Mind the Gap - Oakdale Neighbors

Transcription

NEIGHBORHOOD VENTURES
Mind the Gap Retail Market Study for the
Uptown, Southtown and South West
Micro-Regions of Grand Rapids
June 2007
Table of Contents
Executive Summary ..................................................................... 2
Introduction.................................................................................. 5
Uptown Micro-Region.................................................................. 8
Uptown Tier 1 Study Area........................................................................................................8
Uptown Tier 1 Demographics...................................................................................................9
Uptown Tier 1 Market Segmentation................................................................................... 11
Uptown Tier 1 Retail Sales Leakage ................................................................................... 12
Uptown Business Inventory ..................................................................................................... 15
Uptown Tier 2 Study Area..................................................................................................... 16
Uptown Tier 2 Demographics................................................................................................ 17
Uptown Tier 2 Market Segmentation................................................................................... 19
Southtown Micro-Region ........................................................... 21
Southtown Tier 1 Study Area ................................................................................................ 21
Southtown Tier 1 Demographics ........................................................................................... 22
Southtown Tier 1 Market Segmentation .............................................................................. 24
Southtown Tier 1 Retail Sales Leakage............................................................................... 25
Southtown Business Inventory................................................................................................. 28
Southtown Tier 2 Study Area ................................................................................................ 29
Southtown Tier 2 Demographics ........................................................................................... 30
Southtown Tier 2 Market Segmentation .............................................................................. 32
South West Micro-Region........................................................... 34
South West Tier 1 Study Area .............................................................................................. 34
South West Tier 1 Demographics ......................................................................................... 35
South West Tier 1 Market Segmentation............................................................................ 37
South West Tier 1 Retail Sales Leakage............................................................................. 39
South West Business Inventory............................................................................................... 41
South West Tier 2 Demographics ......................................................................................... 43
South West Tier 2 Market Segmentation............................................................................ 45
Appendix I: Business Recruitment Strategy Matrix
Appendix II: Study Area Maps
Neighborhood Ventures – Retail Market Analysis
Page 1 of 46
Executive Summary
Camoin Associates was retained by Neighborhood Ventures to conduct a retail market
analysis for three micro-regions in the City of Grand Rapids, Michigan. Micro-regions, as
defined by Neighborhood Ventures, are small neighborhood geographic areas
distinguished by similar features, activities, offerings, and character. The three microregions were defined by Neighborhood Ventures as follows:

Uptown – Comprised of the neighborhood business districts of Eastown, East Hills,
Wealthy Street and East Fulton.

Southtown – Comprised of the neighborhood business districts of Franklin/Eastern,
Madison Square, Division South and Boston Square.

South West – Comprised of the neighborhood business districts of Grandville
Avenue and Burton Heights.
For each of the three micro-regions, Camoin Associates worked with Neighborhood
Ventures and local business owners to define a set of two trade areas. A map of each
trade area is included at the beginning of each section of this report and in Appendix II. A
trade area is generally defined as the geographic area from which businesses capture a
majority of their customers. The two trade areas for each micro-region were defined to
capture:
1. Demographic characteristics and spending patterns of residents within each microregion, as well as retail sales leakage from each micro-region.
2. Demographic characteristics and spending patterns of people who do not live in
the micro-region, but who travel in and spend money there.
Based on the analysis of demographic and spending characteristics of the two trade areas
for each micro-region, as well as the retail sales leakage analysis for each micro-region
and an inventory of existing retail businesses provided by Neighborhood Ventures,
Camoin Associates identified the following potential target retail categories for each
micro-region. Please note that this is by no means a definitive list. Identifying retail
business opportunities is often more of an art form than an exact science. There may very
well be additional retail types other than those shown below that are appropriate for
each micro-region. The data presented here are not perfect, but they are helpful, and
should be considered as a starting point. Forward movement will require local knowledge
to interpret the data and convert them into a meaningful business recruitment plan.

Uptown:
o
o
o
o
o
Specialty grocery store featuring organic food
Specialty dining
Additional boutique retail shops, including clothing and gifts
Coffee shops, cafes, pubs, bars, wine bar
Electronics & gaming stores
Page 2 of 46
o Health and wellness related businesses, such as pilates or yoga studios and
day spas
o Unique furniture and home furnishings stores
o Garden supply and small hardware stores

Southtown:
o
o
o
o
o
o

Casual, family restaurants, delis, pubs
Locally owned grocery store
Affordable furniture, apparel and athletic shops
Smaller electronics stores
Children’s apparel
Ethnic book, music and gift shops
South West:
o
o
o
o
o
Cafes and pubs catering to commuters
Children’s apparel
Casual family restaurants
Due to the fact that many of the retail spaces available in the three micro-regions are
relatively small by today’s standards, it makes sense in most cases to recruit small, local
retailers to fill them. There is also a significant movement in the Grand Rapids area to
support urban business districts and locally owned businesses, as evidenced by the
existence of the non-profit organizations Neighborhood Ventures, Neighborhood Business
Alliance, and Local First.
There are examples where large national retailers have moved into under-served urban
neighborhoods to create a retail anchor that can start to pull retail spending in general
back into an area. Target and Whole Foods are two examples of large-scale retailers
that have moved into struggling urban neighborhoods that went under-served by most
retail types for significant periods of time. This often requires property assembly and
possibly demolition of existing structures to accommodate the larger store footprints that
these national retailers require. Although recruiting a national retailer can be challenging,
it is possible and may be appropriate in some instances.
