as much on retail and food and

beverage purchases per day as day trip travelers

b. Downtown Retail Demand Potential

Summary

All Spending Downtown Downtown

Potential Sales Market Share

Convenience Goods/Services $71M $12.1M 17%

Shopping Goods $153M $2.8M 2%

Dining and Entertainment $76M $27.1M 37%

TOTAL $300M $42M 14%

Customer Mix By Type Of Retail

University Of Close-In Metro Employees Visitors Total Akron Residents Residents

Convenience Goods/Services 64% 11% 17% 7% 1% 100%

Shopping Goods 29% 4% 25% 32% 10% 100%

Dining And Entertainment 30% 17% 6% 40% 7% 100%

TOTAL 40% 15% 10% 30% 5% 100%

c. Downtown Retail Competition

Key Retail Competition – Geographic Locations And Regional Clusters

Key Retail Competition – Super Regional, Regional, Open Air & Enclosed Malls

Distance from Primary Shopping Venues # of Stores # of Restaurants Anchors Downtown Akron

Akron Summit Mall 6.5 mi/15 min. 125+ 10+ Macy's, Dillard's Akron Chapel Hill Mall 4.5 mi/14 min. 110+ 1 Sears, Macy's, JC Penney Canton Belden Village Mall 20 mi/ 25 min. 105 10+ Dillard's, Macy's, Dillard's, Macy's, Sear's, JCPenney, Dick's Strongsville SouthPark Mall 35 mi/45 min. 140+ 20+ Sporting Goods The Shoppes at Parma JC Penney, Walmart, Macy's, Dick's Parma 30 mi/45 min. 150+ 10+ (Parmatown Mall) Sporting Goods

Beachwood Beachwood Place Mall 32 mi/38 min. 140+ 10+ Nordstrom, Dilliard's, Saks Fifth Avenue

Nordstrom Rack (Fall 2013), Barnes & Westlake Crocker Park 50 mi/1 hr. 100+ 30+ Noble, Dick's Sporting Goods,

Dicks' Sporting Goods, Crate & Barrel, Lyndhurst Legacy Village 32 mi/40 min. 75+ 10+ Giant Eagle, LA Fitness

Woodmere Eton Chagrin Boulevard 30 mi/35 min. 40+ 10+ Trader Joe's, Barnes & Noble

North Olmstead Great Northern Mall 45 mi/47 min. 115+ 20+ Dillard's, JCPenney, Macy's, Sears Macy's, JCPenney, Sears, Dilliard's Barnes Mentor Great Lakes Mall 46 mi/53 min. 150+ 10+ & Noble

Source: Boulevard Strategies

Distance from Primary Shopping Venues – Outlet Malls # of Stores # of Restaurants Anchors Downtown Akron

Aurora Aurora Farms Premium Outlets 25 mi/40 min. 70+ 4 NONE Lodi Lodi Station Outlets 30 mi/35 min. 60+ 5 NONE

Source: Boulevard Strategies

Key Competitive Points:

• Summit Mall is a good regional shopping center that has • Restaurants – Flemings Prime Steakhouse, Mitchell’s Fish recently undergone a significant renovation, and offers a mix Market, Paladar Latin Kitchen & Rum Bar, Taza A of mainstream and upscale retail Lebanese Grill, B Spot Burgers, The Cheesecake Factory, and Hyde Park Steakhouse • 9 additional shopping centers are within 20 to 50 minute drives of downtown Akron, and all offer some unique mix of retail, that sets it apart from the others

• Of the 9, all have at minimum 10 restaurant destinations on, in or near the shopping center, and in most cases the restaurant offerings are more upscale national/regional offerings

• The definition of an “Anchor” is changing, and it is not limited

to department stores; in some of these shopping centers -

Trader Joe’s, Barnes & Noble, Dick’s Sporting Goods, Walmart, LA Fitness And Crate & Barrel are the stronger anchors

• 2 outlet malls within 30 miles of downtown, offer an excellent range of retail offerings at discount prices

• Beachwood, Westlake, Lyndhurst and Woodmere shopping centers all offer relatively upscale options, including:

• Stores – Nordstrom Rack, lululemon, Lily Pulitzer, True Religion, Williams Sonoma, LEGO Store, L’Occitane, Madewell, Tumi, Lacoste, Louis Vuitton, Chanel, Coach,

Anthropologie, Le Creuset, Janie & Jack, Orvis, Northface

and Trader Joe’s

Top Retail Categories By Shopping Center Type

Rank Super Regional Regional Super Community Neighborhood Open Air Enclosed

1 Clothing & Accessories Clothing & Accessories Food (Grocery) Food (Grocery) General Merchandise General Merchandise Food Service Food Service 2 Shoes Shoes Food (Grocery) Clothing & Accessories (Restaurant) (Restaurant) Food Service 3 General Merchandise General Merchandise Clothing & Accessories Personal Services (Restaurant) 4 Personal Services Clothing & Accessories % Of Total 80.20% 59.70% 55.27% 55.20% 50.30% 66.80% Revenue

Source : Dollars & Cents Of Shopping Centers, Urban Land Institute & International Council Of Shopping Centers

Key Points:

• Difficult for independents not located within a shopping center • Attracting specialty chains downtown is an uphill battle, given to compete against the density/depth of offering of well- they tend to co-locate in “packs” and rely heavily on shopping known branded chain retailers, especially in clothing and center marketing and department store advertising to help accessories, general merchandise and shoes, unless they have “pull” customers into shopping centers a truly “unique” and highly desirable niche product and service offering • Downtown management/marketing organizations need to know their shopping centers and tenants within 50-60 miles, • Downtowns need strong “themed” retail, restaurant and arts to fully understand the product/service offerings, shopping districts with a wide assortment of choices to compete against experience and why local residents shop at them shopping centers

Downtown Retail Benchmarks - Regional

Distance # of Stores from Scale of Downtown # of & Retail Category Strengths Farmers Market Downtown Downtown Districts Restaurants Services Akron Farmers Market (June- Arts, Antiques, Books, Children's Specialty, Clothing, October), 10 am-1 pm Fitness, Gifts & Accessories, Hair Salons & Spas (15), Home Sundays, 6th year; Chagrin 35 mi/45 15 blocks 1 100+ 20+ Furnishings & Accessories, Jewelry, Specialty Food, Retail voted #1 small market Falls min. Services, Hardware, Specialty Wine, Hobby, Music, Eyeglass, category (16-30 Firearms, Sporting Goods, Restaurants vendors) in Ohio, #11 nationally

Arts, Books, Women's Specialty Clothing, Men's Specialty Clothing, Bridal, Children's Specialty Clothing, Toys/Games, Farmers Market (June- 15 mi/25 Floral, Pet Accessories, Garden, Grocery, Pharmacy, Hudson 15 blocks 1 40+ 35+ September), 9 am-12:30 min. Chocolates/Candy, Specialty Foods, Jewelry, Women's pm, Saturdays Accessories, Hair Salons & Spas (9), Dry Cleaning, Shipping Services, Vision Care, Travel Services, Restaurants

Arts, Antiques, Gifts, Fitness, Floral, Home Furnishings & Farmers Market (June - 35 mi/50 Wooster 10 blocks 1 35+ 13 Accessories, Housewares, Hardware, Jewelry, Specialty October) 8 am-noon min. Food, Specialty Wine/Beer, Salons & Spas, Restaurants Saturdays;

Arts, Antiques, Gifts & Accessories, Home Furnishings & Farmers Market Accessories, Jewelry, Clothing, Toys, Hobby, Footwear, 13 mi/25 (Memorial Day-Labor Kent 10 blocks 1 45+ 25+ Books, Music, Bakery, Specialty Food, Food Co-op, Hair min. Day) 9 am-1 pm Salons & Spas (6), Retail Services, Restaurants, Saturdays Nightlife/Bars The Market (July- Arts, Apparel, Books,, Gifts, Antiques, Hair Salons & Spas, September), Fridays 11 42 blocks NA 4 30+ 50+ Jewelry, Specialty Food, Retail Services, Music, Restaurants, am-1:30 pm; Artwalk, Akron (SID) Nightlife/Bars 1st Saturday of each month, 5-10 pm

Source: Boulevard Strategies

Important Regional Benchmark Points:

• Strong downtown retail areas are compact and dense, supporting a single vehicle park and encouraging walking from store-to-store

• Mix is generally heavily independent, with focus on specialty offerings that are not duplicated at nearby shopping centers or big box stores

• Restaurants are hands down the anchors of downtowns

• Parking is free, easily accessed and visible

• Farmer’s markets are generally on Saturdays/Sundays

Downtown Retail Benchmarks – Columbus & Cleveland

Distance # of from Scale of Downtown Stores & # of Farmers Market or Category Strengths Downtown Downtown Districts Retail Restaurants Gallery Hop Akron Services

Arts, Apparel & Accessories, Convenience(10), Pearl Market (May- Drug/Pharmacy, Grocery, Specialty Food, Hair Salons & Columbus 125 mi/2 hrs. 273 blocks 6 150+ 120+ October), Tuesdays & Spas (12), Hardware, Fitness (12), Home Furnishings, Fridays 10:30 am-2 pm Hobby, Music, Retail Services, Restuarants, Nightlife/Bars

Gallery Hop, 1st Columbus Arts (Galleries - 20), Apparel, Home Décor, Gifts, Antiques, Saturday of Each (Short Hair Salons & Spas, Pet Supplies/Accessories, Jewelry, Month, 4 pm-10 pm; 125 mi/2 hrs. 15 blocks 1 60+ 45+ North, Specialty Food, Retail Services, Specialty Wine, Hobby, North Market Farmer's only) Music, Consignment/Re-Sale, Restaurants, Nightlife/Bars Market (May-October) Saturday,8 am-2 pm

