Lincolnwood Business Park Retail Analysis and Feasibility Report
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Lincolnwood Business Park Retail Analysis & Feasibility Report October 7, 2010 prepared by Introduction Lincolnwood Business Park Feasibility Report 1 prepared by Houseal Lavigne Associates Introduction The Village of Lincolnwood has retained A demographic and retail market analysis has The Feasibility Report identifies Houseal Lavigne Associates to assess the been conducted to identify the amount and type market potential, site capacity, feasibility of retail development within the of retail development that might be supported and impediments to development as Lincolnwood Business Park. The study area at Lincolnwood Business Park. While the well as actions likely required by comprises the area bounded by Touhy Avenue analysis focuses on the Business Park, we have the Village to realize development to the north, McCormick Boulevard to the also examined the physical and economic potential. east, Pratt Avenue to the south, and Hamlin relationship with the adjacent Lincolnwood Avenue to the west. Lowe’s, which occupies Town Center and nearby commercial the southeast corner of Touhy and Lawndale development along Touhy Avenue. Avenues is also located within the study area. The study area excludes the Grossinger In addition to a full market analysis to Autoplex property located on the northwest ascertain supportable uses, interviews were corner of McCormick Boulevard and Northeast conducted with elected and appointed officials, Parkway, the Lincolnwood Place senior housing members of the development community, and facility, and the Lincolnwood Town Center. local business owners with insight into the Lincolnwood Business Park and greater market area. Lincolnwood Town Center 2 Lincolnwood Business Park Feasibility Report prepared by Houseal Lavigne Associates Interviews were conducted with the goal Key interview points included: of soliciting a wide range of points of view. Discussion topics included: • Information obtained pertaining to redevelopment feasibility was consistent with • The future plans and needs of exiting Business the overall conclusions of the market analysis. Park tenants and property owners; • Tenants and property owners are generally • Desired Business Park improvements; satisfied with the Business Park and their respective locations. • Concerns/issues related to the existing layout and uses; and, • Existing users were supportive of redevelopment efforts as long as (1) it did • Interest in redevelopment. not negatively impact their business and Real estate professionals and members of the (2) the Village maintains a dialogue and development community were interviewed communication regarding future plans for the regarding the feasibility of redevelopment for area. specific uses including, retail, office, residential, • All interviewees expressed a desire to see the industrial, medical and senior/assisted living. Business Park enhanced and better positioned Information obtained in interviews was to attract new/additional users. utilized to augment research, analysis, field observations, and site planning. In addition to the market analysis and interviews, the general configuration and development pattern of the Business Park was analyzed and assessed for preliminary opportunity sites in relation to market findings. This analysis provides the foundation for the next phase of the study should the Village choose to proceed. 2. Market Analysis Lincolnwood Business Park Feasibility Report 5 prepared by Houseal Lavigne Associates 2. MArket Analysis This market analysis has been provided to Market data is reconciled with determine the general trends, supply, demand Defining the existing conditions to assess and potential for retail and office development Market Area in the Lincolnwood Business Park. The analysis whether parcel size(s), traffic The market analysis utilizes data from two examines the business park’s competitive flow/circulation, and access can different geographies composed of the areas position within the market and identifies the accommodate targeted tenants within a short drive of the Lincolnwood issues that the business park and the larger and uses Business Park, Village of Lincolnwood, and Village of Lincolnwood are facing and will surrounding municipalities. The primary likely face in the future. market area (PMA) is defined as the area within a five (5) minute drive time of the Lincolnwood The market analysis concludes with a discussion Business Park. For the purposes of this analysis, of specific uses and/or tenants to target and drive time was calculated from the business a development program that establishes park’s east entrance at the intersection of benchmarks for square footage, site design Northeast Parkway and McCormick