It is important to note that retail generally follows improvement of other conditions in an
area. Wherever there are enough people with disposable income, either people living or
visiting, retail will naturally locate. While improvement of many general conditions such as
infrastructure, crime reduction, housing stock, and education, among other things, do not
fall under the mission of Neighborhood Ventures, it is important that Neighborhood
Ventures be pro-active in carrying out the following kinds of activities:

Building leadership capacity in each micro-region
Building local partnerships that are supportive of local businesses
Page 3 of 46

Working to establish structures such as Corridor Improvement Districts and Business
Improvement Districts, to be responsible for improvements, maintenance and
coordination of marketing and events across each micro-region
Spearheading marketing activities and recruitment targeted at an appropriate
mix of retail for each of the three micro-regions.
Our recommended strategies are outlined in more detail in the Business Recruitment
Strategy Matrix found in Appendix I to this report.
Page 4 of 46
Introduction
Western Michigan has exhibited strong growth in the past few years, despite the poor
performance of the Michigan economy as a whole. Western Michigan, which includes the
City of Grand Rapids, experienced a 5.5% growth in population between 2000 and
2006. The area had a slightly higher median income than the U.S. in 2006, and a much
higher percentage of owner occupied housing than the U.S. (76.5% in Western MI vs.
66.9% in the U.S.).
In the context of this regional growth, the City of Grand Rapids has focused a great deal
of attention on redeveloping its downtown in the past few years to complement efforts at
establishing itself as a center for innovative health care facilities and life sciences
research. Despite this progress and the rapid redevelopment that has taken place in parts
of the City, there are a number of neighborhoods struggling to revitalize their business
districts.
In an effort to strengthen revitalization efforts in such portions of the City, Neighborhood
Ventures retained Camoin Associates to conduct an analysis of demographic
characteristics and retail spending in the following three micro-regions of the City with the
goal of developing a business recruitment strategy for each micro-region:

Uptown – Comprised of the neighborhood business districts of Eastown, East Hills,
Wealthy Street and East Fulton.

Southtown – Comprised of the neighborhood business districts of Franklin/Eastern,
Madison Square, Division South and Boston Square.

South West – Comprised of the neighborhood business districts of Grandville Ave.
and Burton Heights
Camoin Associates conducted a site visit to Grand Rapids in early May 2007 to tour the
three micro-regions and meet with owners of local businesses to discuss where the majority
of their customers come from, the purpose of which was to define study areas for the retail
market analysis contained in this report. Given time and budget constraints associated with
this project, Neighborhood Ventures and Camoin Associates were admittedly not able to
speak with as many business owners as they would have liked, but used the information
and input received to define the most logical study areas possible.
During this process, many local businesses identified various suburbs of Grand Rapids as
the origin of many of their customers and expressed a desire to learn more about the
demographic characteristics and spending patterns of these customers. Neighborhood
Ventures, on the other hand, was interested to learn what types of retail sales may be
leaking out of each of the three micro-regions. In other words, what things are residents of
the micro-regions purchasing from retailers outside their micro-region.
Based on these divergent needs, Camoin Associates worked with Neighborhood Ventures
and local business owners to define a set of two trade areas for each micro-region. A
Page 5 of 46
trade area is generally defined as the geographic area from which businesses capture a
majority of their customers. The two trade areas for each micro-region were defined to
capture:
1. Demographic characteristics and spending patterns of residents within each microregion, as well as retail sales leakage from each micro-region.
2. Demographic characteristics and spending patterns of people who do not live in
the micro-region, but who likely travel in and spend money there.
In the three sections of this report (one for each micro-region), the reader will find a Tier 1
trade area, which captures “neighborhood residents” and retail activity taking place in
each micro-region, and a Tier 2 trade area, which captures characteristics of consumers
who live outside the micro-region but appear to patronize businesses within each microregion. The obvious constraint with this approach is that not all businesses within each
micro-region draw customers from exactly the same places outside of the micro-region.
Neighborhood Ventures had to use its judgment in defining the study areas utilized in this
report to capture the majority of consumers living outside each micro-region that likely
spend money in each micro-region. Maps of all the study areas are included in the report,
at the beginning of each new study area section..
Unless otherwise noted, all demographic statistics and retail sales data presented in this
report were purchased from ESRI, a leading national provider of economic and
demographic data. ESRI’s base data is the 2000 Census and its uses proprietary
statistical models to project demographic trends. Many communities and corporations use
ESRI data for economic development, marketing, site selection and strategic decision
making. For more information, visit www.esri.com .
In addition to analysis of basic demographic data, another useful tool in determining the
characteristics of a particular trade area is market segmentation, which is defined as the
classification of consumers according to demographic, socioeconomic, housing, and lifestyle
characteristics. It is based on the concept that people with similar demographic
characteristics, purchasing habits, and media preferences naturally gravitate toward each
other and into the communities in which they live. Businesses utilize market segmentation
analysis to identify their best markets, measure the potential demand for new products or
services, and reach their markets more effectively. Market segmentation data for both
Tier 1 and Tier 2 trade areas for each micro-region were also obtained from ESRI, based
on their “Community Tapestry” segmentation system.
