BUSINESS - Main Street

ARTS
Main Street
I N C.
SILOAM
SPRINGS
E S T.
1880
RETAIL
DOWNTOWN
DASHBOARD
LOCAL
ENTERTAINMENT
2013
FOOD
BUSINESS
TABLE OF CONTENTS
Introduction Letter................................................... 3
Main Street Siloam Springs Team................................. 4
About the Downtown Dashboard .................................. 4
Downtown Master Plan.............................................. 5
Municipal Investment (2005-2013).............................. 6
Population Data....................................................... 8
Downtown Retail Market............................................ 9
Downtown Office Market............................................ 10
Downtown Residential Market...................................... 11
Culinary & Restaurants.............................................. 13
PHOTO KEY
Aus10 Photoartists
Lightning Bolt Advertising
Kari Kidd Photography
Don Shreve
Dan Lambert
Jonathan Seauve
Meredith Bergstrom
Other
Cover Photo: Aus10 Photoartists
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Main Street
I N C.
SILOAM
SPRINGS
E S T.
DOWNTOWN
DASHBOARD
1880
Welcome Letter
Welcome to the Downtown Dashboard. Here you will find an economic snapshot – a picture of
downtown Siloam Springs in 2013, expressed through this visual and narrative document. We
will use the measurements here, now and over time, to build a more authentic understanding
of downtown’s successes, opportunities and impacts on the community and region at large.
More importantly, think of this as an invitation to find out how your story might begin or
expand here, in downtown Siloam Springs.
Siloam Springs has an incredible story to tell. Just eight years ago, vacant or underused
buildings lined the majority of the downtown street scape. Features like Sager Creek, notable
architecture, and pedestrian-oriented sidewalks gave visitors the impression of great potential,
but lacked the ability to attract and sustain customers.
Since that time, 20 businesses have opened adding a net of 75 new jobs in the downtown.
Two coffee shops, a pizzeria and a full-service restaurant now provide a downtown culinary
experience previously sought outside of town. An estimated $10.3M has been reinvested in
property purchases, building rehabilitation, and public improvements. Local entrepreneurs
have opened 16 unique retail shops, such as hand-sewn children’s clothing, surrey-bike
rentals, custom balloon artistry and event décor, vinyl record sales, and high-end pre-owned
imported cars, welcoming new customers to the downtown district.
This recent reinvestment – along with our three beautiful parks, walking trails, historical
museum, Sager Creek Arts Center, and the graceful Sager Creek meandering throughout
– makes downtown an exciting backdrop for entrepreneurs and creative ideas. Successful
partnerships between the City of Siloam Springs, the Siloam Springs Chamber of Commerce
and Main Street Siloam Springs have helped to draw the attention to the city because of the
downtown revitalization. Industry leaders throughout Siloam appreciate the vitality downtown,
and showcase the district when hosting customers and prospective employees.
People are once again choosing to live downtown – which in turn spurs the redevelopment
of upper floor living space. We estimate that in 2000, our downtown hosted at least 42,000
square feet of vacant or underused upper floors just along the main stretches of Broadway,
University and North Wright Streets. 31,000 square feet have since been renovated or restored
into unique lofts and apartments, and fully all of that space is consistently occupied.
Downtown festivals and public celebrations are cultivating a renewed sense of community.
From the bi-weekly Farmers Market in City Park to annual events like the Dogwood Festival,
Bed Races on Broadway, Dog Day Parade and Light Up Siloam Christmas Parade – downtown
is lively and exciting during all seasons.
We are passionate enthusiasts of downtown Siloam Springs, and that enthusiasm drives our
vision to preserve and enhance downtown as a vibrant destination where our community
springs to life. Our staff and Board of Directors are privileged to be doing this work at such a
pivotal time, and we invite you to come and be part of the experience.
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Main Street
I N C.
SILOAM
SPRINGS
E S T.
