Market OpportunitiesRetail Analysis & Office

City of Dearborn Heights Tax Increment Finance Authority

Real Estate Development Research, LLC in association with Wade-Trim May 2005 Market Opportunties AnalysisTitle Page

Retail & Office Market Opportunities Analysis Prepared for:

City of Dearborn Heights Tax Increment Financing Authority 25637 Michigan Avenue Dearborn Heights, Michigan 48125

Prepared by:

Real Estate Development Research, LLC 920 Montrose Avenue Royal Oak, Michigan 48073

In association with:

Wade-Trim 25251 Northline Road Taylor, Michigan 48180

May 11, 2005 DHT 6230-01T

Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisContents Chapter 1: Introduction...... 1 Background ...... 1 Methodology ...... 2 Statement of Assumptions and Limiting Conditions ..... 3 Report Organization ...... 4

Chapter 2: Executive Summary...... 5 TIFA District Existing...... 5 Business Mix ...... 5 The Competitive Environment...... 7 Retail and Office Market Opportunities...... 8

Chapter 3: TIFA District Business Mix ...... 9 Research Context...... 9 Zoning Patterns...... 9 Land Use Patterns...... 11 TIFA Area Retail & Office Establishments ...... 15 Categories of Business Use ...... 15 TIFA District Totals ...... 16 Building Use Mix by TIFA District Geographic Segment ...... 24

Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisContents Chatper 4: Underlying Market Characteristics...... 27 Shopping Center Concepts ...... 27 Locational Preferences...... 29 Trade Area Definition ...... 30 Market Components...... 31 Employment Base ...... 31 Passersby...... 31 Trade Area Residents ...... 34 Consumer Lifestyle Segments ...... 40 Expenditure Potential of Trade Area Households...... 44

Chapter 5: Competitive Environment...... 50 Commercial and Office Land Use Patterns...... 50 Competitive Shopping Center Environment ...... 51 Competitive Office Environment ...... 56

Chapter 6: Opportunities Evaluation...... 61 Assessment of Trade Area Retailer Business Strength...... 61 Sales Leakage ...... 63 Market Share...... 64 Existing Market Share ...... 64 Enhancing Retail Market Share – Adding New Businesses ...... 64 Office Space Opportunities ...... 67 Business Clustering Opportunities: Scale & Type ...... 68 Van Born – Beech Daly to Telegraph...... 69 Beech Daly ...... 70 Southwest TIFA District ...... 70

Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisContents Maps 1. Dearborn Heights Tax Increment Finance Authority District ...... 9, (b) 2. Southwest TIFA District : Inkster to Beech Daly...... 17 3. North TIFA District: Michigan Ave to Dartmouth ...... 18 4. Central TIFA District: Dartmouth to Van Born...... 19 5. Southeast TIFA District: Van Born - Gulley to Telegraph ...... 20 6. East TIFA District: Telegraph Corridor...... 21 7. Trade Area Context ...... 30, (b) 8. Dominant Tapestry 2004 Tapestry Group by Census Block Group...... 42, (b) 9. Commercial & Land Use Cover: 2000 ...... 50, (b) 10. Competitive Retail Context...... 51, (b) 11. Competitive Office Context ...... 58, (b)

#, (b) - # = in-text map image b - enlarged map image

Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisContents Tables 1. Building Area Analysis: Retail/Commercial, Office & Similar Establishments...... 22

2. Shopping Center Definitions...... 28

3 Average Daily Traffic Volumes: TIFA District & Vicinity ...... 32

4. Demographic Profile ...... 35

5. Comparative Income Patterns: 2004...... 36

6. Consumer Segments: 2004 - Tapestry LifeMode Groups ...... 41

7. Expenditure Potential & Opportunity Indicators by Selected Types of Retail & Service Establishments...... 46

8. Expenditure Density Comparison ...... 48

9. Summary of Trade Area Retail Competition ...... 51

10. Commercial Competition: Shopping Centers & Larger Free-Standing Retailers...... 53

Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisContents Tables (cont.) 11. Trends in Retail Leasing Rates...... 55

12. Office Market Conditions ...... 59

13. Retailer Strength Assessment ...... 62

14. Analysis of Retail Leakage and (Store Surplus) ..65

Appendix A-1: Classification of Selected Uses & Selected Building Details within the SOUTHWEST TIFA District Inkster to Beech Daly

A-2: Classification of Selected Uses & Selected Building Details within the NORTH TIFA District: Michigan Ave. to Dartmouth

A-3: Classification of Selected Uses & Selected Building Details within the CENTRAL TIFA District: Dartmouth to Van Born

A-4: Classification of Selected Uses & Selected Building Details within the SOUTHEAST TIFA District: Van Born from Gulley to Telegraph

Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisContents A-5: Classification of Selected Uses & Selected Building Details within the EAST TIFA District: Telegraph Corridor

A-6: Select Demographic Trends

A-7: Household Income Details: 2004

A-8: 2004 community Tapestry Summary Table by LifeMode Group (and explanatory descriptions of the purchase & activity preferences of the Tapestry market segments for the 17 segments in and near the Dearborn Heights TIFA District Trade Area)

Market OpportuntiesRetail Analysis & Office Chapter Introduction1 Background

In 1986, the City of Dearborn Heights established the Dearborn Heights Tax Increment Finance Authority (TIFA) with a primary purpose to encourage the revitalization, redevelopment and reinforcement of the portion of the city located south of Michigan Avenue. Among the major activities undertaken by the TIFA since its establishment have been the following:

¾ Development of “A Plan for Commercial Revitalization – the Beech Daly Road Central Business District” in 1985, which provided the guidelines for public and private sector improvements along the South Beech Daly corridor, between Van Born and Michigan Avenue.

¾ Improvements to South Beech Daly including street widening, sidewalks, sewer and water construction. The first portion of this activity occurred in the late 1980’s between Van Born and Annapolis. Improvements were continued north to Michigan Avenue as part of a joint community effort with the City of Inkster in the latter part of the 1990’s.

¾ Development of the “City of Dearborn Heights Industrial/Business Park Study” in 1998, followed by the TIFA’s recommendation for rezoning of the southwest quadrant of the TIFA district to M-3 Business Industrial Park District as a means to encourage a broader base of industrial and related activities in this portion of the city. Additionally, C-2A Special Business District zoning was recommended for the Inkster frontage of this portion of the City as a means to provide a mix of retail and office/service related uses to support and enhance the adjacent industrial redevelopment.

¾ Revitalization and reconfiguration of the Department of Public Works property and buildings in the late 1990’s and early years of the current decade.

¾ An on-going program of replacing the water lines in the portion of the TIFA between Annapolis, Van Born, Inkster and Beech Daly that began in the mid 1980’s and continues through today.

¾ Creation of the Dearborn Heights Justice Center on Michigan Avenue, which opened in 2003 and which presents an attractive, modern office image gateway to the northern portion of the TIFA District (District). As part of the initiative that resulted in acquisition, clearance and redevelopment of the TIFA’s Michigan Avenue frontage, a Home Depot was attracted to the adjacent site to the east, providing an attractive and much-needed retail anchor to the northeast edge of the TIFA.

1 Market OpportuntiesRetail Analysis & Office ¾ Creation of the John F. Kennedy, Jr. Library on Van Born. Its opening in December 2004 further augmented the physical environment around the Department of Public Services facility and brought a much needed educational and community resource to the southern end of Dearborn Heights.

Continuing on with the efforts begun in the 1980’s, the TIFA Board seeks to understand the types of retail, commercial and office-oriented service uses that may be market-supportable along its commercial corridors, primarily along the under-developed and older commercial frontages along Inkster, South Beech Daly and Van Born. Working with this knowledge, the TIFA anticipates initiating programs to update and further enhance the physical appearance of its commercial corridors. The TIFA will then explore various measures designed to encourage its non-residential property owners and their tenants to upgrade their current proprieties, to create additional establishments that support and enhance the surrounding residential areas, and to attract shoppers, workers and visitors from beyond the immediate TIFA area.

It is with this purpose in mind that the Dearborn Heights Tax Increment Finance Authority retained the services of Wade-Trim/Associates Inc. and through Wade-Trim, the professional market analysis services of Real Estate Development Research, LLC, to conduct a Market Opportunities Identification Analysis for retail and office opportunities in the Dearborn Heights TIFA District. Methodology

The research effort to identify retail and office opportunities in the TIFA District involved a screening process in which a large variety of data was collected, reviewed and analyzed. This effort resulted in filtering out inappropriate or unlikely types of uses and identifying the types of uses that have the strongest market potential and that are most appropriate for various locations within the District.

We began the research process by reviewing various plans, programs and polices prepared for the City of Dearborn Heights or the TIFA itself. This included review of earlier studies prepared for the TIFA and an examination of the distribution of commercial, office, and industrial zoned land within the TIFA District and how the physical configuration of the District’s commercially zoned lands would help or hinder new retail and office development potential.

To help understand what new retail and office uses could be supported in the TIFA District, we identified which ones were already there, including where they were located, how large they were, and their general physical condition. We also considered what uses were immediately adjacent to the District along the commercial corridors edging its boundaries.

To determine the types of retail and office uses that might be market-supportable in the TIFA District, we analyzed the demographic characteristics of the people and households living within a five-mile distance of the District. We term this area the District’s trade area. It is from people living in the District’s trade area that its existing retail and office-based uses obtain the major part of their sales. This area also will be the source of the majority of the sales of most the new retail and office-based uses the District might be able to attract. We also analyzed information about traffic volumes along the commercial corridors in and near the District, since level of traffic is of critical importance to many retailers and will influence their interest in locations in the District.

2 Market OpportuntiesRetail Analysis & Office While it is important to understand what businesses are already in the TIFA District and the characteristics of District’s trade area residents who might patronize these businesses, we also need to understand what and where competition exists. Thus, we also examined the nature, size and location of shopping centers and office concentrations both near and at a distance from the District’s boundaries.

We evaluated the nature and extent of the demand for different types of stores and personal service providers by analyzing estimates of how much and in what types of stores trade area households might make purchases. Thus, we analyzed estimates of expenditure potential by store type by trade area households, considering both the average potential per household and the aggregate (sum) of that potential for all trade area households. This information was then compared to similar estimates for the Detroit region and nation to identify areas of strength, and thus potential opportunities.

By examining patterns of how the trade area’s existing stores were doing (estimates of sales per type of store) and estimates of how much of trade area household expenditure potential was leaving the trade area to be spent at stores outside the area, we further identified potential opportunities.

The final steps in our research process was integrating the results of the above analyses into the development of conclusions about the type and general scale of retail and office uses that were supportable in the District. This then formed the basis for our recommendations about which types and sizes of retail and office uses might be best located together – and where. Statement of Assumptions and Limiting Conditions

The Retail/Office Market Opportunity Analysis has been prepared for the use of the Dearborn Heights Tax Increment Finance Authority (TIFA). Its purpose is to provide information about the trade area associated with the TIFA District and to determine from that information, the types of retail and office-related service uses that may be market supportable in the TIFA District. This report, analysis, conclusions and recommendations represent the opinion of Real Estate Development Research, LLC and is based on a combination of primary and secondary research. Primary research activities included a field survey of the TIFA District and adjacent major roadway frontage areas, review of records maintained by City of Dearborn Heights Assessor’s office (paper, electronic and web-based data), interviews with a cross- section of commercial property brokers active in the Dearborn Heights/western Wayne County area and with representatives of and consultants to the City of Dearborn Heights and with representatives of the adjacent cities of Westland, Inkster, Taylor and Romulus. Secondary research included collection and analysis of demographic and competitive data provided by local and national published sources. Our primary and secondary research activities were augmented by our own industry knowledge and expertise.

We assume no responsibility for the accuracy of the information provided to us by the above-indicated sources or others we contacted during the course of study. Further, we make no representations or warranty as to the accuracy or completeness of the information contained within our report, including any estimates of trade area demographic and economic conditions, and shall have no liability for any representations (expressed or implied) contained in or for any omissions from, our report. 3 Market OpportuntiesRetail Analysis & Office An effort has been made to obtain the latest applicable data from reliable sources. The report is based on assumptions, estimates and other information developed from research of the market, knowledge of the industry and other factors. Some assumptions inevitably will not materialize and unanticipated events and circumstances will occur; therefore, actual results achieved during the future period covered in our analysis will vary from the estimates and projections contained herein and the variations may be material.

Real Estate Development Research, LLC does not guarantee any result from the use of the analysis or other services performed hereunder, nor shall we be responsible for any loss incurred because of the use of said analysis or other services. For these reasons, no representation or warranty, expressed or implied is herewith being made as to the accuracy or completeness of this report or its contents. Report Organization

This report is presented in six sections as follows:

1. Introduction

2. Executive Summary

3. TIFA District Business Mix, consisting of our field research findings within the TIFA District and adjacent areas and our analysis of Dearborn Heights assessment records focusing on commercial and office-based uses within the District

4. Underlying Market Characteristics, consisting of the identification of the Dearborn Heights TIFA’s trade area and an analysis of its demographics

5. Competitive Environment, consisting of an assessment of the competitive supply of shopping center and office space

6. Opportunities Evaluation, consisting of an assessment of extent of unmet market demand and identification of the nature, general scale and location for retail and office-related service opportunities within the TIFA.

4 Market OpportuntiesRetail Analysis & Office ChapterExecutive 2 Summary

TIFA District Existing Business Mix

The TIFA District currently has relatively few larger concentrations of office-based establishments, personal service providers, convenience or comparison-shopping outlets. Such uses are found in the greatest numbers on the Van Born and Beech Daly frontages in the District. Currently, there are neither vacant buildings or vacant commercially zoned sites on the District side of Telegraph.

The existing mix of retail and office-based uses and the presence of several vacant buildings and numerous vacant lots along Beech Daly offer opportunities to reinforce existing medical business clusters. The Inkster frontage has no retail or office uses, other than a funeral home on the Westland side and auto and hardware stores at its Van Born edge.

Michigan Avenue’s frontage in the District appears wholly occupied. There may be sufficient unused parking area at the Home Depot site to accommodate a second small retail use to complement the new gas station/convenience market.

Shallow site depth and/or floodplain restrictions associated with the north branch of Ecorse Creek constrain the scale of future commercial development along some parts of the Van Born corridor. A limited few larger, deeper sites also exist, primarily in the western and easternmost portions of the Van Born corridor and along the Inkster Road frontage in the District.

The City’s attempt to transition from primarily industrial use to a greater diversity of community and business park-supportive mix of uses in the M-3 business industrial park district in the southwest portion of the District is seeing positive results. Further efforts should be encouraged. Market Characteristics The primary source of demand for the commercial frontages of the TIFA District is anticipated to be from residents of the TIFA District trade area. Within that area, the residents in the primary trade area will account for the majority of demand for convenience oriented retailers and personal service providers, whereas the overall trade area will represent the majority of demand for comparison oriented providers.

The locational, and market characteristics of the TIFA District indicate that the area is suited for development with a variety of neighborhood and community-oriented shopping centers and free-standing establishments; however, the physical configurations of the District’s vacant or under-utilized commercially zoned areas will likely constrain their relative scale. As a means of inducing new investment, the city should seriously consider assembling

5 Market OpportuntiesRetail Analysis & Office larger tracts of land in critical locations that satisfy the site location thresholds (e.g., traffic volume, neighborhood quality, residential concentrations) of larger and national retailers.

With the exception of the Telegraph and Michigan corridors and the eastern portion of Van Born, the relatively low traffic volumes along the balance of the District’s commercial corridors constrain the extent of the appeal of sites within the District to national and regional chain retailers and retail-related service providers. Rather, these less heavily trafficked areas of the TIFA are more likely to draw the interest of independent operators of relatively small establishments.

The trade area is a predominately middle-income area, whose residents are primarily employed in blue collar and service occupations (versus technical, executive, managerial or administrative support occupations). While the area’s median as well as average household income is lower than the regional levels, it remains above the income threshold ($50,000) used by a variety of retailers. More importantly, the area’s income levels are above the national median or average.

The area’s household base has declined over the last decade, but this pattern may be slowly reversing. Given the nearly built-out character of the major part of the trade area, the major portion of future household growth is likely to be the result of a variety of small infill and a limited few larger redevelopment initiatives. Nonetheless, with over 117,200 people and 47,000 households in the PTA and over nearly 288,000 people and over 113,000 households currently living in the overall trade area, a sizeable marketplace exists for a variety of retailers, both independent and national.

There are a variety of retailers who may consider “infill” locations in higher density, older neighborhoods, even those characterized by more moderate income households and higher proportions of minority populations. While we anticipate that independent retailers will be the primary source of new retail use in the District, national chains and/or franchise operations such as Dots (men’s/ladies’ apparel), MAACO Auto Painting/Bodyworks, Movie Gallery, Dairy Queen, Hallmark (cards and gifts), Payless Shoesource, Simply Fashions (family apparel), Wendy’s, Cousin’s Subs, Grease Monkey (auto/tire), Little Caesars Pizza, Mr. Hero (sub-shop), Sally Beauty Supply, Tubby’s Sub Shop have found success in such neighborhoods.

The concentration of racial minorities in the western portion of the PTA and the increasing base of Latino or Hispanic population in the south and southeast parts of the PTA provides opportunity for attracting small-scale, primarily independently owned niche retailers and service-providers to the District. Concentrations of these racial and ethnic minorities in and near the TIFA District also provide opportunities to encourage the District’s existing businesses to offer merchandise and services attractive to such groups.

Our analysis of expenditure potential per household and per square mile reveals that the trade area and, in particular the PTA, exhibit relatively strong potential for a variety of goods and services. Thus, while trade area households have more moderate-income levels than does the region as a whole, in the aggregate, they exhibit high levels of potential for a variety of goods and services.

6 Market OpportuntiesRetail Analysis & Office The Competitive Environment

The above findings must be balanced against the competitive supply of establishments already serving the trade area in the TIFA District and elsewhere. Further, convenience, comparison and service establishments differ with respect to how far shoppers are willing to travel to them to make their purchases. Some will generate the largest portion of their sales from within the overall trade area (five mile radius) while others will generate nearly all of their of sales primarily within the primary trade area (three mile radius). Yet others may have an even more localized draw. Convenience stores, party stores, video rental stores and drugstores tend to draw the majority of their sales from a customer base located within a one-mile distance.

The commercial corridors within the TIFA District exist within an increasingly competitive retail marketplace. The largest concentrations of competitive influences serve the densely settled portions of the trade area to the north, northwest and northeast. Major new initiatives underway east of the District near the Outer Drive and Oakwood intersections with I-94 are likely to draw a significant portion of trade area resident expenditure potential from the south and southeast – areas already well-served by a variety of existing shopping center formats.

There are fewer larger scale shopping centers and less variety among types of shopping center facilities to the west and southwest of the TIFA District. This is a reflection of the combination of the more moderate incomes of the households in those portions of the trade area, the lower density of residential development to the southwest, particularly south of I- 94, and the abrupt change in the racial composition of the population in the Inkster and Westland neighborhoods immediately west of the TIFA District, compared to those within the District.

These factors, coupled with the physical constraints imposed by the limited depth of most vacant or underutilized commercially zoned properties in the TIFA District will constrain the nature and extent of additional retail and personal service establishments that can be attracted to different locations within the District. With the exception of the Michigan Avenue and Telegraph frontages and the eastern portion of Van Born near Telegraph, we anticipate that the majority of retail and personal service businesses that might be drawn to new-construction or substantially renovated facilities in the District will be independent operators rather than multi-store national or regional operators.

The office market throughout the Detroit region is quite soft, with vacancies remaining high and lease rates stagnant or decreasing. Nonetheless, small-scale office-based service providers continue to seek locations convenient to prospective customers and thus continue to be drawn to locations adjacent to neighborhood and community shopping facilities and/ or to commercial corridors offering exposure to at least moderate volumes of traffic.

7 Market OpportuntiesRetail Analysis & Office Retail and Office Market Opportunities

We estimated the average sales per store by type of store within the TIFA District trade area (retailer strength assessment) and estimated the extent to which expenditures by the trade area’s households expenditure are be being spent at stores located outside rather than within the trade area. Our analysis of these estimates, coupled with the other analyses and findings described above indicate that there are a variety of opportunities that may be available to enhance the mix of retail and office uses in the TIFA District.

We estimate that between 103,000 and 148,000 square feet of additional convenience and comparison shopping center space (including personal services) can achieve market support in the Dearborn Heights TIFA District. We also estimate that the District can attract and support occupancy of 5,000 to 10,000 square feet of additional small-scale office space. Thus, in combination, an additional occupancy of 108,000 to 158,000 square feet of retail and office space may be market-supportable in the District. This amount of building area may require a total land area that may range between 11 and 16 acres.

We do not anticipate nor do we recommend that this amount of space be concentrated in any single location. Rather, it should be distributed within in the District in a manner to support and enhance the existing business base of the area.

We recommend that priority for business attraction efforts be given as follows: ¾ Reinforce the existing business mix in the southern half of Beech Daly south of Dartmouth.

¾ Encourage the redevelopment/reuse of the Grainger site near Telegraph on Van Born.

¾ Create shopping and/or personal service facilities to “bridge the gap” between the Dearborn Heights Shopping Center east of Gulley on Van Born and the Seward Sav-More Drugs/Spartan Saturn Food Center to the east.

¾ Redevelop the northeast corner of the Van Born/Inkster intersection with retail uses to serve not only the adjacent business park but support the surrounding residential neighborhoods. The success of such redevelopment will hinge on increasing both the amount and mix of housing in the area as well as on the further redevelopment of the business park with a variety of employment- intensive uses.

¾ Capitalize on the opportunity provided by Telegraph Road as a location attractive to national retailers by considering redevelopment of Pat’s Trailer Court.

8 Market OpportuntiesRetail Analysis & Office ChapterTIFA 3 District Business Mix Research Context

Map 1, below, identifies the configuration and boundaries of the Dearborn Heights Tax Increment Finance Authority District. It is this approximately 1.7 square mile area, edged or crossed by approximately six miles of major commercial corridors (Telegraph, Van Born, Inkster, Beech Daly, Michigan Avenue and the northernmost portion of Gulley) that is the focus of our research initiative. Zoning Patterns

With the exception of the planned industrial/ business park in the southwestern portion of the TIFA and the area between Princeton and Michigan Avenue in its northern end, non-residential zoning districts and non-residential land uses are primarily concentrated along the major roadways edging or traversing the TIFA.

Michigan Avenue: The south or TIFA District side of Michigan Avenue is zoned C-3 Commercial use and, in addition to the Justice Center, contains a recently constructed gas station/convenience market and the Home Depot. The north Michigan Avenue frontage is zoned C-2 General Business.

Telegraph: While Telegraph is a major commercial corridor edging the eastern edge of the District, with the exceptions of two-blocks along that roadway’s west side between McDonald and Pennie and the northwest corner of Van Born and Telegraph, the District’s Telegraph frontage is primarily residential in both zoning and character. Conversely, commercial zoning extends along the full extent of Telegraph outside of but immediately adjacent to the TIFA District.

Beech Daly: Both sides of Beech Daly in Dearborn Heights are zoned as C-2A Special Business District between Van Born and Princeton. North of Princeton to slightly north of where Trowbridge intersects Beech Daly, the frontage is zoned M-1 Light Industrial. C-3 Commercial is the classification for the site that contains the recently constructed Dearborn Heights Justice Center, which fronts Michigan Avenue.

9 Market OpportuntiesRetail Analysis & Office (b) Market OpportuntiesRetail Analysis & Office The City of Inkster side of Beech Daly (the west side of the street north of Annapolis) is primarily zoned for commercial use between Annapolis and Princeton. The exceptions are the Tomlinson Intermediate School at the northwest corner of Annapolis and Beech Daly and the two-block area between Carlysle and Penn, zoned for residential use, and the area between Princeton and Trowbridge, zoned for industrial use.

Gulley: The portion of Gulley that is zoned for commercial use is the site on which the Home Depot is located, an area extending from Michigan Avenue south to the railroad line. South of that to Princeton the frontage as well as the entirety of the area extending between Gulley and Beech Daly is zoned M-1 Light industrial.

The east or City of Dearborn side of Gulley is zoned for commercial use at the southwest Michigan Avenue and Gulley intersection. It is zoned for medium industrial use between Kean and the railroad tracks, then light industrial south to New York. South of New York, to the Heritage Park condominium residential complex (south of where Notre Dame meets Gulley), the Gulley frontage is zoned for office use.

Van Born: The entire TIFA District frontage along the north side of Van Born is zoned for a mixture of non-residential uses: M-1 Light Industrial, M-3 Business Industrial Park, C-3 Commercial, C-2A Special Business, C-2 General Business, and C-1 Neighborhood Commercial. The C-1, C-2, C-2A and C-3 zoned areas are primarily concentrated from slightly west of Fellerath east to Telegraph, with the exception of two portions of M-1 Light Industrial that are located between Bailey and Gulley.

From Fellerath to Gulley, the depth of the commercially zoned area is 100 feet and thus able to accommodate only small-scale strip commercial development. Much of the development potential of that area is constrained by the presence of the north branch of Ecorse Creek. At the westernmost portion of the commercially zoned areas, the creek nearly touches Van Born. Further east, the creek’s floodplain has created development limitations resulting in a less than desirable building configuration for at least one development (the recently completed Maya Plaza), where building access is via steps and short ramps rather than the more market-acceptable at-grade access.

From Gulley to Telegraph, commercial depth increases but varies widely, ranging from 168 feet at the northeast corner of Gulley and Van Born (Taylor Gator Sports Bar) to an average depth of 464 feet on the site of a vacant building once-occupied by a branch outlet of the Grainger industrial supply company.

Floodplain issues continue to constrain commercial development along other portions of the commercially zoned frontage. An example is Auto Zone, constructed in 1998 on a 2.5- acre site for which the western site depth is 398 feet and the eastern depth is 517 feet. The land used by the store itself extends only 138 feet north of Van Born, according to the Dearborn Heights commercial assessor. While Auto Zone may have purchased the site despite it being substantially larger than their store warranted, the development potential of the excess property to the rear appears to be at least in part, constrained by the flood plain.

A variety of retail uses that are ancillary to the primary permitted M-3 uses are permitted with special approval in the M-3 district. Several small vacant or under-utilized portions of the Van Born frontage in the M-3 district in this area could accommodate small-scale retail uses.

10 Market OpportuntiesRetail Analysis & Office The south side of Van Born in the City of Taylor is primarily zoned for neighborhood commercial uses. However, portions are also zoned for community and regional commercial as well as general commercial. The majority of the commercially zoned frontage in Taylor has a depth of around 100 feet, due to the presence of established single-family residential to the immediate south. However, roughly midway between Telegraph and Gulley, between the side streets of Westlake and Troy, there is a 16.5-acre vacant site that once was occupied by the Jolly Roger’s drive-in theater. The site has nearly 700 feet of frontage on Van Born and direct visibility and exposure to I-94. This B-3 General Business District site has been cleared for commercial development and on and off the market for commercial use for at least 12 years, according to the City of Taylor’s Planning Director.

The Taylor Master Plan indicates the site as industrial. The Plan is being amended to encourage low-density multi-family (e.g., townhouse style) development at the request of the property owners who have unsuccessfully marketed the site for many years to “big box” retail as well as to various industrial prospects. Residential development plans are now underway for the site.

Inkster: The Inkster frontage of the District is zoned C-2A Special Business, while behind it, between Powers and Annapolis is M-3 Business Industrial Park zoning. Between Van Born and Powers, the commercial depth is 130 feet while it is 260 feet between Powers and Annapolis. The portion that is 130 feet in depth is suitable for small-scale commercial or small office development whereas the greater depth of the Powers-Annapolis portion can physically accommodate a greater variety of commercial uses and development configurations. However, even this greater depth creates some limitation for various types of retail uses such as modern full-size supermarkets, which typically prefer sites of 350-400 feet of depth in order to accommodate the majority of their parking directly in front of the street-facing store entrance.

With the exception of the northwest corner of Van Born and Inkster, zoned for general commercial, the west Inkster frontage is zoned for single-family residential use in the City of Westland. The northwest corner of Annapolis and Inkster in the City of Inkster is zoned for multi-family use. Land Use Patterns

A field survey of the TIFA District’s non-residentially zoned areas was conducted. That activity also included a survey of the adjacent frontage along the major commercial roadways edging the District.

The primary focus of the fieldwork was to identify existing commercial and office businesses in the District as well as to identify vacant non-residential buildings or vacant spaces in non-residential multi-tenant developments. As such, the tables accompanying the maps do not indicate the address or location of every residential use or vacant lot. In addition, multiple contiguous residential uses or vacant lots in the same block fronts are only listed once.

11 Market OpportuntiesRetail Analysis & Office As a whole, the majority of retail and office properties in as well as adjacent to the TIFA District are at least 25 years old, with most 35 years or more years old. The major portion of the TIFA’s commercial structures are of at least a fair appearance, but many of the buildings are dated in design with facades and signage in need of enhancement. Little landscaping is provided on most non-residential sites and when provided, is typically limited to narrow grassy areas without trees or shrubs.

Michigan Avenue and Telegraph: The non-residential uses in the Michigan Avenue and Telegraph portions of the TIFA District are generally of good to excellent appearance and characterized by attractive signage, landscaping and good maintenance. There are no vacant commercial buildings or vacant commercial or office zoned sites in these two portions of the TIFA District.

The properties adjacent to but outside the TIFA District along Michigan Avenue and Telegraph are more mixed in appearance and maintenance levels. The recently closed Frank’s Nursery & Crafts store on Michigan Avenue east of Orchard, and its associated parking lot west of Orchard is the largest vacant building/vacant land area on either corridor. The Frank’s building contains 15,318 square feet on a site of 1.35 acres that includes limited parking and offers 446 feet of Michigan Avenue frontage. The primary Franks’ parking lot is located west of Orchard and contains 0.76 acres of land and offers 180 feet of Michigan Avenue frontage.

Gulley: With the exception of the Home Depot site at Michigan Avenue and Gulley and the properties at the Van Born/Gulley intersection, there is no other commercial zoning along Gulley in or adjacent to the TIFA District. The non-residential developments (a mix of industrial, office and recreation) along Gulley are generally well maintained, well landscaped and attractive.

Van Born: The situation along Van Born is spottier, with the commercial uses closer to Telegraph among the most attractive (as well as among the newest). Among the better and attractive older and newer commercial facilities to west of Telegraph are Aldi’s, the vacant quasi-industrial style building formerly occupied by Grainger industrial supply, Auto Zone, the Citgo gas station/convenience store and Maya Plaza.

The John F. Kennedy, Jr. Library stands out on this roadway as an example of attractive, well-designed and landscaped non-residential use. The improvements to the other municipal facilities either fronting on Van Born or visible from it are also notable and enhance this portion of the District.

The appearance of the eastern edge of the business park will be substantially enhanced following the completion of Park Plaza West, which is a new two-building retail complex. This small retail complex of 14,000 square feet will have as its first occupant BP gas station/ convenience market. That facility is a full redevelopment of the former BP gas station at this location.

We understand that the owner of the complex is also considering either demolition and new construction or substantial renovation of the mixed-use Metro Truck Plaza building that is located east across the Bayham easement from Park Plaza West. Development of a multi- tenant medical or medical and general office building is being considered to replace the current mix of casual family-style restaurant, convenience market and first and second floor general office uses. The current multi-tenant, mixed-used building is of dated design and modest appearance.

12 Market OpportuntiesRetail Analysis & Office The owner of Metro Truck Plaza also is in the initial stage of planning for development of a senior residential complex east of the Plaza across the north branch of Ecorse Creek on a site that is currently used for vehicle storage and truck parking. Given the nearly 800 feet of total frontage under single ownership along Van Born, the potential three-stage redevelopment (Park Plaza West, Metro Truck Plaza and senior residential) will have a major, positive visual impact on this portion of the corridor and provide a visually attractive eastern gateway to the business park.

Walt’s Auto Supply, a building of dated appearance and modest maintenance, anchors the western edge of the TIFA District on Van Born. We understand that the store along with other portions of the block edged by Van Born, Inkster, Cummings and Currier may be for sale by the store’s owner. New ownership should be encouraged to substantially upgrade the store or demolish it and redevelop the site and, as such, create a visually positive western gateway to the business park and TIFA District.