It is important to understand that the classifications and labels for defined market
segments are generalizations. The descriptions of each segment are based on comparisons
with the U.S. as a whole, and reflect the propensity of households within that segment to
exhibit certain demographic, lifestyle, and consumer characteristics relative to the overall
population. Nevertheless, market segmentation analysis can provide a useful perspective
in understanding existing and potential customers residing within a defined area. A
summary and brief description of the major “Community Tapestry” segments within the
study areas is included in each section.
Page 6 of 46
Because the tapestry segments compare a particular group to national trends, Camoin
Associates includes some basic national statistics from ESRI here for the reader’s
information. Of particular interest may be median household income, race and ethnicity
breakdown, age distribution, and educational attainment, which are significant
components of the market segmentation information.
USA Basic Demographic Indicators
2000
2007
Average Household Size
2.59
2.59
Median Age
35.3
36.7
Median Household Income
$42,164
$53,154
2012
2.58
37.6
$62,503
USA - Race and Ethnicity
2000
2007
Number
211,460,626
34,658,190
2,475,956
10,242,998
398,835
15,359,073
6,826,228
35,305,818
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin (Any Race)
Percent
75.1%
12.3%
0.9%
3.6%
0.1%
5.5%
2.4%
12.5%
Number
222,724,555
38,560,831
2,764,776
13,218,103
452,962
19,953,104
8,673,899
46,048,964
2012
Percent
72.7%
12.6%
0.9%
4.3%
0.1%
6.5%
2.8%
15.0%
Number
231,294,232
41,373,794
2,975,078
15,602,612
494,015
23,655,569
10,131,098
54,704,956
Percent
71.1%
12.7%
0.9%
4.8%
0.2%
7.3%
3.1%
16.8%
USA Population by Age
16.0%
2007
14.0%
2012
12.0%
Percent
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
USA Educational Attainment
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
ss
Le
th
n9
tha
9th
-
e
ad
Gr
th
12
e,
ad
Gr
D
No
e
e
e
e
te
rat
ua
gre
gre
gre
c to
De
De
ra d
De
o
s
G
o
'
e
D
t
r
N
ol
al/
cia
elo
e,
ho
on
so
Sc
ach
lleg
ss i
As
o
B
h
e
f
C
g
o
Hi
/Pr
me
r 's
So
s te
a
M
m
iplo
a
Page 7 of 46
Uptown Tier 1
Uptown Micro-Region
Uptown Tier 1 Study Area
The first study area is shown below in red and will be referred to hereafter as “Uptown
Tier 1”. Uptown Tier 1 is comprised of the neighborhoods surrounding East Hills, Eastown,
Wealthy Street, and East Fulton business districts, as well as the Aquinas College campus.
The map below also shows Davenport College (formerly known as Fulton College) as
partially within Uptown Tier 1.
Page 8 of 46
Uptown Tier 1
Uptown Tier 1 Demographics
The overall demographic picture of
Uptown is one of stability, as shown in
the table at the right. The population,
number of households and percentage of
owner- versus renter-occupied housing
units are virtually unchanged since 2000
and are projected to remain so into the
future. However, the number of families
in the study area is trending downward
as is the average household size, while
median age has increased slightly.
Uptown Tier 1 Basic Demographic Indicators
2000
Population
2007
16,267
16,062
2012
16,170
Households
6,369
6,427
6,518
Families
2,994
2,854
2,774
2.37
2.32
2.30
Owner Occupied HUs
3,107
3,151
3,192
Renter Occupied HUs
3,262
3,276
3,326
28.1
28.6
29.1
Median Age
Source: ESRI
Uptown Tier 1 Population by Age
25.0%
2007
Percent
20.0%
2012
15.0%
10.0%
5.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
An unusual demographic trend in age distribution, heavily favoring the 20-34 year old
categories, may be explained by the presence of numerous college institutions in the City
and the possibility that many college students may find the Uptown neighborhoods
attractive places to live. A more common trend of increasing proportions of the 55-74 age
groups is consistent with national trends of the aging Baby-Boomer generation. As noted
above, the decrease in the number of families in Uptown is corroborated by a slight
decline in the proportion of children aged 0-19.
Uptown Tier 1 - Race and Ethnicity
2000
2007
White Alone
Black Alone
Asian Alone
Two or More Races
Number
11,293
3,321
108
163
19
828
535
1,450
Percent
69.4%
20.4%
0.7%
1.0%
0.1%
5.1%
3.3%
8.9%
Number
10,360
3,714
102
223
22
1,039
603
1,811
2012
Percent
64.5%
23.1%
0.6%
1.4%
0.1%
6.5%
3.8%
11.3%
Number
9,904
3,992
100
280
25
1,212
658
2,105
Percent
61.2%
24.7%
0.6%
1.7%
0.2%
7.5%
4.1%
13.0%
The table above shows the ethnic breakdown of Uptown Tier 1, which is predominantly
White, but with a slightly growing percentage of African American and Hispanic
Page 9 of 46
Uptown Tier 1
segments. A small but growing segment of the population is self-categorized as “Some
Other Race Alone” or “Two or More Races.”