Cleveland Farmers Market (May- (includes Arts, Apparel, Books, Home Décor, Gifts, Antiques, Hair November), Fridays 11 Warehouse 40 mi/45 250+ 9 110+ 120+ Salons & Spas, Jewelry, Specialty Food, Retail Services, am-2 pm; Winter District & minutes blocks Specialty Wine, Music, Restaurants, Nightlife/Bars Market -5th St. Arcades Gateway (November-May) District)

Source: Boulevard Strategies

Important Columbus & Cleveland Benchmark Points:

• Large Downtowns utilize Districts to cluster retail, • Downtown specialty markets play a significant role downtown entertainment and restaurant offerings usually within a in both Columbus (North Market) and Cleveland defined theme; Usually a single District was/is the catalyst for (Constantino’s Market) revitalization (i.e. Short North/Columbus, Warehouse District/Cleveland) • Farmers Markets on Fridays and Saturdays are important components of both downtowns and are used to support • Large Downtowns rely on independent retail, with a limited those who live in/near Downtown and to draw Metro-Area blend of national/regional chain restaurants to create mix suburb residents into Downtown

• Downtown residential is a strong driver of retail; It takes “Feet • In Columbus, the Gallery Hop was a critical component to On The Street” 24/7 to create a strong retail market that “Jump Start” the Short North – Key to its success was a high breeds success density cluster of galleries which were supported by restaurants and retail. Over time, the mix adapted to an even • Food trucks play an important role downtown to feed both higher density of upscale independent restaurants, bars, pubs downtown workers and evening visitors/residents and nightlife, including:

• Independent restaurants are the anchors of Downtown • Barrel 44 Whiskey Bar, Drake (Meade), OYO, Hubbard Districts, followed by entertainment and nightlife/bars Grille, Betty’s, Bodega, Brothers, Jeni’s Splendid Ice Creams, Martini, Marcella’s, Northstar, Rossi, etc. • “Vibe” of Districts in larger downtowns is generally “tuned” to attract a younger, hipper consumer, or those with significant disposable income

• Personal services are important downtown components, given they provide convenience to downtown workers/residents and many times are more upscale (i.e.. spas, salons, fitness centers, etc.) creating strong destinations for weekend and evening residents of the area

d. Downtown Benchmarks – Comparable US Cities

Lansing, Michigan

• Population of 114,297 (2010), -4.1% since 2000, $23,919 per capita income

• Next to Michigan State (48,000), 31,000 more students in downtown Lansing, young, international population; State capitol, 25,000 downtown workers

• Successful in adding downtown housing since 2005, now have 6,500 people living downtown; Several housing projects recently completed or underway: The Arbaugh, conversion of former department store into apartments; Motor Wheel Lofts, a former industrial site; Capital Club Tower, 18-story condominium complex

• Vibrant live music scene 7 nights a week at numerous downtown bars and clubs plus several outdoor music festivals including Common Ground which brings national acts to downtown

• Downtown attractions include the historic Lansing City Market (since 1909), 120,000 sq. ft. downtown convention center, the brand new Broad Art Museum (designed by renowned architect Zaha Hadid), a symphony orchestra, a ballet company, three performing arts theatres, several small specialized museums, Class A baseball Lugnuts

• Only 1 major downtown hotel, limited retail: retail and hotels clustered near MSU campus or out by highway (I-96)

• Be a Tourist in Your Own Town offers $1 passport and a bus pass to residents to over 60 local attractions for a day

Lexington, Kentucky

• Population of 305,489 (2012), +13.9 since 2000, $27, 652 per capita income

• Near the University of Kentucky (28,000), younger population, ranked as 10th most educated cities with a population of more than 250,000 (US Census), 30,000 downtown workers, plus 14,000 University of Kentucky employees (within 1 mile)

• Successful in adding new downtown housing since 2006, 350+ new residential units completed, 100+ new units under construction and more than 500 units are on the drawing board, it is estimated that nearly 4,000 people are currently living downtown

• 2 downtown independent grocers (since 2011), very limited retail (20) primarily located at Shops at Lexington Center (Rupp Arena), Victorian Square and Maxwell/High (close to/NW of downtown); over 90 restaurants and more than 20 nightlife/bars are located in the downtown area

• 2 major hotels downtown, Hilton and Hyatt with combined 720+ rooms, boutique hotel is currently in planning stages; downtown is anchored by Rupp Arena (UK basketball, national acts), an opera house, movie theatre, farmer’s market, and an artist’s market

• Approved a $45.8 million TIF (2009) to assist with developing the Lexington Distillery District (commercial, residential, retail, tourism), Town Branch Bourbon Distillery opened 2012 and is on the Kentucky Bourbon Trail (distillery is projected to draw 100K visitors/yr.)

• Rupp Arena and "Lexington Center," is set to undergo a modernization with a spend of about $310 million by 2017/2018. The project will be funded by the University of Kentucky and “partners.”

Wichita, Kansas • Strong downtown convention business hosted nearly 400 • Population 383,085 (2011), +11.3% since 2000, $23,878 per capita meetings in 2012, with a $41 million impact; booked 128,000 room income nights with a $46 million impact; both hotels offer conference facilities, as does the Century II Performing Arts and Convention • 6 miles from Wichita State University (20,000+), 26,000 downtown Center workers, estimated 6 million visitors annually • Major development is still underway and planned, including • 1-mile radius of downtown has a population of 8,600, with more mixed-use, residential (530 units), office, one-way street than 3,600 housing units (apartments, lofts, condominiums) conversions to 2-way streets, streetscape improvements, hotel renovation (Marriott) retail/restaurants • Old Town district is located in the heart of downtown and has been a catalyst for downtown revitalization; home to night clubs, bars, restaurants, movie theatre, 2 hotels, shops, and residential living; development of district began 30 years ago and created an environmental TIF district for the area, after the cleanup a new TIF was created for street improvements, lighting, sidewalks, parking and rehabilitating a building for the farmer’s market; the area is also home to 130+ businesses (including Airbus design and engineering facility) and property values have grown 6-fold since 1992

• Additional entertainment offerings downtown include – museums, a dinner theatre, INTRUST Bank Arena (15,000 capacity, home of Wichita Thunder/CHL, national acts), Lawrence Dumont Stadium (home of Wingnuts AA baseball team)

• Amtrak passenger service between Oklahoma City and Wichita is in planning stages; downtown utilizes the Q-Line Trolley – a free shuttle service that operates during “peak” evening hours to connect downtown patrons to venues within downtown area

Chattanooga, Tennessee • Pilot test of Project:PopUp, a retail incubator in the City Center • Population 168,393 (2011), +8.3% since 2000, $22,351 per capita district – 6 months rent free with goal of signing a long-term lease, income façade grant, marketing support, mentors and professional development classes (program ended in February 2013 with 20 • 50,000 downtown workers, 26,000 downtown residents, another applicants for 5 spots, 4 still operating); On staff retail recruiter 108,000 within a 10 minute drive, 3 million annual visitors • Bicycle Transit System – daily pass/annual memberships to • Near downtown (1 mile) University of Tennessee Chattanooga rent/return bicycles to 30+ stations downtown (12,700)

• Entertainment offerings include 6 sports teams – Chattanooga Lookouts (AA baseball), roller girls, semi-pro football, rugby football, semi-pro soccer; Head of the Hooch (rowing regatta); and a variety of downtown events/festivals

• Downtown amenities include – Tennessee River, AT&T Field, Finley Stadium

• 4 downtown districts with retail (6 total districts) – City Center, Northside, Riverfront and Southside; featuring food/drink establishments (50+), live entertainment venues (16), galleries, museums (6), theatre, and a variety of independent shopping/service destinations

• Noted as having one of the most productive affordable housing programs in the nation, due to strong public/private partnerships; $120 million riverfront redevelopment was basis for upscale townhomes, condos and apartments (28 properties with 1,200+ units)

• Free downtown electric shuttle service, 16 shuttles from Chattanooga Choo Choo to Tennessee Aquarium

Milwaukee, Wisconsin public market, restaurants, bars and retail services; Limited • Population 595, 407 (2011), -0.3% since 2000, $18,290 per capita national retailer presence in the mall – Office Max, Walgreens, TJ income Maxx, Radio Shack, Foot Locker, GNC, and Anthropologie, as well as fast food/fast casual chains • 81,000+ downtown workers; downtown population 21,400+ (3.6% of city’s population/median age 29.9); 1.4 million in-close • 20 downtown hotel properties, with nearly 3,700 rooms, with an residents, 97,000 college students, 4.3 million visitors annually, occupancy rate of 64%; 410+ more rooms are under construction with more than 400,000 convention attendees in 3 new downtown hotels

• Total of 14,000 housing units downtown (33% increase since • Free downtown trolley service (June-September, Wednesdays- 2000); more than 1,800 new residential units have been built Saturdays) downtown since 2005; between 1990 and 2006 downtown increased its 25-34 age population to almost 2,000 residents; • More than $1.7 billion in downtown investment since 2005, with rental vacancy rate is less than 5% nearly $400 million in new downtown projects under construction

• Downtown is designated as a Business Improvement District that • Strong downtown cultural and entertainment venues, events and oversees a 50 blocks representing 500 property owners; 5 festivals draw 1.6 million annually; Facilities include Bradley downtown districts Center (20,000 capacity) and home of Milwaukee Bucks, Marquette basketball, Milwaukee Admirals (AHL), Milwaukee, • Variety of downtown programs to support retail – Retail Pabst and Riverside Theatres, Marcus Center and Broadway Investment Fund, Downtown Façade Grant, Downtown Retail Theatre Center (performing arts), Art Museum, and henry Maier Recruitment Program (since 2009, 220 prospect visits with 1 retail Festival Grounds deal), Pop-Up Shops (4 over holidays), White Box Grants (interior improvements), City Incentives