There are very few vacant commercially zoned parcels along the Van Born frontage of the TIFA District. Several of the vacant parcels are located near Fellerath, where development is severely constrained by the north branch of Ecorse Creek. Between Janet and Gulley, several small lots vacant lots are located between the Professional Maintenance Service and Maya Plaza properties. The flood plain issues that have impacted the building configuration at the Maya Plaza may also be adversely influencing the marketability of these few parcels, the total area of which is less than one-fifth of an acre with a frontage of 80 feet. The largest vacant commercial parcel in this part of Van Born is a 0.87-acre parcel with 147 feet of frontage, located between the Dearborn Heights Shopping Center and Seward Sav-Mor Drugs east of Gulley.

The Van Born corridor has relatively few vacant buildings in its commercial districts or vacant retail-oriented buildings in its industrial districts. The largest vacant building is the 56,510 square foot former Grainger industrial supply store on a 4.93-acre site west of Telegraph. This building represents nearly 80 percent of all such built space inventoried along the corridor. Space in the new Maya Plaza, west of Gulley, has been on the market since late 2003 and this small strip center of only 5,030 square feet has one current tenant (Michigan Wireless Plus) and 4,190 square feet available. We understand from its leasing representatives that negotiations are well underway with a second, possibly office-type tenant.

A small 3,145 square foot building is vacant west of Beech Daly. Additionally, at least 9,200 square feet remain uncommitted in the West Park Plaza, now under development near Metro Truck Plaza.

Beech Daly: Subsequent to the infrastructure improvements made on Beech Daly in the 1980’s, we understand that many of the business along the roadway enhanced the appearance of their establishments. Continuation of this effort is needed, along with further streetscape enhancements to create an attractive, pedestrian-friendly, neighborhood-oriented shopping environment. Areas with concentrations of newer buildings or buildings of a more contemporary appearance and maintenance include block fronts on the west side between Eaton and Currier. There are also scattered individual buildings that are attractive and well maintained although they may share block fronts with other, less well-maintained/attractive structures.

Vacant lots are scattered throughout Beech Daly’s length in the TIFA District. Slightly more than half of all commercially zoned block fronts along Beech Daly have one or more vacant lots, with each lot typically 20 by 100 or 110 feet in area. Concentrations of vacant

13 Market OpportuntiesRetail Analysis & Office lots of at least one-half acre or more in size are located between Dartmouth and Carlysle on the east side. In this latter area, the combined area of contiguous vacant lots range from 0.65 to 0.73 acres with frontages ranging between 208 and 246 feet. Property depth is approximately 100 feet.

Further south, a concentration of contiguous vacant lots is located on the west side between Hanover and Amherst (0.69 acres, 270-foot frontage). On the east side toward the south end of Beech Daly, most blocks have at least one if not more vacant lots, although none are more than one-third acre.

Beech Daly also has several vacant buildings or vacant spaces within multi-tenant buildings in its commercially zoned land areas. Vacancies range from as small as 1,100 square feet for a former delicatessen in the Beech Daly Plaza between McDonald and Eaton on the east side to as large as 5,785 square feet (of above-ground building area) in the former Maxim’s grocery located between Colgate and Stanford. The former Daly Drive-In (2,592 square feet) between Pennie and Powers is also vacant. The largest concentration of vacant commercial or office space along this corridor is between Colgate and Hopkins.

Inkster: With the exception of Walt’s Auto Supply, which has dual frontage on Inkster and Van Born, there are no commercial, office or even industrial structures along the Inkster frontage of the TIFA. Rather, there are only a few scattered homes and large areas of cleared land. Representatives of the closed Central Wayne County Sanitation Authority (CWCSA) Waste to Energy Plant (WTE) indicate that the plant is slated for demolition this summer and eventual sale.

With the exception of two homes between Powers and Currier (under TIFA ownership) and Walt’s Auto Supply at Inkster and Van Born, the commercially zoned Inkster frontage in the TIFA District is vacant. The vacant C-2A zoned area of the WTE site between Powers and Annapolis is estimated to be 7.4 acres with a frontage of 1,246 feet and a depth of 260 feet. Between Powers and Currier and including the two homes, the C-2A zoned land area is nearly 1.2 acres with a frontage of approximately 375 feet and a depth of 130 feet. The vacant C-2A zoned land between Van Born and Currier is approximately two acres with a frontage of approximately 675 feet.

14 Market OpportuntiesRetail Analysis & Office TIFA Area Retail & Office Establishments Categories of Business Use

The commercial and office uses in the TIFA District area are classified into three distinct categories, each with several sub-categories as described below.

Office-Based Establishments

We classify office-based uses into two distinct types, based in part on the type of use and in part on their relative scale.

¾ Local/community-oriented establishments whose primary clientele is likely to be drawn from nearby neighborhoods and businesses. Establishments include small-scale medical, dental, law, residential real estate, accounting and tax practices, and branch offices of financial institutions (e.g., banks, credit unions, thrifts) and finance companies).

¾ Non-local/community-oriented offices whose client base is likely to be drawn from a very broad and diverse geographic area. Among such establishments may be regional or national headquarters of various types of manufacturers, and large- scale professional service concerns.

Shopping Center Type Retail & Retail Related Service Establishments

The majority of these types of businesses are well suited for locations in or adjacent to planned shopping centers.

¾ Convenience/neighborhood oriented establishments whose customers tend to visit them on a weekly if not a daily basis and which tend to draw their customers from the immediate neighborhoods and businesses. Because of the frequent and convenience nature of their business, the majority of their business is likely to be derived from the primary trade area.

¾ Comparison oriented establishments offering shopping goods, which are consumer goods that are typically purchased after the buyer compares the offerings of more than one store. The customer base of such stores is likely to be draw from a greater distance (e.g., from the overall trade area). Restaurants and drinking places are also included in this category of business use.

Heavy commercial

These uses consist of a broad variety of establishments whose customer base is highly diverse and may be either consumer or business-to-business in orientation. Included in this category are commercial uses requiring outside storage and display areas. Heavy commercial uses are generally unsuitable for locations in planned shopping centers.

15 Market OpportuntiesRetail Analysis & Office Maps 2 through 6 display property line aerial photographs and accompanying tables that display the results of this fieldwork. Each block front is numbered on the aerial photograph and the uses along that block front are noted on the accompanying table. Data on the table accompanying each aerial photograph on each map includes the name and address of the non-residential use (if available) and a short description of the type of use.

The aerial photographs displayed on Maps 2-6 segment the TIFA District and adjacent areas into distinct geographic segments as follows:

¾ Southwest TIFA Area (Inkster to Beech Daly Annapolis to Van Born)

¾ North TIFA Area (Michigan Avenue to Dartmouth, Beech Daly to Gulley)

¾ Central TIFA Area (Dartmouth to Van Born, Beech Daly to Gulley)

¾ Southeast TIFA Area (Gulley to Telegraph along Van Born)

¾ East TIFA Area (Telegraph corridor).

The data on Table 1, which follows Maps 2-6, present a summary classification of the commercial and office building uses identified through our field survey. Information on Table 1 is grouped both by aerial photograph coverage area and for the TIFA District as a whole. The information presented on Table 1 also includes the floor area (for uses in multi- tenant buildings) or building area (single tenant buildings) for each commercial and office type use within the TIFA District. TIFA District Totals

Convenience/neighborhood shopping space accounts for nearly 103,000 square feet or 30 percent of the District’s total shopping center type retail space total of 334,758 square feet.

The 150,118 square foot Home Depot store accounts for 45 percent of all shopping center type space in the TIFA District. When this single huge store is excluded from the analysis, convenience/neighborhood shopping space account for 56 percent of the District’s shopping center type uses while comparison goods stores account for 44 percent.

Personal service providers occupy 15 percent of the District’s convenience/neighborhood space and 5 percent of its overall shopping center type space. When Home Depot is eliminated from this calculation, personal service establishments represent eight percent of overall shopping center type space in the District.

Personal service establishments such as barber and beauty shops, nail and tanning salons, dry cleaners and laundromats are commonly found in greatest concentrations in neighborhood and convenience shopping centers. Nationally, such uses account for 15 percent of the floor area neighborhood shopping centers and nearly 3 percent of community center space, according to research conducted by the Urban Land Institute.1 They can represent a far higher proportion in convenience centers, especially the type of small-scale centers typically developed along shallow-depth commercial frontages along narrow block fronts, locations in which store depth and overall center size is very limited. We direct the reader to Table 2 in the next chapter of this report for definition of various types of shopping centers.

1Urban Land Institute, Dollars and Cents of Shopping Centers: 2004.

16 Market OpportuntiesRetail Analysis & Office e g e) t t g lly zoned ) g nt e lots in the same g service g g y e service g ublic housin g cleanin p g ark & athletic fields p ious, church ious, church ious, church ious, Church et & ru g g g g air, auto radiator air, auto bod p p p Personal service, barber Re Tire store Vehicle towin Car Tobacco store Vacant buildin Gas station/convenience marke Garden center Hardware store , taxes) Business servic y g e Industrial, outside vehicle stora Center Reli e Outside vehicle stora g y g e Portable toilets (outside stora g lor Ice. Co. Convenience market y y p Church Reli g y p /Sunoco/Subwa rovement Contractor, buildin Terrace) Residential ( p p p y g Store & Ta ress Marathon Gas station/convenience marke tist Church Reli Co Industrial y p g p et Cleanin y lor Northwest Park Public tist Church & Activit l p y p ostolic Church Reli pp p y Auto Sales Auto sales, used y lo Car of Ta ier's Home Im g lor Business Service (accountin y p y Van Born Food Sho Garden Center & Nurser ResidentialResidential Residential Residential Na olisolis Vacant land Residential Vacant land Residential p p Van Born Mr. Clean CarwashVan Born Van Born Car wash (tunnel) 27201 Van Born 27173 Van Born 27414 Van Born Hardware Do-It Center Kruk Bros 27327 Van Born 27327 Property Address (1) 121212 26300 Van Born 26300 Van Born14 Miller Transfer Van Born Sierra Transport Industrial, outside vehicle stora trucking (office) Transportation, Transportation, trucking (office) Van Born Ba 14 24948 - 25950 Van Born Vacant buildin 12131414 Van Born 25996 Van Born Van Born Van Born land Vacant Gentr land Vacant land Vacant Vacant land Vacant land Vacant land 12 26390 Van Born D & C Su 1 S 27415 Van Born Van Born Ex 1 N Van Born Residential Residential 2 S 2 S 2 S2 S 2 S 3 S 4 S 268504 S Van Born5 S Van Born Collision 26959 Van Born 26805 Van Born Van Born Toma's Market Caanan Ba Vacant land Re Convenience store Vacant land 7 S8 S9 S 26633 Van Born Van Born Radiator Sho 23431 Van Born Van Born Crossroads Communit Vacant Land Vacant land 2 S 7 S 26609 Van Born Shiloh A 6 S6 S7 S8 S 26747 Van Born 26645 Van Born9 S Van Born Matador Restaurant & Bar Buck's Barber Sho Vacant Land Van Born 6000 Duncan Restaurant, full service Portable toilet rentals & stora Cit Vacant land 8 S 26543 Van Born Tire Cit 2 N Anna 2 N Anna 1 W S. Inkster Residential (Demb 11 S Van Born D & H Tire Center vehicle stora 11 S 26025 Van Born Hazel's Part 2 W3 W4 W5 W5 W5 W5 W S. Inkster S. Inkster S. Inkster Residential S. Inkster Residential S. Inkster Residential S. Inkster Vacant land Residential Vacant land Residential Residential Residential land Vacant Residential land Vacant 12 S13 S 25929 Van Born 25847 Van Born Suds 'n Vac Sun Car wash, coin 12 S12 S 25961 Van Born Van Born Ta Vacant land Vacant land 10 S 26139 Van Born Dixon Towin 10 S 26115 Van Born D & H Tire Center Tire store 13 S13 S 25821 Van Born 25821 Van Born Dollar Market Van Born Smoke Sho merchandise, dollar store General Map Key # Building and/or Land Use (2) Description (2) Field survey conducted November 2004 by Real Estate Development Research, LLC. Survey area consisted of the non-residentia areas within the Dearborn Heights TIFA District as well as frontage on the opposing street sides outside the district in adjace (1) Property addresses shown only for non-residential locations. Note that for multiple contiguous residential uses or vacant block front, only the first incidence is displayed. ge e e e e e e e g g g g g g g ment stora p y y g y l pp hborhood center air, auto bod air, auto bod g p p Closed, awaiting demolition mid-2005 Industrial Industrial Industrial Industrial Industrial Industrial Industrial Re Industrial Industrial Industrial Industrial Industrial Industrial Auto su Vacant buildin e) stora Industrial, outside vehicle g ) Industrial g ard) Industrial, outside vehicle stora ) e) Industrial y g g Home Service, residential care g g e Industrial, outside vehicle stora e e Industrial, outside vehicle stora e Industrial e Industrial, outside vehicle stora g g g g ac g p n Towin ) g oundment ai p g ment stora p (Truck Drivin ants unknown p y g p ment Industrial p g School School Public y y (occu l g ant unknown Plant g ecialists Industrial p pp p & Testin gy ress Industrial e Yard Industrial, outside vehicle stora g g ment Co. Industrial g /Dalton's (im g p g y p g g an air S p p er Co. Industrial Truckin p y erial Health Care Centre Nursin p Waste to Ener Vacant Land Vacant land y s Prism Restaurant Equi ss Vacant buildin s Roberto Cement Co. (outside vehicle stora s Vacant land Residential land Vacant Residential g g g g g ton Work (equi Olson Cement tonton land Vacant ton Cement Villa Stora Poma's Vacant land Industrial, outside vehicle stora g g g g hamhamham Bert's Trainin Industrial, outside vehicle stora Welt Pa lvialvialvialvia outside vehicle stora Industrial, Residential land Vacant lvia land Vacant lvialvialvia Grindin Norat Sales Televan Fisher Roofin & Blanchard Grindin Yemar-Mattison Residential Vacant land Vacant land Industrial y y y y y y y y y y y Property Address (1) 1 4901 Inkster Central Wayne County Sanitation Authority 1 27280 Powers Federal Elementar 77789S 5675 Wellin Van Born Daniels Hazel Vacant land Residential Vacabt land Vacant land Residential Vacant land 3333 Van Born Van Born Cummin Cummin Residential Vacant land Residential Vacant land 9S 7 Wellin 45 27312 Van Born Cummin Eden Com 2 5316 Cummin 3 27330 Van Born Walt's Auto Su 9 5621-5631 Daniels Industrial buildin 56 27113 Powers Currier Industrial (occu Vacant land Vacant land 56 5610 Wellin Powers9S Industrial - outside vehicle stora 677 Wellin 5609 Daniels 5664 Daniels Villa Cement Korte's Collision Industrial, outside equi Re 34 27218 Currier Cummin J & M Towin 11 - Van Born Park Plaza West (under const) Nei 11 5310 Ba 11 26505 Powers Im 11 26500 Van Born Commuter Ex 11 Ba 11 26580 Van Born Diesel Re 1111 - Van Born - Van Born BP Gas (under const) Neighborhood center (under const) Neighborhood center Gas station/convenience store 11 5650 Ba 10 26736 Van Born Industrial, multi-tenant/flex s 1010101010 S Hazel Powers S. John Dal 5471 Vacant land S Vacant land Vacant land Vacant land 10 5441 S 10 26850 Van Born Van Born Collision & Cham 1010101010 Hazel10 5601 S 10 26960 Van Born10 26950 Van Born10 Industrial, outside vehicle stora 10 United Wholesale Grocer 26736 Van Born Resetar Equi 26728 Van Born 26720 Van Born 26744 Van Born 26760 Finish Master Automotive Paint Van Born 26600 SSBE/Premium Custom Bowlin Van Born PLM Trailer Leasin 4-Wa Thomas E. Keller Truckin Industrial FTI Truckin 121212121212 26300 Van Born 26300 Van Born 26300 Van Born 26300 Metro Truck Plaza Van Born 26300 Van Born Metro Plaza Café 26300 Van Born Metro Market RT Electronics Dependable Cab A & R Express Mixed-use building Restaurant, family Convenience market Repair, CB radios Transportation, taxi (office) Transportation, trucking (office) 10 5451 S Map Key # Building and/or Land Use (2) Description

17 Market OpportuntiesRetail Analysis & Office d zone

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e h Description t f o d ste i cons

20th District Ct, Police Dept., TIFA offices Industrial, outside vehicle storage Nursery & crafts Repair, auto body Industrial area

urvey ) S . ) LLC , h y t esearc R opment s l eve D state l E Dearborn Auto RestorationCotsworth TechnologyRoman Manufacturing ServicesVacant part of multi-tenant building Other Services (except Pub Admin) Vacant, industrial spac Industrial Industrial ea Multi-tenant industrial buildling Industrial Vacant part of industrial building W.W. GraingerNACB MichiganXPED Paper & GraphicsViviano Wine Importersindustrial space Vacant J. Lewis CooperVacant part of industrial buildingFamily & Neighborhood ServicesE.G.S. World Bu ICAT Logistics Industrial Industrial Industrial Vacant, industrial spac Industrial Training & placement services Industrial Industrial Performance Power SportsCooper StandardDearborn Racquet & Health ClubVacant industrial buildingServices to Enhance PotentialMulti-tenant industrial building Auto supplies, specialt Health club Multi-tenant industrial buildingplacement services Training & Industrial, vacant Industrial Industrial Multi-tenant industrial building Industrial Industrial Detroit Edison transmission yardSecured Self-StorageLivernois Motor SportsComcast Telecommunications Transmission yard Self-storage Industrial Repair, auto, classic & racing Westwood Community Schools Athletic ComplexVacant land Athletic field ResidentialH.O.R. EmbroideryCharlie Electric Co.Irish PubVacant landResidentialResidentialVacant landResidentialVacant industrial buildingNu-Core Industries Advertising specialities Vacant land Residential Contractor, electrical Residential Painter & Rothenberg IndustriesMetro Waste ServiceVillage Ford "Bullpen" drop lo Residential Drinking place Vacant land Cold Saw Precision Residential Vacant land Vacant building Residential Industrial Daly Stop Vacant land Vacant land Industrial Lt. Raymond Zussman Army Reserve Center Residential ResidentialResidential Industrial Army Reserve Vacant land Residential ResidentialLarry's Tarpaulin ShopTyrone Wheatley Park (City of Inkster) Industrial Vacant building Residential ResidentialResidential Vacant land Park Convenience market Vacant land Residential Misc. retail Residential Vacant land Residential Vacant building Residential Residential Beech Daly Technical CenterVacant industrial buildingLivernois Vehicle DevelopmentBeech ServicesIndustrial (occupant unknown)Hart IndustriesResidential Industrial Residential Industrial Vacant land Vacant building Residential Industrial Vacant landWestwood Schools Administrative Center Industrial School administration customizing, classics Auto Residential Residential Vacant land Residential Vacant land R y ) y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y 2004 b er b S. Gulle S. Gulle S. Gulle S. Gulle S. Gulle S. Gulle Princeton Dynamic Cleaning Supplies Industrial S. Beech Dal Michigan Ave. Marathon Gas & Oliver's Pizza & SubsS. Beech Dal market & fast food Gas station/convenience S. Beech Dal S. Beech Dal S. Beech Dal S. Beech Dal S. Beech Dal Michigan Ave. Daly SchoolMichigan Ave. McDonald'sMichigan Ave. Fast Track Public School Fast food restaurant, hamburgers Gas station/convenience market Michigan Ave. Dearborn Heights Justice Center Michigan Ave. SHRI Maldi Inc Sunoco S. Beech Dal Princeton Vacant industrial building Gas station/convenience market Vacant building ovem 1 0 5 4 0 0 7 9 0 7 4 0 0 0 7 4 0 0 7 d N 242 246 250 280 2560 ucte d Property Address (1 con

survey W W W W W W W W 1 E1 E1 E1 E1 E 2525 S. Beech Dal 272 2801 S. Beech Dal 2899 S. Beech Dal 2570 1 S 2563 1 S 2556 1 S1 S 25451 Michigan Ave. Home Depot 2001 Beech Dal S. Home Improvement 2 E 2955 S. Beech Dal 8 E8 E9 E9 E9 E S. Beech Dal 360 S. Beech Dal 3623 S. Beech Dal 3651 S. Beech Dal 1 N 2582 3 E4 E4 E5 E5 E 3009 S. Beech Dal 6 E7 E S. Beech Dal S. Beech Dal S. Beech Dal 3335 S. Beech Dal S. Beech Dal S. Beech Dal ld 2 N2 N2 N3 N 25708 Ave. Michigan 2566 Aaron's Sales & Leased Ownership 25488 Michigan Ave. Frank's Nursery & Crafts (closed 12/04 Michigan Ave. Parking for Franks's Nursery & Crafts Furniture & electronics Nursery & crafts (parking) 3 N4 N 2535 - Ave. Michigan AMOCO Gas station/convenience market 1 W S. Beech Dal 11 E11 E1 W 2582 S. Beech Dal S. Beech Dal 2 W3 W3 W3 W3 W3 W 242 S. Beech Dal 3 W 2913 S. Beech Dal 4 W S. Beech Dal 2913 S. Beech Dal 4 W5 W6 W S. Beech Dal 283 6 W7 W 2956 S. Beech Dal 7 W S. Beech Dal 8 W 320 8 W S. Beech Dal 9 W S. Beech Dal S. Beech Dal S. Beech Dal 3452 S. Beech Dal S. Beech Dal S. Beech Dal 3 W S. Beech Dal 13 E14 E 25353 Trowbridge - Trowbridge Collision Craftsman & Auto Bod Livernois Motor Sports (storage bldg) Industrial 17 E 3231 S. Gulle 18 E Heritage Residential (Heritage Place Townhomes) Residential (multi-family complex) 12 E 25341 Gulle S. 17 E 3241 S. Gulle 17 E17 E17 E17 E 3001 S. Gulle 17 E 3101 S. Gulle 17 E 3101 S. Gulle 3101 S. Gulle 17 E 3101 S. Gulle 3231 S. Gulle 17 E 3231 3241-325 S. Gulle 16 E17 E17 E17 E17 E 272 2941 - S. Gulle S. Gulle 17 E 3001 S. Gulle 3001 S. Gulle 3101 S. Gulle 17 E 3101 S. Gulle 10 E10 E S. Beech Dal S. Beech Dal 17 E17 E17 E 3241 S. Gulle 3241 S. Gulle 3241 S. Gulle 15 E 2401 S. Gulle 17 E 3231 S. Gulle 11 12 12 12 12 12 10 10 e Map Key # Building and/or Land Use (2 block front, only the first incidence is displayed. (1) Property addresses shown only for non-residential locations. Note that for multiple contiguous residential uses or vacant (2) Fi areas within the Dearborn Heights TIFA District as well as frontage on the opposing street sides outside the district in adjace

18 Market OpportuntiesRetail Analysis & Office Map Key # Property Address (1) Building and/or Land Use (2) Description Map Key # Property Address (1) Building and/or Land Use (2) Description 1 W S. Beech Daly Residential Residential 8 E 4809 S. Beech Daly Sandra K Beaute Salon Personal service, beauty 1 W 3952 S. Beech Daly Delcon Electric Fork Lift Motors Industrial 8 E 4825 S. Beech Daly Dendra's Kiddie Korner Personal service, child care 3 W S. Beech Daly Vacant land Vacant land 8 E 4845 S. Beech Daly Beech Daly Plaza Neighborhood center 3 W S. Beech Daly Residential Residential 8 E 4839 S. Beech Daly Discount Video Video rental 4 W S. Beech Daly Vacant land Vacant land 8 E 4841 S. Beech Daly Tan Con Salon Personal service, tanning salon 5 W S. Beech Daly Vacant land Vacant land 8 E 4843 S. Beech Daly Rosie D's Pizza Restaurant, fast food, pizza 5 W S. Beech Daly Residential Residential 8 E 4845 S. Beech Daly Vacant retail/office space Vacant space 5 W 25912 Annapolis Tomlinson Intermediate School Public school 9 E 4945 S. Beech Daly American Druze Society Community Center Community Center 6 W 4630 S. Beech Daly Sam's Clark Gas Gas station/convenience market 9 E S. Beech Daly Abela's Pizzeria parking Restaurant, fast food, pizza (parking) 6 W 4650 S. Beech Daly Beech Food Center Grocery 10 E 5111-5113 S. Beech Daly Multi-tenant building Multi-tenant building 7 W 4828 S. Beech Daly Automotive ER Repair, auto 10 E 5111 S. Beech Daly Abela's Pizzeria Restaurant, fast food, pizza 7 W 4852 S. Beech Daly Beech Daly Coin Laundromat Laundromat 10 E 5113 S. Beech Daly Touch of Jazz Salon Personal service, beauty 8 W S. Beech Daly American Druze Society Community Center (parking) Community center parking 10 E 5127 S. Beech Daly Fetzer's Bar on the Beech Drinking place 8 W S. Beech Daly Vacant land Vacant land 10 E 5153 S. Beech Daly Foster Cleaners Personal service, dry cleaner 8 W 4970 S. Beech Daly Your Choice Auto 2 Repair Repair, auto 11 E S. Beech Daly Vacant land Vacant land 9 W 5152 S. Beech Daly Vacant building (former Daly Drive-In) Vacant building 12 E S. Beech Daly Vacant land Vacant land 10 W 5312 S. Beech Daly Royal Canadian Legion Fraternal organization 12 E 5467 S. Beech Daly The Living Word Church of God Religious, church 10 W 5346 & 5358 S. Beech Daly Help's on the Way (warehouse use in office bldg) Industrial 13 E 5615 S. Beech Daly Sunrise (Bryant) Heating & Cooling Contractor, heating 10 W 5376 S. Beech Daly Jart's Hamburgers Restaurant, fast food, hamburgers 13 E S. Beech Daly Vacant land Vacant land 11 W 5400 S. Beech Daly Vision Restoration & Building Co Contractor, building 13 E 5361 S. Beech Daly Sheba Professional Nail Products Beauty supplies 12 W S. Beech Daly Vacant land Vacant land 14 E Amherst Residential Residential 13 W S. Beech Daly Vacant land Vacant land 14 E S. Beech Daly Vacant land Vacant land 1 E 3903 S. Beech Daly Residential Residential 14 E S. Beech Daly Residential Residential 1 E 3925 S. Beech Daly Office (occupant unknown) Office (occupant unknown) 1 N 25822 Van Born Gary's Auto Service Repair, auto 1 E S. Beech Daly Vacant land Vacant land 2 N 25762 Van Born CVS Drug store 2 E 4015 S. Beech Daly Taylor Elector Motor Service Repair, electric motor 2 N 25620 Van Born Pvt James D. Donovan V F W Banquet hall 2 E 4039 S. Beech Daly Beech Daly Auto Detailing Auto wash, detailing 3 N Van Born Pvt James D. Donovan V F W (parking) Banquet hall (parking) 2 E 4061 S. Beech Daly Michigan Robo Wash Auto wash, coin 3 N 25568 Van Born Vacant building (2 vacant spaces) Vacant building 3 E S. Beech Daly Vacant land Vacant land 3 N 25542-25564 Van Born Professional Maintenance Service Janitorial services 3 E 4151 S. Beech Daly Vacant building (former Maxim's Grocery) Vacant building 3 N Van Born Vacant land Vacant land 4 E 4215 S. Beech Daly Beech Daly Family Clinic Practice Office, medical 3 N 25436-25472 Van Born Maya Plaza Neighborhood center 4 E 4245 S. Beech Daly Multi-tenant office building Multi-tenant office building 3 N 25436 Van Born Michigan Wireless Plus Retail, telecommunication 4 E 4245 S. Beech Daly Dental Health Group Office, dental 3 N - Van Born Vacant retail/office space Vacant space 4 E 4245 S. Beech Daly Family Foot care Specialists Office, medical 3 N 25412 Van Born Citgo Gas station/convenience market 4 E 4245 S. Beech Daly Family Center Pharmacy Drug store 4 N 25380 Van Born Tail Gator Sports Bar Drinking place 4 E 4245 S. Beech Daly Physical Therapy & Pain Management Office, medical 1 S 25815 Van Born Quickie Lube Repair, auto 4 E 4245 S. Beech Daly Vacant retail/office space Office, vacant 2 S 25757 Van Born Model Wallpaper & Paint Paint & wallpaper 5 E 4413 S. Beech Daly Engineered Comfort Systems Contractor, heating 2 S 25739 Van Born West Metro Door & Window Other building materials 5 E 4417 S. Beech Daly Vacant building (former restaurant) Vacant building 3 S 25689 Van Born Diann's Hair Den Personal service, beauty 5 E 4451 S. Beech Daly Residential Residential 3 S 25677 Van Born Lowery's Pub Drinking place 6 E 4513-4521 S. Beech Daly CVA Process Temperature Specialists Contractor, heating 3 S 25611 Van Born Village Florist & Gifts Florist 6 E 4551 S. Beech Daly Wessam Fill-Up (BP Gas) Gas station/convenience market 4 S 25595 Van Born Arrowhead Archery Range Commercial recreation, archery 7 E S. Beech Daly Vacant land Vacant land 4 S 25565 Van Born 101 Aquariums Pet shop 7 E 4665 S. Beech Daly K Landmark Shop (Liquor Store) Liquor store 4 S Van Born Vacant land Vacant land 4 S 25551 Van Born Super S Wine Shop Wine shop 5 S - Van Born Car repair (name unknown) Repair, auto 5 S 25407 Van Born Tallon Construction Contractor, construction 6 S Van Born Residential Residential (1) Property addresses shown only for non-residential locations. Note that for multiple contiguous residential uses or vacant lots in the same block front, only the first incidence is displayed. (2) Field survey conducted November 2004 by Real Estate Development Research, LLC. Survey area consisted of the non-residentially zoned areas within the Dearborn Heights TIFA District as well as frontage on the opposing street sides outside the district in adjacent communities.