Uptow n Tier 1 2012 Projected Household Incom e
Uptow n Tier 1 2007 Household Incom e
7%
1% 2%
2%
13%
3%
11%
11%
11%
11%
13%
12%
11%
20%
12%
23%
16%
21%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
Income distributions are expected to shift slightly from 2007 to 2012 while the median
household income increases from $43,409 to $50,203.1 This trend is roughly equivalent
to that of the state but lower than that of the nation as a whole. This means that Uptown is
keeping pace with a statewide general inflation-adjusted annual increase in household
income. Uptown Tier 1 residents have an annual median disposable household income of
approximately $32,797.
Uptow n Tier 1 Educational Attainm ent
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
a
re e
re e
re e
re e
uate
rad e
lom
Deg r' s Deg
Deg
Deg
Dip o l Grad
th G
e
o
9
e
t
o
t
N
a
o
n
a
i
N
l
r
o
,
a
oc
he
d e,
Sc h
s th
le ge
octo
As s
Ba c
Gra
igh
Les
Col
al/ D
h
t
H
e
n
2
o
i
m
-1
So
fess
9th
/Pro
s
'
r
e
t
Mas
Uptow n Tier 1
State of MI
Relative to the State of Michigan, Uptown benefits from a high proportion of individuals
with a Bachelor’s degree as well as more individuals with advanced degrees.
1
Figures have been adjusted for inflation. Note that the income data excludes non-households.
Page 10 of 46
Uptown Tier 1
Uptown Tier 1 Market Segmentation
The following summarizes the major “Community Tapestry” market segments present in
Uptown Tier 1:
Uptown Tier 1 Tapestry Segments
•
College Towns (31.0% of Uptown Tier 1
College Towns
31.0%
Study Area): With a median age of 24.5 Metropolitans
20.1%
years, College Towns is the fourth youngest City Dimensions
16.8%
of all the Tapestry segments. Most residents Great Expectations
14.6%
are aged between 18 and 34 years and Inner City Tenants
9.7%
live in single-person or shared households. Source: ESRI
Approximately 41 percent of residents are
enrolled in college or graduate school, often locally. Other residents are on the
teaching and research staffs. College Towns residents are well educated and often
have part time jobs in the service industry. There is a mix of housing to match student
needs and only 31 percent of households are occupied by owners. These tech-savvy
students own computers and the accessories to match.
•
Metropolitans (20.1% of Uptown Tier 1 Study Area): Metropolitans residents favor
city living in older neighborhoods. Approximately half of the households are
composed of singles who live alone or with others. However, married- couple families
comprise 40 percent of households. The median age is 37.1 years and ethnic diversity
is low. Metropolitan residents are educated and half of employed persons hold
professional or management positions. The median household income is $57,600 and
the median net worth is $134,500. They travel frequently, for business and pleasure.
Leisure activities include going to museums and zoos, watching foreign films on video
or DVD, and reading epicurean magazines. Preferring to own and use a laptop
computer, they use the Internet daily.
•
City Dimentions (16.8% of Uptown Tier 1 Study Area): Most of these residents are
young, with a median age of 29.0 years. Households are a mix of types and ethnic
diversity is high. The median household income for this market is $26,800. Ten percent
of the households receive Supplemental Security Income; 11 percent receive public
assistance. Employed residents work full-time or part-time, primarily in the service,
manufacturing, and retail trade industry sectors. Unemployment is high and
educational levels are low. City Dimensions neighborhoods are a mix of housing types,
but more than half of the households live in apartments in multiunit structures.
•
Great Expectations (14.8% of Uptown Tier 1 Study Area): Young singles who live
alone and married-couple families dominate the Great Expectations market. The
median age is 33 years. This segment has a higher proportion of residents in their 20s
and a higher proportion of householders younger than 35 years old. The ethnic
diversity and racial composition of this segment are similar to the U.S. levels (see
pages 5-6 for statistics on the ethnic composition of the U.S.). The median household
income of $36,600 and the median net worth of $66,400 is low compared to the U.S.
levels as are education levels. The manufacturing, retail, and service industry sectors
are the primary employers in this market. Approximately half of the households own
Page 11 of 46
Uptown Tier 1
their homes; the other half rent. Great Expectations homeowners also enjoy a young
and active lifestyle, going out to dinner, to the movies, to bars, and to nightclubs.
•
Inner City Tenants (9.7% of Uptown Tier 1 Study Area): Inner City Tenants residents
are a microcosm of urban diversity. This multicultural market is younger than average,
with a median age of 27.8 years. Composed of a mix of household types, turnover is
high in these neighborhoods because many individuals are enrolled in nearby colleges
and work part-time. These neighborhoods are also a stepping-stone for recent
immigrants. The median household income for this segment is $30,800; the median net
worth is $56,100. Because few own their homes, most of their net worth comes from
savings. This market has twice the national level of residents who work in the
accommodation/ food services industry. Inner City Tenants residents go to the movies
and attend professional football and basketball games.
Uptown Tier 1 Retail Sales Leakage
The table below provides a direct comparison between retail sales (“Supply”) and
consumer spending (“Demand”) by retail category. The supply figures are ESRI estimates
of sales in the defined area (does not include business to business sales) based on a
number of data sources, including the Census Bureau’s 2002 Census of Retail Trade (CRT).
To protect proprietary business information, the CRT sales data is aggregated according
to North American Industry Classification System (NAICS) codes. The data is also
presented by NAICS code.