• 780,000 sq. ft. of downtown retail available/ 369 businesses dispersed throughout downtown; Majority of retail is located in The Shops at Grand Avenue (260,000 sq. ft. indoor mall with 80 stores); 37.4% of current retail mix is restaurants, 22.5% is retail/personal services, home furnishings 7.3%, apparel/accessories 6.2%, food 5.7%, miscellaneous convenience retail 16.3%; 16% downtown vacancy rate; lease rates are just under $19/sq. ft.; Key independent retail options include a large

Providence, Rhode Island roller girls, a performing arts center and other large venues, • Population of 178,042, +2.5% since 2000, $29,685 per capita Waterfire celebrations, numerous festivals and public arts displays income ($26,270 if adjusted for cost of living) • 18 block arts and entertainment district is thriving with upscale • Diverse economy led by healthcare (8 hospitals), higher education restaurants, art galleries, bars, and clubs (Providence College, Brown, Rhode Island School of Design, Johnson & Wales University, arts/creative class, manufacturing, • Downtown Improvement District formed in 2005; primary and cargo handling (seaport harbor); Brown (8,000 students), RISD initiatives focus on clean and safe efforts (including night club (2,200 students), and Johnson & Wales (17,000 students) have control), event management, traffic circulation (removing 1-way extensive facilities in downtown streets), way-finding signage, and parking management

• Downtown’s markets also include 40,000 workers, 4,735 residents (65% increase since 2000, mix of students, gays, young professionals), and about 450,000 overnight visitors (7 downtown hotels enjoy 80% occupancy rate, $150 ADR)

• Revitalization began in 1990’s when Mayor Cianci showcased downtown Providence’s arts and built a riverwalk and several waterfront parks along the Providence River

• Providence Place Mall, a 1.4 million square foot, 3 story mall connected to the upscale Westin hotel opened downtown in 1999; anchored by Macy’s, Nordstrom, JC Penney, The Cheesecake Factory and a cluster of streetside restaurants, and a 16 screen theater and an Imax theatre

• Numerous condo projects, hotels, and office towers were added in downtown in the 2000’s prior to the recession; currently, pressure on to add more downtown hotel rooms

• Attractions include convention center (which experienced a 50% increase in attendance in 2012, driving demand for hotel rooms), AHL hockey Providence Bruins, the Bank of America skating rink,

Fort Wayne, Indiana • Downtown is home to 40+ restaurants (8 chain fast food) and 20+ • Population of 254,015 (2011), +23.5% since 2000, $21,145 per retailers; over half of the retail offering is gift shops (5 are capita income associated with museums) with several galleries, singular offerings include re-sell (Salvation Army), craft/hobby, floral, home décor, • 25,000 daytime workers; 5.7 million visitors annually book, tobacco, office and camera/photo; restaurants offer a good mix of independently-owned cafes, coffee shops, ethnic eateries, • Downtown is designated as a Business Improvement District, that fine dining, pubs, pizzerias and fast food oversees 91 blocks • Nightlife is limited to 4 bar/pubs, as well as events at downtown • 10+ downtown residential locations offer 500+ units comprised of cultural/entertainment/sports venues condominiums and apartments • Primary catalyst for downtown revitalization was Parkview Field • 2 hotels downtown (496 rooms) – Hilton and Marriott; 10% of total (minor league baseball stadium) and Harrison Square (mixed use Allen County rooms; 46.8% annual occupancy rate for county; with hotel, condominiums, retail, parking garage) with a total Convention Center (225,000 sq. ft.) adjoins both downtown hotels private/public investment of nearly $125 million; completed 2010

• City has been named #1 city for minor league sports – Parkview Field (Tincaps minor league baseball) is downtown; to the north/near downtown is the Allen County War Memorial Coliseum (13,000 capacity) home to minor league hockey, basketball and roller derby; to the north/near downtown is Lutheran Health Sports Center (3 NHL-sized rinks); the downtown also is home to a YMCA, as well as 3 fitness/health facilities

• Downtown is the cultural center of Fort Wayne with museums, festivals, events and live shows; the city supports the Fort Wayne Ballet; venues include the Cinema Center (not-for-profit film theatre), the Embassy Theatre (national acts, movies, performing arts), the USF Performing Arts Center, Fort Wayne Museum of Art, Public Library and art galleries

• Downtown Revitalization Grant Program is offered

Spokane, Washington

• Population of 208,916 (2011), +6.8% since 2000, per capita income • Challenges include lack of live music venues, limited streetscape of $22,707 and pedestrian amenities, lack of strong connections between residents and commercial activity, no downtown circulator (no • Economy in transition from forestry and food processing to light rail), under-utilized vacant sites/surface parking lots in core medicine and heart care research, aerospace manufacturing, blocks, and parking information technology, and digital media; strong military influence remains (Fairchild Air Force Base); 2009 Brookings • Managed by Downtown Spokane Partnership since 1995, along Institute report listed Spokane as comparable to Akron in terms of with business improvement district economic variables

• Downtown markets include 21,000 workers (8,400 in health care), 4,500 residents (increasing by 3% a year since 2000), 10,000 students (Gonzaga with 7,700 students), and about 1,200 hotel rooms generating over 200,000 annual overnight visitors

• 1.3 million square feet of downtown retail anchored by upscale

River Park Mall (Nordstrom, Macy’s, Apple, Ben & Jerry’s, Gap, Chico’s, Pottery Barn, about 50 total plus 20-screen movie theatre); 35 retail shops in downtown outside of mall; 75 restaurants, also, several wineries

• Other downtown attractions include Davenport District art galleries, Spokane Symphony, Bing Crosby Theatre and other restored theatres, Spokane Arena, Riverfront Park, giant Imax screen, Spokane Convention Center, the Spokane Indians (AA baseball) and other minor pro sports; often host major figure

skating competitions

• Planned and proposed projects are expected to double downtown’s residential population by 2017; new units targeted toward empty nesters and young professionals

4. Market Potential for Complimentary Uses

4. Market Potential For Complimentary Uses

a. Arts, Entertainment & Recreation

Key Downtown Offerings, Include: • PUBLIC FACILITIES – Akron-Summit County Public Library, John S. Knight Convention Center, Akron Art Museum, Lock 3 And 4, and Canal Park (home to the Akron Rubber Ducks)

• KEY ENTERTAINMENT VENUES – Akron Civic Theatre, Musica (concerts Wednesday-Saturday weekly), and the Greystone Hall (Actors Summit, full-season theatre and banquet/conference facilities)

• RECREATION - Towpath Trail (18 miles and 10 Trailheads within Summit County Metroparks), with over 2 million visitors each year on the 101 mile trail that extends from Cleveland into Tuscarawas County, plus co-located private employer/residential fitness facilities

• ARTS – Nearly 20 art galleries and studios located in the Akron downtown area, representing a variety of media, price points and artistic styles; The Akron Symphony Orchestra (U of Akron E.J. Thomas Hall and Akron Civic Theatre), The Actors Summit (Greystone Hall)

• NIGHTLIFE - 20+ nightlife destinations, including a broad variety of bars, nightclubs and lounges

• SPORTS – Akron Rubber Ducks minor league Double-A baseball affiliate of Cleveland Indians (April-September) at Canal Park,

Rubber City Roller Girls (John S. Knight Center)

Key Downtown Events By Month

Downtown Events Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

First Night (New Years Eve) • Farmers Market (Fridays) • • •

Artwalk • • • • • • • • • • • Downtown Restaurant Week •

Holidayfest • • National Hamburger Festival •

Rib, White & Blue Rib Festival • Summit County Italian Festival •

Free Concerts At Lock 3 Stage • • • • Lockbottom Blues & Jazz Club • • •

African American Festival • Soap Box Derby Parade •

Blues & Brews • Global Village Festival •

Skating/Sledding At Lock 3 • • • Various 5K Races • • • • •

Gospel Sundays • • •

Downtown Events Attendance

Downtown Festivals & 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Events

Festivals* 15,531 17,003 31,063 44,470 48,006 37,345 95,351 94,378 109,876 105,608

Summer Concerts** 14,950 19,010 30,138 31,276 54,715 94,377 146,345 127,402 131,767 124,785

Community Events*** 20,311 15,618 10,979 10,725 12,161 25,918 32,235 34,977 29,560 34,544

Other+ 0 0 0 0 0 0 0 900 3,050 4,075

Attendance Summer 50,792 51,631 72,180 86,471 114,882 157,640 273,931 257,657 273,253 269,012

Attendance Winter++ 0 47,737 67,232 77,072 70,921 76,880 41,711 45,200 59,000 59,626

TOTAL ANNUAL 50,792 99,368 139,412 163,543 185,803 234,520 315,642 302,857 332,253 328,638

Cumulative 50,792 150,160 289,572 453,115 638,918 873,438 1,189,080 1,491,937 1,824,190 2,152,828

Source: Downtown Akron Partnership

Note: * Includes Rib, White & Blue Festival, Italian Festival & Hamburger Festival ** Includes Lock 3 Live & Rock The Lock *** Includes Farmer’s Market & special events + Includes Lock 4 & Gospel Sundays ++ Includes First Night, skaters and sledding

Key Points:

• Attendance to Downtown events has been rising, with significant gains starting in 2009

• Summer concerts at Lock 3 and 4 drive significant traffic on the Fridays and Saturdays they are offered

a. Arts, Entertainment & Recreation

Strengths:

• Locks 3 & 4 are exceptional assets to Downtown and define • Farmer’s Market is offered at Lock 3 on Fridays from July- its center point, as well as are home to the majority of September annually, features producers-only market of fresh downtown’s outdoor events and activities produce, handmade cheeses, fresh baked goods, home crafted gifts and more • Wonderful cross-section of downtown events and nightlife offerings, with broad demographic appeal, draw large • Akron Art Museum features over 80,000 sq. ft. of gallery numbers of visitors downtown, especially during warmer space, an auditorium and cafe, it had an estimated 2011 months; downtown events attracted nearly 330,000 attendance draw of 62,000+ to the museum, workshops, visitors in 2013 classes, lectures, films, and music/concerts

• Strong restaurant mix extends arts/entertainment visit time • The Akron Main Library (270,000 sq. Ft.) averages over 1.5 and attracts downtown traffic million patrons per year, to use the library facilities, as well as to attend a wide variety of daily events (movies, education • Towpath Trail creates strong potential to pull traffic within offerings, children’s story time/play, etc.) downtown, from its 2 million visitors/year • The majority of the nightlife is located at Main & • Akron Rubber Ducks have a strong regional following and Exchange, which is near many of downtown’s restaurants on average attendance of between 3,600 and 5,000 per game Main St., and near student housing (22 Exchange) (capacity is just over 9,000), Canal Park also adds to definition of downtown’s center point • Musica books a great cross-section of up-and-coming local and regional acts/bands weekly (Thursday-Saturday) with • Civic Theatre is a strong small-scale venue seating just over ticket prices between $5 - $20 per event 2,500, and delivers 120+ concerts, movies, plays and live performances each year; venue has a strong following and • Downtown home of the actors summit (theatre) and Akron attracts/books desirable smaller niche acts Symphony Orchestra, help to solidify downtown’s presence as Akron’s cultural arts home • Greystone Hall seats approximately 600 for smaller theatre, banquet and conference events, offering a good historical venue for smaller events

Weaknesses:

• Limited large gatherings during winter months • Downtown Akron does not have an enclosed sports venue entertainment calendar, due to lack of an enclosed facility and must rely on use of oaf jar arena (5,500 capacity), limiting that can seat more than 2,500 (Akron Civic Theatre); indoor the city’s ability to attract a minor league hockey team, events requiring more than 2,500 must be hosted at smaller college tournaments, high school University of Akron (Jar – 5,500 or EJ Thomas – 2,950); small games/tournaments, or indoor regional sporting events scale of both downtown and oaf enclosed facilities limit Akron’s ability to recruit big-name talent/performances • Access to nightlife by most University of Akron students is between September and May limited by the distance and the need to cross busy streets (Broadway and High) from on-campus housing; in contrast, • John S. Knight Center (123,000 sq. Ft., with 43,000 sq. Ft. Of proximity of oaf students and their presence at nightlife exhibit space) is a state-of-the art small regional convention venues negatively diminishes “adult” perceptions of the center that hosts 185+ events/year with an average venues on Main/Paul Williams between exchange and cedar attendance of 2,200+/event; the facility is severely handicapped regarding convention recruitment given only a • Lack of a permanent home for the Akron Symphony single hotel – Akron City Center Hotel - (less than 250 Orchestra diminishes its downtown presence (splits time rooms, and in desperate need of renovation) is downtown between Akron Civic Theatre and E.J. Thomas Hall)

• John S. Knight Center and the single downtown hotel are not within a desirable walking distance to most of the downtown’s restaurants, nightlife and entertainment

• Growing downtown visual arts community lacks a “home”, as many artist studios and galleries are not co-located, thus minimizing their impact and a “sense of place”

• Distance between Main & Exchange and the Historic District and lack of amenities between them minimizes ability or desire for visitors/patrons to park once and experience both ends of downtown

b. Hospitality

Downtown Hotel Offerings, Include: • Only 5% Of Summit County’s hotels are located in downtown Akron, compared to other large Ohio cities, who • City Center Hotel – A 240+ room hotel, which is in dire need average just over 20% of their respective county’s hotel of renovation inventory

• Quaker Square Inn – mixed use student dormitory and 65 • The majority of Summit County’s hotel inventory is within room hotel, hotel portion will close in summer of 2013 to fully Akron’s city limits (24%), Fairlawn (14%) and Cuyahoga Falls convert to student housing (7%)

Strengths • The highest quality hotel inventory is in Fairlawn (Hilton and Doubletree) and Cuyahoga Falls (Sheraton Suites), thus • Rumored plans for new hotel to be built in downtown attracting the majority of business travelers

• Higher Summit County bed tax rate (8.5%, compared to # Of Rooms % Of Total Cuyahoga County at 7.5%) is offset by no parking taxes (Cuyahoga County has an 8% parking tax) Akron Downtown 243 4.92% Akron 1,175 23.80% • Lower Summit County Sales Tax 6.5% versus 7.75% in Akron Airport 289 5.85% Cuyahoga County Fairlawn 667 13.51%

Weaknesses: Cuyahoga Falls 340 6.89% Hudson 325 6.58% • By summer, downtown will be limited to approximately 240 Stow 248 5.02% hotel rooms, well below the needed capacity to support the Rest Of Summit 1,650 33.42% John S. Knight Convention Center, The University, business County travelers and visitors TOTAL 4,937 100.00%

* Includes Twinsburg, Richfield, Northfield, Macedonia , Barberton, • The City Center Hotel is having difficulty securing the needed Peninsula, Uniontown, Bath, and Green loans to begin the facility’s needed renovation Source : Boulevard Strategies, The Akron/Summit Convention and Visitors Bureau and various websites

5. Downtown Retail Mix & Performance

a. Current Retail Mix

Downtown Retail & Restaurant Locations (SID)

Key Geographical And Location Points:

• Majority of offerings are located on Main Street, between Cedar and Church • Primarily food offerings (16) • Very limited retail service offerings • Limited retail stores offerings (5)

• Some offerings are not located at street and are located within buildings (i.e. Cascade Plaza, or buildings with large employment bases)

• Most offerings are clustered within 2-3 block runs that appear to loosely define a district/area (Lock 3, Main & Exchange, Northside, government, Market)

• Downtown area with predominantly government buildings/workers has very limited retail/restaurant offerings

Key Restaurant Downtown Offerings, Include:

Restaurant Offering, By Category: Strengths:

• Fine Dining – DBA • High quality independent restaurants create strong downtown dining destination • Sit Down Dining – Akron City Club Bistro, 3 Point, Bricco, Cilantro, Crave, House Of Hunan, Luigi’s, Spaghetti • Good mix of restaurant types, styles, price points and ethnic Warehouse offerings

• Bar/Pub – Barley House, Baxter’s, Brubaker’s, The Lockview, • Menu offerings between restaurants are unique and minimize Paolo’s competitive positioning between downtown restaurants

• Canal Park – The Game Grill + Bar (breakfast, lunch and • Offering of reasonably priced valet parking by some dinner), The Duck Club (special event, meeting and private restaurants emphasizes convenience of dining downtown parties) – to open Spring 2014 • Luigi’s is a strong anchor for the Northside District, helping to • Fast Causal – 121 Café, Hattie’s Café, Davinci’s Pizza, build its presence Diamond Deli, Einstein Bros. Bagels, Joann’s Café, Pita Pit, Primo's Deli, Stew Pot Kitchen, Sweet Treats Grill, Urban Eats, Wafa’s Weaknesses:

• Fast Food – Jimmy John’s, Subway, Quizno’s, Eddie’s Famous • Restaurant mix is lacking in the following flavor profiles/styles Cheesesteaks – breakfast, burger, ice cream/yogurt/sundry, smoothie, Latin, Mexican, Korean, seafood, steak, wings, diner, brew • Coffee – Angel Falls, Damascas Road, Starbucks pub, wine bar, spirit bar, on premises coffee roast/service, BBQ, chicken, bakery, gluten-free, vegetarian, and European

• Fine dining category is limited to DBA, and is missing an upscale steakhouse and/or seafood restaurant

• Fast casual category is missing key offerings in the following • Visibility of some restaurants is limited by being located – Mexican (Chipotle-like), Italian (Piada-like), Sandwich inside buildings, one-way/in-flow/out-flow streets, and lack of (Panera-like), and Burgers (5 Guys-like) signage perpendicular to oncoming traffic (blade signs)

• Akron is home To 3 well-known growing breweries (Thirsty • Downtown lacks a formal “restaurant district”; restaurants Dog, Ohio Brewing And Hoppin’ Frog) who do not have a are located in 4 clusters – Northside (Luigi’s), Main & physical presence Downtown; This is a missed opportunity, Exchange, Lock 3 (Baxter’s, The Lockview) and Market St. (3 given growing desire of consumers to consume/support local- Point, Crave, Urban Eats) made products • A few Downtown restaurants (Lockview, Baxter's, Brewbaker's, • Cult/well-known Akron restaurant offerings lack a downtown Etc.) Have a limited menu offering due to the high costs presence, including – Swenson’s, Wally Waffles, Mary Coyle, associated with adding a hood and sprinklers; the lack of a Crest Bakery, Winking Lizard, Pav’s Creamery, Nervous Dog downtown grant/loan program to assist restaurant owners in Coffee Bar, Skyway, and Mustard Seed Market & Café expanding their kitchens should be considered

• A variety of Cleveland-Area restaurants (most have multiple • Costs/hassles associated with on-street parking is a deterrent locations in the region) do not have a presence in to some workers for venturing beyond their work locale for Akron/downtown, including – Panini’s, Great Lakes Brewery lunch; most don’t want to pay more to park, given they have & Pub, Lolita’s, B Spot (Burgers), Inferno Gourmet Burgers, already invested in workplace parking Brown Bag Burgers, Dave’s Cosmic Subs, Burgers 2 Beer,