MAIN STREET SILOAM SPRINGS TEAM
1880
Meredith Bergstrom
Executive Director
Morgan Honnold
Director of Downtown
Development & Promotion
Stacy Hester
Farmers Market Manager
Nicholas Kopp
Administrative Assistant /
JBU Work Study
Kenny Crane
Design Assistant / JBU Work Study
Main Street Siloam Springs Board
About the Downtown Dashboard
Shelley Simmons (President), 28 Springs
Jennifer Moore (Vice President), DaySpring / Pour Jons’
Coffee & Vinyl
Scott Hodge (Treasurer), Siloam Springs Parks and Recreation
Meghan Feyerabend (Secretary), Aus10 Photoartists / Four
Corners Frame & Design
A project of Main Street Siloam Springs, Inc., the Downtown
Dashboard contributors include: Main Street Siloam Springs,
Collateral Valuation Consultants of Arkansas, Newmark Grubb
Arkansas, City of Siloam Springs, and the Northwest Arkansas Council.
Ex Officio
Don Clark, City of Siloam Springs Community Services Director
Gary Comiskey, Siloam Springs Chamber of Commerce
Scott Hodge, Siloam Springs Parks & Recreation
Other members
Julie Chandler, Creative Corner on Broadway
Tammy Engle, Arvest Bank
Jason Herron, Simmons Foods
Ryan Kinnaman, Alternative Design
Sheila Pierson, Cobb Vantress
Federico Suarez, Arvest Bank
Trent Minner, JBU Student Board Member
Information included in this report comes from Arvest Bank
and their Skyline Report, the U.S Census Bureau, Customer
Expenditure Survey, Census of Retail Trade, U.S. Bureau of
Labor and Statistics and Nielson RMP, among others. Design
was provided by Greg Moore, and the template was provided by
Downtown Bentonville, Inc.
About the Downtown Dashboard Research Team
Newmark Grubb Arkansas partnered with the research team of
Collateral Valuation Consultants of Arkansas in providing data
for this Dashboard. Newmark Grubb Arkansas is a locally owned,
full service commercial real estate firm with offices in downtown
Bentonville and downtown North Little Rock. Paul Esterer,
principal and co-founder of Newmark Grubb Arkansas and Vanadis
3 Companies, has been active in downtown Bentonville and the State
of Arkansas in place making economic development and real estate
advisory work.
Newmark Grubb Knight Frank (NGKF) is one of the nation’s
best-known commercial real estate brands. Headquartered in New
York, Newmark Grubb Knight Frank and London based partner
Knight Frank operate from more than 300 offices in established
and emerging property markets on five continents. They also
advise properties worldwide.
To read more about the Newmark Grubb Knight Frank brand,
please visit www.ngkf.com.
Collateral Valuation Consultants of Arkansas is a provider of real
estate valuation services. Since the bursting of the US housing
bubble in 2006 and resulting Financial Crisis of 2008, a number
of regulations were passed down to financial institutions in
an attempt to strengthen their collateral valuation programs.
A by-product of these regulations has been increased costs of
doing business and the financial burden of staffing “qualified”
professionals to facilitate these services. As CVC of Arkansas began
to recognize how this was impacting some of the smaller financial
institutions in Northwest Arkansas, they decided to launch their
business in February of 2013. For more information, you can visit
their website at www.cvcofarkansas.com.
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DOWNTOWN MASTER PLAN
ABOUT THE MASTER PLAN
3. Connect downtown to other major assets in Siloam Springs.
The anticipated impact of the Master Plan is the provision of a
thoughtful road map toward the future sustainable development of
downtown Siloam Springs. The plan will serve as a tool to leverage
and connect our current assets to create a vibrant and walkable
downtown core, encourage mixed use preservation and infill
projects, and inspire healthy development patterns for the future
of the City of Siloam Springs.
