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View / Open Portland Downtown Portland Downtown Retail Summary of Findings and Recommendations Prepared for: Prepared by: LELAND CONSULTING GROUP 610 SW Alder Street, Suite 1008 222 NW Fifth Avenue Portland, Oregon 97205 Portland, Oregon 97209 (503) 222-1600 (503) 823-3200 www.lelandconsulting.com www.pdc.us March 2008 Portland Development Commission 222 NW Fifth Avenue Portland, Oregon 97209 24 March 2008 Subject: Portland Downtown Retail Study Summary of Findings and Recommendations This summary describes findings and recommendations from the Developing, revitalizing, growing and sustaining a downtown must 2008 Portland Downtown Retail Study. The summary is one of four not be treated as either a project or an event. Quite the contrary, it is reports submitted to Portland Development Commission as part of the a highly demanding, competitive and delicate business. And as with engagement. The supporting reports include local and national retail any successful enterprise, it must be long-term, requiring sustained research and a presentation to key stakeholders and panel of experts. and knowledgeable leadership, professional staffing, on-going capital infusion, state-of-the-art marketing, and skilled operations. The findings reveal that Portland’s downtown retail core, while at present comparatively healthy and experiencing significant change, is Portland lacks such a structure today despite the many best efforts of vulnerable and in need of overarching leadership and committed leaders and organizations that participate in our Downtown’s care capital support. and growth. The observation from the research and focus groups is that there is no overarching entity in charge of protecting downtown Portland is the central city of our region. Downtown Portland is the and its continued success. Due to the lack of such an entity, Portland heart of the city and to an extent, the heart of our region. Strong cities struggles to make its downtown competitive. Institutions and have strong hearts, reflecting the health of the city and region. organizations focusing on their areas of individual concern combined Without a successful Downtown, the Pearl District would not exist, with capital and political pressures from other sectors contributes to inner-city neighborhoods would not be strong and attractive, visitors separating the parts and thus prevents integrated decision-making. would not come, urban housing would not be developed, and jobs And in that condition, lies great vulnerability. would migrate to the suburbs. The Downtown retail core -- the most visible element of our central city provides vitality, dining, shopping, culture, entertainment and more –it must be protected and sustained LELAND CONSULTING GROUP, Urban Strategists or the entire city is weakened. Portland Downtown Retail: Summary of Findings and Recommendations 2 ACKNOWLEDGEMENTS We would like to thank the following individuals for their participation and support. PARTICIPATING ORGANIZATIONS FOCUS GROUP PARTICIPANTS Claudia Plaza, Portland Development Commission Steven Lien, Under U 4 Men Lew Bowers, Portland Development Commission Victoria Taylor, Mercantile Lisa Frisch, Portland Business Alliance Judy Flowers, Bananna Republic Carly Riter, Portland Business Alliance Lou Elliott, Elliott & Associates Craig Olsen, Canoe RETAIL EXPERT PANEL Mark Edlen, Gerding Edlen Jennifer Black, Jennifer Black & Associates Todd Gooding, Scanlan Kemper Bard Jim Pate, Harsch Investments Bill Halleran, Sak's Fifth Avenue Fred Bruning, CenterCal Properties, LLC Alex Hofberg, Alex & Co. Jewelers Paddy Tillet, Zimmer Gunsul Frasca Architects Michael Bazzani, Pinocchio Bar and Restaurant Clayton Hering, Norris, Beggs & Simpson Lisa Schroeder, Mothers & Mama Mias Dave Leland, Leland Consulting Group Denise Grimes, Jeri Rice Mark Beauchamp, Beau Delicious!International, LLC Mike Bernatz, Ashforth Pacific Kirsten Kays, Nordstrom Ashley Heichelbech, Urban Works Real Estate Colleen Heffelfinger, Brooks Brothers RESEARCH SUPPORT James R. Dix, Gray & Associates Arun Jain, City of Portland Bureau of Planning Jon Kellogg, Commercial Realty Advisors Northwest, LLC Alma Flores, City of Portland Bureau of Planning Stephen Pirkl, Stephen Vincent Jewlers and Chair, Downtown Retail Council Jack Gallagher, Norris, Beggs & Simpson Cynthia McBurney, Kathleen’s of Dublin Chris Finks, Downtown Marketing Initiative Colleen Colleary, GVA Kidder Matthews Allyson Reed, Downtown Retail Advocate for Portland Portland Downtown Retail: Summary of Findings and Recommendations 3 TABLE OF CONTENTS 1 Introduction 2 Diagnosis 3 Retail Workshop Observations 4 Guiding Principles: A Healthy Heart Encourage New Retail Growth. Enhance and Link Sub Areas. Encourage Supportive Development. Strengthen Retail Streets. Recruit and Retain a Healthy Retail. Promote the Downtown Retail Core as a Unique Shopping Destination. Enhance Public Space & Customer Convenience. 