The demand figures (reflecting retail potential in each category) show the amount that
ESRI estimates consumers spend at retail establishments, based on the annual Consumer
Expenditure Survey conducted by the U.S. Bureau of Labor Statistics.
To illustrate what this means, consider the following: according to the data in the table
below there were approximately $3.5 million of retail sales in Uptown Tier 1 in the
Furniture & Home Furnishings Stores category. However, Uptown Tier 1 residents spent
approximately $4.5 million on these types of good. Therefore, we assume that Uptown
residents spent about $1 million outside of the area on Furniture and Home Furnishings,
meaning there was a sales leakage of approximately $1 million in this category.
Page 12 of 46
Uptown Tier 1
Uptown Tier 1 Retail Sales Leakage
Industry Group
Supply (Retail
Sales)
Demand (Retail
Potential)
Retail Gap
Motor Vehicle & Parts Dealers (NAICS 441)
$1,706,741
$29,881,644
$28,174,903
Furniture & Home Furnishings Stores (NAICS 442)
$3,467,995
$4,521,905
$1,053,910
Electronics & Appliance Stores (NAICS 443/NAICS 4431)
$3,019,696
$3,632,256
$612,560
$732,761
$3,540,073
$2,807,312
Food & Beverage Stores (NAICS 445)
$10,370,844
$20,521,010
$10,150,166
Grocery Stores (NAICS 4451)
$8,415,998
$18,841,849
$10,425,851
Bldg Materials, Garden Equip. & Supply Stores (NAICS 444)
Specialty Food Stores (NAICS 4452)
Beer, Wine, and Liquor Stores (NAICS 4453)
$477,196
$620,579
$1,477,650
$1,058,582
$143,383
($419,068)
Health & Personal Care Stores (NAICS 446/NAICS 4461)
$9,259,980
$2,616,003
($6,643,977)
Gasoline Stations (NAICS 447/NAICS 4471)
$4,138,482
$15,321,809
$11,183,327
Clothing and Clothing Accessories Stores (NAICS 448)
Clothing Stores (NAICS 4481)
Shoe Stores (NAICS 4482)
Jewelry, Luggage, and Leather Goods Stores (NAICS 4483)
Sporting Goods, Hobby, Book, and Music Stores (NAICS 451)
Sporting Goods/Hobby/Musical Instrument Stores (NAICS 4511)
Book, Periodical, and Music Stores (NAICS 4512)
General Merchandise Stores (NAICS 452)
$4,155,751
$6,629,416
$2,473,665
$2,989,306
$5,339,773
$2,350,467
$0
$808,682
$808,682
$1,166,445
$480,961
($685,484)
$2,560,164
$2,366,775
($193,389)
$767,121
$1,070,651
$303,530
$1,793,043
$1,296,124
($496,919)
$917,953
$18,456,625
$17,538,672
$4,196,926
$1,164,225
($3,032,701)
Florists (NAICS 4531)
$477,799
$217,077
($260,722)
Office Supplies, Stationery, and Gift Stores (NAICS 4532)
$742,940
$246,541
($496,399)
Used Merchandise Stores (NAICS 4533)
$999,788
$75,520
($924,268)
$1,976,399
$625,087
($1,351,312)
$0
$9,949,870
Food Services & Drinking Places (NAICS 722)
$14,890,012
$18,606,256
$3,716,244
Full-Service Restaurants (NAICS 7221)
$6,149,202
$7,870,087
$1,720,885
Miscellaneous Store Retailers (NAICS 453)
Other Miscellaneous Store Retailers (NAICS 4539)
Nonstore Retailers (NAICS 454)
$9,949,870
Limited-Service Eating Places (NAICS 7222)
$5,393,662
$8,346,526
$2,952,864
Special Food Services (NAICS 7223)
$2,158,381
$1,093,380
($1,065,001)
Drinking Places - Alcoholic Beverages (NAICS 7224)
$1,188,767
$1,296,263
$107,496
Conversely, if Supply of goods sold exceeds Demand by residents, we assume that nonresidents are coming to Uptown to spend money. The table shows that this occurs in two
major categories, including Health and Personal Care Stores and Miscellaneous Store
Retailers2 in which a total of 3 and 36 establishments, respectively, exist in Uptown.
Surpluses in excess of approximately $500,000 also exist in the sub-categories of
Jewelry, Luggage, and Leather Goods Stores; Book, Periodical, and Music Stores; and
Special Food Services3.
These surpluses reflected in the data, particularly the surplus for miscellaneous store
retailers, is corroborated by the fact that Uptown is developing a niche in upscale,
boutique retail shops that sell a wide range of specialty products. While one might
logically assume that this surplus should be interpreted to mean that no more businesses of
this type are needed in Uptown, quite the opposite is true. Additional boutique retail
shops will only enhance Uptown’s retail niche and contribute to its ability to attract new
customers.
On the other hand, there is substantial retail leakage in most other categories, including:
•
2
3
Motor Vehicle and Parts Dealers (the vast majority of which is from vehicle sales)
This includes florists, office supplies, stationary, gift stores, used merchandise and “other miscellaneous store retailers”.
Including food service contractors and caterers.