In July 2013, Main Street Siloam Springs – in close collaboration
with the City of Siloam Springs – announced the initiation of
a Siloam Springs Downtown & Connectivity Master Plan. A
Master Plan Steering Committee of City staff, downtown leaders
and community stakeholders will take one year to facilitate the
creation of the plan, which will include hiring an urban design
consulting firm, hosting public meetings, and otherwise guiding
the creation of the 5-7 year plan for phased improvements to the
core downtown area.
STUDY AREA
FRANKLIN
HILL
TO
N
NG
HI
W
AS
CENTRAL
ALPINE
MAIN
N
TO
NG
HI
WEL
GUNTER
S
WA
MAIN
L
CARL
UNIVERSITY
N.
MAXWELL
MT. OLIVE
BENTON
BROADWAY
COLLEGE
UNIVERSITY
WRIGHT
CARL
ELM
CORNELL
TALEQUAH RD.
MAX
BRITT
JEFFERSON
S. MT. OLIVE
2. Improve Siloam Springs’ built
environment through addressing Sager
Creek as a major asset and planning for a
more walkable downtown core.
MASTER PLAN AREA
GARLAND
ELGIN ST.
BENTON
1. Sustain and continue the preservation
and development of downtown Siloam
Springs through infrastructure and
facility planning, and complementary
programming.
HELENA ST.
HELENA ST.
GARLAND
HICO
The purpose of the Master Plan is to
address downtown revitalization as an
economic development strategy that
will drive wellness and quality of life
improvements in Siloam Springs.
Specific aims are to:
HARVARD
E. MAIN
GRANITE
412
TULSA
KENWOOD
WASHINGTON ST.
MT. OLIVE
TULSA
KENWOOD
412
Figure A: Limit of Downtown Analysis
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MUNICIPAL INVESTMENT (2005-2008)
Sager Creek Wall Restoration Preparation Work
Main Street Overlay Street Improvements & Re-striping
Holiday Lighting Electric Improvements
2005
2006
2007
2008
Land Purchase for Infill Public Parking
Sager Creek Restoration Phase 1
Sewer-line Installation for First Large
Property Redevelopment
Downtown Parking Areas Re-striping
Electric Improvements for Downtown
Property Rehabilitation Projects
Dogwood Festival Electric Improvements
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MUNICIPAL INVESTMENT (2009-2013)
Way-finding Signage
System Installed
New Street Sign
Post Project
Light Pole Upgrades
City Park Gazebo
Restoration
Twin Springs Park Fountain Restoration
Construction of New Low Water Bridge
Sager Creek/Twin Springs Rock Wall Repair
Bridge Lighting Upgrade
Long Term Parking Design Plan Adopted
Purchase of the Old Post Office for New Museum Location
Christmas Light LED
Conversion
Upgraded Downtown Crosswalks with
Stamped Concrete
Twin Springs Park Irrigation Work &
Accessibility Improvements
South Broadway Parking
Lot Refurbishment
2009
2011
2013
2010
2012
Sager Creek Restoration Phase 2
New Trash/Recycle Receptacles Installed
Downtown Sidewalk Repairs
Construction of New University Street Bridge
Downtown Lighting Fixture Repairs
Skate Park Addition and other Bob Henry Park Updates
Downtown Banners Installed
Sidewalk Accessibility Improvements on Maxwell Street
New Library Site Study Commissioned
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POPULATION DATA
“There were some exciting developments in Siloam Springs during the 2012 calendar year. This included, but was not limited to, the
construction of the Siloam Springs Hospital and the new Medical Arts Center. These developments will directly contribute to employment,
population growth, and consumer expenditures within the community. Additionally, the recent improvements to Hwy 412 have improved
traffic flow and drive some of the existing traffic toward the downtown area.”