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1 S Born Van land Vacant Vacant land 1 N1 N1 N1 N1 N 25320 Van Born1 N 25340 Van Born1 N 25320 Van Born1 N 253101 N Born Van Dearborn Heights Shopping Center 25300 Van Born1 N Cinderella Dry Cleaning/Laundromat Little Caesars 25190 Van Born Neighborhoood center 25200 Video Zone Van Born Born Van Laundromat 26380 Rentals Value Dollar/Cell Plus/U-haul Van Born 25180 Van Born Seward Sav-Mor Drugs Spartan Saturn Food Dollar Vacant land General merchandise, dollar store Davenport Trucking Co. Auto Body: Extreme Custom Restaurant, fast food Grocery Drug store Video rental Repair, auto body Industrial land Vacant 2 S2 S3 S3 S3 S 25247 Van Born4 S4 S5 S - Van Born6 S Hahn's Collision Center Born Van 251116 S Van Born Born Van 7 S Nicole's Gift Baskets8 S Born Van 9 S Vacant land Do-Rite Automotive Born Van 9 S Residential Born Van 9 S 24559 Repair, auto body Van Born Born Van 9 S Vacant land 24459 Van Born Born Van Residential 24331 Van Born Vacant land 24331 Van Born Gift store Cuda Uniform Residential 24331 Van Born Taylor Building Supply Vacant land 24305 Van Born Repair, auto body Vacant office Community Lab Niham Siran MD Vacant land Van Born Express Market/Liquor Residential Vacant land Building supply Residential Liquor store Vacant land Uniforms Residential Vacant land Vacant office Medical laboratory Medical office 3 N3 N3 N 24600-24602 Van Born3 N4 N5 N 24600Public Facilities Dearborn Heights Van Born 24602 Van Born 24600 Van Born 24398 Van Born Misc. public facilities Dearborn Heights Public Works 24130 Van Born John F. Kennedy Library Dearborn Heights Recycling Yard Vacant industrial-style building (Grainger) Vacant industrial Aldi's Public Works Recycling center John F. Kennedy Library Grocery, discount/limited line 2 N2 N2 N2 N2 N2 N 5616 Born Ct. Van 24734 Van Born2 N 24730 Van Born Ramp Park Transitions 5625 Born Ct. Van 24610-24614 Van Born 5649 Aunt Millie's Bakery Outlet Born Ct. Van 24712 Van Born Citywide Roofing & Construction Generator Service Michigan ABC Construction A to Z Electrical Wholesale Heating Supply Industrial Bakery outlet Indoor skate/rollerblade park Industrial Industrial Industrial Re 2 N2 N2 N2 N 25040 Van Born 24940 Van Born United Precision Products Born Van AutoZone Vacant land Industrial Auto supply, discount Vacant land ld 10 S 24123 Van Born Sherman Williams Paint store e Fi

Map Key # Property Address (1 the same block front, only the first incidence is displayed. residentially zoned areas within the Dearborn Heights TIFA District as well as frontage on the opposing street sides outside th district in adjacent communities. (1) Property addresses shown only for non-residential locations. Note that for multiple contiguous residential uses or vacant (2)

20 Market OpportuntiesRetail Analysis & Office

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5303 S Telegraph Rooster's Antiques & Collectables Antiques 4345 S Telegraph4457 S Telegraph4469 S Telegraph Dunkin Donut 4505 S Telegraph True Value Studz Hardware Crazy Pizza4525 S Telegraph Old Mill 4539 S Telegraph4605 S Telegraph4629 S Telegraph Hardware store AAA Insurance4633 S Telegraph Taco Bell4655 S Telegraph KFC 4645 S Telegraph Liquid Chaos Tatoos & Body Piercing4807 S Telegraph Richter Market4843 S Telegraph Dr.Ghaleb F. Hatem, MD, PC Personal services, tattoos Dr. Frank A. Nesi MD Restaurant, fast food, pizz 4925 S Telegraph Jan's Tropical Fish4929 S Telegraph Convenience market Dearborn Heights Auto Clinic insurance Office, Office, medical Dr. D Coleman Dr. Andrew Kasta Restaurant, fast food, Mexican Repair, auto Convenience market Office, medical Restaurant, fast food, chicke Pet store Office, medical Office, dental 3907 S Telegraph3925 S Telegraph Neighborhood Reconcilliation Center3945 S Telegraph3965 S Telegraph Office, mediation services 4005 S Telegraph Glen's TV & Electronics4035 S Telegraph Jet's Pizza & Carryout Telegraph Cigarette Station Blockbuster Video Elite Looks Family Hair Care Repair, small appliances Smoking supplies Restaurant, fast food, pizz care Personal services, hair rentals Video 5709 S Telegraph5822 S Telegraph Walgreen Burger King Drug store Restaurant, fast food, hamburger 5603 S Telegraph Allstate Insurance Office, insurance 5347 S Telegraph5607 S Telegraph Kessler Tax Service5605 S Telegraph5607 S Telegraph Income tax Services Subway Sandwiches All Season's Heating & Coolin Office, tax services Office, tax Restaurant, fast food, sandwich Property Address (1) resses

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2 W 3 W 3 W 4 W 5 W 6 W7 W 1500 8 W9 W 4850 S. Telegraph 4900 S. Telegraph Rally's Hamburgers Ram's Horn Restaurant, fast food, hamburgers Restaurant, family 11 11 14 W 5714 S. Telegraph Wendy's Hamburgers Restaurant, fast food, hamburgers 12 W 13 W 5650 14 W 24010 Van Born Shell Gas Gas station/convenience marke 10 W Property ) Map 1 communities. ( same block front, only the first incidence is displayed. (2) Field survey conducted November 2004 by Real Estate Development Research the district in zoned areas within the Dearborn Heights TIFA District as well as frontage on the opposing street sides outside

21 Market OpportuntiesRetail Analysis & Office 0 0 Total In TIFA 000 000 East District In TIFA In TIFA In TIFA ) Table 1 continued on following page In TIFA Adjacent Adjacent Adjacent Adjacent Adjacent Adjacent SW District North District Central District SE District In TIFA 1 1,290 3 0 0 1 11 36,036 2 6 65,369 1 0 0 10 18 102,695 17 3 27,945 0 2 82,161 0 7 17,697 0 1 56,510 1 0 0 1 13 184,313 2 0 0 0 044 7,370 0 7,370 1 0 1 0 4 0 0 9,707 0 2 0 2 1 0 5 2,080 0 11,787 0 0 2 0 0 0 0 0 0 0 10 2 4 0 0 9,707 0 0 12 3 13 5 9 19,157 9,450 18 6 Hardware storeHome centersGarden/nurseriesHome décor storesOther building supply stores 0 0 0 0 0 0 1 0 0 1 0 0 0 1 0 0 150,118 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 150,118 0 0 0 0 0 2 0 2 2 2 Grocery/supermarketConvenience storeLiquor/wineSpecialty food storesBeauty suppliesDrugstoresOptical shop 0 1Hair, nail, skin careLaundry-related 0 0Other (tan, tattoos) 1,290 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 6,400 0 0 0 1 0 0 0 0 0 1 0 0 2 0 0 0 0 0 5,820 2 0 30,345 0 0 0 2 0 1 2,050 0 2 0 1 1 11,436 0 0 2,220 0 13,000 0 0 0 0 1 3,330 0 0 980 0 1 0 0 0 0 0 0 1 0 17,250 0 0 1 0 0 0 0 0 0 3 0 1,750 0 0 2 0 0 0 36,745 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 1,290 1 2 13,000 0 0 5 1 0 0 3 0 5,820 2 0 0 1 2,050 28,686 2 2 1 3 0 1 2 1 2,220 5,080 4 0 0 980 1 1 Business servicesJob training & placementManufacturer's representativesTaxi service (offices)Trucking Transportation (offices)All other office-based servicesSubtotal non-local/community 0 0 0 3 0 0 1 6,460 0 0 0 0 0 910 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 2,080 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 2 0 0 3 0 0 0 1 6,460 1 0 0 2,080 0 0 1 910 2 0 3 0 Child care/day care services (4)Commercial recreation 0 0 0 0 0 0 0 0 0 0 0 1 1 2,000 0 0 0 0 1 0 1 0 15,344 0 0 0 0 0 0 1 0 2,000 1 0 15,344 2 Food & beverage stores Health & personal care stores Personal services Video/DVD rental storeSubtotal Apparel & accessories storesAuto supplyBuilding material & garden equip supply 0 0 0 0 0 1 0 0 8,194 0 2 0 0 0 0 1 0 0 3,800 1 0 0 0 1 0 3,024 0 0 0 0 0 0 1 1 7,300 0 0 1 0 2 0 0 0 6,824 0 0 1 0 2 0 15,494 1 3 Real estate agentsInsurance agentsBanks, thrifts, credit unionsMedical/dental officesSubtotal local/community-oriented 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 0 9,707 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 2 0 1 4 3 0 0 4 0 0 9,707 0 0 2 6 1 3 Building Area Analysis: Retail/Commercial, Office & Similar Establishments (1 Vacant Buildings & Spaces Office-Based Establishments Shopping Center Type Retail & Services Convenience/Neighborhood Orientation Comparison Shopping Orientation Type of Use # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # Table 1 Vacant retail or office (2)Vacant industrialTotal Local/community-oriented offices 2 0 12,945 1 0 15,000 0 0 0 0 2 0 0 82,161 0 0 0 7 0 0 17,697 4 0 0 9,707 0 0 0 1 0 0 56,510 1 0 0 0 2 0 0 0 0 1 0 0 9 10 4 30,642 4 153,671 2 0 9,707 12 Non-local/community-oriented offices (3) 4 7,370 1Total 0 0 2 1 2,080 0 0 0 0 0 0 3 5 9,450 6

22 Market OpportuntiesRetail Analysis & Office 0 Total centers but often found near g 000 000 000 000 shoppin in not found y East TIFA District In TIFA In TIFA and child care services are usuall ) CL building is primarily used as a small meeting place for members. While the VFW also oper interviews. Schools Administrative Center or the Imperial Health Care (a residential care facility) churches. outside storage. ers it a separate classification as banquet hall. The American Druze Community Center is used community uses. Thus, the trucking, freight forwarding & logistics services located in Metro Truck Plaza are included t. fied the former Grainger building as an industrial building, due to its essentially warehouse-type character with limited es, skateboard/rollerblade parks ) g ran y un and archer g s, y alle g ., bowlin g e. ( Adjacent Adjacent Adjacent Adjacent Adjacent Adjacent 25% 0% 14% 0% 0% 6% SW TIFA District North TIFA District Central TIFA District SE TIFA District In TIFA In TIFA In TIFA In TIFA 4 14,466 7 4 59,940 2 11 30,752 3 2 15,700 2 0 0 4 21 120,858 18 34 15,964 17,254 9 12 3 3 154,348 154,348 8 9 13 24 26,600 62,636 6 8 4 10 26,594 91,963 4 5 4 4 8,557 8,557 21 31 27 45 232,063 334,758 48 65 14 52,035 20 7 214,288 13 47 122,872 11 12 107,663 10 4 8,557 49 84 505,415 103 centers, fraternal orders, commercial recreation y Cell phone storesSewing machine & vacuums storesFull service restaurantFast food/limited service 0Drinking placesBanquet halls 0 0 0 1 0 0 0Antique stores 2,970Jewelry stores 0 0Pet stores 1 0Florist, cards, gifts, smoke stores 0 0 0 0All other miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 1 0 1,830 0 1 0 0 3 0 0 0 0 0 0 0 840 2 0 0 0 0 0 0 3,492 0 0 0 0 0 1 0 0 0 0 4,180 0 0 0 0 0 1 1 0 0 3,290 0 0 0 0 0 1,750 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1 1 0 1 0 0 3,447 0 0 4,095 0 0 0 0 0 10 0 0 0 1 0 0 0 6 0 1 0 1 2 0 0 0 0 2 8,689 0 1 0 7,065 1 0 840 0 11 3 0 0 0 0 2 0 0 0 0 6,010 1 0 0 0 0 0 3 3,290 1 0 0 0 0 0 1 0 1 0 0 0 0 2 0 0 0 4 0 0 0 1 1 0 1 3 Banquet halls, communit Auto repairAuto washOther repair & maintenance 1 1,290 2 0 1 12,072 0 2 0 2 2 0 55,812 0 0 2 1 3 0 0 4,744 6,098 2 2 1 1 4,176 8,000 0 7,700 0 0 2 0 0 0 0 0 0 1 1 0 3 8 0 14,034 81,682 0 2 9 2 4,176 2 Food service & drinking places Fraternal orders/community centersFurniture & home furnishingsGas stationsGeneral merchandiseMiscellaneous store retailers 0 0 0 0Subtotal 0 0 0 0 1 0 0 4,800 0 1 2 0 0 0 1 2 1 2,400 0 0 8,200 3 0 0 3 0 0 0 0 4,598 0 0 0 0 0 0 0 0 0 1 0 0 2,200 0 0 0 0 0 1 0 2 0 1,015 0 1 8,200 0 0 0 0 6 1 12,813 0 6 2,200 1 1 Electronics & Appliance Stores ) 4 Building Area Analysis of Retail/Commercial, Office & Selected Similar Establishments (1 Heavy Commercial All other commercial & servicesTotal Grand total commercial & office (5) Retail/office space vacancy rate 0 0 2 2 4,128 0 5 15,734 1 0 0 0 0 0 2 7 19,862 5 Auto dealersRepairs & Maintenance (1) Real Estate Development Research, LLC, from field observations November, 2004, Dearborn Heights Assessor's records & devel (2) Classifies properties under construction by known use. If the future use is not known, building classified as vacan 1 1,104 0(5) The Royal Canadian Legion and American Druze Society are classified separately from the Pvt James D. Donovan V F W. R casual gathering place for its members, size and frequent use as a renta hall banquets other large gatherings rend 0meeting/activities/religioius education center and not specifically as a place of worship or banquet rental hall. Note: The above analysis does not include Dearborn Heights public facilities such as the Justice Center, JFK Library, Westwood Also note: to be included in the above analysis, business must an enclosed building as opposed consisting only of 0 0 0 0 0 0 0 0 0 0 0 1 1,104 0 (3) Includes uses supportive to industrial establishments, but which are located separately from buildings and land above. (5) Totals do not include the vacant industrial buildings. Note that while a permitted use in C-3 district, we have classi "store" type retail area. shopping centers and often in commercial zoning districts. Total Shopping Center Type & Related Type of Establishment/Building # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # # Sq. Ft. # Table 1 (continued) (

23 Market OpportuntiesRetail Analysis & Office Heavy commercial uses in the TIFA District account for nearly 121,000 square feet. Total shopping center type retail and service establishments, office-based uses and heavy commercial uses found in the TIFA District total over 505,000 square feet.

There is less than 20,000 square feet of office space in the District, approximately half occupied by businesses with a strong local orientation. Occupied office space in the District represents nearly four percent of total office and shopping center type space.

Real estate investors and lenders typically assume that a five-percent vacancy rate is an indication of a reasonably healthy real estate market. The vacancy rate among the TIFA District’s commercial and office-suitable buildings is six percent, or only slightly lower than the minimum indicator of a market in balance. Building Use Mix by TIFA District Geographic Segment

Southwest TIFA Area: While the portions of Van Born and Inkster in the Cities of Inkster, Westland, Romulus and Taylor adjacent to the TIFA District portions of these roads offer a limited variety of shopping center and heavy commercial uses, few such uses are located in the Southwest portion of the TIFA District. With four office-based businesses, this part of the TIFA District contains the second highest concentration of office uses. However, the relatively large areas of vacant commercially zoned land in this area, primarily located along its Inkster frontage, could accommodate a variety of retail and office uses. There is only one convenience type use (restaurant) in this part of the TIFA District and three small comparison-shopping types of uses. Additional retail-type uses are under construction at Park Plaza West.

In mid-March, 2005, as part of a budget conservation initiative, the Taylor School District Board of Education authorized the closure of several schools, one of which is the Federal Elementary School on Powers, east of Inkster Road. The school is located on a 4.54-acre site, surrounded to the east, north and west by land owned by the Central Wayne County Sanitation Authority as part of the Waste to Energy Plant site. While long-range plans for property disposition have yet to be established, it may be possible that to generate additional revenues, the district will sell the school building and the land on which it stands. Depending on the timing of that disposition, it could augment the redevelopment opportunities of the WTE site. More immediately, closure of the school is anticipated to decrease in the traffic volume along the portion of Inkster Road in the TIFA District since traffic along Inkster to the school by parents, school busses and school staff will be eliminated.

North TIFA Area: A picture similar to the Southwest TIFA area characterizes the North portion of the TIFA District. There are only three shopping center type uses in the area although several more are located adjacent to the District, primarily along its Michigan Avenue edge. Private sector office uses in and adjacent to the North portion of the TIFA District are similarly limited, consisting of two job training and placement services on the east side of Gulley; one in an industrially-zoned area in a multi-tenant industrial building, the other closer to New York in an area zoned for office use.

Central TIFA Area: The Central area contains the largest concentration of office-based concerns. Four of its five office uses are medical offices and these are located on the east side of Beech Daly in the block between Stanford and Lehigh in two adjacent buildings under the same ownership. While both buildings are in need of façade and interior enhancements to improve their marketability and enhance their appeal to prospective tenants and patients, they form an initial core of what could become a small office cluster in this

24 Market OpportuntiesRetail Analysis & Office portion of the Beech Daly corridor. A vacant physically distressed building is located immediately north of these offices across Stanford with vacant land north of that structure (southeast corner of Colgate). The Central TIFA Area’s medical offices are the only such offices in the TIFA District, although other medical offices are located on the east side of Telegraph or on the south side of Van Born west of Telegraph adjacent to the District.

Additional office-based development near the Stanford-Lehigh portion of the Central TIFA Area would reinforce the existing concentration. As of early February 2005, the owner of the vacant former Maxim’s market (immediately north of the medical offices) indicated that he expected to finalize a lease with a new tenant in the near future. While the owner was unwilling to disclose specific information about the type of business the new tenant would operate, he did indicate that it was not going to be retail. Should it be an office-type of business, its presence could complement and help support the existing two-building medical office complex.

The former Maxim’s building is located on a parcel of land that has, as part of its easternmost portion, a relatively large parking lot that extends into the adjacent residentially zoned neighborhood. There is also a nearly half-block length of vacant commercially zoned land to the north that is also under the same ownership as the Maxim’s building. Thus, the total site area available for redevelopment including the parking extension along Stanford is nearly 1.2 acres.

The Central area of the TIFA District contains the highest concentration of convenience and comparison-shopping facilities of the five TIFA District segments depicted by the aerial photographs and associated data tables on Maps 2-6. The area offers 11 convenience type uses and 13 comparison shopping uses. The majority of these shopping center type retail and service uses are found along the area’s Beech Daly frontage. The blocks between Annapolis and Currier on the west side and between McDonald and Powers on the east side contain the greatest concentration of these uses.

There are relatively large vacant sites that may be available for future commercial development between Currier and Hanover on the west side and between Powers and Currier on the east side. The area also contains the only childcare facility observed in the immediate TIFA area and nearby although there may be home-based childcare care facilities scattered throughout the area – licensed or otherwise.

Southeast TIFA Area: Commercial and office development in this portion of the TIFA District is all focused on Van Born. This area contains the only larger-scale grocery stores found in or immediately adjacent to the TIFA – the relatively new Aldi’s (14,674 square feet) and Spartan Saturn Food Center (15,671 square feet). The only other grocery store in or adjacent to the TIFA District is the Beech Food Center, which at 6,400 square feet is more of an oversized convenience market. The area also contains the TIFA District’s largest drugstore – Seward Sav-Mor Drugs. We note that in the one-mile length between Beech Daly and Telegraph, the Van Born corridor has four drugstores (CVS and Seward Sav-More in the TIFA District, Rite Aid and Walgreen’s adjacent). The only other drugstore in the TIFA area is a small pharmacy in the medical office building in the northern portion of the Central TIFA area.

The Van Born corridor of the TIFA District offers the only commercial recreation facilities found in the immediate TIFA District area. An indoor skateboard/rollerblade park is located in an industrially zoned area of the TIFA midway between Gulley and Telegraph in the Southeast TIFA Area. An archery range is located on the south (Taylor) side of Van Born, midway between Gulley and Beech Daly in the Central TIFA area.

25 Market OpportuntiesRetail Analysis & Office East TIFA Area: There is residential zoning and use along much of the TIFA District’s eastern border. Commercial use is limited to restaurants and a gas station. The restaurants include a Ram’s Horn, which is a moderate-priced family-oriented full-service restaurant and two fast food facilities, both with drive-in windows and inside seating (Rally’s and Wendy’s). A Shell gas station/convenience market is located at the intersection of Van Born and Telegraph. The portion of the Telegraph corridor within the TIFA District also contains a fire station, church and a small manufactured housing community (Pat’s Trailer Court, located between Annapolis and McDonald).

On the east side of Telegraph, adjacent but not within the TIFA District commercial development is intense. Nearly one-third of the 31 shopping center type uses on that side of Telegraph are neighborhood/convenience in orientation. These types of uses include two drugstores (both at Van Born) and two convenience markets. The east Telegraph frontage also has a large concentration of local/community-oriented offices – the largest of any TIFA District segment displayed on Maps 2-6.

The 3 restaurants on the west (TIFA District) side of Telegraph are augmented by 11 additional dining facilities, nearly all of which are fast food. There also are two drinking places, both small local-serving taverns. The corridor also contains a variety of miscellaneous retailers.

26 Market OpportuntiesRetail Analysis & Office Underlying Market Chapter 4 Characteristics Shopping Center Concepts

Shopping centers of various configurations are the primary format in which modern retailing and many types of restaurants and drinking places tend to locate.

Convenience and neighborhood centers are the most common locations for convenience- based retailers such as convenience markets, general food stores (groceries and supermarkets), drugstores and liquor and wine shops and video rental shops. These types of centers are also common locations for local or community-oriented offices providing services to the residents, visitors and businesses in the immediate area rather than being focused on business- to-business services. The former include professional offices (medical, dental, chiropractic, legal), offices of insurance agents, real estate agents, and small business and personal finance service companies (e.g., tax, accounting, banks and related).

These small-scale shopping centers are also common locations for personal service providers (e.g., laundromats, dry cleaners, shoe repair, alterations, barber shops, beauty salons, nail and skin care facilities). Neighborhood centers as well as convenience centers often contain small fast-food/carry-out restaurants, with a primarily localized customer base.

Convenience centers rarely exceed 30,000 square feet on sites of less than three acres and rarely have a trade area of more than a mile. Neighborhood centers rarely exceed 150,000 square feet on 15 acres and typically have a three-mile trade area.

A larger type of center, the community center, contains stores with a broader geographic appeal but continues to serve the local neighborhood to a greater or lesser degree. As such, a community center may have one or large-scale neighborhood uses (e.g., major drugstore, supermarket, oversize video rental) in addition to one or more anchor tenants such as a discount department store, superstore2, home improvement center, or large specialty/discount apparel store.

Community centers may offer a limited variety of specialty stores (retail outlets that have a large selection of items in a limited line of merchandise such as men’s or women’s apparel stores, furniture stores, electronics stores) and one or more small-scale neighborhood-oriented retailers and personal service providers (e.g., laundromat, beauty salon). They also are common locations for both limited service (e.g., fast food) and full-service restaurants and drinking places.

It is not uncommon to find a small office component to the center, either as part of the main building or as a separate, adjacent building (or buildings). Office tenants in such locations typically consist of local/community oriented small-scale professional (e.g., medical, legal, accounting) and general business offices (e.g., real estate, personal finance, insurance) offices.

2Superstores provide a mix of general merchandise and grocery lines (often at discounted prices) in a single store that may be 200,000 square feet or more. Examples include Meijer, Super Kmart, Costco, and Sam’s Club.

27 Market OpportuntiesRetail Analysis & Office A freestanding superstore such as a super Wal-Mart or Meijer can, in and of itself, have the customer drawing power and site requirements of a multi-tenant community center. Community centers tend to range in size between 100,000 and 350,000 square feet and require sites of 10 to 40 acres. Community centers, depending on their size, location and tenant composition, tend to have trade areas ranging between three and six miles.

Given the location of the TIFA District and the scale and character of existing uses within its commercially zoned areas, we anticipate that the primary types of shopping centers that could be created in the vacant and/or underutilized portions of its commercial corridors are likely to consist of convenience, neighborhood and smaller community center developments.

Other types of shopping centers, many of which already exist as strong competitive influences in and near the TIFA trade area include power centers, lifestyle centers, theme/festival centers, outlet centers, all of which tend to be open air in configuration, as do all community, neighborhood and convenience centers. Enclosed shopping center types include regional and superregional centers.

Table 2 provides a more detailed description of the characteristics of nine basic types of shopping centers.

Table 2 Shopping Center Definitions (1)

Square Feet (Including Typical Anchor(s) Anchor Population Trade Type of Shopping Center ConceptAnchors) Acreage Number Type Ratio Base (2) Area Enclosed Malls Regional Center General merchandise; 300,000–800,000 40–100 2 or more Full-line department store; jr. department 50–70% 150,000 or 5–15 fashion (mall, typically typical is 450,000 store; mass merchant; discount more miles enclosed) department store; fashion apparel

Superregional Center Similar to regional 800,000+ 60–120 3 or more Full-line department store; jr. department 50–70% 300,000 or 5–25 center but has more store; mass merchant; fashion apparel more miles variety and assortment Open-Air Centers Convenience Center Convenience Up to 30,000 < 3 0 or 1 Typically mini-mart/convenience store, 0-20% 1,000-3,000 < 1 mile or party store, video rental store or drug < 5 store. Often unanchored. minutes Neighborhood Center Convenience 30,000–150,000 3–15 1 or more Typically a supermarket or large scale 30–50% 3,000-40,000 3 miles typical is 60,000 specialty foods (e.g., fruit & vegetable store). Community Center General merchandise; 100,000–350,000 10–40 2 or more Discount department store; supermarket; 40–60% 40,000- 3–6 miles convenience typical is 150,000 superstore, home improvement center; 150,000 large specialty/ discount apparel

Lifestyle Center Upscale national chain Typically 150,000- 10-40 0-2 Not usually anchored in the traditional 0-50% N/A 8-12 miles specialty stores; dining 500,000, but can sense but may include book store; other and entertainment in be smaller or larger large-format specialty retailers; multi-plex outdoor setting cinema; small department store.

Power Center Category-dominant 250,000–600,000 25–80 3 or more, Narrowly focused, deeply merchandized 75–90% 40,000- 5–10 anchors; few small 20,000 sq. "category killers" emphasizing hard goods 150,000 miles tenants ft.. minimum (consumer electronics, sporting goods, office supplies, home furnishings, home improvement goods, toys, personal computer hardware/software health & beauty aids) or bulk foods. May also be warehouse clubs, discount department stores Theme/Festival Center Leisure; tourist-orient- 80,000–250,000 5–20 N/A Restaurants; entertainment N/A N/A N/A ed; retail and service Outlet Center Manufacturers' outlet 50,000–400,000 10–50 N/A Manufacturers' outlet stores N/A N/A 25–75 stores miles (1) Derived by Real Estate Development Research, LLC from the sources listed below International Council of Shopping Centers, ICSC Shopping Center Definitions: Basic Configurations and Types , 2004 Urban Land Institute, Shopping Center Development Handbook , 1999 Urban Land Institute, Dollars and Cents of Shopping Centers , 2004 Urban Land Institute, Development Trends, March 1989 (2) Required population base to support the center is highly variable, depending on factors such as population age, household size, household composition and income levels. For low income areas, substantially more people area required to support a center than in higher income areas. However, in low-income areas, it is often common that less substantive, modern, quality competition exists and thus each center may be able to draw from a larger trade are and/or capture a greater share of the spending potential of nearby residents.

(3) The area from which 60-80 percent of the center's sales originate. Geographic distance and driving time are separate factors. Competition between shopping concentration influences the movement of urban shoppers. Thus centers that may be physically close may be distant relative to the time required to travel to them due to natural or man-made barriers.

28 Market OpportuntiesRetail Analysis & Office Locational Preferences Convenience Oriented Retailers & Personal Service Providers

When evaluating potential locations, convenience or neighborhood-serving retailers and service providers tend to focus most strongly on the demographic and competitive characteristics of the area within three miles of their potential location. These types of establishments are best located in proximity to each other, but even more importantly, close to concentrations of residential development. Comparison Oriented Retailers

Other than for small-scale fast food outlets, it is uncommon for most types of comparison goods retailers to seek locations in convenience or smaller neighborhood centers since the major part of their appeal to shoppers is created through clustering of several similar, complementary uses. Consequently, they perform less well in smaller scale shopping environments.

In addition to the nine types of centers described by the data on Table 2, many retail, personal service, and business service establishments are commonly found in freestanding structures and within mixed-use developments. Small-scale retail and service uses are often found in combination with large-scale office buildings (e.g., buildings of 100,000 or more square feet) or as amenities attached to (or sharing the site and access with) motels or hotels. They are also found in association with community gathering facilities such as libraries, community and recreation centers and in the main and mezzanine floors of middle and high-rise residential or residential/office developments. Depending on their location and scale, they will tend to draw their sales from varying geographic distances, much as do the distinct types of shopping centers detailed by the information presented on Table 2.

When evaluating prospective locations, comparison goods retailers as well as consumer- oriented service providers (e.g., physician’s, dentists, residential real estate and insurance agents) draw the majority of their customers from a larger geography than do convenience goods retailers. Their customers visit them on a less frequent basis. Medical service providers prefer to locate their practice offices on sites convenient to a large existing and/or potential patient base. It is also important for many such providers that their practice offices are within a relatively short drive time of hospitals and/or major outpatient surgical centers.

Those charged with site selection by large business-to-business office-based service providers (e.g., major law, accounting, advertising, public relations, insurance, commercial real estate, architectural, banking and finance) and headquarter (or major regional or branch) office facilities of other types of concerns typically prefer locations near concentrations of similar concerns. Such locations facilitate business-to-business sales, marketing and servicing functions. Sites along or within direct view of major business transportation routes and freeway interchanges where building signage provides an important form of indirect advertising to prospective customers are also common locational preferences. Other locational preferences of larger-scale office-based businesses include sites near high image, high value residential neighborhoods and/or adjacent to high value, high-end shopping concentrations.

29 Market OpportuntiesRetail Analysis & Office Trade Area Definition

The primary trade area (PTA) of most retailers and many office-based service providers is a geographically definable area from which the establishment may generate up to 60 percent of its customer traffic and associated sales. Secondary trade areas (STA) represent that area from which an additional 20 percent of sales may be drawn.

Beyond these areas, which, in combination are commonly referred to as the trade area, lies the tertiary trade area, an area that is generally less geographically explicit. That area is the source of sales drawn from a diffuse geographic basis and can include sales from out of town/out of state and even out of country shoppers who are not likely to be regular patrons of the specific store or office-based establishment examined, but who contribute to the establishment’s total sales volume.

For the purpose of this report, we refer to the aggregate of the primary and secondary trade areas as the trade area.

Factors such as accessibility, visibility, proximity to demand generators, proximity to existing or potential competition, natural and man-made barriers, and drive times are commonly employed in the determination of the trade area configuration for a specific site. The location of a specific site and the specifics of a particular business relative to the competitive environment strongly influence not only the shape and configuration of its primary and secondary trade areas, but also the percentage of its sales that may be drawn from trade area components.

Given the approximately 1.7 square mile area of the Dearborn Heights TIFA District and the 6 miles of its major commercial corridors (Inkster, Van Born, Beech Daly, Telegraph and the northernmost segment of Gulley) we have elected to identify the trade area of the TIFA District from its approximate geographic center near Beech Daly and Carlysle. The primary trade area (PTA) extends three miles from this point while the secondary trade area (STA) extends from the outer edge of the PTA to five miles beyond.

It is our opinion that the trade area geographies as illustrated on Map 7 provide a reasonable sense of the demographic context for the analysis of retail and office market opportunities within the TIFA District as a whole.3

3Please note that for any specific location within the TIFA District and depending on that specific site’s size and character, specific trade area boundaries could differ and that difference could possibly be substantial from that elected for study in this report.

30 Market OpportuntiesRetail Analysis & Office (b) Market OpportuntiesRetail Analysis & Office Market Components

Three broad market components form the basis of the demand for retail and retail-related service use in the TIFA District:

¾ Business and employees based in the trade area

¾ Passersby

¾ Trade area residents

The majority of the patrons of the TIFA District’s existing shopping center type retail and service uses and of its locally oriented office facilities are people living within its trade area. In addition to area residents, the District’s existing and prospective customer base is comprised of area employees and businesses and to a lesser extent, people passing through the area en-route to other primary destinations. Employment Base

According to information provided by InfoUSA, the primary trade area (PTA) contains approximately 3,200 different employment locations with nearly 30,000 employees. The secondary trade area (STA) contains over 4,800 employment locations with nearly 78,000 employees for a total trade area employment location base of at least 8,000 employment locations with over 107,000 employees.

ESRI BIS, a national demographic data vendor, estimates that there are almost 121,000 trade area residents who are employed. When the number of trade area-based jobs is compared to the number of residents in the trade area who are employed, it indicates that at least 14,000 trade area residents leave the trade area for employment. Thus, there are more trade area residents who may leave the area on a daily basis for their jobs than there are out- of-area residents who commute into the area for work.

Nonetheless, people employed within the area, particularly in locations within a very short drive (or walk) of the TIFA District’s commercially zoned areas, are likely current and potential patrons of the District’s eating and drinking establishments and its convenience and comparison goods stores. They also may account for a portion of the demand for local/ neighborhood-oriented office uses such as medical, dental and chiropractic facilities, banks, credit unions and thrifts. As more industries are drawn to the business park in the southwest portion of the TIFA District, local employee-based demand will increase for a variety of shopping, eating and drinking, personal service and local/neighborhood office facilities. Passersby

One of the most critical measures of a retail site’s attractiveness for a variety of retailers is the level and type of vehicular traffic passing by the site. While it is beyond the limits of this study to determine the extent to which the vehicular traffic along the TIFA District’s commercial corridors is locally generated or generated by passersby, it is the overall level of the traffic volume which is a factor most often reviewed by retailers seeking new locations.