Page 13 of 46
Uptown Tier 1
•
•
•
•
•
•
Building Materials, Garden Equipment and Supply Stores
Food and Beverage Stores (especially Grocery Stores with $10 million is sales
leaking out of Uptown)
Gasoline Stations
Clothing and Shoe Stores
Full and Limited Services Restaurants
Non-Store Retailers4
While vehicle sales and home improvement stores are probably not a good fit for
Uptown, it appears that there is the unmet demand for food-related retailers (such as
grocery and restaurants) as well as gas stations and apparel stores.
Below is a graph summarizing the relative Leakage/Surplus by major Industry Subsector.
The leakage and surplus factor graph summarizes the relationship between supply (retail
sales by business) and demand (consumer spending by household). According to ESRI, “As
the leakage-surplus factor tends toward +100, the market is under leakage, meaning
there is less retail activity relative to consumer spending. As the leakage-surplus factor
tends toward -100, retail activity increases relative to consumer demand, signifying a
surplus.”
Uptow n Tier 1 Leakage/Surplus Factor by Industry Subsector
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
Motor Vehicle & Parts Dealers
Furniture & Home Furnishings Stores
Electronics & Appliance Stores
Bldg Materials, Garden Equip. & Supply Stores
Food & Beverage Stores
Health & Personal Care Stores
Gasoline Stations
Clothing and Clothing Accessories Stores
Sporting Goods, Hobby, Book, and Music Stores
General Merchandise Stores
Miscellaneous Store Retailers
Nonstore Retailers
Food Services & Drinking Places
<--Surplus--Leakage-->
4
Non-Store Retailers, such as catalog and internet sales, shows 100% leakage, but this is typically not something that
local municipalities have any control over and is disregarded for this analysis.
Page 14 of 46
Uptown Tier 1
Uptown Business Inventory
The table to the right shows the current business mix
in the Uptown area, according to an inventory
compiled by Neighborhood Ventures. In general, the
area has a large number of professional services,
such as financial, legal, marketing, banking and
other general business services. Shopping is geared
towards a more high-end market, with a number of
home decorating, gift, floral and antique stores, as
well as an art gallery. There are also quite a few
health and personal service businesses such as
medical, dental, general health services and a
pharmacy. Although restaurants top the list in
number of establishments there are only three
bars/nightclubs indicating that dining and
entertainment may be limited to the daytime scene.
Uptown Business Inventory
Number of
Business Type
Facilities
Advertising
1
Antique Store
6
Art Gallery
1
Automotive Service
7
Bank
2
Bar/Night Club
3
Books/ Media
4
Business Services
15
Church & Ministry
14
Clothing
11
Construction/ Prop. Mgt.
12
Convenience
10
Educational
6
Financial/ Attorney
10
Flowers
3
Gallery
7
Gas
1
Gifts/Home Decorating
5
Government
2
Grocery
1
Hair Salon/Barber/Tattoo
16
Health Service
7
Home Decorating
11
Hotel
2
Laundromat
2
Marketing Services
7
Media
2
Medical/Dental
6
Music
4
Non-profit
10
Organizational
15
Other (construction)
4
Pharmacy
1
Photography
5
Printing
3
Realty
4
Recreational
5
Repair
1
Restaurant
28
Restaurant-Coffee-Bakery
5
Retail
11
Retirement home
1
Security
1
Tax
2
Technology Resources
4
Travel
1
Source: Neighborhood Ventures, Camoin
Associates
Page 15 of 46
Uptown Tier 2
Uptown Tier 2 Study Area
The study area shown below in red includes the City of East Grand Rapids, Rockford,
Cascade Township and Ada Township. People from these suburbs of Grand Rapids are
frequent customers of the specialty boutique retail shops and other retail businesses in
Uptown according to local business owners. This study area is hereafter referred to as
“Uptown Tier 2.”
Page 16 of 46
Uptown Tier 2
Uptown Tier 2 Demographics
As shown to the right, population, families
Uptown Tier 2 Basic Demographic Indicators
and households are anticipated to grow
2000
2007
2012
at a steady rate. In line with national
Population
40,379
44,018
46,086
trends, average household size is slowly
14,233
15,805
16,640
shrinking. The Uptown tier 2 region has a Households
Families
11,457
12,462
12,905
very high concentration of owner
Average
Household
Size
2.83
2.78
2.77
occupied households. Compared to state
Owner
Occupied
HUs
12,838
14,268
14,989
trends the Uptown tier 2 region shows
1,395
1,537
1,651
stronger growth in population, number of Renter Occupied HUs
Median
Age
37.7
40.2
40.7
households, families and median income.
Source:
ESRI
The median age in Uptown’s outer region
is significantly higher than state or national averages.
Uptown Tier 2 Population by Age
20.0%
18.0%
2007
16.0%
2012
Percent
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
The 45 to 54 age group represents the peak of the population distribution. As the above
graph shows, the population will continue to age in place between 2007 and 2010, as
evidenced by the projected growth in the 55 to 74 year old age groups. The area seems
to be losing residents in the 35 to 54 age groups. In addition, college-age young adults
appear to be leaving as well, which could be attributable to many of them leaving the
area to attend college.
