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Southfield City Centre District Retail & Hotel Market Analysis Prepared for: City Centre Advisory Board City of Southfield Prepared by: Gibbs Planning Group Birmingham, Michigan 4 January 2012 TABLE OF CONTENTS Retail Analysis INTRODUCTION ................................................................................................... 1 Figure 1: City Centre Retail ................................................................................... 1 Executive Summary ............................................................................................... 1 Figure 2: Southfield City Centre District Aerial ....................................................... 2 Table 1: Supportable Retail Summary ................................................................... 3 Background .......................................................................................................... 3 Figure 3: Southfield City Centre District Map ......................................................... 4 Figure 4: Primary Trade Area Map ......................................................................... 5 Methodology ......................................................................................................... 5 Figure 5: Southfield City Centre District Photos ..................................................... 6 Study Assumptions ................................................................................................ 6 Figure 6: Southfield City Centre District Quick Service Dining Establishments....... 7 Key Definitions ...................................................................................................... 7 Limits of Study ....................................................................................................... 8 Trade Area ............................................................................................................ 9 Figure 7: Primary and Total Trade Area Map ......................................................... 10 Demographic Characteristics ................................................................................. 11 Table 2: Demographic Comparison Table.............................................................. 11 Tapestry Lifestyles................................................................................................. 12 Table 3: Tapestry Lifestyles ................................................................................... 12 Tapestry Lifestyles Segmentation .......................................................................... 14 Figure 8: Tapestry Lifestyles Segmentation Chart ................................................. 14 Employment Base ................................................................................................. 15 Table 4: Employment by Sector ............................................................................. 15 Table 5: Office Worker Employment by Sector ..................................................... 16 Table 6: Office Worker Expenditure ...................................................................... 17 Figure 9: The City Centre‘s primary trade area ...................................................... 18 TRADE AREA CHARACTERISTICS ..................................................................... 18 Location ................................................................................................................. 18 Figure 10: Lawrence Technological University and Residential Photos ................. 19 Access ................................................................................................................... 19 Table 7: Traffic Counts .......................................................................................... 20 Other Shopping Areas ........................................................................................... 20 Table 8: Existing Neighborhood and Community Centers ..................................... 21 Table 9: Existing Regional and Lifestyle Centers ................................................... 22 Figure 11: Neighborhood and Community Retail Location Map ............................ 22 Figure 12: Community Retail Location Map, Southern Portion .............................. 23 Figure 13: Kroger Anchors the Mid-Eleven Mall Photo .......................................... 23 Figure 14: Supermarket Trade Area Location Map ............................................... 24 Figure 15: Regional and Lifestyle Retail Location Map ......................................... 25 Figure 16: Birmingham, a Walkable Urban Center Photo ...................................... 26 Northland Center Mall ............................................................................................ 26 Figure 17: Northland Center Photos ..................................................................... 26 Figure 18: Tel-Twelve Mall Photos........................................................................ 27 Tel-Twelve Mall ..................................................................................................... 27 Gateway and Hunter‘s Square ............................................................................... 27 Figure 19: Orchard Lake Road Shopping Corridor Photos .................................... 27 Figure 20: Orchard Lake Road Upscale Shopping Photos ..................................... 28 Orchard Lake Road ................................................................................................ 28 Midtown Square ..................................................................................................... 28 Figure 21: Midtown Square Photos ....................................................................... 28 Figure 22: Fairlane Town Center Photos ............................................................... 29 Fairlane Town Center ............................................................................................. 29 Figure 23: Fairlane Green Photos ......................................................................... 29 Fairlane Green ....................................................................................................... 30 Figure 24: Downtown Shopping Districts Location Map ......................................... 30 Figure 25: Downtown Birmingham Photos.............................................................. 31 Birmingham ............................................................................................................ 31 Figure 26: Downtown Royal Oak and Ferndale Photos ......................................... 31 Downtown Royal Oak and Ferndale ....................................................................... 32 Figure 27: Mixed-use Town Centers: The Glen Town Center ................................ 32 SUMMARY OF FINDINGS ..................................................................................... 32 Figure 28: City Centre Retail Examples .................................................................. 33 Supportable 2011 Retail and Potential Tenants ..................................................... 33 Figure 29: Beaumont Hospital Photo ...................................................................... 35 Rationale................................................................................................................ 35 APPENDIX Exhibit A: Recommended Supportable Retail Table ............................................... 37 Exhibit B: Community and Regional Competition Table ......................................... 38 Exhibit C: Business-Facts: WorkPlace and Employment Summary ........................ 43 Exhibit D: Employment by Industry ......................................................................... 45 Exhibit E: Full Employment Table .......................................................................... 47 Exhibit F: Market Profile Table ............................................................................... 49 Exhibit G: Population by Age Table ........................................................................ 57 Exhibit H: Income Profile Table .............................................................................. 63 Exhibit I: Demographic and Income Table ............................................................. 64 Exhibit J: Primary Tapestry Lifestyles Table ........................................................... 66 Exhibit K: Tapestry Lifestyle Segment Descriptions ................................................ 68 Exhibit L: Housing Profile Table ............................................................................. 78 INTRODUCTION Figure 1: The City Centre area can support up to an additional 645,000 square feet of new retailers generating up to $252 million in gross sales revenues by 2016. Executive Summary This study finds that the Southfield City Centre District can presently support an additional 645,000 square feet (sf) of retail and restaurant development, generating up to $240.7 million in gross sales revenues, growing to $252 million by 2016. The demand could partially be absorbed by the expansion of existing businesses, and the development of neighborhood, community, lifestyle and/or regional centers that include two department stores and 60-85 new restaurants and retailers. This existing commercial void exists for non-market factors such as the lack of modern shopping centers and coordinated leasing and development activities. While numerous shopping centers and downtowns ring the subject site, its considerable