-Curtis Smith, MAI
Butler Burgher Group
D O W N T O W N S I LOA M S P R I NG S P O P U L AT I O N DATA
YEAR
POPULATION
ESTIMATE
POPULATION
GROWTH
NO. OF
HOUSEHOLDS
HOUSEHOLD
GROWTH
% OWNER
OCCUPIED HOUSING
AVERAGE HOUSEHOLD
INCOME
AVERAGE EFFECTIVE
BUYING INCOME
MEDIAN
HOUSEHOLD INCOME
2000
2,387
N/A
936
N/A
53.31%
$43,074
N/A
$30,875
2010
2,661
11.47%
983
5.06%
51.97%
N/A
N/A
$33,301
2013
2,740
2.96%
1,021
3.83%
50.64%
$47,481
$40,049
$35,728
2018*
2,861
4.41%
1,076
5.37%
N/A
$51,146
$43,080
$38,961
Figure 4
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*projected
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DOWNTOWN RETAIL MARKET
HIGHLIGHTS
• Downtown Siloam Springs retail demand is strong with over $33 million spent in 2012, and $36 million in 2013 (YTD). Their growth has been a direct result of increased programming, new culinary experiences, and new shops opening.
• In 2013, there was approx. $100 million of retail expenditures in the Main Street District above the $37 million spent by its residents, thereby suggesting an “opportunity surplus” for the local retail market.
• With 100% occupancy of the approximate 176,072 s.f. of retail space, new projects should be expected in the future. The renovated retail lease rates average $12 - $16 per s.f.
Retail Sales (SUPPLY)
The amount of actual retail sales attributed to consumers who spent money
WITHIN the downtown Siloam Springs study area.
Downtown Retail Establishments
($ Millions)
Amandromeda Vintage Modern
Bits & Pieces
Creative Corner on Broadway
Dogwood Junction Bike Shop
Ehrlich Motorwerks
Formal Evenings
Four Corners Frame Shop
French Hen
Heather Hill Clothing
Joni’s on Broadway
Occasions
Sager Creek Quilts & Yarnworks
Savvy Salon
Siloam Flowers & Gifts
Style Studio
TC Screen Printing
Two Gals’ Junk
Vintage Accents
WellSpring Nutrition
2012
89.57
2013
138.84
Increase
49.27 (55.0%)
Consumer Expenditures (DEMAND)
The amount of actual retail sales of ONLY residents within the downtown Siloam
Springs study area.
20122013 Increase
33.83
36.73
2.90 (8.6%)
Opportunity Surplus
The difference between Retail Sales and Consumer Expenditures reflects
essentially sales from consumers living outside of downtown Siloam Springs
study area. This Surplus reflects an opportunity for more retail shops to satisfy
the surplus supply of consumers.
20122013 Increase
55.74
102.11
46.37(83.2%)
Notes:
*This information has been gathered from the Consumer Expenditure Survey and the Census of
Retail Trade. Both of these sources have been made available by the US Bureau of Labor and
Statistics and were provided by Nielsen RMP.
**The retail sales increase in 2013 is a YTD number and is based on information obtained
through August 2013 (approx.. 8 months). If these increases were projected on an annual basis,
the increase or growth would even be greater than stated above in (growth rate%).
Downtown Siloam Springs Retail Market
$160,000,000
160000000 “Retail seems to be driving the commercial real
estate investment market in downtown Siloam
Springs more than any other segment. The
lease rates in downtown for Class B retail at
approximately $11/s.f. appears to be low enough
to encourage more services to be interested in
leasing space and bringing their businesses
back downtown.”
$130,000,000
130000000 $100,000,000
100000000 Opportunity Surplus $70,000,000
70000000 $40,000,000
40000000 $10,000,000
10000000 2012 Figure 10
2013 Retail Sales Consumer Expenditures S I LOA
M bSeen P RgI athered NG S D fOW
N DA SEH
B OA R D Survey and the Census of Retail Trade. Both of *This i9nforma-on has rom NTOW
the Consumer xpenditure these sources have been made available by the US Bureau of Labor and Sta-s-cs and were provided by Nielsen RMP. -Aaron Dunn
CVC of Arkansas
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DOWNTOWN OFFICE MARKET
HIGHLIGHTS
•
Office Space - Northwest Arkansas
As of 2012, Downtown Siloam Springs has 121,692 s.f. of commercial office space representing 62.3% of the entire Siloam Springs office market which totals 195,261 s.f. See Figure 1 & Figure 2. The fact that construction of new office space remained flat since 2008 was surprising, considering the low vacancy rate and growing demand within the office sector.