Uptown Tier 2 - Race and Ethnicity
2000
2007
White Alone
Black Alone
Asian Alone
Two or More Races
Number
38,618
330
90
843
2
152
344
399
Percent
95.6%
0.8%
0.2%
2.1%
0.0%
0.4%
0.9%
1.0%
Number
41,345
458
109
1,403
3
229
472
629
2012
Percent
93.9%
1.0%
0.2%
3.2%
0.0%
0.5%
1.1%
1.4%
Number
42,613
554
120
1,931
5
292
571
834
Percent
92.5%
1.2%
0.3%
4.2%
0.0%
0.6%
1.2%
1.8%
The table above shows the ethnic breakdown of the Uptown Tier 2 population, which is
overwhelmingly White.
Page 17 of 46
Uptown Tier 2
Uptow n Tier 2 2007 Household Incom e
3% 1%
10%
Uptow n Tier 2 2012 Projected Household Incom e
4%
7%
9%
15%
23%
4%
4%
6%
12%
13%
12%
12%
17%
26%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
22%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
Median household income in the Uptown Tier 2 region in 2007 is projected at $79,387,
with more than half of the households earning more than $75,000 annually. Compared to
the state as a whole where the median household income is $54,480, this makes the
Uptown Tier 2 region a very affluent area. In addition, the fastest growing group is
households with incomes of $200,000 per year or higher, increasing from 16.7% in 2007
to 23.8% in 2012. The median household income in the Uptown Tier 2 area is expected to
reach $115,404 in 2012, compared to the projected state average of $62,717. Uptown
Tier 2 residents have an annual median disposable household income of $71,407.
Uptown Tier 2 Educational Attainment
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
a
e
e
re e
ree
ree
r ee
l om
uat
r ad
Deg
Deg
Dip
rad
Deg
Deg
o
th G
e
G
o
s
t
e
'
N
9
t
l
r
a
,
r
o
oo
an
e, N
oci a
c to
hel
lege
Sc h
rad
s th
A ss
l/Do
B ac
Col
a
hG
i gh
Les
e
t
n
H
2
o
i
-1
S om
fess
9th
/Pr o
s
'
r
ste
Ma
Uptow n Tier 2
State of MI
The population in the area is very well educated with a majority (55.1%) having a
Bachelor’s or higher degree.
Page 18 of 46
Uptown Tier 2
Uptown Tier 2 Market Segmentation
Uptown Tier 2 Tapestry Segments
Suburban Splendor
38.3%
• Suburban Splendor (38.3% of Uptown Tier 2 Exurbanites
15.7%
Study Area): This represents one of the most Sophisticated Squires
9.4%
affluent of all segments. Nearly 80% of these Urban Chic
6.0%
households consist of married-couple families, Connoisseurs
5.5%
most of which are well-educated, with both men Source: ESRI
and women earning income. Half of this group is
aged 35 to 64 and their median household income is $114,500. Most work in
management, professional, or sales occupations. 94% of this group own their own
home and 85% have two or more vehicles. This group owns all the latest electronic
gadgets, games and cell phones. They devote free time to family, travel and selfimprovement such as working out, reading, going to museums or the theater. They are
active investors, consult with financial planners and own life insurance policies of
$500,000 or more. They also like to shop.
• Exurbanites (15.7% of Uptown Tier 2 Study Area): This group is also one of the
highest in terms of wealth, with median household income in the lower $80,000 range.
Empty nesters and married couples with children combine to make up almost threequarters of this group. Many are either paying for college or caring for elderly
parents. They are typically employed in professional or management positions.
Members of this group are concerned with financial security and tend to have financial
planners, stocks, retirement accounts, long-term care and life insurance policies. They
do a lot of their own home improvement projects and purchase a lot of garden
supplies and tools for simple projects. Leisure activities include boating, hiking,
kayaking, playing Frisbee, photography and bird-watching.
• Sophisticated Squires (9.4% of Uptown Tier 2 Study Area): These urban escapees
are mostly married-couple families with a median age of 37.4 years. More than 40
percent of the households consist of married couples with children that range from
toddlers to young adults. Residents are educated: one-third of the population aged 25
years and older holds a bachelor’s or graduate degree, another third has attended
college. Labor force participation rates are high for males and females and although
the range of occupations varies, most are in white-collar occupations. Many households
are active and enjoy physical recreational activities. Although many households own
four or more TVs, residents are light television viewers.
• Urban Chic (6.0 % of Uptown Tier 2 Study Area): These residents are professionals
who live a sophisticated, exclusive lifestyle. Fewer than half of them have children and
there is a higher proportion of single-person and shared households. The population is
well educated and they pursue a variety of occupations, especially management,
professional, and sales positions. One-fifth of these households earn income from selfemployment ventures, and 55 percent receive additional income from investments.
Homeownership is at 70 percent and median home value is more than three and onehalf times that of the U.S. median. The focus is more on lifestyle than ambience. They
travel extensively, visit museums, shop at upscale establishments, and do volunteer
work. They access the Internet frequently.
Page 19 of 46
Uptown Tier 2
• Connoisseurs (6.0 % of Uptown Tier 2 Study Area): This segment is a somewhat
older market, with seventy percent of these households being married-couple families.
With a median net worth of $357,300, the Connoisseurs market is second only to
Tapestry’s Top Rung segment in affluence. This market is well educated earning wages
from high-paying management, professional, and sales jobs. Many are self-employed
with supplemental income from interest, dividends, and rental properties. Residential
Connoisseurs neighborhoods tend to be older bastions of affluence, where the median
home value is high, and growth is slow. This group ranks the highest for conspicuous
consumption and they often hire professional household services. This segment belongs
to the top markets for owning or leasing a luxury car or convertible. Exercise is a
priority for these residents and they enjoy both domestic and international travel.