• Flour, Happy Dog, Melt Bar & Grilled, Pickwick & Frolic and Eatn’Park

• A variety of Columbus, Ohio-based restaurants which have a strong regional/national presence, such as Bravo and Brio, Hyde Park Prime Steakhouse or Cameron Mitchell Restaurants (Cap City Diner, Marcella’s, Ocean Club, Martini, Molly Woo’s, The Pearl), and Piada (Fast Casual Italian) lack any Akron/Downtown presence

• Downtown hosts a National Hamburger Festival each year, yet Downtown is lacking several strong burger offerings

Key Retail Store Downtown Offerings, Include:

Retail Offerings By Category: Strengths: • Arts – Akron Art Museum Store, Akron Glassworks, Architectural Greenery, Summit Artspace, We Gallery, Zeber • Retail of the arts downtown and at University of Akron is Martell Clay Studio, Fred Yoder Studio, Magoun Pewter representative of high quality, well-known artists in region who have a strong following • Florist – Akron CitiCenter Florist, Klaus Wildflower • Emerging downtown independent retail presence • Specialty Apparel – NOTO Fashion Boutique, Rubber City Clothing • Competitive and reasonable price points

• Jewelry – CL Davis Jewelers • High degree of personal service offered by downtown independent retailers downtown does differentiate their • Specialty Food – The Peanut Shoppe, The Pie Factory at businesses from chain retail Quaker Square, Western Fruit Basket, Insomnia Cookies Weaknesses: • Books/Periodicals– UA Barnes And Noble, Akron Tower News, Library Shop On Main • Lack of density/concentration of retail shops downtown does not encourage parking and walking downtown to shop; given • Gifts – Grismer’s Christian Gifts, Invent Now Museum Store, lack of retail density/clustering, consumers must move their Children’s Hospital Gift Shop, Everything Akron cars to shop at multiple retailers thereby creating a perceived cost deterrent • Drug/Pharmacy – CVS/Minute Clinic • Retail mix is lacking in the following categories, that could • Music – Classic Pianos find success downtown – specialty apparel (men, women, children, maternity, intimate, formal/bridal, fitness/yoga), • Sporting Goods – Infield Outfitters, Car Gear, Bike Kitchen fashion accessories, upscale kitchen, hobby/craft, pet accessories, health/beauty, artisan chocolate/candy, home • Convenience – Avenues, Main Street Market décor and accessories, convenience store, gifts/cards, specialty food, and specialty wine/beer

• Lack of any well-known branded and successful local/regional retail offerings within the Akron/Canton or Cleveland-Area are located Downtown, such as – Fannie May Chocolates, Harry London Chocolates, Gervasi Wines, Revival, Elemental Arts, Details, Fibres, Le Gourmet Chef, You Two, Style Mutt, Solari, Mullholland & Saks, Jake’s Good Life, Country Blues, Block Brothers, All Brides Beautiful, Big Fun and Kitsch City

• Lack of depth within any retail category, minimizes perception of downtown as a shopping destination

• One-way/in-flow/out-flow streets minimize ability to locate retail stores and find suitable convenient parking (especially

for those who do not work/live downtown)

• Weak visibility of retailers at street/drive-by, with some are

located inside buildings further weakening visibility

• Lack of a downtown retail incubator to grow/nurture local retailers

• Lack of formal/high density downtown “arts district”, with a high concentration of artists, studios and galleries

Key Retail Services Downtown Offerings, Include:

Retail Services Offering, By Category: Strengths:

• Personal Services – Akron Electric Tattoo, A’Nival Salon • Access to banks and ATMs is plentiful Gallery, The Beauty Lounge, Chic Diverse, Tammy O’s Hair Salon, Canal Place Barber Shop Weaknesses:

• Fitness – Citicenter Athletic Club • Limited retail service offering mix, and lacking in the following categories – photography, photocopy/fast print, • Photography – Carmen Studio tailor/seamstress, shoe/leather repair, optometrist/eyeglasses, brokerage/investment, upscale • Financial – Charter One, Chase, FifthThird, FirstMerit, salon, upscale spa, tanning salon, mail/pack, fitness, Huntington, KeyBank, PNC, US Bank decorator, music/dance studio, daycare/nursery, post office, and cooking classes

• Lack of density/concentration of retail services downtown near high concentrations of daytime workers

• Lack of depth within any retail services category, minimizes perception of downtown offering convenient “do-it-for-me” or “make-it-easy-for-me” services

• Weak visibility of retail services at street/drive-by, with some are located inside buildings further weakening visibility

• One-way/in-flow/out-flow streets minimize ability to locate retail services and find suitable convenient parking (especially

for those who do not work/live downtown)

b. Merchant Interview Results

20 Merchants Were Interviewed - 10 Sit-Down Restaurants Quality Of Food, Superior Customer Service, Unique and 10 Retail Shops Products Most Often Cited As Competitive Advantages

• Results varied on many items between these 2 types of • Customer base is 57% female, median age 38 merchants • Typical downtown merchant reinvests about 1% of its • Median of 8 years in business, 4 years at current location revenues into advertising and marketing (3% of sales is average for all retailers and restaurants, according to • 95% rent their spaces, 95% are independently-owned Advertising Age) businesses • 95% have a website but only 30% are e-commerce ready, • 40% closed on weekends, 20% open everyday 85% use social media marketing

• 81% of competitors are other independents, 44% of competitors are other downtown businesses

• 12 most visited businesses in downtown (according to merchants) are all restaurants and bars

Typical Restaurant/Bar Vs. Typical Retailer, Downtown Akron

Restaurant/Bar Retail Shop

Square Feet 3,200 1,100

Annual Transactions 30,000 4,200

Average Transaction Size $23 $36

Annual Sales $685,000 $150,000

Sales Per Square Foot $215 $136

Rent Per Square Foot $15 $11.50

Rent-To-Sales Ratio 7% 8.5%

Ad/Marketing Spend $7,000* $1,500*

Ad % Of Sales 1% 1%

Full-Time Staff 10 2

Part-Time Staff 9 5

Sales Per FTE $47,000 $33,000

Open Hours/Week 71 42

Transactions/Hour 11 5

* Roughly half of merchants interviewed spend less than $1,000 per year on advertising

Top Downtown Strengths As A Place To Operate A Business: Top Downtown Challenges:

• Variety of attractions/events (parks, festivals, baseball • Parking problems (40% of customers park more than 1 block games, museums, theatres, galleries, etc.) from destination, dislike garages, back-in parking, etc.)

• Clean & safe ambassador program • Small downtown residential market

• Critical mass of restaurants and bars • Panhandlers/safety perceptions

• Central location/easy access from anywhere in county • Lack of retail shops/limited store hours

• Office workers/growing tech corridor • Blighted vacant properties

• University of Akron presence • High asking rents

• Downtown Akron partnership/support from city • Distance between activity centers

• No downtown hotel

Merchant’s Suggestions For Improvement Include: Merchant’s Ideas For New Downtown Retail Businesses Include: • Recruit more retailers & restaurants (see below)

• Improve parking situation (signage, free parking during lunch Food Non-Food hours, designated employee lot)

• Add more residential units for young professionals Upscale Steak/Seafood Restaurant Apparel

Mexican Restaurant* Grocery Store • Relocate sources of panhandling from downtown Coffee Shop Drugstore • Market downtown to the suburbs Breakfast Diner/Café More Art Galleries Stores need to stay open in evening/weekends • Burgers/ Better Fast Casual Upscale Beer/Wine Shop Restaurants • Fix or demolish blighted buildings *Interviews took place prior to opening of Nuevo Modern Mexican

• Several merchants mentioned that they wished Swenson’s would locate downtown

c. Shopper Survey Results

Overall Average of 443 Responses Per Question (4.6% 22% who eat at a downtown sit-down restaurant at least 5 Standard Margin of Error) Using Survey Monkey (2013) times a month (frequent patrons or “regulars”)

• 71% of respondents identified themselves as downtown • 89% of downtown workers purchase takeout food for lunch employees at least occasionally; 58% of traffic accounted for by 24% that eat takeout food at least 5 times a month • The other 29% believed to primarily consist of downtown venue and event visitors • Downtown workers eat dinner in downtown on average of 1 time per month; 41% almost never eat dinner in downtown • Few college students or downtown residents in sample and Akron both of these groups overlapped with downtown employees • Downtown employees are 20% more likely to go out for a drink in downtown than dinner (1.2 times per month, on average) Downtown Employees Consist of 65% Females, Median Age 46, 35% With Children at Home, 61% Own at Least • 52% of downtown employees go out for a drink after work One Pet, 97% Work Full-Time in downtown at least occasionally but 36% of visits are accounted for only 5% of patrons (“regulars”)

• They visit downtown an average of 1.4 times a month on

weekday evenings and 1.2 times per month, on average, • Downtown employees visit downtown retail shops only 0.8 times per month; 59% almost never visit downtown during warm weather months retailers

• 44% of downtown employees rarely or never visit

downtown on weekday evenings and 29% do not visit • 65% of downtown employees attend arts and cultural events held downtown at least occasionally downtown on weekends

• Food-related concepts that downtown workers would most • They go out for lunch 6 times per month, on average, 3 like to see (in order of most votes) include Fast Casual times for dine-in visits and 3 times for take-out orders Chain, Mexican/Southwestern Cuisine (this has been

addressed with soon-open Nuevo Modern Mexican at High • 79% of downtown workers dine at a downtown restaurant and Mill), Small Independent Grocer with Fresh Produce, at least occasionally but 64% of lunch traffic is driven by the Full-Service Breakfast Café, Ice Cream/Yogurt, Bakery,

Convenience Store, Seafood Restaurant, Coffee Shop, and • They visit downtown 1.1 times per month to have drinks, Micro-Brewery/Craft Beers 10% more than they visit downtown to have dinner