Siloam Springs 195,261 SF Siloam Springs 2% SF 195,261 2% • Downtown Siloam Springs office space (195,000/s.f.) represents only 2% of the entire NWA office market of 11.87 million s.f.
Lease rates appear to range between $6.42 - $8.28 for the class
C office space. Downtown Siloam Springs has essentially no
Class A office space other than in the Office/Retail section
which leases between $12-$16/s.f. The major office tenants in Downtown Siloam Springs are Allens Canning Company, Arvest Bank, and Centennial Bank (formerly Liberty Bank). They represent over 50% of the total office space.
• Proposed building rehabilitation projects for office space in the downtown area include an early 2014 renovation of just over 4000 s.f. of upper floor overlooking Broadway Street.
“The downtown Siloam Springs focus has been on sense of
place, restaurants and great experiences resulting in very
little growth in office space. However, these investments and
amenities will provide for a strong base to attract new businesses
in years to come. The supply of available buildings is shrinking
in downtown due to the recent redevelopment success which may
create an opportunity to attract new construction and/or the
repositioning of buildings to new uses.”
-Paul Esterer
Newmark Grubb Arkansas
Springdale 1,468,161 SF Springdale 13% SF 1,468,161 13% Bentonville 3,878,185 SF Bentonville 33% SF 3,878,185 33% Rogers 2,529,973 Rogers SF 21% SF 2,529,973 21% • Renovation projects have included mixed use redevelopments of the historic Connelly Harrington House, the historic JC Penneys building, and the current KLRC radio station building.
•
Bella Vista 1Bella 29,924 SF Vista 1% SF 129,924 1% Bella Vista Bella Vista Bentonville Bentonville Faye:eville Lowell Faye:eville Lowell Rogers Rogers Faye:eville 3,341,236 SF Faye:eville 28% SF 3,341,236 28% Lowell, 275,837 Lowell, SF 2% SF 275,837 2% 11,872,834 Total Square Feet 11,872,834 Total Square Feet Source: Q4 2012 Skyline Report Source: Q4 2012 Skyline Report Figure 1
Office Space - City of Siloam Springs
195,261 Total Square Feet
Outside
District
38%
Main Street
District
62%
Outside District
Main Street District
Source: Q4 2012 Skyline Report
Figure 2
Downtown Siloam Springs - Commercial Market
355000 305000 255000 205000 Total SF 155000 Industrial 105000 Retail Office 55000 5000 2009 2010 2011 2012 Calendar Year End Figure 3
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DOWNTOWN RESIDENTIAL MARKET
HIGHLIGHTS
•
•
In downtown Siloam Springs, average sales price per square foot has declined since the high in 2008 of $57/s.f. to approximately $42/s.f. in 2011, with a marginal recovery in 2012 to $45.85/s.f.
•
Average home s.f. in 2012 was 1,727 (3 bed/2 bath).
Average sales price in 2012 was $86,231 or $45.85/s.f.
21 properties sold in 2012.
178 days on market was average for 2012.
Prices per s.f. should continue to increase based on the strong indication of average list prices to sales price ratio remaining above 90% since 2008 and increasing to over 96.54% in 2012. While the per sq foot value of single family homes decreased and the length of days on the market has increased, the gap between list price and sales price is closing. This indicates the market is beginning to stabilize, and will possibly see some increase in value over the next few years.
