Melrose Rising: Emerging Retail Opportunities in the South Bronx Disclaimer
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MELROSE RISING: EMERGING RETAIL OPPORTUNITIES IN THE SOUTH BRONX DISCLAIMER New York City Economic Development Corporation (NYCEDC) does not warrant or make any representations as to the quality, content, accuracy or completeness of the information, text, graphics, links or other content in this report. Such content has been compiled from a variety of sources, and is subject to change without notice from NYCEDC. Commercial use of the contents of this report, or any portion thereof, is prohibited without the written permission of NYCEDC. Except as otherwise indicated, the entire contents of this report are © 2007 New York City Economic Development Corporation. All service marks and trademarks mentioned herein are the property of their respective owners. Appearance within this report of the name, profile, Web site link or any other information or materials about a company, organization, individual or entity does not imply that NYCEDC approves or endorses that company, organization, individual or entity, or any of its affiliates, officers, directors, members, employees, agents or representatives, or any of their respective Web sites, opinions or activities of any nature whatsoever. Any republication of data or any other material or content from this report must include the following disclaimer: "This item is republished solely at private expense and in no way implies any endorsement or warranty by NYCEDC as to the content of the item." COVER CREDIT — Project: Hub Retail & Office Center. Architect: GreenbergFarrow. Developer: Related Retail Corporation. Project: Boricua Village Architect: Hugo S. Subotovsky A.I.A. Developer: Atlantic Development Group TABLE OF CONTENTS Acknowledgements...................................................................................iii List of Figures............................................................................................iv List of Tables ..............................................................................................v Introduction...............................................................................................1 Purpose of Study .......................................................................................2 Study Area.................................................................................................2 Transportation/Access ................................................................................3 Demographic Profile ..................................................................................4 Overview of Local Economy.......................................................................9 Retail Profile ............................................................................................11 Findings...................................................................................................16 Conclusion ..............................................................................................20 Appendix A. Study Area Census Tracts Map............................................22 Appendix B. Study Area Development Projects .......................................23 Appendix C. Study Area Projects by Use and Time of Completion Map ..25 Appendix D. Study Area Public Transportation Map ................................26 Appendix E. 2000 Demographic Details .................................................27 Appendix F. 2006 Household Expenditures and Establishments..............28 Appendix G. Study Area Ground Floor Retail Price Ranges Map ..............31 Appendix H. 2006 Employees and Establishments...................................32 ACKNOWLEDGEMENTS Melrose Rising: Emerging Retail Opportunities in the South Bronx was a collaborative effort. Thank you to the following organizations and businesses that helped inform the study: South Bronx Overall Economic Development Corporation (SOBRO) Office of the Deputy Mayor for Economic Development and Rebuilding New York City Department of City Planning (DCP) New York City Department of Housing Preservation and Development (HPD) New York City Department of Small Business Services (SBS) Developers and brokers who contributed information iii LIST OF FIGURES Figure 1. Average Weekday Bus Ridership ..............................................3 Figure 2. 2000 Population by Race and Place of Origin...........................4 Figure 3. 2000 Household Size ...............................................................5 Figure 4. 2000 Age Profile of Population................................................5 Figure 5. 2000 Education Level...............................................................6 Figure 6. 2000 Average Vehicles per Household .....................................8 Figure 7. 2006 Establishments by Type ...................................................9 Figure 8. 2006 Services Establishments by Type ....................................10 Figure 9. 2006 Retail Establishments by Type........................................15 Figure 10. New Housing Delivery through 2009 .....................................16 Figure 11. New Commercial/Retail Space Delivery through 2009 ............17 iv LIST OF TABLES Table 1. Population Density.......................................................................6 Table 2. Median Household and Family Income ........................................7 Table 3. Housing.......................................................................................7 Table 4. 2006 Estimated Average Expenditures.......................................12 Table 5. 2006 Estimated Discretionary Income Expenditures ...................13 Table 6. Estimated Annual Household Retail Expenditures per Square Mile.........................................................................14 v Mixed-use concepts have “been embraced by planners and government officials as a way of revitalizing urban areas and making them more livable. ” Project: La Casa de Felicidad, La Puerta de Vitalidad, Architect: Larsen Shein Ginsburg and Magnusson, LLP, Developer: Phipps Houses/ Nos Quedamos, Inc. Major changes have been taking place in the South Bronx as it recovers from its low point of the late 1970s. Historically synonymous with urban decay, the South Bronx is undergoing major revitalization. Future developments in the South Bronx are slated to increase the housing stock, provide a more diverse retail mix, and introduce modern commercial office space to a once neglected area of New York City. Mixed-use concepts have been embraced by planners and government officials as a way of revitalizing urban areas and making them more livable. For example, ground floor retail in multi-family residential buildings is a means of fostering a round-the-clock environment that compliments the surrounding use of space. According to the International Council of Shopping Centers (ICSC), underserved markets in urban areas like the South Bronx are typically at a disadvantage in The buying power attracting private investment due to their isolation from the economic mainstream of“ inner-city households and the resulting lack of solid market data. There exists an information gap that has a tendency to be hinders the flow of development opportunities to potential investors since traditional methods of evaluating locations are not feasible in such areas. under-appreciated Merely relying on ‘reported’ household income often underestimates the true ” spending potential of lower-income households and does not take into account the population density of urban areas. Reported household income does not reflect the cash economy that is a significant and growing source of income for these households.1 In addition, the most frequently undercounted groups in the U.S. Census have been low-income households, minority households, and children. When comparative household average incomes are evaluated, retail spending can be greatly underestimated and market potential can be distorted. Retailers are initially deterred by lower household incomes and unfamiliarity with the area. They often fail to take into account a higher ratio of household expenditures to reported income (as described later) as well as the impact of higher densities. Therefore, the buying power of inner-city households has a tendency to be under-appreciated.2 Rather than evaluating average or median incomes, this study analyzes expenditures in various categories in relation to the concentration of business establishments. The study also looks at the number of employees across various categories to serve as a proxy for expenditures. 1 PURPOSE OF STUDY The purpose of this study is to disseminate information on the potential demand for retail space within the area analyzed to prospective brokers, retailers, entrepreneurs, and public entities involved in the development of the Study Area, ensuring a harmonious mix of retail tenants while enticing further investment in the area. STUDY AREA The Study Area mostly covers the Melrose Commons neighborhood of the South Bronx, which is north of The Hub and Mott Haven, and west of Hunts Point. The seven U.S. Census tracts used in this study are Bronx County, New York tracts 67, 69, 71, 137, 139, 141, and 143. These tracts are referred to as the “Study Area” throughout this report and are illustrated more fully in Appendix A. The Study Area begins roughly at The Hub (149th Street and Third Avenue), considered one of the largest retail trade areas in the Bronx, and runs north through 168th Street. It is primarily bounded by Park Avenue on the west and Saint Ann’s/Third Avenue on the