• In terms of non-food retailers they’d like to see downtown, • Downtown visitors visit a downtown retail shop only about workers are pragmatic; their list includes (in order of most 0.6 times per month, with 68% almost never shopping in votes) Drug Store/Pharmacy (No. 1, by far), Gift/Card Shop, downtown Upscale Thrift Boutique, Fitness Center, Upscale Spa/Salon, Women’s Fashion Accessories, Florist, Office/Computer • 73% of “all other respondents” attend downtown arts and Supplies, and Bath and Beauty Products cultural events, at least, occasionally

• Downtown employees are heavy users of social media such • In terms of food-related concepts they’d like to see in as Facebook, LinkedIn, Pinterest, and Twitter, compared to downtown Akron, downtown visitors would like to see U.S. adult population, in general; 74% are on Facebook vs. more variety of dining options, according to their votes: 67% of all American adults Mexican/Southwestern (which has been addressed –see above), Seafood Restaurant, Small Independent Grocer, All Other Respondents, Or Downtown Visitors, Are 55% Micro-Brewery/Craft Beers, Fast Casual Chain, Diner, Females, Median Age Of 51 (43% Over 55), High % Live In Mediterranean/Greek Cuisine, Barbeque Restaurant, Full- Empty-Nester Couple Households, 62% Have At Least One Service Breakfast Café, and Bakery Dog Or Cat, Longtime Residents, 75% Employed Fulltime • They favor more shopping goods in terms of non-food • They visit downtown 1.6 times a month, on average, on retail: Upscale Thrift Boutique, Drug Store/Pharmacy, Art weeknight evenings during warm weather months, 2 times Gallery, Upscale Salon/Spa, Women’s Accessories, Second- per month on weekends Hand Furniture, Antique Store, Florist, Fitness Center, and Gift/Card Shop • Downtown visitors go downtown for lunch or breakfast about once a month, with 80% of visits for dine-in and 20% • All other respondents are relatively light Facebook for takeout food; less than 5% eat lunch downtown on a participants (58% vs. 67% of all American adults) but frequent basis (i.e. 5+ times per month) above–average users of LinkedIn, Pinterest, and Twitter

• “All other respondents” patronize downtown for dinner Akron 1 time per month, on average, the same as downtown employees

Respondents Were Asked To Rate Their Level Of • Only about half of respondents report that they usually run Agreement Or Disagreement With 13 Attitudinal into someone they know when they when they visit Statements About Downtown And Their Shopping Habits. downtown Akron in the evening or on the weekend; this is Highlights Include: fairly low, likely due to suburban sprawl in Summit County

• Akronites love to dine outdoors in nice weather (83% in • 22% of all respondents, and 47% of respondents under age agreement, highest of any statement) 40, report that they would at least consider living in downtown Akron if housing in their price range were available • Over 2/3 of respondents (68%) claim to prefer to shop at unique, locally-owned shops versus national and regional chain stores • 69% believe that, overall, downtown Akron is headed in the right direction; 22% are neutral and 9% disagree

• However, close to half of respondents are mostly driven by prices when spending retail and food dollars; this is especially true of the downtown workers that responded to the survey

• Downtown workers do a high percentage of their shopping

online, especially for clothing; online retail is a key invisible

competitor for downtown retail shops, particularly for

office workers in front of computer terminals all day

• Downtown visitors are interested in attending more arts and cultural events in downtown (75% in agreement)

• About 60% of respondents agree that the presence of college students adds positive energy and vitality to downtown Akron (5% of respondents are currently attending college; most students in sample also work downtown)

d. Retail Real Estate Analysis

Occupied Vacant

Avg. Rent/Sq. Total Est. Sq. District # Est. Sq. Footage Typical Rents Est. Sq. Ft. % Vacant Ft. Footage

Canal 33 115,000 $14.50 $11-$18 30,000 21 145,000

Cultural Historic 37 55,000 $15.50 $11-20 75,000 58 130,000

Northside 8 20,000 $11.75 $8-$15 10,000 33 29,000

TOTAL 78 190,000 $14.5o $10-$18 115,000 38 305,000

SOURCES: Downtown Akron Partnership and Boulevard Strategies *Businesses located outside of DAP SID boundaries not included

• The table above reflects a recent inventory of first floor spaces average, versus, 1,800 square feet, on average, for the rest of compiled by DAP, both occupied and vacant. Information about downtown). the space (size, rent) was provided by 32 business owners. Boulevard Strategies used this data to derive the estimates • Downtown Akron has about 115,000 square feet of vacant first presented below. Charts that display the 3 Districts can be seen in floor commercial space (38% of all retail space in downtown). Chapter 6, Retail Recommendations (p. 83-86). This is a "rough estimate" in that it is not known how large some of the vacant spaces are and how user-ready they are. It is also • Downtown Akron currently has 78 retail and restaurant likely that a portion of downtown's vacant storefronts will be businesses, occupying an estimated 190,000 square feet of space. eventually leased to non-retail entities, even if this is not DAP's The average size of a downtown business is about 1,400 square preference. feet. • Downtown Akron has an estimated 305,000 square feet of retail • A majority of downtown Akron's retail and restaurant space is space, counting both occupied and vacant properties. Note that it located in the Canal District (61% of occupied space, 52% of all is much smaller then Summit Mall (1.2 million square feet) and retail space). Its businesses tend to have larger footprints than Chapel Hill Mall (860,000 square feet). Downtown must find niche those located in other downtown districts (3,500 square feet, on retailers and independent restaurants to lease it unoccupied

space as it is not positioned to go head-to-head with mall retailers and chain restaurants.

• Overall retail rents for downtown average $14.50 per square foot, with a majority of spaces priced at $10 to $18 per square foot.

• Foodservice tenants are popular with landlords because they occupy larger spaces, 3,200 square feet, on average) at higher rents ($15 per square foot, on average), compared to 1,100 square feet at $11.50 per square foot for retail uses. This gives downtown property owners a strong incentive to seek restaurant tenants although build-out costs are usually much higher than for retailers.

• Foodservice tenants, ranging from upscale restaurants, quick- casual and fast food to bars and coffee shops outnumber the number of non-food related businesses in downtown Akron 50 to 28, almost 2 to 1. Foodservice establishments occupy over 80% of

downtown Akron's retail space.

6. Stakeholder Perspectives

a. Participating Stakeholders, To Date

• Denise Armstrong, McKinley, Inc. • Brad Beckert, City Of Akron Planning • Joash Bloom, Schipper Group • Jen Fox And Don Pavlik, PNC • Eric Green, University Of Akron (Student Services) • Sue Hobson, Akron General Medical Center • David Jennings, Akron-Summit County Public Library • Connie Krauss, County of Summit Economic Development • Dave Lieberth, former Deputy Mayor, City of Akron • Laurie Madden, University Of Akron (Auxiliary Services) • Gregg Mervis, Akron-Summit County CVB • Brian Moore, Roetzel & Andress • Kyle Kutuchief, Austen Bioinnovation Institute in Akron • Howard Parr, Akron Civic Theatre • Rose Pfieffer And Beverly Shull, Zion Lutheran Church • Rick Rebunow, Greater Akron Chamber Of Commerce • Dan Rice, Ohio & Erie Canalway • Gary Rickel, CBRichard Ellis • Sue Ritzman, GoJo Industries • Melissa Rossi, 22 Exchange • Jason Segedy, AMATS • Mike Trainer, Akron Children’s Hospital • Tony Troppe, Developer • Betty Wilson, Akron Art Museum

b. Perceived Downtown Strengths

• Variety of dining and entertainment venues

• Downtown is Akron’s gathering place

• Abundant sports and recreation opportunities

• Growing university of Akron presence

• Clean and safe efforts

• Central location

• Parking problems/perceptions

• Pleasant pedestrian experience

• Large, diverse daytime marketplace

• Downtown collaborative spirit

c. Perceived Downtown Challenges

• Lack of retail shops

• Lingering negative perceptions from the past

• Parking problems (perceived and real)

• Lack of private investment/development

• Lack of visitors amenities (hotel)

• Dis-connectivity (physical layout)

• Fledgling residential market

• More support for the arts needed

• High costs of doing business downtown

• 1-way streets/traffic patterns

d. Visions For Downtown Retail

About 2/3 Of Stakeholders Interviewed Believed That General Consensus Is That Downtown Has A Great Mix Of There IS A Market For More Downtown Retail Shops, Now Dining And Entertainment Venues, But Could Use More

• But, most believe this is limited to convenience goods and • Goal is for downtown to become a restaurant destination for services categories (convenience store, drugstore, metro area diners, not so dependent on lunch and events cards/gifts/flowers, retail services, fast food) • Missing pieces include a breakfast diner, more ethnic choices • Only 20% believe there is a market in downtown for shopping (Mexican, Indian, etc. barbeque, seafood, more fast-casual goods retail (home, fashion, leisure goods), especially if places, more live music clubs, and more art galleries marketed to students/young adults • Several stakeholders expressed desire for more affordable, • About 1/3 believe more residents and a hotel are needed family-oriented fares before more retail shops can be supported downtown

• Several stakeholders mentioned the idea of a retail incubator for start-ups

e. Perceived Obstacles To Success

Stakeholders Identified The Following Obstacles To Developing Downtown Akron In Line With Their Visions

• Financing/Lending ($$$) • Need more participation from private sector

• Not much land available for new development • But, plenty of redevelopment opportunities and existing vacancies

• Size/topography of downtown

• Needs to be broken into clusters

• Parking problems • Mostly perceived, but there are real issues

• Leadership/Energy/Cooperation • “Past 15 years have been great, but now we have to continue on same mission for another 15 years”

7. Recommendations & Conclusions

6. Recommendations & Conclusions

a. Goals to Achieve Downtown Retail Success Goal 6: Increase Downtown Residential Density and Income Base Goal 1: Create (Reinforce) a Brand for Downtown Akron Build your residential density to grow your downtown customer base. “Who is downtown Akron and what is it known for?” Does it tie

into its ‘rubber roots’ or something else? Goal 7: Strengthen Existing Downtown Retail Goal 2: Define Downtown as a Blend of Unique Themed Businesses Keep an open dialogue between downtown business and Districts property owners and local organizations. Implement technical Create strong retail, venue and entertainment clusters that assistance programs to aid existing businesses in achieving have a unique feel and focus. long-term success.