5 Summary and Conclusions APPENDIX Local Retail Review National Retail Review Retail Definitions Presentation to the Retail Expert Panel Portland Downtown Retail: Summary of Findings and Recommendations 4 1 Introduction A Downtown Legacy 1 Introduction A Downtown Legacy The status of downtown retail and the In addition to telling this story, this Geographic Definition of Downtown and Retail Core in overall health of Downtown Portland report reviews, assesses, and updates Relation to Central City Sub Districts involves a complex set of market, two downtown retail strategies that financial, political, physical, and focused exclusively on the Downtown regulatory factors. This report Retail Core. These documents include summarizes how these factors relate to the Downtown Portland Retail Strategy LLOYD DISTRICT the health of Downtown Portland. Update (2007 Strategy Update), Starting with the 1972 Downtown Plan, Portland Business Alliance, January PEARL DISTRICT & NOB HILL Portland has been very successful in 2007, and the 2002 Downtown OLD TOWN / revitalizing its downtown and keeping it Portland Retail Strategy. This report CHINATOWN healthy and attractive for its citizens and includes: Burnside visitors. This summary tells the story Findings from national and local about Downtown Portland retail today in er v light of pending challenges and market research with reference to i RETAIL CORE R e opportunities. findings from the 2002 and 2007 t Retail Strategies. et am l l 1. Downtown retail is healthy, but Synthesis of comments from four i W has vulnerabilities. focus groups and one retail expert DOWNTOWN discussion panel. Downtown’s greatest threat is 2 Recommendations to the Portland complacency – a perception that Development Commission (PDC) and Downtown is ‘done’. the Portland Business Alliance (PBA) about implementing and evaluating 3. The health of Downtown Retail the 2007 Retail Strategy Update. reflects the health of Portland and the region. A unified vision The appendices to this summary offer more and effort is needed to protect information about the national and local and communicate this message retail markets. The presentation of market findings given to the retail expert panel to all listeners. (Appendix C) is included. Portland Downtown Retail: Summary of Findings and Recommendations 6 2 Diagnosis Healthy, yet Vulnerable Portland Downtown Retail: Summary of Findings and Recommendations 7 2 Diagnosis Healthy, yet Vulnerable HEALTH INDICATORS demand to support 2.2 million square feet of retail in 2008. Economics Research Associates “While downtown Portland 1. Performance (ERA), the consulting firm that authored the 2002 development is the envy of many cities, According to 2007 data from the Nielsen strategy, predicted that Downtown could support downtown retail is not keeping pace Company, most national fashion retailers such as up to 2.6 million square feet by 2015. the Gap, Express, and Talbots achieved the with outlying and adjacent areas. It is highest annual sales2 at their downtown locations 3. New Investment becoming increasingly vulnerable to compared to their other Portland Metro locations. Since 2002, 124 Central City development and experiencing a notable downward As reported by ESRI Business Analyst, total 2007 redevelopment projects3 have been completed, slide.” annual sales in the Downtown Retail Core ($313 are in the pipeline, or are on the drawing boards. million) exceed those of the entire Nob Hill --2007 Downtown Portland Retail Strategy All of these projects contribute to the Downtown shopping district ($255 million) and the Pearl Update Retail customer base and environment. Some of District and Old Town combined ($256 million). the key measures and projects of this Geographic definitions of these boundaries are Downtown Portland Retail is comparatively development activity include: found on page six. healthy (described on this and the following Almost one million square feet of office page). However, a number of factors (described development is in the pipeline or on the on pages ten and 11) point to its pending 2. High Demand drawing boards. This is the most office vulnerability.1 This is a cause for concern. First, While this research does not include a development activity Portland has experienced many stakeholders have voiced that public and comprehensive leakage analysis, Leland for over a decade. civic leadership have become complacent with Consulting Group completed preliminary Almost 7,000 new housing units in Downtown’s success and do not see the need for estimates of downtown retail demand using 2002 Downtown and the Pearl District have been an increased effort
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