Attracting Retail to Oakland

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Attracting Retail to Oakland

• Sponsored by Councilmember Pat Kernighan

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Purpose

• Learn what retailers are looking for
• Hear from you, as residents, about what retail
  you want and where you would want it
• Identify what steps Oakland needs to take to
  attract retail

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What do we mean by retail?

• More than just neighborhood-serving
• Something that provides shopping opportunities to
  all of Oakland
• A destination for shopping
• A few big box retailers?
• An outlet mall?
• A grouping of specialty or life style shops?

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Panelists

• Christine Firstenberg
• Managing Director of Metrovation Brokerage, a
  retail broker
• Dan Vanderpriem
• Director of City of Oakland Redevelopment Agency
• John Nelson
• President of Murakami/Nelson
• Chair of Retail Development Committee for the
  Oakland Metropolitan Chamber of Commerce
• Craig Vega
• Director of Economic Development of the Oakland
  Metropolitan Chamber of Commerce

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Retail Typologies and Development
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Neighborhood Center
EXAMPLE Camden Park Shopping Center San Jose,
CA 136,000 sf total Anchors Albertsons and
Longs Drug Trade Area 2-3 mi
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Community Center
EXAMPLE Pinole Vista Crossing Pinole,
CA 399,992 sf total Anchors Target, Mervyns,
Toys R Us, Aaron Bros Trade Area 3-10 mi
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Lifestyle Center
EXAMPLE The Grove Shrewsbury, NJ Approx
200,000 sf total Anchors Coach, Gap, Gap Kids,
Ann Taylor, April Cornell, BeBe, Brooks Brothers,
Chicos, Eddie Bauer, Talbots, Victoria
Secrets Trade Area 8-20 mi
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Power Center
EXAMPLE 280 Metro Center Colma, CA 351,561 sq
ft total Anchors Bed, Bath and Beyond, Home
Depot, Marshalls, Nordstrom Rack, UA Theatre,
Pier 1 Imports Trade Area 5 10 mi
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Regional Mall
An example of a regional mall
development. Approx 1 -1.5 million sq
ft Anchors Sears, Macys, JC Penny,
Nordstrom, Trade Area 20 mi and above
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Anchor Tenants
Anchor tenants are generally over 15,000 and
up to 200,000 sf and create activity and critical
mass for smaller shop tenants
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Shop Tenants
Shop Tenants in Red Bank, NJ
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Trade Area Analysis

• Most retailers do market research in house on a
  trade area and a specific site
• Analysis of demographic information of proposed
  trade area and site.
• Identifying sales projections in order to move
  forward with deal.
• Accurate sales projections and good understanding
  of trade area and market are key.

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Trade Areas by Type

• Neighborhood Center 2 - 3 mi
• Community Center 3 - 10 mi
• Lifestyle Center 8 -12 mi
• Power Center 5 - 10 mi
• Regional Mall 20 mi and above

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Demographics Site Requirements How Important
Are They?
Market Research into the demographics is
essential to determine demand for retail in
certain trade areas
Pacific Commons Fremont, CA
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Specific Site Requirements
Each Retailer will have a set of specific
requirements for any site being considered
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Trade Area and Site Analysis

• Factors that impact site analysis
• Trade Area Demographics
• Site Demographics
• Site Plan Layout
• Deal Structure
• Entitlement Issues
• Design of Center- Critical Mass
• Cost of Rent and NNN

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Site Analysis Competition Map
Competitors in the immediate vicinity must be
considered for any site.
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Site Analysis Co-Tenancy
Other tenants in the shopping center make a big
difference in the performance of a retailer.
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Site Analysis Advertising Costs
The Bay Area has the highest advertising cost
in the nation.
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Site Analysis Employee Availability
The availability of good, qualified employees
is a concern for any new business in a trade area.
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Creating Critical Mass
This is a good example of a big box
development which creates critical mass that
incorporates the surrounding environment into the
design.
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Retail Industry Trends

• Important Trends in the Retail Industry
• Consolidation
• Larger formats
• Increased public interest in Mixed-Use
• How do larger formats fit into mixed-use?

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Consolidation

• Federated buying Macys
• Ralphs looking at Albertsons
• Sears and Kmart

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Larger Retail Formats
Larger retailers for general merchandise and
apparel
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Anchor Tenants Mixed Use Developments.

• What Do Anchor Tenants Need?
• High traffic counts
• Visibility and access
• Convenient parking
• Parking
• Low rent operating costs
• Large floorplates
• Easy unloading
• Maximum sales

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Anchor Tenants Mixed Use Developments.

• Why Do Anchor Tenants Want This?
• Cater to demand for convenience
• Competition
• Keep costs low
• Keep format consistent

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The Value of Retail

• Why is retail important to city?
• Creates Complete and Healthy Communities

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The Value of Retail

• Why is retail important to a city?
• Shopping is now entertainment

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The Value of Retail

• Why is retail important to a city?
• Retail is semi-public use and activates public
  places

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The Value of Retail

• Why is retail important to a city?
• 2003-
• Oakland per capita retail sales5740.
• (what is spent per person in Oakland)
• State of Ca. per capita retail sales8,992
• Oaklands sales have grown by more than 20 over
  the last 6 years- State has grown by 12

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The Value of Retail

• Provides Jobs

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Background on Oakland Retail

• Leakage of sales tax tops 1 billion
• Spending patterns suggest need for household and
  soft goods retailers
• Retail sales tax growing

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What types of Retail Interests are looking at
Oakland?

• Individual retailers
• Developers of retail centers
• Big Box retailers
• Outlet Mall developers
• Other

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Where are the good retail locations?

• Downtown
• Jack London Sq
• Oak to Ninth
• Army Base
• Grand/Mandella
• Coliseum Area

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What is OMCCs role in promoting retail?

• Facilitator
• Developer perspective
• Advocate

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What retailers are looking for

• OMCC Retail Developer Interviews
• Critical Mass
• Parking / Transit Access
• Physical Limitations of Urban Areas
• Vision
• Strategy
• Commitment

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Next Steps

• To attract retailers the City needs
• A commitment to a Comprehensive Retail Attraction
  Strategy
• Policy Review
• Adequate location(s) to dedicate for retail
• A sustained recruitment effort
• The strategy can then be used to market Oakland
  and recruit retail.

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What do residents want?

• A place to shop within Oakland for
• Everyday goods?
• Clothing?
• High end merchandise?
• Off-price/discount merchandise?
• Specialty items?
• Electronics?
• Furniture?
• Where do you shop for these items now?

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What are the pros and cons of these retail areas?

• What do you like or not like about these retail
  areas
• How would you rank them from your shopping
  standpoint?

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Where are the good retail locations?

• Downtown
• Jack London Sq
• Oak to Ninth
• Army Base
• Grand/Mandella
• Coliseum Area

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Discussion