Goal 3: Increase Awareness of Downtown Akron as a Goal 8: Cultivate New and Independently Owned Visitor, Shopping & Entertainment Destination Downtown Retail Businesses Leverage your venues, history and events to attract people Cultivate new businesses to spur additional economic growth. downtown. Develop a retail incubation program to encourage downtown

entrepreneurial start-up and growth. Goal 4: Promote Downtown, It’s Districts and Retail Consistently promote downtown Akron to attract the “best” Goal 9: Identify and Create Downtown Financing, consumers that will enhance economic activity. Incentives and Grants

What does the downtown have to offer retailers to make them Goal 5: Improve Downtown Akron’s Physical Image and competitive in the Akron region? Visibility Place a priority on improving downtown’s image and visibility Goal 10: Create a Single Stream of Communication & through a holistic downtown enhancement program (i.e. Process For Marketing & Economic Development blighted properties, empty storefronts, signage, parking, etc.). Simplify the navigation process/channels for potential new

business investigation and recruitment.

b. Downtown Marketing & Operational Initiatives

1. Create (Reinforce) a Brand for Downtown Akron • University of Akron Students/Faculty/Staff: UA identification • Develop a strong, unique and easily identifiable downtown could be used to trigger a number of promotions and brand that reflects both the heritage and destination factors of discounts aimed at students, staff and faculty. Downtown downtown, and proposes a specific value proposition. events should be planned for Freshmen Orientation, Back- to-School, Homecoming, March Madness, and Spring • Ensure that the downtown brand is a holistic, but reflective Graduation to welcome students, parents, and alumni. of the unique characteristics of downtown's districts. • Close-In Residents: Mix socialization and commerce at • Use brand elements (image, voice, personality) over and over interesting downtown venues. Downtown is in the infancy and over of its residential growth. This means a lot of folks new to the downtown community will be moving in. A Welcome Package full of discounts and coupons for downtown 2. Develop Promotions Around Each of Downtown’s 5 businesses should be distributed to realtors and property Market Segments managers to give to new residents.

• Workers: Specific promotions should address the following • Metro Shoppers/Diners: This group has the most upside of opportunities: the 5 market segments for downtown merchants. However, none of them individually has the budget to effectively • Entice those who dine out/buy takeout food only on advertise on a regional level. There needs to be a joint occasion for lunch (57% of all downtown workers or effort to tackle this job. We recommend that a downtown 15,000 workers) to eat out more often. merchant’s association be formed to address this need.

• Encourage daytime workers to stay after work for • Visitors: Be sure to promote downtown retail wherever happy hours, dinner, and/or shopping. visitors gather -- the airport, hotels, the Convention Center, downtown attractions and events, University of Akron venues, etc. DAP can work with its partners at the • Heavy use of social media to get the word out. Convention Center, the new hotel, and downtown dining

and entertainment venues to create packages for specific • Couponing and other discounts to capture more groups of visitors. A restaurant rack card/display should be spending from price-sensitive consumers (40%). created for hotel lobbies and other visitor spots. Downtown • Facilitate company-specific promotions with select

Akron should also be branded as a visitor destination to those outside of Summit County.

3. Re-Define Downtown as a Blend of Unique Themed Districts

• Create small districts that encourage clustered density of offerings (i.e. restaurants, arts, entertainment, bars, retail shops, etc.); districts should be known for their focused category of offerings, thereby making it a destination

• The Canal District

• The Historic and Cultural District

• The Northside District

Each District is described in the pages that follow.

4. Create A Promotional And Events Calendar That Fills All • Provide modest low-interest loans to assist downtown 12 Months Of The Year To Build Community Perception businesses with start-up costs (including vent That Downtown Is Open "All Year." hoods/sprinklers/grease traps for restaurants)

• Promotion of downtown should be a co-operative effort 7. Market Downtown Akron As Another Profit • This includes the County, the City, Convention & Visitors Opportunity For Existing NE Ohio Bureau, visitors/relocation guides, Beacon Journal Retailers/Restaurants/Franchises publications, and regional/suburban newspapers, and other media • Downtown Retail Recruitment Needs:

• Anchor - Public Market 5. New Business Attraction and Recruitment • Retail - Convenience, Pharmacy, Art Galleries/Shops, • Create marketing brochure (Print/PDF) and dedicated Small Independent Grocery, Hobby, Specialty downtown retail website (www.shopdowntownakron.com, Gifts/Cards, Specialty Home Decor/Furnishings, for example) that targets retail businesses, including: Apparel/Accessories (including bridal, maternity, yoga), Artisan Chocolate, Specialty Wine/Beer • Profiles of 5 market segments (size, characteristics, spending power) o Local/Regional Offerings - Fannie May, Harry London, Gevasi Wines, Revival, Elemental Arts, • Profiles of 3 retail districts -- "Where does my Details, Fibres, Le Gourmet Chef, You Two, Style business fit?" Mutt, Solari, Mulholland & Saks, Jake's Good Life, Country Blues, Block Brothers, All Brides Beautiful, Big Fun, Kitsch City, Goodyear Store (?) 6. Lure Start-Ups With How-To-Get-Started Primer & Detailed Contact Information • Personal/Retail Services - Spa, Salon, Nail, Tanning, Fitness, Eyewear, Photographer, Dry Cleaner, • Widely distribute to network of real estate Tailor/Seamstress, Decorator, Mail/Pack, developers/brokers/agents, banks/lenders, SCORE/SBA Brokerage/Investment, Daycare/Nursery, Post Office officials, Chamber/ED agencies, business schools, etc. • Restaurants - Fast Casual Formats (burger, sandwich, • Develop a retail pop-up program with 1- 2 willing property vegetarian), Ethnic (Latin, Korean, European), Fine owners -- temporary leases at reduced rates Dining (seafood, steak) Sweets (ice cream, frozen Downtown Akron Retail Market Analysis / CONFIDENTIAL© Boulevard Strategies. All Rights Reserved, 2014. 03.12.2014 79 Downtown Akron Retail Market Analysis

yogurt, sundries), Coffee, Drink (juice, smoothie) Bakery, 8. Retention of Existing Retail Businesses Beer/Spirits (pub, wine bar, spirit bar, gastro pub), Food Styles (wings, diner, BBQ, gluten-free, vegetarian). • Assist in organizing Downtown Merchants Association (DMA) o Local Merchants - Swenson's, Wally Waffles, o Primary focus would be downtown-wide Mary Coyle, Crest Bakery, Pav's Creamery, marketing & promotions Nervous Dog Coffee Bar, Skyway, Mustard Seed Market & Cafe. o Would also serve as vehicle for the implementation of DAP retail initiatives o Cleveland Merchants - Panini's, Great Lakes Brewery & Pub, B Spot (Burgers), Inferno o This group should develop downtown gift card & Gourmet Burgers, Brown Bag Burgers, Dave’s discount program tied to downtown branding Cosmic Subs, Burgers 2 Beer, Four, Happy Dog, (mobile app?) Melt Bar and Grill, Pickwick & Frolic, Eat n' Park, Cleveland Pickle. o Do Downtown card program should be re- evaluated o Columbus Offerings - Piada, Graffiti Burger, Rusty Bucket, Mitchell Restaurants (The Pearl, o Another initiative of this group could be to Martini, Marcella's, Molly Woo’s) promote later and weekend store hours by encouraging a group of business owners to stay o Franchise Opportunities - Bar Louie, Aladdin’s, open, perhaps one night a week, instead of Johnny Rockets (Burger Joint), Fuddruckers, individual shops and restaurants trying to go it Great Steak, Menchies (frozen yogurt), Sunny alone. Street Cafe, My Camille's, Panera, Bruegger's, BW3, Firehouse Subs, Nathan’s Famous, many • Schedule quarterly check-in visits with each downtown others retail business

• Entertainment - Smaller live music venues, 10,000- o This may not be necessary for more established 15,000 seats arena, establish a permanent downtown businesses but is important for businesses in home for the Akron Symphony Orchestra, Bowling, those critical first three years “getting over the Game Arcade, Children’s’ Attractions. hump”

• Provide (with DMA) with retail technical assistance • Develop financial/tax incentives to recruit young families o Contests/recognition/prizes for best makeovers and professionals to live downtown o Quarterly training/seminars/one-on-one consultations/workshops • Create/adapt renovation incentives (down payment assistance, façade landscaping grants, major systems renovation grants, no-low interest loans) 9. Identify and Create Downtown Financing, Incentives & Grants • Develop a timeline and assistance program to address blighted downtown properties and underutilized/empty • Develop a tax incentive program targeted at property owners to storefronts offer special/reduced rates to local/artist/ start-up retail • Consider developing TIF (tax increment financing) districts to fund infrastructure, beautification, streetscape and • Offer restaurant capital investment funds and/or leasehold signage improvements, housing retail/development agreements for building improvements (sprinklers, vent hoods, grease traps, etc.) via grants or low cost loans • Development incentives on “catalyst” public-owned sites