31 Market OpportuntiesRetail Analysis & Office Table 3 provides information from a variety of sources about traffic volumes on and near the TIFA District’s major commercial corridors. While new counts have been taken in 2005 along the Beech Daly portion of the TIFA District’s corridors, it will be important to collect and maintain reasonably current counts not only on this thoroughfare, but the others serving the District. For example, among the traffic counts for which data is presented on Table 3 we note that the portion of Van Born between Beech Daly and Telegraph is quite dated (conducted in 1999) while that between Inkster and Beech Daly on Van Born is nearly as dated (collected in 2000). Collection of regular updates to these counts is recommended.

Traffic Volume Requirements Table 3 Average Daily Traffic Volumes: TIFA District & Vicinity (1) With few exceptions, most retailers require Road & Road Segment Count Count Date Data Source locations on well-traveled thoroughfares. We North-South Roads (from North to South) Inkster reviewed the announced expansion plans of Cherry Hill – Michigan 32,092 2002 Wayne County nearly 450 retailers seeking to expand in or Michigan – Annapolis 25,917 2002 Wayne County Annapolis – Van Born 12,154 2002 Wayne County move to locations in the state of Michigan in Van Born - Ecorse 19,577 2000 Wayne County the next 12 to 24 months.4 Approximately Beech Daly Warren – Ford 18,674 2002 Wayne County one-quarter of the retailers reviewed indicate Van Born – Ecorse 13,050 2004 Wade-Trim their minimum traffic volume requirements North of Princeton 10,608 2005 Wade-Trim in numeric form. Others merely indicate that North of Annapolis 12,846 2005 Wade-Trim North of Van Born 14,486 2005 Wade-Trim they require “high traffic counts.” Yet others S. Gulley merely indicate locational preferences for Michigan Ave – Norfolk Southern RR 8,800 2001 Wade-Trim Norfolk Southern RR – Princeton 8,470 2001 Wade-Trim sites in or near downtowns, in high exposure Telegraph/U.S. 24 areas, or in or adjacent to regional or large Ford Rd. – Michigan Ave. 57,875 2003 MDOT Michigan Ave. – Dartmouth 59,200 2000 MDOT community oriented shopping centers – Dartmouth – Van Born 60,600 2002 MDOT where high traffic volumes are typically Van Born – I-94 62,570 2003 MDOT found. Ease-West Roads (from West to East) Michigan Ave./U.S. 24 Inkster – Beech Daly 43,790 2003 MDOT Nearly 90 percent of retailers providing Beech Daly – Gulley 43,000 (a) MDOT Gulley – Telegraph 43,917 2003 MDOT specific minimum traffic volume Telegraph – Outer Drive 47,892 2003 MDOT requirements require a minimum traffic Van Born Middlebelt – Inkster 20,943 2000 Wayne County volume of 20,000 vehicles. Almost 70 Inkster – Beech Daly 20,669 2000 Wayne County percent of those indicating minimum traffic Beech Daly – Telegraph 27,256 1999 Wayne County volumes seek sites with exposure to at least Telegraph – Monroe 26,957 1999 Wayne County I-94 Freeway 25,000 vehicles per day. Nearly 40 percent Middlebelt – Ecorse 124,600 2003 MDOT seek volumes of at least 30,000 or more Ecorse – Telegraph 129,300 2003 MDOT Telegraph – Southfield 142,500 2003 MDOT vehicles per day. (1) Michigan Department of Transportation (MDOT); Wayne County Dept. of Public Services; Retailers and commercial property brokers Wade-Trim; Real Estate Development Research, LLC. often call intersections of two major (a) Current estimated provided per MDOT phone interview 4/26/05. commercial corridors, each with high traffic Note: Counts from MDOT are annual average daily traffic counts whereas the counts from the counts, a “100 percent” location. This means other sources noted are average 24 hour counts specific unadjusted for seasonality. that sites at these corners have direct exposure and (ideally) direct access to two intersecting roads, each carrying high levels of primarily residentially oriented (versus commercial trucking) traffic. Thus, this type of site provides exposure to substantially higher volume of passersby than do sites in locations between major intersections (commonly called “mid-block”).

4Expansion plans of a wide variety of retailers ranging from local and regional-level chain stores to companies with a national exposure as tracked for intentions in Michigan by Retail Lease Trac, Inc.

32 Market OpportuntiesRetail Analysis & Office Telegraph Corridor: With 2003 traffic volumes in excess of 60,000 vehicles per day, the Telegraph corridor in the District more than meets the traffic volume requirements of all but a very limited few retailers. Given the high traffic volumes along Telegraph, many retailers would likely be satisfied with even “mid-block” locations. However, the only 100 percent location in this portion of the TIFA District is at the Telegraph/Van Born intersection.

Michigan Avenue: While volumes are somewhat lower on Michigan Avenue, with over 43,000 vehicles per day passing along the District’s Michigan Avenue frontage, locations in this portion of the TIFA District meet the minimum traffic requirements of a large proportion of retailers indicating minimum traffic volume requirements.

Van Born: Traffic counts in the Inkster-Beech Daly portion of Van Born barely exceeded 20,000 vehicles per day in 2000. Similar counts are also found further west of Inkster. Thus, the westerly portion of the Van Born corridor has a less desirable competitive position for attracting a variety of retailers compared to the more heavily traveled portions of the Van Born corridor to the east. Nonetheless, by meeting the 20,000 vehicles per day minimum, sites along this corridor will meet at least one of the site location thresholds of a large variety of retailers.

Traffic volumes on Van Born between Beech Daly and Telegraph exceeded 27,000 vehicles per day in 1999. Volumes may have increased or decreased since that time. The completion of the Telegraph/I-94 interchange in the near future may increase the traffic volumes along roads like Van Born north of I-94 and Ecorse south of I-94, as people travel to and from Telegraph Road and its improved access to I-94.

Compared to other Van Born locations, Van Born sites closest to Telegraph have a market advantage due to their proximity to that highly traveled thoroughfare and its proximity to the I-94 interchange. Van Born locations close to Beech Daly are only slightly enhanced by proximity to that roadway’s relatively low traffic counts, which were only slightly higher than 13,000 vehicles per day in 2004 (Van Born-Ecorse segment). Locations near the Van Born/Inkster intersection, while locationally stronger than that midway between Inkster and Beech Daly, are assisted only minimally by cross-traffic on Inkster, which in this area had a traffic volume of around 12,000 vehicles per day in 2002.

Beech Daly: Traffic volumes are less than 19,000 vehicles per day in the Warren to Ford segment two miles north of the TIFA District and range from near 10,600 vehicles per day between Princeton and Michigan Avenue to less than 14,500 vehicles per day north of Van Born and only 13,050 vehicles per day between Van Born and Ecorse immediately south of the TIFA District. The change in land use character from Michigan Avenue’s commercial frontage at the north end of the TIFA District to the industrial use immediately to the south and then back to commercial usage (but with a substantially more shallow site depth and thus visual and physical impact) from Princeton south to Van Born does little to help draw shoppers down into the commercially zoned areas of Beech Daly from Michigan Avenue.

The strong Van Born orientation of the CVS store at Van Born and Beech Daly also does little to draw traffic north to locations along Beech Daly to the immediate north. This situation is aggravated by the presence of the north branch of Ecorse Creek between Amherst and Van Born, which effectively reduces the commercial development potential of the Beech Daly frontage immediately north of Van Born.

Beech Daly has two primary 100 percent locations where it intersects other commercial

33 Market OpportuntiesRetail Analysis & Office corridors with more than local residential volumes of traffic: Van Born and Michigan Avenue. Of the two, the Michigan Avenue intersection is the far stronger location, given the high traffic volumes along that roadway that would supplement the far more modest counts estimated along Beech Daly. The Justice Center occupies this corner, thus preventing retail use at one of the two 100 percent locations along the Beech Daly corridor in the TIFA District.

Inkster: Traffic counts along Inkster are highest between Van Born and Ecorse, where they approach nearly 20,000 vehicles per day. The presence of an I-94 interchange at Ecorse near Inkster is estimated to have strongly influenced the relatively higher volumes on this portion of Inkster. In contrast, immediately north, in the Van Born to Annapolis segment, traffic counts taken in 2002 indicate only slightly over 12,000 vehicles per day – a decline from over 15,600 vehicles per day two years earlier. The closing of Federal Elementary School on Powers near Inkster is likely to further reduce traffic volumes along this portion of Inkster Road.

Traffic counts taken in 2002 indicate a substantial increase in volume on Inkster Road north of Annapolis, where the length to Michigan Avenue is reported as having 26,000 vehicles per day. There are three large funeral homes on Inkster, one of which is immediately south of Annapolis, the two other to the north. All three have either recently expanded or undergone substantial renovation. These types of facilities are often significant generators of traffic. The Inkster Town Center, a 45,000 square foot neighborhood center at the southwest corner of Inkster and Michigan and the U.S. Post office near it also provides a traffic draw along the portion of Inkster Road north of Annapolis. Further, several low-income family and senior multi-family housing developments in Inkster along or adjacent to Inkster Road between Michigan and Annapolis contribute to the higher traffic volumes found along this more northern portion of Inkster near the west side of the TIFA District.

While Annapolis is a local through street extending throughout the TIFA District and beyond, given the wholly residential nature of its current land use, other than for the now-closed Waste to Energy Plant (WTE), we estimate that traffic volumes along this road are minimal. Powers is an even more local street, with minimal extension beyond the District. Thus, the only “100 percent” corner for retailers seeking locations at or near the intersections of major commercial corridors in this portion of the TIFA District is the Inkster/Van Born intersection.

Fuller Appraisal Services prepared an appraisal in August 2004 for the WTE site on Inkster between Powers and Annapolis. The appraiser was directed to evaluate the Highest and Best use of the 32.28±-(net) acre parcel. While acknowledging that the property “is physically suitable for a large office or commercial facility” and that that the site had sufficient land area to accommodate a variety of “big box” uses, the appraiser noted that the “traffic count is well under 20,000 vehicles per day, which is well below that of locations sought by these users.” The appraiser’s finding is consistent with our own research and industry knowledge as discussed above. However, we note that both the WTE plant and elsewhere along the Inkster frontage of the TIFA District may be suitable for smaller-scale retail or mixed use (e.g., residential/retail/office) development. Trade Area Residents

The data presented on Tables 4 and 5 provide a summary of key demographic factors for the primary, secondary and total trade area, comparing those areas to the multi-county Detroit region, which consists of Wayne, Oakland, Macomb, St. Clair, Lapeer, and Livingston Counties. Information shown on Information on Appendix Tables A-6 and A-7 provide additional details. Highlights and implications of the information presented on these tables are presented on the following pages. 34 Market OpportuntiesRetail Analysis & Office Table 4 Demographic Profile (1)

Primary Trade Area Secondary Trade Area Overall Trade Area Detroit Region Population trends 1990 126,839 173,426 300,265 4,248,699 2000 120,789 166,859 287,648 4,452,557 2004 117,210 162,482 279,692 4,492,464 2009 113,170 157,439 270,609 4,535,875 Annual growth rate: 2004-2009 -0.7% -0.6% -0.6% 0.2% Population composition: 2004 Total population 117,210 100.0% 162,482 100.0% 279,692 100.0% 4,492,464 100.0% White (single race) (2) 87,001 74.2% 141,710 87.2% 228,711 81.8% 3,209,826 71.4% All other races or multiple races 30,209 25.8% 20,772 12.8% 50,981 18.2% 1,282,638 28.6% Latino or Hispanic (3) 3783 3.2% 6,511 4.0% 10,294 3.7% 148925 3.3% Population age distribution: 2004 117,210 100.0% 162,482 100.0% 279,692 100.0% 4,492,464 100.0% Pre-school (< 5 yrs) 7,961 6.8% 10,525 6.5% 18,486 6.6% 300,319 6.7% School age (5-19 yrs) 24,478 19.3% 32,514 18.6% 56,992 18.9% 966,041 22.7% Young adult (20-24 yrs) 6,839 5.8% 9,235 5.7% 16,074 5.7% 273,689 6.1% Family forming (25-44 yrs) 33,492 28.6% 47,092 29.0% 80,584 28.8% 1,286,636 28.6% Mature Family (45-54 yrs) 16,680 14.2% 22,413 13.8% 39,093 14.0% 669,282 14.9% Empty Nester (55-64 yrs) 11,831 10.1% 16,394 10.1% 28,225 10.1% 452,501 10.1% Seniors 15,931 13.6% 24,309 15.0% 40,240 14.4% 543,996 12.1% Median Age 37.3 38.2 37.9 36.7 Household trends 1990 47,377 65,656 113,033 1,572,442 2000 46,810 66,621 113,431 1,696,943 2004 46,799 66,817 113,616 1,773,948 2009 46,810 67,087 113,897 1,864,541 Annual growth rate: 2004-2009 0.0% 0.1% 0.0% 1.0% Household composition: 2004 Total households 46,799 100.0% 66,817 100.0% 113,616 100.0% 1,773,948 100.0% Family households 31,464 67.2% 44,163 66.1% 75,627 66.6% 1,178,706 66.4% Non-family households 15,335 32.8% 22,654 33.9% 37,989 33.4% 595,242 33.6% Households with children 16,036 34.3% 21,780 32.6% 37,816 33.3% 628,499 35.4% Household size: 2004 2.5 2.4 2.4 2.5 One person households 12,976 27.7% 19,306 28.9% 32,282 28.4% 500,157 28.2% Households with 0 Vehicles: 2000 3,634 7.8% 5,022 7.5% 8,656 7.6% 155,480 9.2% Education (Pop 25+ Years): 2000 - Completed high school 63,943 79.7% 91,618 80.8% 155,561 80.4% 2,397,156 82.4% Completed college 14,715 18.3% 15,805 13.9% 30,520 15.8% 675,761 23.2% Total Employed: 2004 49,473 71,346 120,819 1,968,913 Whilte collar 27,903 56.4% 37,956 53.2% 65,859 54.5% 103,815 61.2% Services 7,371 14.9% 11,059 15.5% 18,430 15.3% 29,489 14.9% Blue collar 14,149 28.6% 22,403 31.4% 36,552 30.3% 58,955 24.7% Total housing units : 2004 48,766 100.0% 69,503 100.0% 118,269 100.0% 1,879,132 100.0% Occupied 46,799 96.0% 66,817 96.1% 113,616 96.1% 1,773,948 94.4% Owner occupied 37,845 77.6% 51,699 74.4% 89,544 75.7% 1,310,683 69.7% Vacant 1,967 4.0% 2,686 3.9% 4,653 3.9% 105,184 5.6% Median housing value (owner occ) $116,727 $130,659 $124,784 $158,069 Housing composition: 2000 Detached single family 82.8% 78.3% 94,799 80.2% 69.1% Attached single family 2.2% 3.8% 3,714 3.1% 5.6% (1) U.S. Census; ScanUS; ESRIBIS; Real Estate Development Research, LLC (2) As of the 200 census, census questionaire respondents were able to indicate membership in more than one race. (3) Hispanic or Latino indicated as a percent of total population as this group is not a racial but ethnic minority classification.

35 Market OpportuntiesRetail Analysis & Office Table 5 Population Comparative Income Patterns: 2004 (1) Aggregate Household Income Many retailers specifically seek out Income Area (Sq. Income/Sq. Area Median Average (millions) Miles) Mile (millions) locations in areas with either rapid Primary TA $51,754 $61,812 $2,893 28.3 $79.2 population growth or household growth Secondary TA $51,042 $58,799 $3,929 50.3 $39.3 – or both. The number of people living Overall TA $51,354 $60,081 $6,826 78.6 $86.8 in the PTA, STA and overall trade area Detroit Region $53,480 $71,552 $126,930 3,913 $32.4 has been slowly decreasing over the last U.S. $45,894 $63,398 $7,145,545 3,537,438 $1.9 decades. In contrast, the number of (1) ScanUS; Real Estate Development Research, LLC people living in the Detroit region has gradually increased, with further increases anticipated. Further population loss is anticipated in the trade area with population gains expected for the region.

Households

Since 1990, the number of households in the PTA has declined to a current estimated level of 46,799 households. In contrast, the number of households in the STA has increased gradually, with further gradual increase anticipated. For the trade area as a whole (PTA plus STA), there has been a slight gain of almost 600 households or one-half of one percent in the 14 years since 1990. While the PTA has generally continued its pattern of household loss through 2004, infill-housing initiatives, primarily occurring through redevelopment of commercial or industrially zoned and/or used sites could bring its household base back to that found in 1990 or even increase beyond that amount.

Population growth in the region has been and is expected to be less rapid than its household growth, both market indicators are positive. The population decline in the trade area and the very slow growth of its household base affects the competitive position of the trade area as retailers and developers compare sites throughout the region. This differential impact is greatest on the market opportunities of vacant sites and businesses located on less heavily traveled thoroughfares. Locations on highly traveled thoroughfares are, at the least, exposed to a greater number of people, likely drawn from a greater distance than are locations on less trafficked roadways.

Household Size

The average household in the PTA contains 2.5 residents, comparable to the regional average. The STA’s average household size is somewhat smaller (2.4 people in 2004). Since 1990, the average household size in the PTA, STA and region has declined with further declines anticipated for the near future. The decline in household size means that more households are needed in an area to stabilize if not actually increase the population base (and its associated spending potential).

Vehicular Access

While the proportion of trade area households without cars is lower than found for the Detroit region, the fact that in 2000 the PTA contained over 3,600 such households is notable. Retention and enhancement of a variety of convenience retail, personal service and locally oriented office facilities (e.g., medical offices) is of critical importance to such households, especially in parts of the trade area (and TIFA District) lacking close walk-to access to regularly scheduled public transport. Representatives of the small pharmacy on Beech Daly in the Central TIFA District area indicated that a large portion of their client base walked rather than drove to their store and to the adjacent medical and dental offices.

36 Market OpportuntiesRetail Analysis & Office Creation of an attractive, safe, pedestrian-oriented and supportive environment is important not only for those households lacking cars but for all types of households. This type of environment encourages increased pedestrian flow between clusters of existing and potential retailers in the District while minimizing the congestion and safety issues created by frequent vehicular turns in and out of business concentrations.

Population Age

The age composition of a population is strongly tied to the types and amount of goods its residents purchase and the types of personal and office-oriented services they require. The pattern of household size decline in the trade area and region is strongly associated with an aging population. The median age of the population in all geographies portrayed by the data on Table 3 has increased since 1990 with further increases anticipated as the large bulge of the “baby boom” generation moves into their maturing family and empty nester years.

Children

Older households and households without children tend to be less supportive of local school funding issues as well as having different purchasing patterns than do households with children. Both number and proportion of PTA households with children has been declining since 1990. While declining less rapidly in the STA, a similar pattern holds. In contrast, while the proportion of households with children across the region also has declined, the region’s sheer gain of total households also is reflected by gain in this household subgroup.

Race

Minority racial and ethnic population groups tend to have somewhat different purchasing patterns and service preferences than does the white population group. The PTA’s racial composition reflects the influence of the residential base of the City of Inkster, which is almost wholly incorporated into the PTA. In 2000, 75 percent of Inkster’s population was a racial minority and primarily African-American. Additionally, over 40 percent of Westland residents living near the southwest TIFA District were members of minority racial groups. This resulted in a PTA proportion of minority population of nearly 24 percent in 2000 and a current concentration over 25 percent, of whom over 80 percent are African-American.

The STA, ringing the PTA, is less diversified, and its proportion of minority residents is estimated to be less than 13 percent at present. Both areas are anticipated to continue to see an increasing proportion of minority populations.

Latino or Hispanic Population

The base of Latino or Hispanic population in the trade area has increased both in number and in overall proportion since 1990. A similar pattern has occurred throughout the region, where currently, the Latino or Hispanic population accounts for 3.3 percent of the region’s total population, a proportion similar to that in the PTA, but lower than the 4 percent found in the STA.

Continued growth of the trade area’s Latino or Hispanic populations is expected in the future, much of it the result of out-migration from southwest Detroit, with the out-migrants estimated to be primarily middle income households, many of whom are owners of rapidly growing small businesses in southwest Detroit. A housing market study of southwest Detroit conducted by Real Estate Development Research in 2001 found that a large proportion of

37 Market OpportuntiesRetail Analysis & Office the Latino or Hispanic population, which have relocated from southwest Detroit to the Detroit suburbs have moved to communities like Allen Park, Dearborn, Dearborn Heights and Taylor. Within the PTA, the largest concentrations of members of this ethnic minority live in the area between Annapolis and Van Born, between Inkster and Pelham as well as south of Van Born east of Telegraph.

It is common for people of the same ethnicity to congregate and attract others of the same ethnicity, due to common cultural, linguistic and religious orientations. Consequently, we anticipate that the PTA’s concentrations of Latino or Hispanic residents will continue to increase in future years, creating niche-marketing opportunities for TIFA District-based retailers.

Ancestry

Portions of the PTA and STA contain established and increasing concentrations of people of Arabic ancestry. Three percent of PTA residents are of Arabic ancestry – and these individuals are primarily concentrated in the portions of the PTA north of Cherry Hill and northeast of the Outer Drive/Michigan Avenue portions of the PTA. A similar proportion is within STA, which “bands” the PTA such that the overall proportion of trade area residents is also three percent. The majority of the STA’s residents of Arabic ancestry live in the northern and eastern parts of that area, with few living in neighborhoods close to the TIFA District itself.

We understand from interviews with the TIFA Administrator that the closed Maxim’s market on Beech Daly had, when open, a strong focus on Middle Eastern consumables. Had this small grocery, essentially an oversize convenience market, been located at least a mile north or northeast of the TIFA District rather than over one mile south of Michigan Avenue on Beech Daly, it may have had achieved a greater level of market support.

Housing Stock

Despite the presence of a variety of market-rate and subsidized multi-family developments in the PTA, single-family housing stock dominates the area to an extent far greater than that found in either the STA or the region. Owner occupancy throughout the PTA, STA and region is high, with somewhat higher levels of owner occupancy in the trade area than the region. A high level of home ownership provides a positive market indicator for home improvement centers, home décor and other retail-oriented building supply stores. Areas with concentrations of older housing units coupled with high home ownership also represent strong opportunities for smaller scale hardware stores.

As people age their housing interests and preferences change. The ability of the trade area in general and the TIFA District in specific to retain current residents and attract a variety of new residents is constrained when the supply of housing is limited in type (e.g., detached single-family), size (generally modest), and price (moderate).

Areas with a more diverse housing stock appeal to a greater diversity of population age groups and household types who may then seek out a more diverse mix of retail goods and services near their homes. We conjecture that many of the area’s older residents may be remaining in their small, detached single-family homes long after they may want to, merely to avoid moving elsewhere (e.g., to senior-supportive housing) and thus away from friends and family. Consequently, young families with children who could afford the purchase of the area’s large stock of moderately priced, family-friendly homes have had to look elsewhere. Thus, opportunities to refresh whole neighborhoods with the new energy and interests of younger family-oriented households have been constrained.

38 Market OpportuntiesRetail Analysis & Office Further, the dominance of single-family housing in the TIFA District does not provide the TIFA an opportunity to attract young singles and young, childless couples, who may prefer to live in rental multi-family housing as they save toward purchase of their first single- family homes. Similarly, the TIFA District provides minimal opportunities to accommodate singles and childless couples of all ages that may prefer the “maintenance free” lifestyle of attached or stacked condominium rather than ownership of detached single-family homes. Education & Occupation

According to information provided by Retail Lease Trac Inc., some retailers have locational preferences for sites convenient to high concentrations of various occupational groups or areas with higher educational levels. Educational attainment is a factor important to some retailers, primarily as it tends to relate to household income potential and associated spending power. It also influences the types and price points of apparel, home furnishings, home decorating, and other types of goods and services purchased.

Educational levels are closely related to occupation. Employed PTA residents have a higher level of educational attainment than do residents in the STA. Both areas fall short of regional levels. The PTA has a lower proportion of blue-collar residents and a higher proportion of white-collar residents than does the STA. However, both areas are more blue-collar in occupational orientation than is the overall Detroit region.

Income

Many retailers have location requirements that specify minimum household income levels. Approximately 45 percent of the retailers followed by Retail Lease Trac Inc. seeking new Michigan locations and who indicate their minimum income requirements for the trade areas around such locations have household income thresholds between $40,00 and $50,000. Twenty-five percent require household incomes of at least $55,000. However, almost one- third will consider sites in low to moderate incomes areas. These latter retailers include low priced apparel stores, card and gift stores, oil change establishments, a variety of fast-food restaurants (pizza, subs, hamburger) and snack shops (e.g., ice cream, pretzels), a limited assortment of casual full-service dining restaurants (e.g., Coney Island style places) and at least two bookstore chains and at least one dollar-type general merchandise store.

While lower than that found for the Detroit region as a whole, the PTA’s median and average household income levels are higher than the nation’s. Further, the trade area and its components meet the minimum household income threshold for a large number and variety of retailers.

Neighborhood Consistency & Retailer Preferences

It is a recognized pattern in retailing that while lower and moderate-income households are regularly drawn to shop at stores and shopping centers in middle and higher income neighborhoods, substantially fewer middle and higher income households regularly patronize shopping destinations in low-moderate income neighborhoods.

To the extent that the incomes of households within the “first mile” of a prospective site are markedly lower than the balance of the primary trade area, site appeal can decline for many retailers, particularly national or regional chain stores which tend to have narrowly defined location criteria for their stores. For example, while large-scale convenience and superstore retailers like Kroger, Farmer Jack, Meijer, Super Kmart, super Target and super Wal*Mart generally consider a store’s primary trade area to be the neighborhoods within three miles

39 Market OpportuntiesRetail Analysis & Office of their store location, they also critically evaluate the income levels of households, the racial composition of the population, housing tenure (own/rent) and the general value and maintenance levels of the neighborhoods located within the first mile of prospective sites.

This situation has important impact on the retail prospects of locations in the TIFA District along its Inkster frontage and along the northern portion of the Beech Daly corridor. The median income of households in the City of Inkster is approximately $37,800. This compares to that for the PTA as a whole of nearly $52,000 and to that found in the TIFA District portion of the PTA of $50,594. Home values in Inkster are also lower than elsewhere in the PTA as well as lower than the adjacent TIFA District. Similar disparities are found between the racial composition of the Inkster portion of the PTA, the PTA as a whole and the TIFA District portion. In combination, these factors may constrain the interest of some retailers in locations along the far west and northwest edges of the TIFA District.

The following analysis of consumer market segments further highlights the importance of considering not only the larger primary or secondary trade area of various locations, but the immediate neighborhood context of each prospective location. Consumer Lifestyle Segments of Trade Area Households

Consumer segmentation systems are based on the theory that “like seeks like” and thus assumes that people with similar behaviors, lifestyles and tastes seek to live near others with similar tastes, creating dominance within small geographic areas of people and households with similar lifestyles. The evaluation of trends and characteristics of individual demographic variables offers a glimpse into consumer lifestyles and the potential buying patterns associated with such lifestyles. When this analysis is combined with geography, a critical tool is created enabling marketers to quickly identify the geographic distribution of distinct types of consumer segments.

ESRI BIS developed the geodemographic segmentation system “Tapestry”. Tapestry (and other systems like it) is one element of the many types of demographic data used by retailers and developers to evaluate prospective markets and prospective sites and their associated trade areas. Tapestry classifies every household in the nation into one of 65 distinct market segments. The segments are created by multivariate statistical and cluster analytic techniques.

ESRI BIS combines the 65 smaller segments into twelve “LifeMode” summary groups, based on lifestyle and life stage composition. Analysis occurs at the geographic level of census block groups and the market segments identified are commonly termed “neighborhoods.”

A block group is a component of a census tract. Historically, the U.S. Census Bureau defined a census tract as an area that a single enumerator could cover in a single day of work. More recently, census tracts have been configured by the U.S. Census Bureau in an attempt to divide larger geographies (counties) into small areas of relatively equal population size, without regard to the amount of land area each census tract covers to achieve this goal. Block groups within census tracts also are drawn in the attempt to define even smaller areas of relatively equal population size.

40 Market OpportuntiesRetail Analysis & Office Analysis of the physical distribution of Tapestry market segments enables marketers to pinpoint the geographic location of dominant consumer lifestyles within a trade area. This facilitates both target marketing initiatives by established retailers as well as enabling retail leasing agents and their prospective retail targets to quickly grasp the extent to which a trade area’s various neighborhoods meet retailers’ demographically-driven locational requirements and to understand how such groups are geographically dispersed throughout the trade area.

The Tapestry market segments depicted by the data on Table 6 represent segments that are the dominant market segments of at least eight census block groups located a within a ten- mile radius of the approximate geographic center of the TIFA District. A graphic presentation of these dominant segments is depicted on Map 8, which focuses on the trade area and the neighborhoods immediately surrounding it.

Of the 65 Tapestry market segments, only 17 are dominant in the general trade area environs and these are associated with 7 of the 12 Tapestry LifeModes. For example, a neighborhood with 30 percent of its households in the Retirement Communities segment, 20 percent in the Great Expectations segment and 50 percent in the Home Town segment would be graphically depicted as Home Town.

Of the 17 dominant segments within ten miles of the TIFA District’s geographic center, only 13 are found in the PTA and 13 in the STA, but not all 13 are the same in each trade area component. Specifically, the Modest Income Homes and Family Foundations segments that are found in the PTA are not found in the STA and the Simple Living and Home Town segments found in the STA are not found in the PTA.

For the PTA, only two market segments account for 15 percent or more of the household base: Cozy and Comfortable (18.4 percent) and Rustbelt Table 6 Market Segments: 2004 (1) Traditions (23.6 percent). Tapestry LifeMode Groups There are only two dominant Primary Trade Area Secondary Trade Area Overall Trade Area market segments in the TIFA # Hslds % Hslds Index (2) # Hslds % Hslds Index (2) # Hslds % Hslds Index (2) Total Households 46,911 100.0% 66,817 100.0% 113,728 100.0% District portion of the PTA: L1. High Society 3,894 8.3% 68 401 0.6% 5 4,295 3.8% 31 Rustbelt Traditions, which 05 Wealthy Seaboard Suburbs 3,565 7.6% 539 200 0.3% 21 3,765 3.3% 235 06 Sophisticated Squires 0 0.0% 0 0 0.0% 0 00.0%0 accounts for all but seven of 07 Exurbanites 0 0.0% 0 0 0.0% 0 00.0%0 the eight “neighborhoods” L2. Upscale Avenues 10,367 22.1% 168 23,119 34.6% 263 33,486 29.4% 224 (census block groups) in the 10 Pleasant-Ville 1,736 3.7% 263 401 0.6% 43 2,137 1.9% 133 18 Cozy and Comfortable 8,632 18.4% 654 21,849 32.7% 1162 30,481 26.8% 952 District, and Rustbelt Retirees. L3. Metropolis 4,832 10.3% 181 1,002 1.5% 26 5,834 5.1% 90 The Taylor neighborhoods 51 Metro City Edge 2,205 4.7% 450 1,002 1.5% 144 3,207 2.8% 270 immediately south of the 62 Modest Income Homes 1,689 3.6% 298 0 0.0% 0 1,689 1.5% 123 L5. Senior Styles 8,022 17.1% 129 14,967 22.4% 169 22,989 20.2% 153 District are also dominated by 14 Prosperous Empty Nesters 938 2.0% 98 1,403 2.1% 103 2,341 2.1% 101 the Rustbelt Traditions market 29 Rustbelt Retirees 4,597 9.8% 387 10,357 15.5% 613 14,954 13.1% 520 30 Retirement Communities 1,642 3.5% 243 1,871 2.8% 195 3,513 3.1% 215 segment as are the Dearborn 57 Simple Living 0 0.0% 0 535 0.8% 52 535 0.5% 30 neighborhoods edging the L7. High Hopes 1,689 3.6% 82 2,472 3.7% 84 4,161 3.7% 83 west side of Telegraph, 28 Aspiring Young Families 1,360 2.9% 128 1,804 2.7% 119 3,164 2.8% 123 48 Great Expectations 328 0.7% 33 735 1.1% 51 1,063 0.9% 44 between Dartmouth and L10. Traditional Living 15,528 33.1% 376 20,914 31.3% 356 36,442 32.0% 364 Michigan. 24 Main Street, USA 1,220 2.6% 119 8,352 12.5% 573 9,572 8.4% 386 32 Rustbelt Traditions 11,071 23.6% 755 12,562 18.8% 602 23,633 20.8% 665 34 Family Foundations 3,237 6.9% 759 0 0.0% 0 3,237 2.8% 313 L11. Factories & Farms 0 0.0% 0 1,537 2.3% 23 1,537 1.4% 13 53 Home Town 0 0.0% 0 1,537 2.3% 141 1,537 1.4% 83 (1) ESRI BIS; ScanUS; Real Estate Development Research, LLC (2) The index is a comparison of the percent of households in the area, by Tapestry segment, to the percent of households or population in the United states, by segment. An index of 100 is the U.S. average. Note: The lifemode segments included in this table represent segments dominating at least eight census block groups witihn a geographic area extending at least 10 miles from the TIFA district.