Boulevard. and parking requirements. Market data is The secondary market area (SMA) is defined reconciled with existing conditions to assess as the area bound by Central Street and Old whether parcel size(s), traffic flow/circulation, Orchard Road to the north, Lake Michigan and access within the Lincolnwood Business to the east, Foster Avenue to the south, and a Park can accommodate those uses identified. combination of the Des Plaines River corridor, As a residual benefit of this analysis, market IL Route 43, and Milwaukee Avenue to the opportunities that may be better suited for other west. locations within the Village are also discussed. The SMA was delineated using manmade and natural gaps in the competitive landscape, such as the Des Plaines River corridor or the significant travel corridors, in combination with knowledge about demographic characteristics and travel patterns. The northern, eastern and western borders of the SMA are similar in extent to the area within a 10 minute drive time of the Lincolnwood Business Park. The southern border of the SMA is coterminous with Foster Avenue which is a major east-west arterial in nearby Chicago. The areas surrounding Foster Avenue and farther south are considerably more dense in population and retail offerings which limits the potential of customers in this area visiting the business park. Each respective market area is discussed in more detail in relation to retail and office market findings. 6 Lincolnwood Business Park Feasibility Report prepared by Houseal Lavigne Associates Market Area GLENVIEW LAKE AVE WILMETTE Lake Michigan CENTRAL ST OLD ORCHARD RD 58 GOLF RD 58 SHERIDAN RD CHURCH ST EVANSTON 94 MORTON GROVE SKOKIE BLVD HARLEM AVE MCCORMICK BLVD DEMPSTER ST CRAWFORD AVE 14 RIDGE AVE 41 SKOKIE 43 OAKTON AVE DODGE AVE OAKTON AVE 21 NILES TOUHY AVE TOUHY AVE 14 LINCOLNWOOD DEVON AVE CALDWELL AVE 43 NORTHWEST HWY 14 PETERSON AVE 41 MILWAUKEE AVE LINCOLN AVE 94 14 W FOSTER AVE FOSTER AVE 41 WESTERN AVE WESTERN 90 AVE ASHLAND KEDZIE AVE KEDZIE PULASKI RD PULASKI HARLEM AVE LAWRENCE AVE HARWOOD HEIGHTS MONTROSE AVE CHICAGO 50 ADDISON ST Market Area Boundaries ADDISON ST 90 Primary Market Area 94 Secondary Market Area AVE CICERO Miles 0 0.5 1 2 3 4 Retail Concentrations 1 Lincolnwood Town Center 2 Evanston Center 3 Main/Oakton 4 Devon/McCormick/Lincoln 5 Touhy/Lincoln 6 Devon Avenue 7 Howard Street 8 Dempster Street Regional Destinations 1 Village Crossing 2 Old Orchard Lincolnwood Business Park Feasibility Report 7 prepared by Houseal Lavigne Associates Population & • With a median age of over 46.6 years in Demographic Household Growth 2010, the Village has a significantly older Market Overview population than that that of the larger market Table 1 compares changes in population and areas where median age is nearly 37. Demographic data has been assessed to the number of households between the Village identify how the Village of Lincolnwood and of Lincolnwood and the primary and secondary • Median household income is also commercial development within the two market areas. Overall, it is anticipated that both significantly higher in the Village compared market areas will be impacted by shifts in the the population and number of households will to the market area populations. local population. This overview examines have experienced a small decline between 2010 • Median income among Village households is anticipated population and household growth, and 2015. The Village’s population is also older projected to increase by 18.5% to $93,808 shifts in age, and changes in the number of and more affluent than that of the larger market in 2015. This represents an annual average households by age and income. Data has been area population. growth rate of approximately 3.46% over five provided regarding current estimates for the years. year 2010 (the most recent year for which data • It is projected that the Village will lose is available) as well as five year projections. 150 (-1.3%) individuals and 63 (-1.5%) • Overall growth in median income among Potential impacts on demand for commercial households over the five year period. This market area households is projected to be development within the two market areas have is a similar decline to that expected to occur slightly less significant between 2010 and also been assessed using this data. Data for in the primary and secondary market areas 2015. The projected average annual growth this analysis were obtained from ESRI Business which are anticipated to lose 0.8% and 0.6% rate is approximately 3.01% and 3.39% Analyst, a nationally recognized provider of of their population respectively. among primary and secondary market area market and demographic data. households respectively. Table 1. Demographic Summary Village of Lincolnwood & Market Areas, 2010-2015 Village of Lincolnwood