• Create a retail interior improvements grant program to help • Encourage façade, storefront and building improvements; retail shops create a unique shopping experience (i.e. could matching funds for renovation or installation of awnings be used for retail consultants, materials, contractors, etc.) and signage in compliance with downtown design standards • Identity 1-2 property owners willing to participate in a “Retail Pop-Up” program; offering start-ups temporary • Approach Cascade Capital about assistance in creation of a space and free/reduced rent for 6 months to fill vacant funding source (Linked Deposit program?) for downtown spaces and provide property owners with some income development

• Work with City and County in developing tax incentives for hiring, adding downtown jobs

• Evaluate tax rebates on improved property values

• Provide modest low-interest loans to assist new downtown businesses with start-up costs

10. Other Suggestions for Improvement

• Retail is NOT a catalyst o Encourage use of alternative transit -- bicycles, o It must have markets to react to. trolleys, buses, etc. Encourage major employers who subsidize parking for their employees to o Downtown housing, hotel(s), indoor event offer the same re-imbursement for those who facility/arena, permanent public market, artist take the bus to work. colony/lofts, historic preservation/renovation are types of development that will add to retail • Improve streetscape/appearance spending in Downtown Akron. o Beautification, paving of surface lots, more • Be realistic on rents outdoor patios/sidewalk cafes, more outdoor decor/public art, street musicians/entertainers, o If chains are not interested, is rent affordable for blade signs, sandwich boards are needed. a start-up business? o Gateway signage (Downtown), directional o Can space be sub-divided to accommodate signage, trolley shelters, wayfinding are lacking smaller stores? Can the lease terms be shorter? for visitors. Note that some of this can be accomplished with mobile apps in addition to • Parking, parking, parking... physical signage.

o This is a common issue for almost all downtowns. o Minimize "empty teeth" on street and develop Several issues were identified by stakeholders, empty lots/blight to create visual interest and merchants and consultants within this report. A encourage walkability. formal downtown parking study is recommended. o Tie 3 Districts together with a trolley or circulator bus to maximize downtown’s walkability and o Signage, free parking at lunch, and a designated access. retail/restaurant employee lot/shuttle are ideas worth exploring. Back-in parking needs re- evaluation or how-to education to drivers.

8. Appendix

a. Downtown Akron Consumer Survey 2013 Highlights

About the Sample

• Average of 443 respondents per question = 4.6% standard margin of error Downtown Workers vs. All Other Respondents • 71% are downtown workers • 5% are currently in college Downtown All Other Demographic Profile • 5% not employed/retired Workers Respondents • Only 5 downtown residents responded % Females 65 55

Ohio Demographic Profile Sample Index % Under Age 40 33 25 Benchmark % 40-59 42 32 % Females 62 51 122 % 55+ 25 43

% Under Age 40 30 36* 83 % 40-59 40 28* 143 Median Age 46 51 % 55+ 30 36* 83 Average HH Size 2.76 2.46

Median Age 47 46* 102

% 1-Person HHs 15 23

Average HH Size 2.68 2.44 110 % 2-Person HHs 36 39

% 1-Person HHs 17 29 59 % with Children 35 24 % 2-Person HHs 37 49 76 % with Pet Dog or Cat 61 62

% With Children 32 29 110 Median Years in Same Residence 10.9 13.2 % With Pet Dog or Cat 61 59 103

Median Years in Same Employed Full-Time 97 75 11.1 6.7 166 Residence

Frequency of Downtown Akron Visits/Patronage

Avg. % Traffic % Market Visits Driven by Occasion Frequent Penetration Per Frequent Patrons* Rate Month Patrons*

Weekday 1.2 6 37 56 Evenings

Weekends 1.6 6 24 70

Lunch/Breakfast 3.2 24 57 75

Dine-In 1.8 18 60 59

Take-Out 1.4 28 52 65

Dinners 0.8 3 23 56

Drinks 1 4 32 46

Retail Shops 0.9 2 27 35

Arts/Cultural 0.7 1 5 86 Events

*Defined as 5 or more times per month

Downtown Workers vs. All Other Respondents

Downtown Workers All Other Respondents

Avg. % Traffic Avg. % Traffic % Market % Market Visits Driven by Visits Driven by Occasion Frequent Penetration Occasion Frequent Penetration Per Frequent Per Frequent Patrons* Rate Patrons* Rate Month Patrons* Month Patrons*

Weekday Weekday 1.4 8 33 56 1.6 8 34 68 Evenings Evenings

Weekends 1.6 7 27 71 Weekends 2 9 28 76

Lunch/Breakfast 6 44 62 92 Lunch/Breakfast 1 4 24 57

Dine-In 3 22 64 79 Dine-In 0.8 3 11 44

Take-Out 3 24 58 89 Take-Out 0.2 2 10 13

Dinners 1 4 28 59 Dinners 1 3 16 67

Drinks 1.2 5 36 52 Drinks 1.1 5 27 54

Retail Shops 0.8 4 29 41 Retail Shops 0.6 2 25 32

Arts/Cultural Arts/Cultural 0.7 1 5 65 0.9 1 5 73 Events Events

*Defined as 5 or more times per month *Defined as 5 or more times per month

Use of Agreement With Opinion Statements About Downtown Akron

Level of Agreement (100 = Total % in Agreement Agreement, 0 = Total Disagreement

I enjoy dining outside during warm weather months. 78 83

Once you park, it is easy to walk from place to place in downtown Akron. 82 76

Overall, downtown Akron is headed in the right direction. 81 69

I would be interested in attending more arts and cultural events in downtown Akron. 69 68

I prefer to shop at unique, locally-owned shops versus national and regional chain stores. 68 57

I feel loyal to longstanding merchants in downtown Akron. 65 58

The presence of college students adds positive energy and vitality to downtown Akron. 65 50

I am proud to show downtown Akron to suburban and other out-of-town visitors. 63 55

It is usually easy to find a convenient parking spot when I visit downtown Akron. 61 57

I usually run into someone I know when I visit downtown Akron in the evening or on the weekends. 59 50

Price is the No. 1 consideration in determining where I spend my retail and food dollars. 53 40

I would consider living in downtown Akron if housing in my price range where available. 36 22

I make 25% or more of my personal clothing purchases on line. 34 22

OVERALL AVERAGE 61 54

Key Differences Between Downtown Workers and All Other Respondents

Level of Agreement, Level of Agreement,

Downtown Workers All Other Respondents

I make 25% or more of my personal clothing purchases online. 36 26

Price is the no. 1 consideration in determining where I spend my retail and food dollars. 55 48

It is usually easy to find a convenient parking spot when I visit downtown Akron. 63 58

Once you park, it is easy to walk from place to place in downtown Akron. 74 67

I would be interested in attending more arts and cultural events in downtown Akron. 68 75

New Retail Businesses Needed Downtown

Downtown Workers All Other Respondents

• Top 10 Food-Related Concepts: • Top 10 Food-Related Concepts:

• Fast Casual Chain • Mexican/Southwestern Cuisine • Mexican/Southwestern Cuisine • Seafood Restaurant • Small Independent Grocer w/Fresh Produce • Small Independent Grocer w/Fresh Produce • Full Service Breakfast Cafe • Micro-Craft Brewery/Pub • Ice Cream/Yogurt Parlor • Fast Casual Chain • Bakery • Diner • Convenience Store • Mediterranean/Greek Cuisine • Seafood Restaurant • Barbeque Restaurant • Coffee Shop • Full-Service Breakfast Café • Micro-Craft Brewery/Pub • Bakery

• Top 10 Non-Food Related Concepts • Top 10 Non-Food Related Concepts

• Drug Store/Pharmacy • Upscale Salon/Spa • Gift/Card Shop • Drug Store/Pharmacy • Dollar Store • Art Gallery • Upscale Thrift Boutique • Upscale Salon/Spa • Fitness Center • Women's Accessories • Upscale Salon/Spa • Second-Hand Furniture/Housewares • Women's Fashion Accessories • Antique Store • Florist • Florist • Office/Computer Supplies • Fitness Center • Bath and Beauty Products • Gift/Card Shop

Social Media Usage

• But Facebook is still the champ with 70% penetration rate Social Media % of Sample % of American Index Score and highest level of engagement among social media users Channel Using Adults Using*

Downtown Workers vs. All Other Respondents Facebook 70 67 104

Linked In 42 20 210 % Downtown Workers % All Other Social Media Channel Using Respondents Using Pinterest 28 15 187

Twitter 23 16 144 Facebook 74 58

Yelp 13 14 93 Linked In 12 36

Urban Spoon 12 12 100 Pinterest 30 24

Four Square 5 3 167 Twitter 23 21

Tumblr 4 6 67 Yelp 13 11

None 20 33 61 Urban Spoon 12 11

*Based on Pew Internet Project Research, January 2013 Four Square 6 3

Twitter 4 5 • Downtown workers are heavy social media users, compared to population at large None 16 31

• Very high usage of Linked In, Twitter, and Pinterest

Boulevard Strategies provides economic and retail research and analysis, economic development planning, strategic planning, market plan development and program development services to government, non-profit and private sector clients.

Our services support the development of: Our clients include: • Economic Development Plans • Commercial Property Developers • Economic Impact Analysis • Commercial Property Investors • Real Estate Strategy and Analysis • Municipalities • Trend Tracking • Government Agencies • Industry Cluster and Baseline Studies • Downtown Business Associations • Business and Marketing Plans • Community Development Organizations • Competitive Assessments • Development Corporations • Benchmarking • Special Improvement Districts • Business and Retail Audit Reporting • Retailers • Manufacturers • Service Organizations • Non-Profits To learn more about Boulevard Strategies go to www.blvd-strategies.com. And, follow us on Facebook, where we post and comment on articles about the latest retailing, real estate, land use planning, and marketing trends several times a week, all year long.

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