41 Market OpportuntiesRetail Analysis & Office For the STA, comprising the band between the PTA and the outer edge of the TIFA District overall trade area, the largest market segments are Rustbelt Retirees (15.5 percent of STA households) and Rustbelt Traditions (18.8 percent of STA households). Thus, within the District, in areas to the east and adjacent to the south, the Rustbelt Traditions segment accounts for the largest share of households.

It will be important for retailers to understand not only the characteristics of the immediate TIFA District market segments, but those within these immediately adjacent areas and elsewhere in the trade area to best direct their mix of merchandise and price points.

42 Market OpportuntiesRetail Analysis & Office (b) Market OpportuntiesRetail Analysis & Office The following are the Tapestry market segments that dominate the neighborhoods within and immediately adjacent to the TIFA District, listed in order of the number of TIFA District and District-adjacent neighborhoods they dominate.

¾ Rustbelt Traditions – 14 neighborhoods in/edging the TIFA District -

¾ Family Foundations – 4 neighborhoods

¾ Rustbelt Retirees – 3 neighborhoods

¾ Metro City Edge – 3 neighborhoods

¾ Cozy and Comfortable – 2 neighborhoods

¾ Modest Income Homes – 1 neighborhood

¾ Retirement Communities – 1 neighborhood

ESRI BIS has created a socio-economic portrait for each of their 65 Tapestry market segments. This is presented by the data on Appendix Table A-8. The Appendix pages following that table provide narrative descriptions about the shopping and entertainment preferences of each of the 17 dominant market segments found in the TIFA trade area and in adjacent communities. This information can serve as a reference tool to facilitate the TIFA’s marketing of its vacant commercial lands and buildings to prospective purchasers or tenants. We also have integrated this information into our recommendations about type types of retail and related service uses appropriate for development in the TIFA District itself.

Because of the prevalence of Rustbelt Traditions neighborhoods in and near the TIFA District, the following is a brief summary of the characteristics of this very dominant market segment derived from ESRI BIS descriptions.

Rustbelt Traditions households have a median income of $41,400, a median age of 36.1 years and an average household size under 2.5. Composition of Rustbelt Traditions households is varied, consisting of a mix of married couples, single parents, and childless singles. The employment of Rustbelt Traditions household residents is primarily in the services, retail, administration and government sectors; some hold professional and management positions. Their population racial and ethnic mix is primarily white, although some African-American and Hispanic population groups are represented. Their homes are modest in value and are typically detached single-family.

They tend to be brand loyal and to remain with the same service providers. Attentive to their homes’ maintenance needs, they are active consumers of home maintenance items. They commonly contract for major repair and/or upgrade installations rather than doing the work themselves. Health conscious, they often purchase exercise equipment for home use and are avid consumers of vitamins and nutritional supplements. Their recreational activities include target shooting and bowling. They are often avid and concerned pet owners and readily spend on goods and services for their animals.

Active bargain shoppers, they patronize warehouse clubs like Sam’s, shop at discount/limited line groceries like Aldi’s, and make health and beauty aids purchases at major drugstores like Walgreen’s, CVS and Rite Aid. Many are members of veteran’s clubs.

43 Market OpportuntiesRetail Analysis & Office Our survey of business uses found in and adjacent to the TIFA District, particularly along its Telegraph and Van Born frontage, found that many establishments offer the types of goods and services preferred by this market segment. Expenditure Potential of Trade Area Households

In general, the majority of the expenditures made by a typical household on convenience goods, comparison goods, personal care and related goods and services tends to take place at establishments within a short drive or walk of the home. This situation is, of course, based on the following conditions under which shopping opportunities are available and the physical environment in which they are located:

¾ That they offer the types of goods and services needed or wanted by nearby residents.

¾ That there is a strong relationship between the quality of the goods or services and their price.

¾ That the goods and services are offered in an environment that is attractive, safe and is supported by conveniently located parking, way-finding signage, and good pedestrian and vehicular circulation.

¾ That the merchants and service-providers are knowledgeable or, at the least, friendly and courteous.

When these conditions are not met and as they are able to, shoppers will seek out goods and services at more distant locations where their needs are better met. Those less able to travel to more distant shopping opportunities will “make do” with what is nearby or, more likely, make fewer purchases than may be warranted by their income, needs or interests.

The information provided on Table 7 is an estimate of the estimated average expenditure potential of trade area households for a variety of goods and services. The information is expressed by type of store or service establishment in which the expenditure might be made. Those generally considered to be shopping center type uses are denoted with an asterisk. For each type of store or service establishment, a comparative index is presented to indicate the relative strength of the average household in the trade area to that the average household in the Detroit region and U.S. When an index value is more than 100, it means that the trade area value being measured is higher than the geographic area to which it is compared.

There are several categories of stores and service establishments for which the level of the average expenditure potential of trade area households compares favorably to the U.S. Primarily due to the higher average household income for the Detroit region than for the trade area, the trade area to regional household averages is less favorable.

44 Market OpportuntiesRetail Analysis & Office The following highlights the establishments for which analysis of overall trade area average household expenditure potential yields a U. S. comparative index of 120 or more. y Household appliance stores y Other general merchandise y Home centers stores, including dollar stores y Hardware stores and warehouse clubs & y Nursery & garden supply stores superstores y Beer, wine & liquor stores y Gift, novelty & souvenir stores y Clothing & accessory stores – y Drinking places especially shoe stores y Apparel cleaning establishments y Theaters

Even when the household average in the various trade area components or the trade area as a whole does not compare favorably to the regional or national averages, when the issue of the density of aggregate expenditure potential is considered, we find that the trade area and its components compare very favorably to regional densities. The residential density of the trade area compared to the Detroit region as a whole is a matter of significance that must be conveyed to retail and service provider prospects. Expenditure density is one of the most critical advantages to older, built-out communities like Dearborn Heights and it is a consideration of which many retailers and service providers are unaware.

The information presented on Table 8 is an analysis of expenditure density patterns, examining the estimated trade area’s aggregate household expenditure potential (versus average potential per household) on a density of expenditure potential per square mile. This is then compared to expenditure potential densities by store type estimated for the Detroit region.

It is apparent from the information provided by Table 8 that the concentrated residential development pattern found within the trade area and particularly within the PTA provides a major compensation for the generally moderate incomes of its households. Since it is the aggregate expenditure potential of an area that is value that translates into actual store sales, we consider this comparative measure to be a positive indicator of the TIFA District’s retail prospects.

45 Market OpportuntiesRetail Analysis & Office Overall Trade Area Average/ Household Secondary Trade Area Average/ Household Indices Indices Indices Table 7 continued on the following page Primary Trade Area 46799 66817 113616 $26,478 89 98 $25,376 85 94 $25,830 86 96 Average/ Household Household appliance Radio, TV & other electronics $358 $183 98 104 132 144 $301 $155 83 88 111 122 $324 $167 89 95 120 132 Home centersHardwareNursery & garden supply Convenience $119 86 $143 $307 $132 61 162 165Clothing accessory 163 $117Jewelry $123 210 219 213 85Sporting goods $141 $299 79 $128 60 159 $31 161 85 158 $118 206 214 89 $120 206 $142 $302 86 $131 101 78 $130 160 163 77 60 $30 83 160 208 216 79 86 $121 209 $126 97 78 74 $30 84 76 87 $128 99 75 77 Total retail tradeTotal food & drinkAutomobileOther motor vehicleAuto parts, accessories & tires *FurnitureHome furnishingsAppliance, TV & other electronics $22,672 $3,806 $618Computer & software 89Camera/photographic supply $328 89 $5,020 86Building material & supplies $541 98 80 87 98 $212Lawn & garden equipment supplies 107 100 $453 $21,726 83 $30 $3,650Grocery $2,306 84 94 $590 $188 136 89 $1,097 85Specialty food $170Beer, wine & liquor 85 $316 84 95 $4,813 82 91 93 $456 92 94 98 70Gas stations with convenience stores 77 94Gas stations without convenience stores 84 61 139 102 $202 128 84 $22,116 108Clothing $1,078 $431 104 $3,714 80 $2,207 90 $602 $26Shoe $307 $1,608 80 $158 $659 115 86 $1,060Jewelry, luggage & leather goods 105 85 $163 $331 87 $111 $321 $4,898 81 113 84 91 81Sporting goods/hobby/musical instrument 86 78 $491 88 89 121 96 93 67 111 87 85 58 79 96 163 119 $133 $206 104 98 108 104 91 $1,033 97 $280 $440 100 139 $2,248 67 $292 92 $27 $1,075 81 $170 $1,568 101 80 82 $635 124 81 $166 87 $317 82 $106 107 88 90 116 87 84 86 86 88 83 69 106 95 155 83 59 $1,052 95 106 127 $129 116 94 133 $268 101 $298 102 $1,584 64 78 $645 $323 77 110 $108 89 118 83 87 108 80 159 84 96 $131 135 $273 95 65 79 79 84 81 Expenditure Potential & Opportunity Indicators by Selected Types of Retail Service Establishments (1) Table 7 Dearborn Heights TIFA Trade Area Type of store or establishmentTotal retail trade & food drink Motor vehicle & partsFurniture & home furnishings *Electronics & appliance * Region $5,966 US $666Building materials, garden equip. & supply * 87 88 $667 $1,266 95 Region 96 86 88 $5,717 US $633 118 83Health & personal care * 107Gasoline stations * 83 $1,223 $639 91Clothing & clothing accessories * Region 91 85 83 $5,820 US $1,189 $647 104 113 85 $1,519 $2,299 97 $1,241 85 $651 104 92 91 119 86 84 93 123 99 $1,142 105 $1,454 115 $2,203 93 99 88 114 118 $1,161 95 $1,481 $2,243 94 101 89 116 120 97 Food & beverage * $2,749 87Sporting goods, hobby, book & music * 65 $470 $2,631 86 83 88 63 $451 $2,680 82 85 84 64 $459 84 85

46 Market OpportuntiesRetail Analysis & Office Indices Average/ Household ) Indices Average/ Household Indices Primary Trade Area Secondary Trade Area Overall Trade Area 46799 66817 113616 $4,065 90 106 $3,967 88 103 $4,008 89 104 Average/ Household Hobby, toy & gameSewing, needlework, piece goods Book $142 85 $25Warehouse clubs & superstores $119 81 82Office supplies & stationeryGift, novelty & souvenir $1,105 82 $139 88 85 84 83 $25 $72 128 $216 $116 79 83 89 $1,093 92 80 $140 88 120 84 82 123 84 $25 $68 126 $118 $212 80 $1,098 83 83 91 80 84 112 88 121 83 $69 127 $214 85 91 115 122 Book, periodical & musicDepartment (excluding leased depts.)Other general merchandise FloristsOffice supplies, stationery & gift $949 $191Used merchandise $3,543 48Other miscellaneous store retailers 96Full-service restaurants $292 105Limited-service eating places 61Drinking places (alcoholic beverages) 95 $241 93 188Attorneys/lawyers $909 $183Dentists $50Physicians & surgeons $469 $87 $3,393 87Opticians & optometrists 124 $1,421 $1,308 46 92Automobile body repair & painting 100 101 106Automobile repair & service 105 $280 83 81 92 58 91Hair care products & personal services 103 180Child care/day care centers 203 76Cleaners/laundries/dry-cleaning 89 $231 90 $686 $925Pet grooming $186 75 $385 $64 $503 $3,455 $230Theaters $49 $450 $84 119 83 $1,144 $1,363 $558 88 $1,255 46 91 94 103 91 87 94 102 98 $285 $150 101 $258 78 92 80 88 92 102 102 60 183 117 93 91 120 195 101 90 74 89 $235 86 86 105 72 $666 104 $379 $475 $458 $223 $62 $49 $6 $1,387 $1,140 $85 124 121 85 $1,277 100 85 $554 $80 90 86 103 91 84 99 87 91 79 $143 103 $239 90 81 92 99 90 100 110 117 198 88 104 101 85 85 80 88 75 $674 104 73 $382 $486 $226 122 $1,142 $63 118 $6 93 $556 86 90 $79 88 92 92 85 $146 $247 84 92 101 101 89 113 118 105 86 89 82 82 104 120 120 $6 96 $80 85 90 83 121 Expenditure Potential & Opportunity Indicators by Selected Types of Retail Service Establishments (1 Table 7 (continued) Dearborn Heights TIFA Trade Area Type of store or establishmentGeneral Merchandise *Miscellaneous store retailers * Region $4,492 USFood services & drinking places * $671 84Selected service establishments 93Selected professional services 130 Region $3,806 98 $4,302 USSelect automobile repair services 89 80 $644 $1,860Miscellaneous other services * 98 125 89 91 Region $1,208 $3,650 $4,380(1) ScanUS; ESRI BIS; Claritas; Real Estate Development Research, LLC 94 105 US * Denotes shopping center type uses 91 85 $997 82 $655 $1,822 104 94 89 127 89 90 $1,202 $3,714 113 103 91 95 87 $943 $1,838 103 96 84 90 $1,205 107 103 91 $965 104 86 109

47 Market OpportuntiesRetail Analysis & Office Index Density Density (hundreds) Overall Trade Area Density (hundreds) Density Index Aggregate Secondary Trade Area Index Aggregate Density Table 8 continued on the following page Density (hundreds) Primary Trade Area $1,239,143,922 $437,860 323 $1,695,548,192 $337,087 249 $2,934,692,114 $373,370 275 Household appliance Radio, TV & other electronics $16,739,517 $5,915 $8,564,217 $3,026 358 380 $20,081,872 $10,364,837 $3,992 $2,061 242 259 $36,821,389 $18,929,054 $4,685 $2,408 284 303 Home centersHardwareNursery & garden supply $14,347,584 $6,699,753 $5,070 $2,367 $6,194,111 603 $2,189 589 595 $19,998,946 $9,400,426 $3,976 $1,869 $8,570,977 $1,704 473 465 463 $34,346,530 $16,100,179 $4,370 $2,048 $14,765,088 520 $1,879 510 511 Convenience $5,548,154 $1,960 315 $7,826,493 $1,556Clothing accessory 250Jewelry $5,738,831 $2,028 $13,374,646 $1,702 290 273 $7,992,032 $1,450,769 $1,589 $513 227 323 $13,730,863 $2,004,510 $1,747 $399 250 251 $3,455,279 $440 277 AutomobileOther motor vehicleAuto parts, accessories & tires *FurnitureHome furnishingsAppliance, TV & other electronics $28,921,782Computer & software $10,220Camera/photographic supply $15,350,072 $234,930,980 314 $5,424Building material & supplies $83,014 $25,303,734 293 $39,422,030 $8,941 319Lawn & garden equipment supplies $9,921,388 $7,837 $21,199,947 365 $21,114,172 $3,506 $321,590,221 $7,491 $4,198 $63,934 240 $1,403,970 307 $30,446,710 $8,798,212 325 $496 $51,338,503 $6,053 $3,109 246 $7,955,830 227 $18,141 $68,343,812 $13,497,034 $2,811 348 $28,798,127 338 $2,683 $8,695 247 334 $556,521,201 $5,725 $36,464,244 256 $70,804 $1,707,843 267 $10,541,511 $4,639 235 $70,826,020 $55,750,444 249 $2,096 $340 $10,891,171 272 $14,081 $7,093 251 $2,165 $23,418,422 228 $49,998,074 259 238 290 $2,979 197 $6,361 261 $122,164,523 $19,339,723 $3,111,813 276 $15,543 $18,847,001 $2,461 $396 $2,398 286 268 278 219 Grocery $107,918,494 $38,134Specialty food Beer, wine & liquor 308 $147,465,119Gas stations with convenience stores $29,317Gas stations without convenience storesClothing $50,449,322 237 $17,827Shoe $14,367,293 $75,253,898Jewelry, luggage & leather goods $30,839,435 383 $5,077 $255,383,613 $26,591 $10,897 $15,490,469 $32,492 $5,194,689 412 $69,021,961 $5,474 330 326 $1,836 262 $13,722 $19,510,564 404 $104,757,116 316 $42,440,735 $3,879 $20,826 295 $6,224,267 $8,438 $21,180,989 $2,199 $7,082,602 $4,211 259 315 $119,471,283 252 $1,408 292 $15,200 311 $180,011,014 $33,877,857 243 326 $73,280,170 $22,902 $8,619,393 $4,310 $9,323 $1,714 $36,671,458 284 $12,277,291 350 $4,666 279 $1,562 228 344 269 $14,843,660 $1,889 251 Sporting goods $6,150,726 $2,173 282 $8,424,581 $1,675 217 $14,575,307 $1,854 241 Expenditure Density Comparison (1) (2) Motor vehicle & partsFurniture & home furnishings *Electronics & appliance * $279,202,834 $98,658 $31,168,134Building materials, garden equip. & supply * $11,013 317 320 $381,992,789 $31,214,933 $75,943 $59,247,534 $11,030 $42,295,161 $20,936 $8,409 314 244 321 244 $42,696,063 $661,195,623 $81,717,191 $8,488 $84,122 $16,246 $73,463,295 270 242 $9,346 249 271 $73,910,996 $140,964,725 $9,403 $17,934 275 268 Food & beverage *Health & personal care *Gasoline stationsClothing & clothing accessories * $128,650,451 $45,460 317 $55,644,011 $19,662 $175,795,527 $71,087,681 $107,590,901 $25,119 $34,949 353 $38,018 378 244 $76,305,014 334 $15,170 $97,151,918 $147,197,851 $304,445,978 $19,314 $29,264 272 $38,734 291 270 257 $131,949,025 $16,787 $168,239,599 $254,788,752 $21,405 301 $32,416 323 284 Table 8 Type of store or establishmentTotal retail trade & food drink Aggregate Sporting goods, hobby, book & music * $21,995,530 $7,772 313 $30,134,467 $5,991 242 $52,129,997 $6,632 267

48 Market OpportuntiesRetail Analysis & Office Index Density Density (hundreds) Potential Expenditure sity by store type is then divided the number of square miles in each to expenditure potential densities for the Detroit region, by store type. Density (hundreds) Density Index s the result of average household expenditure potential for that store type Potential Expenditure Index Density Density (hundreds) Primary Trade Area Secondary Trade Area Overall Trade Area $191,263,842 $67,584 330 $266,504,042 $52,983 259 $457,767,884 $58,240 285 Potential Expenditure Office supplies & stationeryGift, novelty & souvenir $3,369,528 $1,191 $10,108,584 $3,572 324 337 $4,510,808 $14,197,952 $897 $2,823 244 266 $7,880,336 $24,306,536 $1,003 $3,092 273 292 Warehouse clubs & superstores $51,699,724 $18,268 309 $73,011,804 $14,515 246 $124,711,528 $15,867 269 Book $6,654,137 $2,351 312 $9,259,691 $1,841 244 $15,913,828 $2,025 268 FloristsOffice supplies, stationery & gift Used merchandise Other miscellaneous store retailersFull-service restaurantsLimited-service eating places $13,665,308Drinking places (alcoholic beverages) $4,829 $11,278,559 338 $3,985 $2,339,950 $18,708,760 $21,948,731 $4,071,513 316 $827 $3,719 $7,756 $66,501,379 $1,439 $61,213,092 $23,499 $15,434,727 $21,630 386 365 382 260 $3,069 295 335 $30,067,650 $3,274,033 $5,612,628 $32,374,068 $91,071,571 243 $5,978 $83,855,335 $1,116 $651 $18,106 $4,119 $16,671 298 $26,713,286 297 288 227 287 258 $3,399 $52,016,381 $157,572,950 270 $145,068,427 $9,684,141 $5,613,983 $6,618 $20,047 $18,457 $1,232 $714 252 330 286 327 315 Department (excluding leased depts.)Other general merchandise $44,412,251 $15,693 174 $165,808,857 $58,590 $60,736,653 384 $12,075 $226,710,081 134 $45,072Attorneys/lawyersDentistsPhysicians & surgeons 295 $105,148,904Opticians & optometrists $13,378Automobile body repair & painting $392,518,938Automobile repair & service 148 $49,939Hair care products & personal servicesChild care/day care centers 327 Cleaners/laundries/dry-cleaningPet grooming $32,085,785 $18,033,769Theaters $2,992,177 $23,521,825 $11,338 $10,776,359 $6,372 $1,057 $8,312 $3,808 320 $53,560,060 $26,133,374 333 $18,926 316 332 341 $9,234 $44,468,795 $12,064,414 335 $7,038,613 $25,321,848 337 $31,742,792 $8,841 $14,932,459 $4,128,113 $4,263 $2,487 $5,034 $6,311 $2,969 $821 $76,199,138 $37,044,616 312 250 323 $15,149 263 $7,365 252 266 245 $15,989,210 $271,658 $9,584,350 268 $76,554,580 $3,179 269 $43,355,617 $1,905 $3,763,217 $55,264,617 $96 $9,740 $25,708,818 $5,516 $7,120,290 $1,330 $129,759,198 $7,031 $3,271 233 $63,177,990 275 $16,509 248 318 $906 329 289 281 $8,038 293 292 $28,053,624 271 $16,622,963 $373,196 $5,294,395 293 $3,569 $2,115 $1,053 $74 262 275 261 246 $9,057,612 $644,854 $1,152 $82 286 272 Hobby, toy & gameSewing, needlework, piece goods Book, periodical & music $1,178,889 $417 $5,586,909 $8,938,609 301 $1,974 $3,159 297 350 $1,700,027 $338 $7,782,348 $12,227,511 $1,547 $2,431 244 233 269 $2,878,916 $13,369,257 $21,166,120 $366 $1,701 $2,693 264 256 298 Expenditure Density Comparison (1) (2) Table 8 (continued) Type of store or establishment Miscellaneous store retailers*Food services & drinking places* $31,402,129 $11,096Selected service establishments 338 $178,116,994 $43,030,148 $62,939 $8,555 324 260 $243,882,050 $48,485 $74,432,277 $9,470 249 288 $421,999,044 $53,689 276 General Merchandise * $210,221,108 $74,283 306 $287,446,734Selected professional services $57,146 235Select automobile repair services $497,667,842 $63,317Miscellaneous other services* $87,029,287 $30,752 261 330 $56,552,237 $19,983 $121,767,718(1) ScanUS; ESRI BIS; Claritas; Real Estate Development Research, LLC $24,208(2) Expenditure density is calculated on a square mile basis. The, aggregate expenditure potential for specific store type i 334 $46,659,727 $16,488 260* Denotes shopping center type uses $80,327,251 $15,970 325 $208,797,005 $26,565 $62,983,943 267 $12,522 285 $136,879,488 247 $17,415 291 $109,643,670 $13,950 275 times the number of households in a specific geography (e.g., PTA, STA, overall trade area). The aggregate expenditure den trade area component. The density index is a comparision of component expenditure potential densities by store type

49 Market OpportuntiesRetail Analysis & Office ChapterCompetitive 5 Environment Commercial and Office Land Use Patterns

There are a variety of retail and small office uses found in and immediately adjacent to the TIFA District that provide greater or lesser competitive influences to new development potential and to existing business expansion for the District. Additionally, the District’s trade area is located in a portion of Wayne County that is served by an extensive concentration of commercial and office development. Information about the scale and distribution of commercial and office land cover for the general trade area environs is displayed on Map 9.

The Southeast Council of Governments provided the information used in Map 9. The commercial and office areas depicted on the map include concentrations of hotels and motels and other commercial and office development drawn by proximity to the Detroit Metropolitan Airport in Romulus. Also displayed is the concentration of multi-tenant and corporate offices in the Ford Motor world headquarters area in Dearborn. Other large-scale clusters of primarily commercial development in northern Westland, southern Livonia and central Taylor are also illustrated.

50 Market OpportuntiesRetail Analysis & Office (b) Market OpportuntiesRetail Analysis & Office Competitive Shopping Center Environment

The TIFA District is located in an intensely competitive retail environment. In such an environment, older, less well-maintained properties, properties along less well-traveled thoroughfares and properties in modest income neighborhoods are often at a competitive disadvantage. Further, several shopping centers in and near the District’s trade area suffer from combinations of high vacancy rates, dated appearance and deferred property maintenance. In reaction to the increasingly competitive environment, owners of some of the centers with long-term vacancies are upgrading and reconfiguring their space to appeal to a different type or size of tenants than had been there previously. At least one freestanding retail facility has been demolished and redeveloped as residential use. Others have undergone or may, in the near future, undergo partial demolition and reconfiguration of their retail space, if not outright change of their use (e.g., to mixed use).

Information on Map 10 displays the distribution of the trade area’s larger planned shopping centers and major freestanding retailers. Shown are the locations of centers of 30,000 or more square feet and freestanding retailers of 40,000 square feet or more.

Information presented on Table 9 indicates that the PTA contains 12 large retail facilities with over 1.4 million square feet of floor space. The overall trade area is served by 30 major retail facilities with over 5.5 million square feet.

Table 9 Summary of Trade Area Retail Competition (1) Primary Trade Area Secondary Trade Area Overall Trade Area Major Influences (2) Center Type Number Sq. Ft. Number Sq. Ft. Number Sq. Ft. Number Sq. Ft. Neighborhood 5 346,869 10 745,256 15 1,092,125 - - Community 4 658,280 2 526,602 6 1,184,882 - - Power 0 0 2 1,145,000 2 1,145,000 3 1,100,000 Regional 0 0 0 0 0 0 1 643,011 Superregional 0 0 1 1,525,000 1 1,525,000 2 1,935,867 Subtotal 9 1,005,149 15 3,941,858 24 4,947,007 6 3,678,878 Major freestanding stores 3 432,967 3 184,612 6 617,579 - - Total 12 1,438,116 18 4,126,470 30 5,564,586 - - (1) National Research Bureau; Real Estate Development Research, LLC (2) Includes only community, power, regional or super regional centers beyond the five-mile trade area perimiter.

51 Market OpportuntiesRetail Analysis & Office (b) Market OpportuntiesRetail Analysis & Office Of the trade area total, nearly 1.2 million square feet is under construction or in active planning. This space includes West Village Commons in downtown Dearborn (50,000 square feet), Independence Marketplace on the site of the former VA Hospital off Outer Drive and Southfield in Allen Park (375,000 square feet), and Fairlane Green at Oakwood and Southfield. This latter complex is being developed in two phases but when complete will total 770,000 square feet.

In addition to the major retail development within the trade area, there are at least six major shopping centers nearby that also provide strong competitive influences. These six centers, comprised of three power centers, one regional and two superregional centers offer a total area of nearly 3.7 million square feet.

Information about each facility illustrated on Map 10 is presented on Table 10 and includes the center name, address, type, major anchors, approximate floor area and distance from the geographic center of the TIFA District. There is a relatively uneven distribution of larger shopping facilities, with the least number of facilities located in northeast Romulus or northwest Taylor. Southwest of Inkster and Van Born, residential development is generally scattered and of low density, with large land areas in use as public recreation facilities, industrial uses or airport-related services. Residential densities increase north and east of that area. As such, the southwest corner of the TIFA District has a less densely developed residential base from which to draw demand for prospective retailers than does the north edge of the District (Michigan Avenue frontage) or locations along the District’s Telegraph frontage. However, opportunities may exist within this southwest portion of the TIFA to augment residential densities and thus increase the base of prospective customers conveniently located to shop in this part of the District as well as provide further support for retail and office uses along Beech Daly.

Given the location and physical character (parcel sizes, traffic volumes, adjacencies) of the commercially zoned portions of the TIFA District, we anticipate that the types of retail uses typically found in neighborhood and community centers will be the primary types of retail facilities physically supportable and/or attracted to the TIFA District. Table 11 provides information on recent asking lease rates for such facilities in the general trade area and in adjacent communities.

52 Market OpportuntiesRetail Analysis & Office Table 10 Commercial Competition: Shopping Centers & Larger Free-Standing Retailers (1) (2) Map Key Shopping Center Name and Address Type of Center Anchors/Larger Stores Distance (2) Size (Sq. Ft.) 1 Inkster Town Center Neighborhood Murray's, Family Dollar, FIA offices, 1.27 45,000 27425 Michigan Ave One Price Inkster 2 Unnamed Center Community Toys 'R' Us, Kid Spot, Chuck E Cheese 1.28 82,280 24411 Michigan Ave. Dearborn 3 Westborn Mall Community Kroger, CVS, Staples, Marshall's 1.86 220,000 23151-23303 Michigan Ave. Bulk Food Warehouse Dearborn 4 Unnamed Center Neighborhood Farmer Jack 1.86 91,854 23000 Michigan Ave. Dearborn 5 Cherry Hill Plaza Neighborhood CVS, Family Dollar, Food Max 2.18 60,000 27343 Cherry Hill Rd Supermarket (IGA) Inkster 6 Sunrise Shopping Center (3) Community ACO Hardware, Dollar Palace, 2.57 206,000 22625 Ecorse Rd. Value World, Rent-A-Center Taylor 7 West Village Commons Neighborhood Restaurants & small-scale specialty 2.6 50,000 Michigan & Howard (Under Const.) retailers are the marketing focus (retail Dearborn of this mixed retail/hotel/condo center component) 8 Taylor Commons Community Farmer Jack, Dunham's Sporting 2.92 150,000 21552 Ecorse Rd Goods, Rite Aid, Party Max Taylor 9 One Michigan Place Neighborhood Kroger, Hollywood Video, Sally's 2.92 100,015 31300 Michigan Ave Beauty Supply, Family Dollar Westland 10 The Heights Community Farmer Jack, Target, ACO Hardware 3.02 340,602 26650 Ford Rd Dearborn Heights 11 Tel-Ford Shopping Center Neighborhood Ford-Tel Theatre, GFS Marketplace 3.14 70,000 5640-5670 Telegraph Sav-On-Drug Dearborn Heights 12 Farmer Jack/Sears Hardware Center Neighborhood Farmer Jack, Sears Hardware 3.49 92,247 9850 Teleraph Taylor 13 Cherry Hill Marketplace Neighborhood Farmer Jack, ACO Hardware, CVS 3.57 124,158 200 Meriman Rd Strictly A Dollar Westland 14 Garden City Town Center Neighborhood Kroger, Hollywood Video 3.70 115,000 5856-5940 Middle Belt Rd Garden City 15 Independence Marketplace Power Lowes, Petco, Staples, Jo-Ann 3.80 375,000 Outer Drive/Southfield (Under Const.) Superstore Allen Park 16 Venoy Palmer Center Neighborhood Palace Supermarket 3.86 37,000 1912-1956 Venoy Rd Westland 17 Tele-Goddard Shopping Center Community Unanchored (former anchors 4.09 186,000 11100-11496 Telegraph Rd were Kmart & Med-Max Taylor now vacant) Table 10 continued on the following page

53 Market OpportuntiesRetail Analysis & Office Table 10 (continued) Commercial Competition: Shopping Centers & Larger Free-Standing Retailers (1) (2)

Map Key Shopping Center Name and Address Type of Center Anchors/Larger Stores Distance (2) Size (Sq. Ft.) 18 Fairlane Green Power Phase 1: Target, Barnes & Noble 4.09 470,000 Southfield/Oakwood Phase 1: Under Lane Bryant, Cost Plus Allen Park Construction. Phase 2: Concept Phase 2: Meijer, Kohl's approx: 300,000 19 Cambridge Shopping Center Neighborhood Discount Max 4.10 49,220 27305 Warren Dearborn Heights 20 Fairlane Town Center Superregional JC Penney, Lord & Taylor, 4.44 1,525,000 18900 Michigan Ave Marshall Fields, Off 5th Sax Fifth Ave. Dearborn Outlet, Sears 21 River Oaks Shopping Center Neighborhood Value World, Sav-Mor Drugs 4.55 37,000 20145 Ann Arbor Trail Dearborn Heights 22 South Allen Park Plaza Neighborhood Rite Aid, Jo-Ann Fabrics 4.66 88,865 15411 Southfield Rd Allen Park 23 Wayne Commons Shopping Center Neighborhood Kroger 4.84 60,800 35101 Michigan Ave Wayne 24 Arbor Place Shopping Center Neighborhood Unanchored (former anchors were 4.89 70,966 8010 Middlebelt Rd Farmer Jack, Arbor Drugs) Westland 25 Fairlane North Power Borders Books & Music, Home 5.27 400,000 5651 Mercury Dr. Depot, Office Max, Sports Authority, Value City Furniture, Circuit City (Home Dearborn Depot adjacent to center) 26 Shops At Fairlane Meadows Power Best Buy, Kids 'R' Us, Mervyns, 5.40 300,000 16221 Ford Rd Target Dearborn 27 Westland Shopping Center Superregional JC Penney, Kohl's, Sears, Marshall 5.86 1,046,867 35000 W Warren Rd Fields Westland 28 Lincoln Park Shopping Center Regional Dunham's Sporting Goods, Old Navy, 5.86 643,011 1714-1750 Dix Hwy. Sears, Farmer Jack's Lincoln Park 29 West Ridge Shopping Center Power Target, Mervyn's, T.J. Maxx, The 5.94 400,000 35565-35745 Warren Blvd. Tile Shop, Tech Discount Furniture Westland 30 Southland Center Superregional JC Penney, Marshall Fields, 6.18 889,000 23000 Eureka Rd (I-75) Mervyn's Taylor A Home Depot - Dearborn Heights Home Improvemn't 0.97 150,118 B Wal-Mart - Taylor Discount dept 2.39 142,000 C Kmart - Van Born, Taylor Discount dept 2.52 140,849 D Kmart - Garden City Discount dept 3.66 80,000 E Farmer Jack - Westland Supermarket 4.4 53,744 F Food Basics - Dearborn Heights Lt'd line grocery 4.80 50,868 (1) ESRI BIS; National Research Bureau; Real Estate Development Research, LLC (2) Larger free-standing retailers are stores that are 40,000 square feet or larger. (3) Sunrise Center is being fully redeveloped. 70,000 sq.ft. as a 7-day/week flea market, 3-day/week farmer's market & small stores (e.g., cleaner, insurance, fast food). Center balance being upgraded. Note: Includes only those neighborhood centers 30,000 sq. ft. or larger located within the 5-mile overall trade area and selected regional & superregional centers beyond 5 miles that represent strong competitive influences.