D O W N T O W N S I LOA M S P R I NG S R E S I D E N T I A L S TAT I S T I C S
2008
FULL
BEDROOMS BATHS
LIST PRICE
SALES PRICE/LIST DAYS ON
SQUARE
MARKET
FOOTAGE LIST PRICE/SF SALES PRICE SALES PRICE/SF PRICE RATIO
2008 KEY INDICATORS
HIGH
4
3
$209,900
2,566
$94.69
$204,000
$99.33
110.35%
295
$82,224
AVERAGE LIST PRICE
LOW
2
1
$28,900
600
$29.97
$17,500
$14.98
42.52%
24
$77,534
AVERAGE SALES PRICE
AVERAGE
3
2
$82,224
1,348
$61.64
$77,534
$57.47
91.23%
109
$57.47
AVERAGE SALE PRICE PER SF
MEDIAN
3
1
$65,750
1,239
$60.24
$64,500
$56.90
96.42%
88
91.23%
AVERAGE SP/LP RATIO
109
AVERAGE DAYS ON MARKET
30 Total Properties
2012
FULL
BEDROOMS BATHS
LIST PRICE
SQUARE
SALES PRICE/LIST DAYS ON
MARKET
FOOTAGE LIST PRICE/SF SALES PRICE SALES PRICE/SF PRICE RATIO
2012 KEY INDICATORS
HIGH
5
3
$266,000
3,913
$80.90
$266,000
$70.71
104.50%
525
$88.458
AVERAGE LIST PRICE
LOW
1
1
$19,900
864
$19.65
$18,000
$18.66
84.40%
21
$86.231
AVERAGE SALES PRICE
AVERAGE
3
2
$88,458
1,727
$50.63
$86,321
$45.85
96.54%
178
$45.85
AVERAGE SALE PRICE PER SF
MEDIAN
3
2
$69,900
1,478
$55.09
$69,300
$53.82
98.50%
133
96.54%
AVERAGE SP/LP RATIO
178
AVERAGE DAYS ON MARKET
21 Total Properties
Figure 5
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DOWNTOWN RESIDENTIAL MARKET
180 150 Downtown Siloam Springs - Days on Market (Residential)
Downtown Siloam Springs - Prices (Residential)
120 150000 Average List Prices 130000 Average Sales Prices 110000 90000 Average Days on Market 2008 2009 2010 2011 2012 2013 Calendar Year End 60 70000 50000 2007 90 180 60 150 30 120 0 2007 90 Average Days on Market 30 2008 2009 2010 2011 2012 0 2007 2013 2008 2009 2010 2011 2012 2013 Calendar Year End Calendar Year End Figure 6
Figure 7
Downtown Siloam Springs - Price per Foot (Residential)
Downtown Siloam Springs - Ratios (Residential)
70 100% 60 95% 50 90% AverageSSale
Average ales to List Price Ratios to List Price
Ra;os 85% 40 Average Sales
Price Per Foot
30 Average Sales Price Per Foot 20 80% 75% 2007 10 2008 2009 2010 2011 2012 2013 0 2007 Figure 8
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S I LOA M S P R I NG S D OW NTOW N DA S H B OA R D
2008 2009 2010 2011 2012 2013 Calendar Year End Calendar Year End Figure 9
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CULINARY & RESTAURANTS
Downtown Siloam Springs Dining
28 Springs Restaurant
Cafe on Broadway
Fratelli’s Wood Fired Pizzeria
Pour Jon’s Coffee & Vinyl
The Siloam Springs Farmers Market, which meets
in downtown Siloam Springs, has experienced its
own renaissance. The twice weekly market runs from
April through October and has become a local food
supplier to downtown restaurants. From 2010 to
2013, the Farmers Market grew its overall income by
50%, and doubled its average number of producers
and visitors. A winter online market now offers local
meats, winter produce, cheeses, baked goods and
more through the off season.
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MAIN STREET SILOAM SPRINGS, INC.
479.524.4556 mainstreetsiloam.com
Main Street
Facebook: MainStreetSiloamSprings
Twitter: mainstsiloam
I N C.
SILOAM
SPRINGS
E S T.
14
1880
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