54 Market OpportuntiesRetail Analysis & Office The sudden upswing of lease rates Table 11 for neighborhood centers in Trends in Retail Leasing Rates Dearborn in late 2004 reflects the Dearborn and Nearby Wayne County Suburban Markets active marketing of the West Big Box Community Centers Neighborhood Centers Village Commons. This is a Mid 2003 complex of approximately 50,000 Dearborn $6.00 - $11.00 $12.00 - $16.50 $12.00 - $16.50 square feet of retail space being Livonia $8.00 - $11.00 $12.00 - $20.00 $10.00 - $12.50 developed along with hotel and Taylor $5.00 - $7.00 $8.00 - $14.00 $10.00 - $14.00 condominium residential uses on Westland $3.00 - $6.00 $10.00 - $12.00 $10.00 - $14.00 the former Jacobson’s site in End 2003 Dearborn. While we have Dearborn $6.00 - $11.00 $12.00 - $16.50 $15.00 - $25.00 classified it as a neighborhood Livonia $8.00 - $11.00 $12.00 - $20.00 $10.00 - $12.50 center based strictly on size, its Taylor $5.00 - $7.00 $8.00 - $14.00 $12.00 - $16.00 potential mix of uses are likely to Westland $3.00 - $6.00 $10.00 - $12.00 $10.00 - $14.00 be a mix of full and limited-service Mid 2004 restaurants, small specialty food Dearborn $6.00 - $11.00 $12.00 - $16.50 $15.00 - $25.00 retailers, and upscale specialty Livonia $8.00 - $11.00 $12.00 - $20.00 $10.00 - $12.50 stores (e.g., art galleries, home Taylor $5.00 - $7.00 $8.00 - $14.00 $12.00 - $16.00 furnishings and home décor) Westland $3.00 - $6.00 $10.00 - $12.00 $10.00 - $14.00 designed to reinforce the traditional Q 3 2004 downtown character of this part of Dearborn $6.00 - $11.00 $12.00 - $15.00 $15.00 - $25.00 Dearborn. Livonia $8.00 - $11.00 $12.00 - $10.00 $10.00 - $12.50 Taylor $5.00 - $7.00 $8.00 - $12.00 $12.00 - $16.00 We interviewed commercial Westland $3.00 - $6.00 $10.00 - $10.00 $10.00 - $14.00 property brokers active in the (1) Signature Associates/ONCORE International; Real Estate Development Research, LLC general TIFA District area and the Dearborn Heights assessing staff about current lease rates and retail building sales prices for the type of retail facilities in and adjacent to the TIFA District. The following is a summary of our interview results:

Newer or well-maintained freestanding Beech Daly retail space in the TIFA District may command $8-$10 per square foot, net of maintenance, property taxes and insurance (referred to as triple net or NNN). A 1,100 square foot space in the Beech Daly Plaza toward the south end of the District is being marketed for $13 NNN. Given that a portion of the center has had repeated vacancies of over the last several years, we would not expect that the asking price would be the achieved price. The former Daly Drive-In, a 2,592 square foot, 50-seat restaurant in the same part of the corridor is being marketed with an asking price around $16 NNN. The property has been marketed for lease since last April, after it sold for around $60 per square foot of building area. The Jart Hamburgers building sold recently at a square foot price around $150 – an unusually high amount for this area. Our interviewees indicated that values around $80 per square foot of building area were appropriate for locations along this part of the TIFA District.

Newer space along Van Born may command between $12 and $14 NNN. The higher end of the range is appropriate for locations closer to Telegraph, reflecting the higher traffic volumes in that part of the corridor. The current asking rates for space in Maya Plaza is $16 NNN, but space has actually leased for $13-$14 NNN. Sales prices for newer commercial buildings along this corridor may be around $85 per square foot of building.

55 Market OpportuntiesRetail Analysis & Office While older retail space along Telegraph may achieve lease rates of $12-$14 NNN, newer space might lease for $15 NNN or more, depending on the store size. Building sales prices may be around $95. These higher values are primarily a result of the high traffic volumes along the corridor and proximity to I-94. Square foot lease rates (and square foot building sales prices) along Telegraph and elsewhere tend to decrease as store size increases.

Michigan Avenue retail space is likely to be priced around $14 NNN. According to representatives of Signature Associates, the now-closed Franks Nursery & Crafts may achieve a lease rate between $8 and $10 NNN, were it to lease as a single store. If divided into smaller stores, higher rates may be achievable. Were it to be sold, those interviewed anticipate achievement of a price in the $80-$90 per square foot of building area. The building is 15,318 square feet associated with a total site area of 2.11 acres.

Information was unavailable about potential lease and sale prices for commercial property along Inkster Road. Competitive Office Environment

Larger-scale office users typically prefer locations near their client base. In the Dearborn/ near-in western Wayne office market, proximity to Ford Motor Company provides the greatest generation of demand for larger office space. The next largest concentration of office space is found in Westland, where the dominant office-based uses are primarily governmental agencies.

Companies seeking to sell products or services (e.g., office-based research, advertising, public relations, accounting, management or consulting services) to Ford Motor itself, or to be in locations convenient to Ford corporate employees and other Ford-oriented businesses have been the primary occupants of the large base of light industrial/high technology and traditional office buildings constructed in the several business parks near Ford Motor headquarters. Various Ford Motor Company divisions and work groups have been occupants of much of the space in these business parks.

In 2004, after Visteon Corporation relocated from several scattered office buildings in the large corporate parks located between Outer Drive and Greenfield, I-94 and Ford Road (in the core Dearborn office center) to Van Buren Township, vacancies of both high and moderate- quality office space (as well as high tech/flex/light industrial space) in this part of the trade area increased dramatically. Companies seeking to provide services to Ford Motor or its employees are strongly encouraged by Ford Motor to occupy space in these buildings or to purchase land in the corporate parks developed by Ford Motor Land Development Company (Ford Land), which is a Ford Motor Company subsidiary.

As of November 2004, Class A office space in Ford Land-controlled buildings had a 14 percent vacancy rate. Class B space had a 16 percent vacancy rate and “flex” space, which is primarily used by research and development concerns needing a high proportion of office space but with “shop” or laboratory areas adjacent, was 15 percent vacant. Flex space also is commonly used to provide lower-cost 100 percent office space by some users. Listing prices for available space in Ford Land’s office and flex properties current ranges between $14.50 and $16.50 NNN per square foot. Total or gross space costs are generally around $20 per square foot.

56 Market OpportuntiesRetail Analysis & Office Ford Land agents indicate that current vacancy levels are quite high for their properties – and that vacancies have been increasing for several years. During healthier economic climates, the agents indicate that Ford Land is usually able to maintain a maximum of ten percent vacancy in its office and flex properties, carefully balancing its new development activities against filling available existing space. Vacant portions of its office and flex buildings range from less than 1,000 square feet to nearly 70,000 square feet. However, the majority of Ford Land holdings in the area are in buildings between 26,000 and 30,000 square feet, and these buildings and or the divisible spaces within them, have the greatest concentration of current vacancies.

West of this concentration of Ford Land office and flex space and adjacent to the TIFA District, our November field survey revealed a pattern of vacancies along Gulley Road, both in flex buildings and buildings designed for multi-tenant office use. Rates similar to that asked by Ford Land are commonly asked for these spaces. Tenants in this area include auto-company (primarily Ford) service vendors, training and job placement agencies, logistics and transport-related concerns. Most buildings in this area are 15,000 square feet or larger, with tenants typically occupying 10,000 square feet of space or more. The physical environment is of a planned office/light industrial park, comparable in many respects to that provided in the Ford Land properties and in the Ford Land business parks.

In contrast, the office environment along Michigan Avenue east of the TIFA District is characterized by a variety of small older and newer office buildings, with most generally no larger than 5,000 square feet. Building scale has been limited by the shallow depth of the commercial and office zoning, which is generally not more than 100 or 130 feet in depth. The following provides a listing of the most commonly found types of small-office occupants found in this portion of the trade area: y Veterinarians y Banks, credit unions, thrifts, y Residential realtors finance companies y Accounting/tax services y Consulting services (design, y Attorneys engineering, computer) y Medical, dental, chiropractic & similar y Insurance agents (home, vehicle) y Small business-to-business sales offices

Commercial office brokers interviewed for this study indicate that an office location along Michigan Avenue and elsewhere in downtown Dearborn is generally considered to be a “high status” address in this part of Wayne County. While not as comparable in status as addresses in the region’s other high image communities (e.g., Bloomfield Hills, Birmingham, the Grosse Pointes), for the central/western Wayne County area, a Dearborn mailing address and a Michigan Avenue location are important contributors to the desirability of Dearborn’s small office space.

In and near downtown Westland the office concentration primarily consists of Wayne County agencies and several other governmental agencies and the firms and non-profit service providers seeking to do business with the agencies. Most other concentrations of offices in the trade area are near major medical facilities. Hospitals, outpatient surgical centers, and ambulatory care centers operated by the hospitals serving this part of the county form an important part of the demand for office space by small medical practices.

57 Market OpportuntiesRetail Analysis & Office Elsewhere the TIFA District’s trade area, office tenants are widely scattered. They are generally found in retail-type spaces that offer their tenants the opportunity for signage, ready street visibility and quick in/out access, something that locations in large multi-tenant office buildings do not provide. Office-based tenants in such space tend to be very cost sensitive, seeking the lowest lease rates available and locations to which area residents might be drawn on a daily basis and thus exposed to their services without the need for costly local advertising.

These more retail-oriented office occupants include business such as residentially oriented real estate offices (e.g., Century 21, Red Carpet Keim), tax preparation services (e.g., H & R Block), finance and insurance offices (e.g., Household Finance, State Farm Insurance, L.A. Insurance) and dental and orthodontic services operated by small chains and independent practices. Chiropractic and other alternative medicine practitioners are also drawn to such locations. Small medical clinics are also found in such locations, provided they are also reasonably convenient to larger hospital-based or operated facilities.

The location of larger concentrations of office development in and near the trade area is depicted by the information on Map 11. Also shown are the locations of area hospitals and other major medical facilities.

Information about office market conditions in the Dearborn submarket of the Detroit/Ann Arbor area is provided on Table 12. The Dearborn submarket, as defined by CB Richard Ellis, also includes Dearborn Heights. The information provided on Table 12 primarily consists of vacancies and asking lease rates for Class A and Class B space, although information as tracked by CB Richard Ellis for Class C office space is also included. Since many owners of Class C office space do not offer their space for lease or sale through major commercial property brokers, less statistical data about such space is included in the information shown on Table 12.

Class A space is found in buildings with excellent location and access and professional management services. These types of buildings attract high-quality, credit-worthy tenants. The credit-worthiness of tenants is an important factor in assessing a building’s ability to obtain financing either when originally constructed or when sold. Class A building materials and maintenance levels are high quality and their rents lead the marketplace. Class A space tends to be in larger buildings in which one or more tenant amenities are offered that may include but are not limited to sundries stores, eating and drinking places, personal service establishments (e.g., barber, beauty, dry-cleaning) and/or banking facilities.

58 Market OpportuntiesRetail Analysis & Office (b) Market OpportuntiesRetail Analysis & Office Class B buildings also have good locations, management, construction and maintenance levels with high quality tenants. Their scale may be less and few provide the types of tenant amenities typical of Class A structures. Rather, such amenities may be found in adjacent retail centers or freestanding buildings. Typically older than Class A buildings, Class B buildings tend to have very little functional obsolescence or deterioration.

Class C buildings are typically Table 12 15 to 25 years old but maintain Office Market Conditions (1) steady occupancy. Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q 4 2004 Maintenance levels are Dearborn reasonable but the buildings Net Rentable Area 3,488,413 3,488,413 3,488,413 3,488,413 3,499,413 may have some functional % Vacant 16.7% 17.0% 16.4% 17.6% 17.4% obsolescence and may present Net Absorption (311,174) (8,844) 20,082 (41,522) (6,558) a dated appearance. Tenants Avg Asking Gross Lease Rate $23.67 $23.83 $23.57 $23.37 $22.88 typically filter from Class C Detroit/Ann Arbor Area buildings to Class B and from Net Rentable Area 70,245,591 70,380,759 70,727,016 70,870,651 70,971,211 Class B to Class A. When % Vacant 21.6% 21.1% 21.0% 21.2% 21.6% market conditions are normal, Net Absorption (421,307) 230,286 238,418 (6,742) 52,622 rents in Class A buildings are Avg Asking Gross Lease Rate $20.51 $20.37 $20.35 $20.41 $20.29 higher than Class B, which are Definition of Terms: higher than Class C. Net rentable area: gross building square footage minus the elevator core, flues, pipe shafts, vertical ducts, balconies, and stairwell areas The small-scale office Vacancy rate: vacant building feet divided by the neet rentable area buildings found along Net absorption: change in occupied square feet from one period to the next Michigan Avenue, near area Average asking lease rate: determined by multiplying the asking net lease rate for each bulding by its hospitals and governmental available space, summing the products then dividing by the sum of available space with net leases for all buildings in the summary offices in the TIFA District (1) CB Richard Ellis: Real Estate Development Research, LLC trade area, are typically Class C space. Class A space in the Dearborn office submarket currently have asking gross lease rates (includes property taxes, maintenance, insurance) of nearly $26 per square foot. The square foot rates in Class B buildings are around $22. Class C rents are near $17 per square foot. However, with the high vacancies currently characterizing even the market’s Class A space, landlords are generally willing to provide substantial rent concessions. Consequently, achieved rates in the current economic environment tend to be much lower than asking rents – particularly when the space is being offered as sublease space by vacating tenants on longer-term leases. The impact of soft market conditions (high vacancies, lower rents, landlord concessions) is felt most strongly among Class C office building properties.

Commercial real estate agents interviewed for our report indicate that market-appropriate square foot rents for newer small general office space along the Michigan Avenue frontage in and adjacent to the TIFA District may be in the $12-$14 NNN range ($16-$20 gross). Medical office space might command between $16 and $18 per square foot NNN for this area. General office space on Telegraph might command around $15 per square foot NNN and medical space, near $18 per square foot, NNN. Small office space along Van Born might command $10-$12 NNN per square foot for general office space while newer or well-maintained medical space might least in the $14-$16 NNN range. Similar to the retail marketplace, the traffic volumes and associated greater exposure associated with these three commercial corridors in the TIFA directly influence prospects for both office space occupancy and achievable rental rates.

59 Market OpportuntiesRetail Analysis & Office General office space along the Beech Daly corridor may be able to attract tenants with rates around $8 and $10 NNN, amounts which may be insufficient to support new construction but may support minor renovations in existing buildings. Medical space in good condition in well-maintained attractive buildings may command $12-$14 NNN per square foot. We note that a medical laboratory space has been on the market for over two years in a multi- tenant medical building along the corridor despite a gross asking rent of less than $7 per square foot. Were the space and the building in which it is located to be enhanced, with more window space and attractive entries, improved façade and landscaping, it might command a higher rent and achieve a more rapid lease-up.

60 Market OpportuntiesRetail Analysis & Office ChapterOpportunities 6 Evaluation Assessment of Trade Area Retailer Business Strength

An assessment of the average sales per business provides a measure of business opportunities within the TIFA District trade area. Many retailers check out how their competition is doing in a marketplace as part of their own location decision process. For example, if shoppers are congregating at area auto supply stores, maybe additional auto supply stores can be supported. If restaurants are crowded during peak and even some off-peak times, maybe more can be supported.

Information on Table 13 provides an estimate of the average sales per store of various types of trade area retailers and food services establishments, comparing their average sales to that found in the Detroit region.

Several types of retailers in the PTA, the STA and the overall trade area are performing well compared to regional averages. However, with few exceptions, stores within the PTA are performing more strongly than those in the STA portion of the trade area. This is most likely due to the larger base of shopping facilities in the STA than in the PTA and the influence on the STA of other major competitive influences beyond (see Tables 8 and 9 and Map 10). The types of PTA retailers exhibiting the strongest average sales per store relative to both the region and to the STA, as indicated by an index ranking above 100 or more include: y Automobile dealers y Sporting goods/hobby/musical y Building material & supplies dealers instrument stores y Specialty food stores y Florists y Full-service restaurants y Other miscellaneous store y Health & personal care stores retailers y Clothing stores

The major car companies tightly control the location of their new car dealerships. Preferred locations are on highly traveled commercial corridors in areas with relatively high household incomes. This type of business typically requires large land areas in which to store and display their inventory. Accordingly, we do not anticipate that an opportunity for this type of business exists in the TIFA District at present. The District is already the location of a used car dealership.

While sales are strong at building materials and supplies dealers in the trade area, the relative strength of such stores compared to the regional average does not appear to indicate opportunity for a substantial addition in the PTA – especially with the TIFA District, given the distribution of smaller hardware stores on both the east and western edges of the District and the Lowe’s being constructed at Independence Marketplace only a few miles to the

61 Market OpportuntiesRetail Analysis & Office east. However, specialized building stores, primarily selling to builders and other contractors represent likely prospects, given the presence of several building, mechanical and electric contractors in the TIFA District area and in the surrounding communities and the District’s convenient access to the I-94/Telegraph interchange.

The West Village Commons in downtown Dearborn, now in active lease-up, will contain a variety of food-related retailers ranging from tenants already signed such as Cold Stone Creamery, Caribou Coffee, Au Bon Pan, and Irish Pub. This new, nearby “high image” center will further add to the mix of food and beverage service and specialty food outlets in the PTA and reduce the prospects for at least some national chains and national franchise food and beverage service operators to be drawn into the TIFA District.

Small independent specialty food store operators may be attracted to the mix of racial and ethnic groups found near the southern edge of the District, with the potential for specialty food stores featuring foods common in Latino or Hispanic diets likely to increase. On the west, food service outlets offering a mix of full-service and carryout food may be supportable, especially those offering foods not readily available within walking distance or a short drive (e.g., restaurants featuring, Chinese, barbeque, Table 13 Retailer Strength Assessment (1) fish, or Mexican foods). Primary Trade Area Secondary Trade Area Overall Trade Area Sales/ Index to Sales/ Index to Sales/ Index to Clothing stores in the PTA are Store Type Business Region Business Region Business Region out-performing those in the Motor vehicle & parts dealers $9,199,938 167 $3,483,149 63 $5,180,321 94 STA. However, these types of Automobile dealers $18,107,330 166 $6,116,465 56 $9,713,724 89 Other motor vehicle dealers $373,255 19 $1,461,163 73 retailers are generally found in $1,388,635 70 Auto parts, accessories & tire stores $1,225,919 88 $1,062,814 76 $1,121,285 80 concentrations with other Furniture & home furnishings stores $769,996 68 $724,987 64 $740,780 65 similar retailers and typically Furniture stores $1,385,838 59 $1,120,717 48 $1,212,933 52 either in larger community, Home furnishings stores $359,435 65 $455,171 82 $421,382 76 power or other large shopping Electronics & appliance stores $278,834 40 $777,511 112 $655,286 95 Bldg materials, garden equip. & supply stores $1,313,059 112 $652,156 56 $899,276 77 center formats. Opportunities Building material & supplies dealers $1,556,011 119 $727,599 56 $1,037,116 79 to create a critical mass of such Lawn & garden equipment & supplies stores $395,240 51 $365,474 47 $376,636 49 retailers on highly trafficked Food & beverage stores $1,374,129 75 $1,096,173 59 $1,207,652 65 streets are limited in the TIFA Grocery stores $1,738,807 59 $1,541,940 52 $1,618,596 55 Specialty food stores $1,463,645 364 $281,205 70 $631,558 157 District. However, unique Beer, wine & liquor stores $645,348 102 $459,773 73 $550,586 87 specialty stores, like the Cuda Health & personal care stores $1,699,085 142 $2,092,655 175 $1,945,066 162 Uniform store on the south side Gasoline stations $3,691,064 82 $3,634,411 81 $3,659,590 82 of Van Born, can exist Clothing & clothing accessories stores $1,887,519 216 $1,145,601 131 $1,343,686 153 independently of fashion- Clothing stores $2,304,203 237 $1,149,508 118 $1,522,563 156 Shoe stores $857,941 72 $1,277,435 107 $1,224,999 103 oriented clothing and apparel Jewelry, luggage & leather goods stores $400,585 94 $1,030,310 241 $901,502 211 stores. For an operation like Sporting goods, hobby, book & music stores $1,024,279 175 $688,561 118 $812,043 139 this, visibility on a well- Sporting goods/hobby/musical instrument stores $1,082,246 216 $618,475 123 $805,479 160 traveled thoroughfare near the Book, periodical & music stores $817,257 100 $832,625 101 $828,322 101 General merchandise stores $4,385,809 33 $4,695,375 36 $4,602,505 35 residence of concentrations of Department stores (excluding leased depts.) $1,403,549 19 $3,621,992 50 $2,988,151 41 service, construction, and Other general merchandise stores $10,350,327 42 $7,378,834 30 $8,369,332 34 manufacturing workers are Miscellaneous store retailers $327,262 102 $307,101 96 $314,321 98 critical location factors. Florists $217,734 132 $136,222 82 $165,333 100 $381,072 96 $422,104 107 Opportunities for other Office supplies, stationery & gift Stores $409,243 103 Used merchandise stores $137,300 53 $93,113 36 $116,090 45 similarly unique types of Other miscellaneous store retailers $417,638 126 $337,610 102 $365,409 110 apparel stores may exist, at Food services & drinking places $657,746 72 $807,734 89 $755,058 83 least in the southeast and Full-service restaurants $14,833,782 127 $8,579,797 73 $10,023,025 86 eastern portions of the TIFA Limited-service eating places $391,303 86 $379,488 84 $383,607 85 Drinking places (alcoholic beverages) $495,944 52 $536,177 57 $519,803 55 District. (1) ESRIBIS; Real Estate Development Research, LLC Index depicts the relationship between the average sales per trade area business to the average in the region.

62 Market OpportuntiesRetail Analysis & Office Florists and other miscellaneous store retailers have done well in the area. Independent operators generally own such stores. Sporting goods, hobby, toy and game stores also appear to be doing well in the marketplace. Major chains like Michael’s Arts & Crafts have recently come to dominate the crafts market as Joann Fabrics dominates the sewing and needlework market in southeast Michigan and Wal*Mart’s success in selling a limited range of low-cost toys has cost Toys R Us sales and has that retailer considering selling off its toy business. Nonetheless, small specialty hobby stores, toy stores, and game stores can create their own loyal following if their owners are active in various trade and consumer organizations and offer sales from well-constructed sites on the world wide web.

As the redevelopment of M-3 business industrial park district continues in the southwest portion of the TIFA District and as additional housing attractive to a broader mix of age and income groups is developed in and near the District, support for other types of retail facilities in the District is expected to increase. Sales Leakage

A trade area for a specific site or district can never expect to attract and retain 100 percent of the expenditure potential of its residents. In addition to the shopping trips that people make near their homes for convenience and comparison goods and personal services, they also make purchases at stores away from their homes under a variety of circumstances that include but are not limited to the following:

¾ As they travel to and from work, school or other regular destination located beyond the trade area

¾ During overnight vacations

¾ Visiting friends who live outside the trade area

¾ While away at school or work for the day

¾ While visiting destinations away from their homes during day (versus overnight) trips.

¾ Via the Web and through catalogue purchases

Information on Table 14 provides an estimate of the extent to which the expenditure potential for purchases at various types of retail establishments may be leaving the various components of the trade area (PTA, STA and overall trade area). Some of that leaving the PTA is likely accommodated at stores elsewhere in the trade area. Nonetheless, for the trade area as a whole and despite the large number of shopping centers and strip commercial facilities in the trade area, there is a net outflow of trade area household expenditure for shopping goods that is estimated to be nearly $231 million.

We anticipate that the 1.195 million square feet of shopping center space under construction or in active planning in the trade area will do much to reduce the leakage of the expenditure potential of area households as residents are more able to satisfy their shopping needs and interests closer to home. Nonetheless, we estimate that additional retailing and related opportunities will exist within the trade area, some of which may be appropriate for locations within the TIFA District.

63 Market OpportuntiesRetail Analysis & Office Market Share

According to research by the Urban Land Institute5, the median sales per square foot among neighborhood shopping centers in the Midwest is $215 while that for community centers is $214. While stores in neighborhood shopping centers have a strong convenience/local service orientation, community center stores typically include a broader mix of comparison and a more limited assortment of convenience goods stores. Applying these values to the neighborhood and community shopping center type space found in the TIFA District, we estimate that sales in the TIFA District’s own stores may total $71.7 million. The estimated allocation to the District’s convenience/neighborhood shopping center types of stores is $22.1 million with $49.6 million to its comparison goods/community center type facilities. Existing Market Share Based on our estimate of sales by the existing stores in the TIFA District, we estimate the District may have a current market share of the expenditure potential in the trade area of 2.7 percent of convenience-goods store expenditure potential and 3.1 percent of comparison goods store expenditure potential. The overall market share is estimated to be 3.0 percent. Enhancing Retail Market Share – Adding New Businesses

As noted previously, building maintenance and building appearance is highly varied along the District’s commercial corridors. Business signage also varies in quality and appearance. Additionally, streetscape and landscaping appearance on both public and private properties also vary, depending on which portion of which commercial corridor is considered. With the exception of the Telegraph, Michigan Avenue and east half of the Van Born extent within the District, traffic volumes along the District’s commercial corridors tend to be relatively low.

To augment the appeal of vacant buildings and vacant commercially zoned land in the District to new retailers, it will be important to encourage existing businesses to enhance their property and remain vigilant in maintenance of both buildings and grounds. These actions are especially important along the less heavily trafficked commercial corridors and in those portions of TIFI District wherein the “first mile” of neighborhood character is not consistent.

Factors beyond the control of the TIFA Board may constrain the appeal of certain locations in the District to national and regional chain retailers and larger scale independent retailers. However, enhancement of public streetscapes, including landscaping, sidewalk paving and lighting, reduction of land acquisition costs, assistance with façade and landscape improvement costs, and provision of business education and training are among activities that would enable the TIFA Board to encourage the retention and expansion of the District’s current retailers. These actions would also enhance the District’s appeal to new independent and small-scale national retailers. Similar actions would enhance the District’s appeal to small-scale office prospects.

5Urban Land Institute, Dollars and Cents of Shopping Centers: 2004.

64 Market OpportuntiesRetail Analysis & Office r (5) 13,282 ($4,774,773) ($8,701,720) ($1,885,480) ($5,322,096) ($1,330,014) ($8,000,575) ($2,007,409) ($26,302,245) ($78,461,932) ($24,822,443) ($18,517,769) ($18,929,039) ($117,019,455) ($108,559,672) Leakage (4)/ (Surplus) Potential (3) Expenditure Overall Trade Area $9,039,263 $18,847,001 $9,807,738 $6,943,997 $5,613,983 $2,902,251 $9,684,141 $6,781,890 $25,877,559 $36,671,458 $10,793,899 $17,052,064 $12,277,291 $94,377,517 $122,164,523 $27,787,006 $20,829,532$59,428,125$42,224,445 $36,464,244$27,897,456 $68,343,812$14,326,989 $73,463,295 $15,634,712 $66,839,163 $49,998,074 $8,915,687 $23,418,422 $31,238,850 $73,910,996 $22,100,618 $9,091,433 $7,071,833 $39,199,953 $33,877,857 $39,666,103 $14,843,660 $70,647,766 $52,129,997 $49,939,715 $31,010,676 $20,708,051 $21,166,120 $458,069 $71,979,398 $74,432,277 $2,452,879 $27,419,289 $32,374,068 $4,954,779 $34,713,861 $26,713,286 Sales) (2) $225,830,995$182,901,372 $304,445,978 $255,383,613 $78,614,983 $248,968,480 $72,482,241 $263,490,472 $131,949,025 $254,788,752 $103,416,780 $140,964,725 $37,547,945 $276,799,271 $168,239,599 $408,486,279 $421,999,044 $13,512,765 $663,081,103$582,823,446 $661,195,623 $556,521,201 $197,933,215 $119,471,283 $230,125,261 $497,667,842 $267,542,581 $104,585,287$125,539,974 $105,148,904 $392,518,938 $266,978,964 $563,617 $408,486,279 $421,999,044 $13,512,765 $130,299,319 $145,068,427 $14,769,108 $159,580,359 $157,572,950 $2,703,729,537$2,295,243,258 $2,934,692,114 $2,512,693,070 $230,962,577 $217,449,812 Supply (Retail (5) ($403,959) ($708,013) ($7,736,364) ($4,976,621) ($2,759,743) ($2,113,770) ($5,497,073) ($1,942,639) ($91,107,369) ($75,833,821) ($39,632,550) ($17,172,254) ($32,134,748) ($16,257,624) ($27,441,449) ($29,813,140) ($39,632,550) ($11,769,810) Leakage (4)/ (Surplus) s indicates that sales are being drawn into the area from beyond sources such as Potential (3) Expenditure yond the TIFA District trade area. It also reflects fact that some stores and types of at Secondary Trade Area e area component ents,indicated by type of store. les estimated to be captured by trade area stores. The uncaptured expenditure potential is thus leaving the cate opportunities for additional stores within the trade area and/or potential to expand sales (captu red than that of the TIFA District. $5,342,904 $7,082,602 $1,739,698 $3,677,992 $3,274,033 $41,473,141 $70,826,020 $29,352,879 $37,870,831 $30,134,467 $22,883,577 $17,906,956 $20,931,800 $15,434,727 Sales) (2) $167,412,383 $76,305,014 $172,985,739 $97,151,918 $145,376,428 $147,197,851 $1,821,423 $101,156,709 $69,021,961 $313,483,446 $381,992,789 $68,509,343 $256,891,510 $321,590,221 $64,698,711 Supply (Retail (5) ($926,055) ($6,514,471) ($1,565,873) ($2,503,502) ($25,912,086) ($32,725,851) ($10,523,143) ($46,327,184) ($70,394,823) ($91,000,956) ($10,781,405) ($13,952,418) $136,681,007 $1,601,266,622 $1,695,548,192 $94,281,570 Leakage (4)/ (Surplus) Potential (3) Expenditure $1,239,143,922 Primary Trade Area $3,266,005 $2,339,950 $1,784,898 $4,071,513 $2,286,615 $1,117,353 $5,612,628 $4,495,275 $8,002,516 $13,665,308 $5,662,792 $19,416,773 $18,708,760 $65,787,131$14,035,494 $210,221,108 $44,412,251 $144,433,977 $164,338,130 $30,376,757 $287,446,734 $90,549,793 $123,108,604 $60,736,653 $51,751,637 $165,808,857 $114,057,220 $73,788,337 $226,710,081 $152,921,744 $26,835,480 $31,402,129 $4,566,649 $45,143,918 $43,030,148 $13,782,061 $11,278,559 $44,501,345 $61,213,092 $16,711,747 $85,797,974 $83,855,335 $56,738,978 $66,501,379 $9,762,401 $102,841,381 $91,071,571 Sales) (2) $124,971,679 $178,116,994 $53,145,315 $283,514,600 $243,882,050 Supply (Retail (1) (Surplus) Store Type occurs when there are more sales captured by trade area stores than is indicated as available from households. Thi (Surplus) Grocery StoresSpecialty Food StoresBeer, Wine & Liquor Stores $14,843,002 $11,709,160 $76,507,499 $15,490,469 $5,194,689 $107,918,494 $647,467 $31,410,995 $106,393,873 $11,034,557 $147,465,119 $21,180,989 $41,071,246 $10,146,432 Total Retail TradeTotal Food & Drink $977,491,236 $124,971,679 $1,061,026,928 $178,116,994 $83,535,692 $1,317,752,022 $53,145,315 $1,451,666,142 $283,514,600 $133,914,120 $243,882,050 Building Material & Supplies Dealers $52,904,376 $51,338,503 Clothing Stores $96,776,506 $50,449,322 Lawn & Garden Equipment Supplies Stores $3,557,156 $7,955,830 $4,398,674 $5,482,107 $10,891,171 $5,409,064 Auto Parts, Accessories & Tire StoresFurniture StoresHome Furnishings Stores $23,292,466 $28,921,782 $5,629,316 $36,135,659 $4,313,221 $39,422,030 $11,086,705 $9,921,388 $21,199,947 $3,286,371 $5,608,167 $10,113,242 $10,013,768 $16,810,751 $13,497,034 $28,798,127 $3,483,266 $11,987,376 Automobile DealersOther Motor Vehicle Dealers $373,255 $325,931,936 $234,930,980 $15,350,072 $14,976,817 $20,456,277 $21,114,172Shoe Stores $657,895 $3,431,765 $14,367,293 $10,935,528 $35,768,188 $19,510,564 Jewelry, Luggage & Leather Goods Stores $3,605,261 $6,224,267 $2,619,006 $36,060,842 $8,619,393 Sporting Goods/Hobby/Musical Instrument Stores $27,056,138 $13,103,720 Book, Periodical & Music Stores $5,720,797 $8,938,609 $3,217,812 $14,987,254 $12,227,511 Department Stores (Excluding Leased Depts.) Other General Merchandise Stores Florists Used Merchandise Stores Other Miscellaneous Store Retailers Office Supplies, Stationery & Gift Stores Full-Service Restaurants Limited-Service Eating Places Drinking Places (Alcoholic Beverages) $17,358,055 $21,948,731 $4,590,676 $27,345,044 $30,067,650 $2,722,606 $44,703,099 $52,016,381 $7,3 Analysis of Retail Leakage and Health & Personal Care Stores $81,556,097 $55,644,011 Clothing & Accessories Stores $103,813,532 $71,087,681 Total Retail Trade & Food Drink $1,102,462,915 Gasoline Stations $118,114,044 $107,590,901 Food & Beverage Stores $103,059,661 $128,650,451 $25,590,790 $122,771,334 $175,795,527 $53,024,193 Furniture & Home Furnishings StoresElectronics & Appliance StoresBldg Materials, Garden Equip. & Supply Stores $15,399,926 $56,461,532 $31,168,134 $59,247,534 $15,768,208 $6,970,846 $26,824,519 $2,786,002 $31,214,933 $42,295,161 $46,955,248 $24,244,087 $81,717,191 $15,470,642 $59,868,317 $34,761,943 $42,696,063 Table 14 of expenditure potential) by the area's existing stores. (5) Motor Vehicle & Parts Dealers $349,597,657 $279,202,834 passersby and other non-residents, the Web, catalogue sales, business-to-business sales (from businesses both within be various locations throughtout the TIFA District's trade area have their own individual areas that are differently configu Sporting Goods, Hobby, Book & Music Stores $32,776,935 $21,995,530 General Merchandise Stores Miscellaneous Store Retailers Food Services & Drinking Places (1) ScanUS; ESRIBIS; Real Estate Development Research, LLC (2) Supply (Retail Sales) refers to the estimated sales by existing stores within trade area and its geographic compon (3) Expenditure Potential is the aggregate expenditure potential of trade area households, presented by type store and trad (4) Leakage refers to the situation that exists if aggregate expenditure potential of trade area households exceeds sa trade area (leaking out from it) and is being captured as sales by out-of-trade-area stores. Where leakage exists, it may indi

65 Market OpportuntiesRetail Analysis & Office Assuming that a program to enhance the physical environment of the District’s commercial corridors is undertaken, that programs to encourage businesses attraction and business retention are put in place, we anticipate that the District’s market share of trade area expenditure potential could increase.

¾ A 25 to 50 percent increase of the District’s market share of trade area household expenditures in convenience-oriented goods stores and personal service establishments would result in the addition of 27,000 to 53,000 occupied square feet of such space in the District.

¾ A 10-15 percent increase of the District’s market share of trade area household expenditures in comparison goods stores would add between 24,000 and 39,000 square feet of that type of space.

In combination, increases in the District’s market share of trade area resident expenditures in convenience and comparison goods stores (and related personal service establishments) could add between 51,000 and 92,000 square feet of occupied store space to the District’s retail base.

In addition to an enhanced capture of the expenditure potential of trade area residents, additional sales to TIFA District retailers can expected from geographies beyond the trade area. Sources for this additional capture primarily include:

¾ Non-residents working in the area

¾ Non-residents visiting the area

¾ Passersby traveling through the area

The expenditures of these individuals will form an important component of the support for TIFA District-based businesses. Since these individuals have no real local tie to the area, enhancement of the streetscapes and business appearance in the area is even more critical to enticing them to leave a portion of their expenditure potential in the District.

Generally, convenience type goods and service establishments draw the major portion of their sales from people living and working closest to their establishments, with the majority of sales being drawn from within a one to three mile distance of the stores. Convenience goods stores on highly traveled roadways can attract a higher proportion of their sales from greater distances than can those on less traveled roads. Additionally, stores adjacent to major employment centers and other demand-generators (e.g., college campuses, convention centers, large-scale commercial recreation facilities) have increased prospects for higher proportions of non-resident sales. Even so, in generally, nearly all of the sales of such stores are generated from people living and working no more than a five-mile distance from such stores with such locally generated sales accounting for 90 percent of the total sales at such facilities.

For locations on less highly traveled thoroughfares and/or lacking proximity to major employment centers and large-scale demand generators, an even higher proportion of convenience store and personal service establishment sales potential is drawn from the immediate trade area. With this in mind, we anticipate that, as a whole, TIFA District-based convenience and personal service establishments will draw 95 percent of their sales from within the trade area as defined herein.

66 Market OpportuntiesRetail Analysis & Office Comparison goods establishments draw the majority of their sales from greater distance, typically up to five miles from their location. Depending on the location and variety of such merchants in a single location (e.g., at a community, power or regional shopping centers on highly traveled roadways or visible from freeway interchanges) intersections), the appeal to out-of-area residents can increase. Nonetheless, the major portion of overall sales potential captured within a five-mile range of such stores generally, accounts for 80 percent of total sales.

Were the scale and location of sites available for additional retail development in the TIFA District large and located along the District’s most highly traveled corridors (Michigan Avenue and Telegraph), the draw of out of area shoppers could be fairly high. However, unless large-scale residential to commercial redevelopment were to occur within the District along its most highly traveled thoroughfares, the scale of existing or potentially available shopping center development sites in the District is very limited.

Locations on Van Born closest to the Van Born/Telegraph intersection have the greatest opportunity to draw a higher proportion of their sales from beyond the trade area while locations more distant and along less highly traveled segments of the TIFA District’s commercial corridors will be more dependent for their draw of the expenditure potential generated within the trade area. Thus, as a whole, we estimate that comparison shopping type retail facilities at sites within the TIFA District will draw up to 85 percent of their sales from within the trade area and with the balance from beyond the area.

Including the expenditures of both trade area residents and out-of-area shoppers, and excluding the existing convenience, comparison and personal service establishments already in the TIFA District, we estimate that the demand for additional occupied retail floor space (and retail-related personal service) may be as follows:

¾ 34,000 – 62,000 square feet of additional convenience oriented goods and personal service establishments.

¾ 69,000 – 86,000 square feet of additional comparison-shopping goods establishments.

¾ 103,000 – 148,000 total square feet of convenience, personal service and comparison goods establishments.

We believe this level of additional shopping and personal service facilities is supportable in the District. Given the current distribution of commercially zoned land in the district, we anticipate that most such development will be located along the Van Born and Beech Daly corridors and, to a lesser extent, along the Inkster Road edge of the District.

The final section of this chapter (Business Clustering Opportunities: Scale & Type) provides recommendations for the type and approximate scale of shopping center type uses within the District. Office Space Opportunities

New and enhanced retail and personal service store space would enhance the appeal of locations in the TIFA District for small-scale locally oriented office-based service providers. Currently, there is less than 20,000 square feet of office space in the District.

67 Market OpportuntiesRetail Analysis & Office There are five hospitals and a variety of large outpatient surgical and ambulatory care centers within three to five miles of the District. The trade area’s population base is aging. The TIFA District currently includes a residential care facility. Residents of such facilities often require medical attention that can be provided by transport to medical offices or hospitals or by on-site visits of medical practitioners.

Our research indicates that the demand for conveniently located medical services will increase in the area. We estimate that a major portion of employed trade area residents may work for either one of the major auto companies or their suppliers, for area school districts, governmental agencies and hospitals. Such employers, at least in southeast Michigan, tend to offer medical and dental coverage to their employees. These factors enhance opportunities for small-scale medical/dental medical practices in the District. With an augmented retail environment, the appeal of locations in the District will increase for local offices of insurance and finance businesses as well as to a miscellany of other small-office uses.

We conclude that the trade area can support additional small-scale office development despite the presence of large areas of vacant space in formal office/business parks (e.g., the Ford Land properties). Between 5,000 and 10,000 square feet of additional small office space is supportable in the District, increasing the current supply of occupied space by 25 to 50 percent.

The reader should note that the above analysis of supportable office space does not consider the opportunities for office/research facilities or other ultra-light industrial and quasi office facilities as they may be developed in the M-3 industrial district. Rather, our focus is on addressing opportunities along the commercial frontages in the District, including the Van Born frontage of the M-3 district. Business Clustering Opportunities: Scale & Type

We recognize that our estimate of supportable additional space in the TIFA District is less than that which may be physically accommodated on the vacant commercially zoned sites in the District. The District and its immediately adjacent neighborhoods have seen population declines over the last several decades. The number of households in these areas also has declined, although less rapidly.

We believe that the District’s retail and office prospects would be substantially enhanced were a variety of additional housing encouraged, primarily as infill on several of the largely vacant block fronts along Beech Daly as well as part of a mixed residential/retail/office reuse of the WTE site on Inkster. Development of higher density concentrations of attractive housing within walking distances of established shopping facilities not only provides additional support for such facilities, but also can augment the draw for new retail and office development.

With the above consideration in mind, the following provides a discussion of the portions of the TIFA District that we believe provide opportunities to reinforcement and support existing retail and office uses and attract new uses.

68 Market OpportuntiesRetail Analysis & Office Van Born – Beech Daly to Telegraph

In this part of the TIFA District, traffic counts meet the minimum traffic threshold for a variety of retailers. The primary retail/office opportunity existing near the eastern edge of the corridor is the redevelopment of the large (56,000 square feet) building formerly occupied by Grainger industrial supply immediately west of the Aldi’s. While the building size may be suitable for use by one or more big-box type of retailers, the site’s proximity to the new shopping center development to the east and the concentration of big box uses planned at Independence Marketplace and Fairlane Green reduces its ability to attract such tenants. Its size is comparable to that of a modern supermarket, but its location adjacent to Aldi’s, coupled with the future Meijer only a few minutes to the east, and the excess vacant big-box space already on the market on Telegraph Road south of I-94 also reduces its potential for such uses.

The building is poorly configured for either small-scale retail or office use but appears more appropriate for light industrial or warehouse use. Its proximity to the Telegraph/I-94 interchange makes this an ideal location for a small warehouse function were the site to be rezoned to industrial.

With demolition and new construction, the 4.9 site would be an appropriate location for a mix of recreation (e.g., pool/billiards, health club) and entertainment facilities (e.g., sports bar) that could draw not only from the adjacent neighborhoods, but which could tap into the high volumes of through-traffic on nearby Telegraph. Sizes for health clubs and pool/ billiards facilities tend to range between 3,000 and 25,000 square feet. Sports bars and other similar drinking places appropriate for this location would be sized between 2,500 and 5,000 square feet

Conversely, given the presence of the new Sherwin Williams store to the southeast and Taylor Building Supply to the southwest, a variety of small-scale home furnishings and home décor stores including home lighting, shelving and closet, window treatments and the like may do well in this location. Store sizes for such uses would range between 1,500 and 5,000 square feet.

The established cluster of neighborhood-oriented convenience, personal service, and comparison-shopping (and dining) establishments located between Beech Daly and the Auto Zone store should be reinforced and expanded upon with the development of additional retail. A large vacant parcel to the immediate south in Taylor is currently being considered for townhouse style residential use. New homes on that site would be within a convenient walk of the established retail and would thus augment support for additional retail in this area. Retail and office uses appropriate for this location include: y Coffee, donut or bagel shop y Personal service establishments y Dollar store (barber/beauty, nail, tanning) y Insurance, finance and/or y Card and gift shop real estate offices y Childcare facility y Cellular service/phone stores y Casual dining/carry-out y Bakery/specialty food store restaurant(s)

Sizes for the above types of stores in this location would likely range between 1,000 and 3,000 square feet.

69 Market OpportuntiesRetail Analysis & Office Beech Daly

The small cluster of medial office uses between Stamford and Lehigh provide a basis for additional office development to the blocks immediately north and south. Vacant land and vacant buildings along the east side of Beech Daly could accommodate a mix of general offices (insurance, personal finance, real estate) and/or additional health care practices (e.g., chiropractic, physical therapy, optical shop, additional physician’s offices). Typical office sizes may range between 1,000 and 2,500 square feet. Buildings should offer easy walk-in and parking and provide windows on the street rather than fully bricked facades.

Between Currier and Annapolis on the west and Powers and Annapolis on the east, with the exception of the former Daly Drive-In and a vacant storefront in the Beech-Daly Plaza, little opportunity for new development exists. Last in operation in 2003, the former Daly Drive-In site continues to be a good site for more contemporary restaurant use. However, the dated appearance of the building and the old-fashioned drive-in format of the overall site design require substantial enhancement and alteration to support such use. As a full- service restaurant, the pricing would need to be modest and the décor family-oriented and comfortable for both seniors and families with children. A “Coney Island” style theme may do well as might one featuring good quality, value-priced Mexican fare.

Alternatively, redevelopment, either through substantial alteration and addition to the current building or demolition and new construction could potentially accommodate over 7,000 square feet of retail space in lieu of the less than 2,600 square foot former restaurant. Among the types of uses that might do well in this location are a variety of small limited service restaurants such as a sandwich shop or ethnic carryout (e.g., Chinese, Mexican, soul food), none of which are located in or near this part of the District. Other uses include a small health-food/nutrition store, card and gift shop, florist, and snack shops like ice cream or custard stores possibly operated as a dual format (e.g., ice cream/pizza, ice cream/chicken, donut/ribs), dry cleaner/alterations store, pet grooming and specialty pet supplies. Store sizes would be in the 1,000-2,500 square foot range.

This same mix of stores and eateries would also be appropriate for location on the east side of Beech Daly on the vacant lots between Powers on the north and the Living Word Church of God on the south. Infill new-construction residential (townhouse style and stacked ranch design) should be encouraged elsewhere along the corridor on the larger vacant sites north and south of the above-referenced locations. For blocks with scattered single-family homes and vacant lots, full redevelopment should be encouraged, to create a full block front of higher density residential use. Southwest TIFA District

The Van Born frontage between Beech Daly and Inkster is zoned for M-3 Business Industrial Park use. While retail and related service uses are encouraged in support of the light industrial uses permitted within the district, we recommend that they be primarily limited to a few concentrated locations along the Van Born frontage, as this would provide them with greatest exposure to potential shoppers. The redevelopment of the former BP gas station portion of Metro Truck Plaza into a 14,000 square foot convenience center with a BP gas station/ convenience market its initial uses is an excellent way to upgrade the entryway to the business and industrial park district. The types of uses that might be drawn to the balance of the complex include a small-scale office supply/card and gift store, carryout restaurants, check cashing outlets; cell phone stores, auto and home insurance offices, small business/consumer tax service offices, mailing and packaging service.

70 Market OpportuntiesRetail Analysis & Office Redevelopment of the three-quarter acre site to the east, currently the main part of Metro Truck Plaza, as medical office use is an appropriate consideration for this location, particularly if the property owner’s plans to proceed with some form of senior or residential care housing are realized for the adjacent site north of the creek. This location is within a 10 to 15 minute drive of several hospitals and other major medical facilities to the northwest, west and south.

The Inkster corridor between Van Born and Michigan Avenue contains three funeral homes, all three of which have either recently renovated/expanded or re-built. Opportunities exist to support the eating and drinking needs of those attending visitations and funeral services held at these facilities – as well as to draw the trade of employees in the expanding base of businesses in the M-3 district. The most opportune location for an attractive tavern (sports bar or similar) is the intersection of Inkster and Van Born, currently the site of Walt’s Auto Supply, which may be on the market. This location would be able to take advantage four way traffic flow by the intersection. Facilities between 2,000 and 4,000 square feet may be supportable in this area, but only following further employment-intensive business development within the M-3 district and the addition of a broader mix and density of housing types nearby.

Other types of businesses that may, in time, benefit from a location in this part of the District would be a childcare-care center (if well-buffered from adjacent industrial use), car wash, video rental store, cell phone store, coffee shop, donut/bagel shop, florist and convenience market/party store. With new higher density residential development, the opportunity to support a specialty food store (e.g., bakery, ethnic foods) will increase. Should the Federal Elementary School be placed on the market, its convenient but off main road location, proximity to future employment growth in the business park, and walk-to access from potential future higher density residential development on all or a portion of the WTE site would enhance its potential reuse as a childcare center.

The ability of this particular part of the District to attract the types of retail and personal service providers indicated above will depend on achieving additional and more diversified residential development in this part of the TIFA District and more intense business development in the balance of the M-3 district. To the extent the uses developed in the M- 3 district are warehouse, self-storage facilities, or other large-scale facilities with minimal on-site employment, retailing opportunities along both Inkster and the western portion of Van Born in the District will be reduced.

71 Market OpportuntiesRetail Analysis & Office Market Opportunties AnalysisAppendix

72 Market OpportuntiesRetail Analysis & Office Table A-1 Classification of Selected Uses & Selected Building Details within the SOUTHWEST TIFA District: Inkster to Beech Daly (1)

DB Hts Site Area Information Bldg Area (Sq.Ft.) Physical Zoning Lot Lot Total Year Map Condition District Front Depth Above- 1st 2nd NAICS Key # Parcil ID # (2) Built Remodel (3) Property Address (4) Net Acres (Ft) (Ft) Grnd Floor Floor Building and/or Land Use Description NAICS Sector (5) Code 3 33 039 02 0001 000 1939 40% 27330 Van Born C-2A 0.36 131 120 8,194 8,194 Walt's Auto Supply Auto supply Motor Vehicle & Parts Dealers 4413 3 33 039 02 0027 000 1978 69% 5700 Cummings M-3 0.72 240 131 15,000 15,000 Vacant industrial building Vacant building - - 7 33 039 02 0068 002 1974 55% 5664 Daniels M-3 0.18 60 131 3,600 3,600 Korte's Collision Repair, auto body Repair & Maintenance 8111 10 33 039 99 0004 000 1957 & 1991 1981 53% 26850 Van Born M-3 0.92 125 320 8,472 8,472 Van Born Collision & Champaign Towing Repair, auto body Repair & Maintenance 8111 11 33 040 99 0010 010 1984 67% 26505 Powers M-3 8.03 94,242 94,242 Imperial Health Care Centre Nursing Home Residential care Nursing & Residential Care Facilities 6231 1133 040 99 0010 709 U.C. - - Van Born M-3 2.04 240 14,000 14,000 Park Plaza West (under const) (7) Neighborhood center - - (new construction part) - Van Born M-3 4,800 BP Gas (under const) Gas station/convenience store Gasoline Station 4471 - Van Born M-3 9,200 Retail strip (under const) Retail, future uses unknown - - 1233 040 99 0010 709 1973 1999 52% 26300 Van Born M-3 0.73 245 12,920 6,460 6,460 Metro Truck Plaza Mixed Use - - (retail/office part) Van Born M-3 2,970 Metro Plaza Café Restaurant, family Food Services & Drinking Places 7221 Van Born M-3 1,290 Metro Market Convenience market Food & Beverage Stores 4451 Van Born M-3 1,290 RT Electronics Repair, CB radios Repair & Maintenance 8112 Van Born M-3 910 Dependable Cab Transportation, taxi (office) Transit & Ground Passenger Transp. 4853 Van Born M-3 2,130 A & R Express Transportation, trucking (office) Trucking Transportation 4841 Van Born M-3 2,200 Miller Transfer Transportation, trucking (office) Trucking Transportation 4841 Van Born M-3 2,130 Sierra Transport Transportation, trucking (office) Trucking Transportation 4841 14 33 040 03 2217 000 1960 1998 75% 25996 Van Born C-1 0.32 140 100 1,104 1,104 Gentry Auto Sales Auto sales, used Motor Vehicle & Parts Dealers 4413 14 33 040 03 2212 000, 33 1955 1979 45% 24948 - 25950 Van Born C-1 0.23 100 100 3,145 3,145 Vacant retail/office building Vacant building - - 040 03 2213 000, 33 040 03 2214 000, 33 040 03 2211 000, 33 040 03 2215 000, 33 040 03 2216 000

(1) Basic building use data obtained from a field survey conducted November 2004 by Real Estate Development Research, LLC. With the exception of vacant buildings in the M-1, M-2 and M-3 districts, building and associated improfved site details are indicated only for non-residential uses in the TIFA district for the RO-1, C-1, C-2, C-2A and C-3 zoning districts. The reader is refered to the Southwest TIFA District Area map and associated table for informaiton about uses adjacent to the TIFA District as well as the land use within the TIFA's industrial districts. (2) In many instances in the Business Park area and the C-2A frontage along Inkster, properties are owned by the City of Dearborn Heights or the Dearborn Heights TIFA and details concerning building sizes and land area were not available to our researchers. When such properties were found (per our field survey) to be in active commercial or office use or contain vacant industrial buildings, we utilize a dash to indicate property identification number specific to the use indicated is not available. In such situations, the land area of the use in question is estimated. (3) Physical property condition per Dearborn Heights Assessor's records. The percentage reflect the Assessor's opinon on the extent the property varies from 100% good condition. (4) Zoning district is indicated only for those properties within Dearborn Heights and only for non-residential districts. Information based on the City's Zoning Map dated February 20, 2001 and the M-3 Business Industrial Park District established in 2002. (6) NAICS sector description (to the 3-digit level) and NAICS code ( to the 4-digit level) provided for all retail and office-suitable services and selected other service types in and adjacent to the TIFA. They are also provided for other non-residential uses located in the TIFA's commercial and office zoning districts. (7) Site area information represents an estimate of that portion of 33 04 099 0010 Note: Property identification number, buildling information and associated site area obtained from a combination of electronic files provided to Wade Trim by the Dearborn Heights Assessor in November 2004, subsequent review of on-line data via www.dhol.org. Supplemental information obtained for some Dearborn Heights properties, through a review by Real Estate Development Research, LLC of the physical paper files maintained by the Assessor.

Table A-2 Classification of Selected Uses & Selected Building Details within the NORTH TIFA District: Michigan Ave to Dartmouth (1) DB Hts Site Area Information Bldg Area (Sq.Ft.) Year Physical Zoning Lot Lot Total 2002 Map Condition District Front Depth Above 1st 2nd NAICS Key # Parcil ID # Built Remodel (2) Property Address (3) Net Acres (Ft) (Ft) Grnd Floor Floor Building and/or Land Use Description NAICS Sector (4) Code 1 S 33 037 01 0132 301 2003 94% 25637 Michigan Ave. C-3 4.70 507 409 74,000 37,000 37,000 Dearborn Heights Justice Center (5) 20th District Court, Police Dept., TIFA offices Justice, Public Order & Safety Activities 9221 1 S 33 037 01 0134 307 2000 89% 25569 Michigan Ave. C-3 0.71 160 192 2,400 2,400 SHRI Maldi Inc Sunoco Gas station/convenience market Gas Station 4471 1 S 33 037 01 0134 309 , 1995 83% 25451 Michigan Ave. C-3 12.85 585 805 150,118 150,118 Home Depot Home improvement Bldg Material & Garden Equip & Supplies Dealers 4441 33 037 01 0134 004, 33 037 01 0135 000 1 E 33 037 01 0139 001 1954 1968 48% 2525 S. Beech Daly M-2 9.59 597 632 64,311 64,311 Vacant industrial building Vacant building - - 1 E 33 037 01 0139 006 1965, 1962 2001 67, 67% 25700 Princeton M-2 1.57 317 216 17,850 17,850 Vacant industrial building Vacant building - - 2 E 33 038 01 0001 000 1948, 1954, 52% 2955 S. Beech Daly C-2A 0.81 128 176 19,013 19,013 Hart Industries Auto customizing, classic Repairs & Maintenance 8111 1956, 1959

6 E 33 038 02 0665 000 - - - 3335 S. Beech Daly C-2A 0.59 256 100 - - Westwood Schools Administrative Center School administration Educational Services 6111 9 E 33 038 02 0839 000 1924+ 40% 3607 S. Beech Daly C-2A 0.11 48 100 2,080 2,080 H.O.R. Embroidery Advertising specialties Professional, Scientific & Technical Svcs 5418 9 E 33 038 02 0841 000, 33 1946 40% 3623 S. Beech Daly C-2A 0.29 128 100 2,048 2,048 Charlie Electric Co. Contractor, electrical Bldg, Developing & Gen'll Contracting 2382 038 02 0840 000, 33 038 02 0894 000 9 E 33 038 02 0896 000, 33 1924 & 1940 1989 58% 3651 S. Beech Daly C-2A 0.22 94 100 1,830 1,830 Irish Pub Drinking place Food Service & Drinking Places 7224 038 02 0895 000 12 W 33 037 01 0137 009 1963 1994, 2001 52%, 65% 2500 S. Gulley M-2 2.41 350 300 36,799 36,799 Livernois Motor Sports Repair, auto, classic & racing Repairs & Maintenance 8111 (1) Basic building use data obtained from a field survey conducted November 2004 by Real Estate Development Research, LLC. With the exception of vacant buildings in the M-1, M-2 and M-3 districts, building and associated improfved site details are indicated only for non-residential uses in the TIFA district for the RO-1, C-1, C-2, C-2A and C-3 (2) Physical property condition per Dearborn Heights Assessor's records. The percentage reflect the Assessor's opinon on the extent the property varies from 100% good condition. (3) Zoning district is indicated only for those properties within Dearborn Heights and only for non-residential districts. Information based on the City's Zoning Map dated February 20, 2001 and the M-3 Business Industrial Park District established in 2002. (4) NAICS sector description (to the 3-digit level) and NAICS code ( to the 4-digit level) provided for all retail and office-suitable services and selected other service types in and adjacent to the TIFA. They are also provided for other non-residential uses located in the TIFA's commercial and office zoning districts. (5) Total building area, as provided by TIFA Executive Director, is 111,000. The building is 3 levels of which 2 are above ground. We estimate each floor plate is equal to 1/3 the building total or 37,000 per floor. Note: Property identification number, buildling information and associated site area obtained from a combination of electronic files provided to Wade Trim by the Dearborn Heights Assessor in November 2004, subsequent review of on-line data via www.dhol.org. Supplemental information obtained for some Dearborn Heights properties, through a

Tables A-1 & A-2

73 Market OpportuntiesRetail Analysis & Office Table A-3 Classification of Selected Uses & Selected Building Details within the CENTRAL TIFA District: Dartmouth to Van Born (1) DB Hts Site Area Information Bldg Area (Sq.Ft.) Year Physical Zoning Lot Lot Total Map Condition District Front Depth Above 1st 2nd NAICS Key # Parcil ID # Built Remodel (2) Property Address (3) (4) Net Acres (Ft) (Ft) Grnd Floor Floor Building and/or Land Use Description NAICS Sector (5) Code 6 W 33 040 02 0034 000 1959 55% 4630 S. Beech Daly C-2A 0.23 101 396 396 Sam's Clark Gas Gas station/convenience market Gas Station 4471 6 W 33 040 02 0028 000, 1947, 1986 60% 4650 S. Beech Daly C-2A 0.38 167 100 6,400 6,400 Beech Food Center Grocery Food & Beverage Stores 4451 330040 02 0026 000 7 W 33 040 02 0019 000 1957 1986 50 4828 S. Beech Daly C-2A 0.33 142 100 1,260 1,260 Automotive ER Repair, auto Repair & Maintenance 8111 7 W 33 404 02 0016 000 1960 40% 4852 S. Beech Daly C-2A 0.18 80.00 100 1,200 1,200 Beech Daly Coin Laundromat Laundromat Personal & Laundry Services 8123 8 W 33 040 02 0009 000 S. Beech Daly C-2A 0.18 80 110 American Druze Society Community Center (park Community center parking - - 8 W 33 040 02 0001 000, 33 1946 40% 4970 S. Beech Daly C-2A 0.28 120 100 2,300 2,300 Your Choice Auto 2 Repair Repair, auto Repair & Maintenance 8111 040 02 0006 000, 33 040 02 0005 000, 33 040 02 0004 000 9 W 33 040 03 2133 000 1963 69% 5152 S. Beech Daly C-2A 0.73 287 110 2,592 2,592 Vacant building (former Daly's Drive-In) Vacant building - - 10 W 33 040 03 2147 300 1956 55% 5312 S. Beech Daly C-2A 0.15 66 100 1,000 1,000 Royal Canadian Legion Fraternal organization Religious, Grantmaking, Civic, Prof'l & Similar 8134 10 W 33 040 03 2156 000 1966 1999 82% 5376 S. Beech Daly C-2A 0.20 86 100 720 720 Jart's Hamburgers Restaurant, fast food, hamburgers Food Services & Drinking Places 7222 11 W 33 040 03 2160 300, 33 1937, 1949, 1977, 1997 60% 5400 S. Beech Daly C-2A 0.22 86 110 2,069 2,069 Vision Restoration & Building Co Contractor, building Bldg, Developing & Gen'l Contracting 2362 040 03 2161 000, 33 1954 043003 2162, 33 040 03 2163 1 E 33 042 02 0004 000, 33 1957, 1987 55% 3925 S. Beech Daly C-2A 0.20 68 130 2,080 2,080 Office (occupant unknown) Office (occupant unknown) - - 042 02 0005 000 2 E 33 042 02 0009 000 1964 2001 49% 4015 S. Beech Daly C-2A 0.21 70 130 4,744 4,744 Taylor Elector Motor Service Repair, electric motor Repair & Maintenance 8113 2 E 33 042 02 0011 300 1967 55% 4039 S. Beech Daly C-2A 0.24 80 130 1,800 1,800 Beech Daly Auto Detailing Auto wash, detailing Repair & Maintenance 8111 2 E 33 042 02 0013 002 1973 55% 4061 S. Beech Daly C-2A 0.38 128 130 2,376 2,376 Michigan Robo Wash Auto wash, coin Repair & Maintenance 8111 3 E 33 042 99 0006 000 1977 57% 4151 S. Beech Daly C-2A only 0.39 133 5,785 5,785 Vacant building (former Maxim's Grocery) Vacant building - - 4 E 33 042 03 0008 000 1958, 1973 56% 4215 S. Beech Daly C-2A 0.39 145 116 5,055 3,403 1,652 Beech Daly Family Clinic Practice Office, medical Ambulatory Health Care Services 6211 4 E 33 042 03 0015 000 1954, 1976 1976 62% 4245 S. Beech Daly C-2A 0.39 145 116 6,602 4,355 2,247 Multi-tenant office building Office building -- 4245 S. Beech Daly 2,247 Dental Health Group Office, dental Ambulatory Health Care Services 6212 4245 S. Beech Daly 1,405 Family Foot care Specialists Office, medical Ambulatory Health Care Services 6211 4245 S. Beech Daly 600 Family Center Pharmacy Drugstore Health & Personal Care Stores 4461 4245 S. Beech Daly 1,000 Physical Therapy & Pain Management Office, medical Ambulatory Health Care Services 6211 4245 S. Beech Daly 1,350 Vacant office/retail space Office, vacant - - 5 E 33 042 03 0021 300 1946 1981 43% 4413 S. Beech Daly C-2A 0.21 80 116 1,700 1,700 Engineered Comfort Systems Contractor, heating Bldg, Developing & Gen'l Contracting 2382 5 E 33 042 03 0028 000, 33 1960 41% 4417 S. Beech Daly C-2A 0.15 55 1,400 1,400 Vacant building (former restaurant) Vacant building - - 042 03 0030 002 6 E 33 042 03 0028 000, 33 1945, 1946 40% 4513-4521 S. Beech Daly C-2A 0.39 124 136 6,300 6,300 CVA Process Temperature Specialists Contractor, heating Bldg, Developing & Gen'l Contracting 2382 042 03 0030 002 6 E 33 042 03 0034 000 1954 2000 57% 4551 S. Beech Daly C-2A 0.45 144 136 1,232 1,232 Wessam Fill-Up (BP Gas) Gas/convenience market Gas Station 4471 7 E 33 043 01 0487 000, 33 1945 56% 4665 S. Beech Daly C-2A 0.28 120 100 5,820 5,820 K Landmark Shop Liquor store Food & Beverage Stores 4453 043 01 0490 000, 33 043 01 0491 000, 33 043 01 0492 000 8 E 33 043 01 0493 000 1946 1964 40% 4809 S. Beech Daly C-2A 0.05 22 100 620 620 Sandra K Beaute Salon Personal service, beauty Personal & Laundry Services 8121 8 E 33 043 01 0495 000, 33 1957 1986 52% 4825 S. Beech Daly C-2A 0.14 60 100 2,000 2,000 Dendra's Kiddie Korner Personal service, child care Social Assistance 6244 043 01 0494 000 8 E33 043 01 0497 000, 33 1982 82% 4839-4845 S. Beech Daly C-2A 0.44 182 100-110 6,980 6,980 Beech Daly Plaza Neighborhood center 043 01 0501 000, 33 4839 S. Beech Daly C-2A 0.18 80 100 3,800 Discount Video Video rental Rental & Leasing Services 5322 043 01 0502 000, 33 4841 S. Beech Daly C-2A 0.05 20 110 980 Tan Con Salon Personal service, tanning salon Personal & Laundry Services 8121 043 01 0503 000, 33 043 01 0504 000 4843 S. Beech Daly C-2A 0.05 20 110 1,100 Rosie D's Pizza Restaurant, fast food, pizza Food Services & Drinking Places 7221 4845 S. Beech Daly C-2A 0.05 20 110 1,100 Vacant office/retail space Vacant space - - 9 E 33 043 01 0506 000 1967 2004 52% 4945 S. Beech Daly C-2A 0.41 180 110 7,200 7,200 American Druze Society Community Center Community center Social Assistance 6241 9 E 33 043 01 0515 000 S. Beech Daly C-2A 0.21 84 110 Abela's Pizzeria parking Restaurant, fast food, pizza (parking) - - 10 E33 043 01 0519 000 1937 2000 43% 5111-5113 S. Beech Daly C-2A 0.11 44 110 3,272 Multi-tenant building Multi-tenant building 5111 S. Beech Daly C-2A 1,672 Abela's Pizzeria Restaurant, fast food, pizza Food Services & Drinking Places 7221 5113 S. Beech Daly C-2A 1,600 Touch of Jazz Salon Personal service, beauty Personal & Laundry Services 8121 10 E 33 043 01 0521 000, 33 1953 53% 5127 S. Beech Daly C-2A 0.25 100.00 110 2,100 2,100 Fetzer's Bar on the Beech Drinking place Food Services & Drinking Places 7224 043 01 0523 000, 33 043 01 0524 000, 33 043 01 0525 000 10 E 33 043 01 0526 300 1942 & 1945 40% 5153 S. Beech Daly C-2A 0.30 120 110 2,130 2,130 Foster Cleaners Dry cleaner Personal & Laundry Services 8123 13 E 33 043 01 0558 000, 33 1990 80% 5615 S. Beech Daly C-2A 0.15 65 100 3,000 3,000 Sunrise (Bryant) Heating & Cooling Contractor, heating Bldg, Developing & Gen'l Contracting 2382 043 01 0559 000, 33 043 01 0560 000 13 E 33 043 01 0567 000 1953 56% 5361 S. Beech Daly C-2A 0.20 85 100 2,050 2,050 Sheba Professional Nail Products Beauty supplies Health & Personal Care Stores 4461

Table A-3 continued on following page

Table A-3-1

74 Market OpportuntiesRetail Analysis & Office Table A-3 (continued) Classification of Selected Uses & Selected Building Details within the CENTRAL TIFA District: Dartmouth to Van Born (1) DB Hts Site Area Information Bldg Area (Sq.Ft.) Year Physical Zoning Lot Lot Total Map Condition District Front Depth Above 1st 2nd NAICS Key # Parcil ID # Built Remodel (2) Property Address (3) (4) Net Acres (Ft) (Ft) Grnd Floor Floor Building and/or Land Use Description NAICS Sector (5) Code 1 N 33 040 03 2191 000, 33 1945 1963 50% 25822 Van Born C-2A & C-1 49.44 5605 100 2,538 2,538 Gary's Auto Service Repair, auto Repair & Maintenance 8111 040 03 2196 000, 33 040 03 2197 000 2 N 33 043 01 0576 300 1998 86% 25762 Van Born C-2A 1.04 412 110 10,836 10,836 CVS Drugstore Health & Personal Care Stores 4461 2 N 33 043 01 0596 300 1940, 1943, 55% 25620 Van Born C-1 0.41 162 110 3,290 3,290 Pvt James D. Donovan V F W Banquet hall Food Service & Drinking Place 7223 1951 3 N 33 043 01 0604 000 Van Born C-1 0.11 46 100 Pvt James D. Donovan V F W (parking) Banquet hall parking - - 3 N 33 043 01 0606 000 1949 1995 67% 25568 Van Born C-1 0.10 40 100 1,280 1,280 Vacant building (2 vacant retai/officespaces) Vacant building -- 3 N 33 043 01 0610 000, 1976 55% 25542-25564 Van Born C-1 0.23 100 100 2,665 2,665 Professional Maintenance Service Janitorial services Administrative & Support Services 5617 33 043 01 0608 000 3 N 33 043 01 0617 300 2003 96% 25436-25472 Van Born C-1 0.28 120 100 5,030 5,030 Maya Plaza Neighbohood center - - 25436 Van Born 840 Michigan Wireless Plus Retail, telecommunication Electronics & Appliance Stores 4431 - Van Born 4,190 Vacant retai/office space Vacant space 3 N 33 043 01 0623 300 2003 96% 25412 Van Born C-1 0.47 206 100 2,970 2,970 Citgo Gas & convenience market Gas Station 4471 4 N 33 043 99 0004 000 1963 1998 63% 25380 Van Born C-3 0.35 100 168 2,080 2,080 Tail Gator Sports Bar Drinking place Food Services & Drinking Places 7224 (1) Basic building use data obtained from a field survey conducted November 2004 by Real Estate Development Research, LLC. With the exception of vacant buildings in the M-1, M-2 and M-3 districts, building and associated improfved site details are indicated only for non- (2) Physical property condition per Dearborn Heights Assessor's records. The percentage reflect the Assessor's opinon on the extent the property varies from 100% good condition. (3) Zoning district is indicated only for those properties within Dearborn Heights and only for non-residential districts. Information based on the City's Zoning Map dated February 20, 2001 and the M-3 Business Industrial Park District established in 2002. (4) NAICS sector description (to the 3-digit level) and NAICS code ( to the 4-digit level) provided for all retail and office-suitable services and selected other service types in and adjacent to the TIFA. They are also provided for other non-residential uses located in the TIFA's Note: Property identification number, buildling information and associated site area obtained from a combination of electronic files provided to Wade Trim by the Dearborn Heights Assessor in November 2004, subsequent review of on-line data via www.dhol.org. Supplemental

Table A-4 Classification of Selected Uses & Selected Building Detail within the SOUTHEAST TIFA District: Van Born from Gulley to Telegraph (1) DB Hts Site Area Information Bldg Area (Sq.Ft.) Year Physical Zoning Lot Lot Total Map Condition District Front Depth Above 1st 2nd NAICS Key # Parcil ID # Built Remodel (2) Property Address (3) Net Acres (Ft) (Ft) Grnd Floor Floor Building and/or Land Use Description NAICS Sector (4) Code 1 N33 043 99 0003 700, 33 1969 2003 64% 25320 Van Born C-3 1.045 220 198 8,724 8,724 Dearborn Heights Shopping Center Neighborhoood center - - 043 99 0002 000 25340 Van Born C-3 1,750 Cinderella Dry Cleaning/Laundromat Laundromat Personal & Laundry Services 8123 25320 Van Born C-3 1,750 Little Caesars Restaurant, fast food, pizza Food Services & Drinking Places 7221 25310 Van Born C-3 3,024 Video Zone Video rental Rentals & Leasing Services 5322 25300 Van Born C-3 2,200 Value Dollar/Cell Plus/U-haul Rentals General merchandise, dollar store General Merchandise 4529 1 N 33 043 99 0022 002 1978, 1953 2000, 1997 60% & 49% 25190 Van Born M-1 1.270 0 0 17,250 17,250 Seward Sav-Mor Drugs Drugstore Health & Personal Care Stores 4461 1 N 33 043 99 0022 001 1953 1997 49% 25200 Van Born C-3 2.520 0 0 15,671 15,671 Spartan Saturn Food Dollar Grocery Food & Beverage Stores 4451 1 N 33 043 99 0024 000 1985 68% 25180 Van Born M-1 0.860 0 0 7,700 7,700 Auto Body: Extreme Custom Repair, auto body Repair & Maintenance 8111 2 N 33 043 99 0026 000 1998 85% 24940 Van Born C-2 2.500 0 0 7,300 7,300 AutoZone Auto supply Motor Vehicle & Parts Dealers 4413 2 N 33 044 99 0005 701 1956 40% 5616 Van Born Ct. M-1 0.64 0 0 15,344 15,344 Transitions Ramp Park Indoor skate/rollerblade park Amusement, Gambling & Recreation 7139 2 N 33 044 99 0005 702 1978 59% 24734 Van Born M-1 0.53 100 244 13,000 13,000 Aunt Millie's Bakery Outlet Bakery outlet Food & Beverage Stores 4452 2 N 33 044 99 0011 000 1946, 1996 1979 59% 24610-24614 Van Born C-2 0.86 160 233 8,000 8,000 A to Z Electrical Repair, electrical appliances Repair & Maintenance 8114 3 N 33 044 99 0008 702 2004 98% 24602 Van Born C-2 1.23 321 171 13,050 13,050 John F. Kennedy Library John F. Kennedy Library Other Information Services 5191 4 N 33 044 99 0019 000, 1968, 1975, 77% 24398 Van Born C-3 4.91 458 464 56,510 56,510 Vacant industrial building (Grainger) Vacant industrial-style building (Grainger) - - 33 044 99 0007 700, 33 1978, 1993 044 99 0022 000, 33 044 99 0021 000, 33 044 99 0020 000 5 N 33 044 03 0001 001 1996 83% 24130 Van Born C-2 2.08 392 227 14,674 14,674 Aldi's Grocery, discount/limited line Food & Beverage Stores 4451 (1) Basic building use data obtained from a field survey conducted November 2004 by Real Estate Development Research, LLC. With the exception of vacant buildings in the M-1, M-2 and M-3 districts, building and associated improfved site details are indicated only for non-residential uses in the TIFA district for the RO-1, C-1, C-2, C-2A and C-3 (2) Physical property condition per Dearborn Heights Assessor's records. The percentage reflect the Assessor's opinon on the extent the property varies from 100% good condition. (3) Zoning district is indicated only for those properties within Dearborn Heights and only for non-residential districts. Information based on the City's Zoning Map dated February 20, 2001 and the M-3 Business Industrial Park District established in 2002. (4) NAICS sector description (to the 3-digit level) and NAICS code ( to the 4-digit level) provided for all retail and office-suitable services and selected other service types in and adjacent to the TIFA. They are also provided for other non-residential uses located in the TIFA's commercial and office zoning districts. Note: Property identification number, buildling information and associated site area obtained from a combination of electronic files provided to Wade Trim by the Dearborn Heights Assessor in November 2004, subsequent review of on-line data via www.dhol.org. Supplemental information obtained for some Dearborn Heights properties, through a

Table A-5 Classification of Selected Uses & Selected Building Details Within the EAST TIFA District - Telegraph Corridor (1)

DB Hts Site Area Information Bldg Area (Sq.Ft.) Year Physical Zoning Lot Lot Total Map Condition District Front Depth Above 1st 2nd NAICS Key # Parcil ID # Built Remodel (2) Property Address (4) Net Acres (Ft) (Ft) Grnd Floor Floor Building and/or Land Use Description NAICS Sector Code (4) 8 W 33 044 01 0173 300 1988 72% 4850 S. Telegraph C-2 0.47 135 152 751 751 Rally's Hamburgers Restaurant, fast food, hamburgers Food Services & Drinking Places 7222 9 W 33 044 01 0105 000 1972 1985 60% 4900 S. Telegraph C-1 0.74 196 165 4,095 4,095 Ram's Horn Restaurant, family Food Services & Drinking Places 7221 14 W 33 044 03 0020 001 1971 83% 24010 Van Born C-2 0.47 103 200 1,015 1,015 Shell Gas Gas station/convenience market Gas Station 4771 14 W 33 044 03 0042 000 1978 80% 5714 S. Telegraph C-2 0.59 133 192 2,696 2,696 Wendy's Hamburgers Restaurant, fast food, hamburgers Food Services & Drinking Places 7222 (1) Basic building use data obtained from a field survey conducted November 2004 by Real Estate Development Research, LLC. With the exception of vacant buildings in the M-1, M-2 and M-3 districts, building and associated improfved site details are indicated only for non-residential uses in the TIFA district for the RO-1, C-1, C-2, C-2A and C-3 (2) Physical property condition per Dearborn Heights Assessor's records. The percentage reflect the Assessor's opinon on the extent the property varies from 100% good condition. (3) Zoning district is indicated only for those properties within Dearborn Heights and only for non-residential districts. Information based on the City's Zoning Map dated February 20, 2001 and the M-3 Business Industrial Park District established in 2002. (4) NAICS sector description (to the 3-digit level) and NAICS code ( to the 4-digit level) provided for all retail and office-suitable services and selected other service types in and adjacent to the TIFA. They are also provided for other non-residential uses located in the TIFA's commercial and office zoning districts. Note: Property identification number, buildling information and associated site area obtained from a combination of electronic files provided to Wade Trim by the Dearborn Heights Assessor in November 2004, subsequent review of on-line data via www.dhol.org. Supplemental information obtained for some Dearborn Heights properties, through a review by Real Estate Development Research, LLC of the physical paper files maintained by the Assessor. Tables A-3-2, A-4 & A-5

75 Market OpportuntiesRetail Analysis & Office Table A-6 Select Demographic Trends (1)

Primary Trade Area Secondary Trade Area Overall Trade Area Detroit Region Population 1990 126,839 176,426 303,265 4,248,699 2000 120,789 166,859 287,648 4,452,557 2004 117,210 162,482 279,692 4,492,464 2009 113,170 157,439 270,609 4,535,875 Race 1990 (2) 126,839 100.0% 176,426 100.0% 303,265 100.0% 4,248,699 100.0% White 103,457 81.6% 169,059 95.8% 272,516 89.9% 3,203,276 75.4% Black 21,270 16.8% 4,077 2.3% 25,347 8.4% 941,140 22.2% All Other 2,112 1.7% 3,290 1.9% 5,402 1.8% 104,283 2.5% 2000 (2) 120,789 100.0% 166,859 100.0% 287,648 100.0% 4,452,557 100.0% White (Single Race) 92,043 76.2% 149,396 89.5% 241,439 83.9% 3,177,013 71.4% Black (Single Race) 22,651 18.8% 9,117 5.5% 31,768 11.0% 1,015,931 22.8% All Other (Single Race) 3,678 3.0% 4,856 2.9% 8,534 3.0% 167,247 3.8% Two or More Races 2,417 2.0% 3,490 2.1% 5,907 2.1% 92,366 2.1% 2004 (2) 117,210 100.0% 162,482 100.0% 279,692 100.0% 4,492,464 100.0% White (Single Race) 87,001 74.2% 141,710 87.2% 228,711 81.8% 3,209,826 71.4% Black (Single Race) 24,239 20.7% 12,485 7.7% 36,724 13.1% 1,022,291 22.8% All Other (Single Race) 3,569 3.0% 4,789 2.9% 8,358 3.0% 167,613 3.7% Two or More Races 2,401 2.0% 3,498 2.2% 5,899 2.1% 92,734 2.1% 2009 (2) 113,170 100.0% 157,439 100.0% 270,609 100.0% 4,535,875 100.0% White (Single Race) 81,503 72.0% 133,305 84.7% 214,808 79.4% 3,246,218 71.6% Black (Single Race) 25,842 22.8% 15,962 10.1% 41,804 15.4% 1,028,619 22.7% All Other (Single Race) 3,448 3.0% 4,685 3.0% 8,133 3.0% 167,933 3.7% Two or More Races 2,377 2.1% 3,487 2.2% 5,864 2.2% 93,105 2.1% Latino or Hispanic 1990 2,367 1.9% 4,197 2.4% 6,564 2.2% 83,139 2.0% 2000 3,256 2.7% 5,556 3.3% 8,812 3.1% 126,918 2.9% 2004 3,783 3.2% 6,511 4.0% 10,294 3.7% 148,925 3.3% 2009 4,647 4.1% 7,723 4.9% 12,370 4.6% 175,003 3.9% Households 1990 47,377 65,656 113,033 1,572,442 2000 46,810 66,621 113,431 1,696,943 2004 46,799 66,817 113,616 1,773,948 2009 46,810 67,087 113,897 1,864,541 Family Households 1990 34,437 72.7% 48,718 74.2% 83,155 73.6% 1,115,928 71.0% 2000 31,961 68.3% 44,699 67.1% 76,660 67.6% 1,150,002 67.8% 2004 31,464 67.2% 44,163 66.1% 75,627 66.6% 1,178,706 66.4% 2009 30,960 66.1% 43,589 65.0% 74,549 65.5% 1,210,164 64.9% Non-Family Households 1990 12,940 27.3% 16,938 25.8% 29,878 26.4% 456,514 29.0% 2000 14,850 31.7% 21,922 32.9% 36,772 32.4% 546,941 32.2% 2004 15,335 32.8% 22,654 33.9% 37,989 33.4% 595,242 33.6% 2009 15,851 33.9% 23,498 35.0% 39,349 34.5% 654,377 35.1% Household Size 1990 2.7 2.7 2.7 2.7 2000 2.6 2.5 2.5 2.6 2004 2.5 2.4 2.4 2.5 2009 2.4 2.3 2.4 2.4 Table A-6 continued on following page

Table A-6-1

76 Market OpportuntiesRetail Analysis & Office Table A-6 Select Demographic Trends (continued) (1)

Primary Trade Area Secondary Trade Area Overall Trade Area Detroit Region One Person Households - 1990 11,109 23.4% 14,408 21.9% 25,517 22.6% 385,053 24.5% 2000 12,578 26.9% 18,667 28.0% 31,245 27.5% 459,446 27.1% 2004 12,976 27.7% 19,306 28.9% 32,282 28.4% 500,157 28.2% 2009 13,436 28.7% 20,034 29.9% 33,470 29.4% 549,990 29.5% Households with Children - 1990 16,437 34.7% 22,595 34.4% 39,032 34.5% 575,236 36.6% 2000 16,262 34.7% 21,951 32.9% 38,213 33.7% 613,510 36.2% 2004 16,036 34.3% 21,780 32.6% 37,816 33.3% 628,499 35.4% 2009 15,810 33.8% 21,567 32.1% 37,377 32.8% 644,993 34.6% Age Distribution - 1990 126,839 100.0% 174,410 100.0% 301,249 100.0% 4,248,699 100.0% Pre-School (< 5 yrs) 9,203 7.3% 12,220 7.0% 21,423 7.1% 323,209 7.6% School Age (5-19 yrs) 25,598 20.2% 34,168 19.6% 59,766 19.8% 905,382 21.3% 5-14 yrs 16,996 13.4% 22,706 13.0% 39,702 13.2% 599,943 14.1% 14-19 yrs 8,602 6.8% 11,462 6.6% 20,064 6.7% 305,439 7.2% Young Adult (20-24 yrs) 8,628 6.8% 12,291 7.0% 20,919 6.9% 301,896 7.1% Family Forming (25-44 yrs) 40,202 31.7% 56,902 32.6% 97,104 32.2% 1,398,755 32.9% 25-34 yrs 22,044 17.4% 31,907 18.3% 53,951 17.9% 742,048 17.5% 35-44 yrs 18,158 14.3% 24,995 14.3% 43,153 14.3% 656,707 15.5% Mature Family (45-54 yrs) 13,114 10.3% 18,048 10.3% 31,162 10.3% 442,814 10.4% Empty Nester (55-64 yrs) 12,790 10.1% 18,807 10.8% 31,597 10.5% 341,932 8.0% Senior (65+ yrs) 17,304 13.6% 23,990 13.8% 41,294 13.7% 504,711 11.9% 65-74 yrs 11,138 8.8% 15,480 8.9% 26,618 8.8% 306,359 7.2% 75+ yrs 6,166 4.9% 8,510 4.9% 14,676 4.9% 198,352 4.7% Median Age 34.9 35.2 35.1 33.0 2000 120,789 100.0% 166,859 100.0% 287,648 100.0% 4,452,557 100.0% Pre-School (< 5 yrs) 8,369 6.9% 10,953 6.6% 19,322 6.7% 312,260 7.0% School Age (5-19 yrs) 25,362 20.0% 33,321 20.0% 58,683 20.4% 975,716 23.0% Young Adult (20-24 yrs) 6,850 5.7% 9,190 5.5% 16,040 5.6% 253,189 5.7% Family Forming (25-44 yrs) 37,080 30.7% 52,059 31.2% 89,139 31.0% 1,385,818 31.1% Mature Family (45-54 yrs) 16,032 13.3% 21,405 12.8% 37,437 13.0% 618,103 13.9% Empty Nester (55-64 yrs) 10,256 8.5% 14,221 8.5% 24,477 8.5% 374,355 8.4% Senior (65+ yrs) 16,841 13.9% 25,710 15.4% 42,551 14.8% 533,116 12.0% Median Age 36.4 37.4 37.0 35.5 2004 117,210 100.0% 162,482 100.0% 279,692 100.0% 4,492,464 100.0% Pre-School (< 5 yrs) 7,961 6.8% 10,525 6.5% 18,486 6.6% 300,319 6.7% School Age (5-19 yrs) 24,478 19.3% 32,514 18.6% 56,992 18.9% 966,041 22.7% Young Adult (20-24 yrs) 6,839 5.8% 9,235 5.7% 16,074 5.7% 273,689 6.1% Family Forming (25-44 yrs) 33,492 28.6% 47,092 29.0% 80,584 28.8% 1,286,636 28.6% Mature Family (45-54 yrs) 16,680 14.2% 22,413 13.8% 39,093 14.0% 669,282 14.9% Empty Nester (55-64 yrs) 11,831 10.1% 16,394 10.1% 28,225 10.1% 452,501 10.1% Senior (65+ yrs) 15,931 13.6% 24,309 15.0% 40,240 14.4% 543,996 12.1% Median Age 37.3 38.2 37.9 36.7 Table A-6 continued on following page

Table A-6-2

77 Market OpportuntiesRetail Analysis & Office Table A-6 Select Demographic Trends (continued) (1)

Primary Trade Area Secondary Trade Area Overall Trade Area Detroit Region 2009 113,170 100.0% 157,439 100.0% 270,609 100.0% 4,535,875 100.0% Pre-School (< 5 yrs) 7,440 6.6% 9,931 6.3% 17,371 6.4% 287,981 6.3% School Age (5-19 yrs) 23,105 18.2% 30,946 17.7% 54,051 17.9% 941,749 22.2% Young Adult (20-24 yrs) 7,318 6.5% 9,939 6.3% 17,257 6.4% 305,174 6.7% Family Forming (25-44 yrs) 29,766 26.3% 41,916 26.6% 71,682 26.5% 1,183,459 26.1% Mature Family (45-54 yrs) 16,270 14.4% 21,971 14.0% 38,241 14.1% 693,574 15.3% Empty Nester (55-64 yrs) 13,681 12.1% 19,046 12.1% 32,727 12.1% 547,087 12.1% Senior (65+ yrs) 15,590 13.8% 23,690 15.0% 39,280 14.5% 576,851 12.7% Median Age 38.3 39.1 38.8 38.0 Education (Pop 25+ Years) - 1990 83,410 100.0% 117,747 100.0% 201,157 100.0% 2,718,212 100.0% Completed High School 61,732 74.0% 87,008 73.9% 148,740 73.9% 2,058,602 75.7% Completed College 12,119 14.5% 13,156 11.2% 25,275 12.6% 487,843 17.9% 2000 80,209 100.0% 113,395 100.0% 193,604 100.0% 2,910,893 100.0% Completed High School 63,943 79.7% 91,618 80.8% 155,561 80.4% 2,397,156 82.4% Completed College 14,715 18.3% 15,805 13.9% 30,520 15.8% 675,761 23.2% Housing Units 1990 49,191 100.0% 67,256 100.0% 116,447 100.0% 1,666,039 100.0% Occupied 47,377 96.3% 65,656 97.6% 113,033 97.1% 1,572,442 94.4% Owner Occupied 37,385 78.9% 50,309 76.6% 87,694 77.6% 1,094,532 69.6% Renter Occupied 9,992 21.1% 15,347 23.4% 25,339 22.4% 477,910 30.4% Vacant 1,814 3.7% 1,600 2.4% 3,414 2.9% 93,597 5.6% 2000 48,761 100.0% 69,214 100.0% 117,975 100.0% 1,797,185 100.0% Occupied 46,810 96.0% 66,621 96.3% 113,431 96.1% 1,696,943 94.4% Owner Occupied 37,570 77.0% 51,099 73.8% 88,669 75.2% 1,232,190 68.6% Renter Occupied 9,240 18.9% 15,522 22.4% 24,762 21.0% 454,753 25.3% Vacant 1,951 4.0% 2,593 3.7% 4,544 3.9% 100,242 5.6% 2004 48,766 100.0% 69,503 100.0% 118,269 100.0% 1,879,132 100.0% Occupied 46,799 96.0% 66,817 96.1% 113,616 96.1% 1,773,948 94.4% Owner Occupied 37,845 77.6% 51,699 74.4% 89,544 75.7% 1,310,683 69.7% Renter Occupied 8,954 18.4% 15,118 21.8% 24,072 20.4% 463,265 24.7% Vacant 1,967 4.0% 2,686 3.9% 4,653 3.9% 105,184 5.6% 2009 48,775 100.0% 69,798 100.0% 118,573 100.0% 1,973,130 100.0% Occupied 46,810 96.0% 67,087 96.1% 113,897 96.1% 1,864,541 94.5% Owner Occupied 38,200 78.3% 52,395 75.1% 90,595 76.4% 1,404,564 71.2% Renter Occupied 8,610 17.7% 14,692 21.0% 23,302 19.7% 459,977 23.3% Vacant 1,965 4.0% 2,711 3.9% 4,676 3.9% 108,589 5.5% (1) U.S. Census; ScanUS; ESRIBIS; Real Estate Development Research, LLC (2) As of the 200 census, census questionaire respondents were able to indicate membership in more than one race.

Table A-6-3

78 Market OpportuntiesRetail Analysis & Office Table A-7 Household Income Details: 2004 (1) Primary Trade Area Secondary Trade Area Overall Trade Area Detroit Region # Hslds % # % # % # % Total Households 46,799 100% 66,817 100% 113,616 100% 1,773,948 100% < $10,000 3,191 7% 3,843 6% 7,034 6% 139,234 8% $10,000 - $14,999 1,966 4% 3,094 36% 5,060 35% 79,433 41% $15,000 - $19,999 2,370 5% 3,115 37% 5,485 38% $83,219 43% $20,000 - $24,999 2,647 6% 3,758 44% 6,405 45% 93,047 48% $25,000 - $29,999 2,449 5% 3,757 44% 6,206 43% 89,732 46% $30,000 - $34,999 2,555 5% 4,004 47% 6,559 46% 90,933 47% $35,000 - $39,999 2,431 5% 3,680 43% 6,111 43% 83,519 43% $40,000 - $49,999 5,247 11% 7,647 90% 12,894 90% 168,639 87% $50,000 - $59,999 4,744 10% 6,937 82% 11,681 81% 152,009 78% $60,000 - $74,999 5,839 12% 8,510 100% 14,349 100% 194,952 100% $75,000 - $99,999 6,458 14% 9,685 114% 16,143 113% 247,635 127% $100,000 - $124,999 3,376 7% 5,013 59% 8,389 58% 156,612 80% $125,000 - $149,999 1,720 4% 2,045 24% 3,765 26% 79,412 41% $150,000 - $199,999 927 2% 861 10% 1,788 12% 54,439 28% $200,000 - $249,999 253 1% 237 3% 490 3% 18,961 10% $250,000+ 627 1% 631 7% 1,258 9% 42,172 22% (1) ScanUS; Real Estate Development Research, LLC

Table A-7

79 Market OpportuntiesRetail Analysis & Office 80 Market OpportuntiesRetail Analysis & Office 81 Market OpportuntiesRetail Analysis & Office

82 Market OpportuntiesRetail Analysis & Office 83 Market OpportuntiesRetail Analysis & Office 84 Market OpportuntiesRetail Analysis & Office 85 Market OpportuntiesRetail Analysis & Office 86 Market OpportuntiesRetail Analysis & Office 87 Market OpportuntiesRetail Analysis & Office 88 Market OpportuntiesRetail Analysis & Office 89 Market OpportuntiesRetail Analysis & Office 90 Market OpportuntiesRetail Analysis & Office