Page 20 of 46
Southtown Tier 1
Southtown Micro-Region
Southtown Tier 1 Study Area
The second study area is shown below in red and will be referred to hereafter as
“Southtown Tier 1.” Southtown is comprised of the neighborhoods surrounding the
Franklin/Eastern, Madison Square, Division South and Boston Square business districts.
Page 21 of 46
Southtown Tier 1
Southtown Tier 1 Demographics
Southtown Tier 1 Basic Demographic Indicators
2000
Population
2007
28,653
28,968
2012
29,425
Households
9,129
9,297
9,468
Families
6,327
6,222
6,172
3.09
3.07
3.06
Owner Occupied HUs
5,010
5,108
5,103
Renter Occupied HUs
4,119
4,189
4,365
26.3
27.3
27.8
Median Age
Source: ESRI
Southtown is experiencing a very modest
growth in population and households (at
a rate roughly equal to the state trends,
but much less than the national trend).
Like Uptown, there is a definite
downward counter trend in the number
of families and a slight rise in median
age. The proportion of owner occupied
housing units is flat, despite a national
trend towards higher levels of home
ownership.
The median age is approximately 27 and there appears to be a healthy number of
younger generation residents, with approximately 46% of the population under the age
of 25. The distribution drops precipitously after age 25, which indicates that young adults
and families are clearly leaving the area in significant numbers.
Southtown Tier 1 Population by Age
18.0%
16.0%
2007
14.0%
2012
Percent
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
The graph above shows the age distribution in Southtown. All age groups 35+ are lower
in Southtown as a percentage of total population than in the U.S. (see graph on page 6
for U.S. age distribution), while all younger age groups are higher in Southtown.
Southtown Tier 1 - Race and Ethnicity
2000
2007
White Alone
Black Alone
Asian Alone
Two or More Races
Number
6,476
17,804
148
211
77
3,055
883
5,451
Percent
22.6%
62.1%
0.5%
0.7%
0.3%
10.7%
3.1%
19.0%
Number
5,798
18,306
129
257
87
3,477
912
6,130
2012
Percent
20.0%
63.2%
0.4%
0.9%
0.3%
12.0%
3.1%
21.2%
Number
5,497
18,690
123
298
93
3,788
935
6,621
Percent
18.7%
63.5%
0.4%
1.0%
0.3%
12.9%
3.2%
22.5%
The table above shows the breakdown by ethnicity of the Southtown Tier 1 population.
The largest ethnic group is African American, which is growing slightly. The Hispanic
Page 22 of 46
Southtown Tier 1
portion of the population has grown since 2000 and is projected to continue growing,
while the percentage of the population that is White is declining.
Southtow n Tier 1 2012 Projected Household
Incom e
Southtow n Tier 1 2007 Household Incom e
6%
1% 1%
10%
22%
2%
2%
19%
9%
11%
12%
17%
14%
18%
17%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
13%
11%
15%
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
Income distributions have been shifting, especially in the categories of $75,000-$99,999
(6.6% in 2000 to an expected 11% in 2012) and $100,000-$150,000 (2.6%-9.9%).
Income gains, however, are not explained only by gains in upper income brackets, as
median household income is expected to increase on an inflation-adjusted basis from
$29,235 to $42,252. This rate of change is again roughly equivalent to that of the state
but lower than the nation. Southtown Tier 1 residents have an annual median disposable
household income of $28,167.
Southtow n Tier 1 Educational Attainm ent
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
re e
re e
re e
re e
rade i plo ma radua te
Deg r' s Deg te Deg
Deg
hG
D
t
G
e
o
9
t
l
o
N
a
o
o
n
a
i
N
l
r
o
,
a
c
,
o
e
he
ch
s th
lege
octo
ra d
As s
hS
Ba c
Les
Col
al/ D
th G
Hig
e
n
2
o
i
m
1
s
s
So
9th
rofe
's/P
r
e
t
Ma s
Southtow n Tier 1
State of MI
When compared with the state, Southtown’s educational profile is characterized as one
where fewer people have pursued degrees beyond high school and a greater number of
individuals have no diploma, high school or otherwise.
Page 23 of 46
Southtown Tier 1
Southtown Tier 1 Market Segmentation
•
Southtown Tier 1 Tapestry Segments
Metro City Edge (44.2% of Southtown Tier
44.2%
1 Study Area): Metro City Edge is comprised Metro City Edge
City
Dimensions
15.2%
of married-couple, single-parent, and
9.7%
multigenerational families. Grandparents are Rustbelt Traditions
Old
and
Newcomers
8.5%
caregivers in 4 percent of these households,
Great
Expectations
7.7%
twice the U.S. rate. The median age of this
segment is 29.1 years and this market has an Source: ESRI
average family size of 3.42, somewhat higher than the U.S. average. The majority of
residents are black. The median household income for this segment is $30,200; the
median net worth is $38,600. Although 78 percent of households derive income from
wages and salaries, 9 percent do receive public assistance. Nearly half of employed
residents work in service industries. Unemployment in this market is higher than
average.
•
City Dimentions (15.2% of Southtown Tier 1 Study Area): Most of these residents
are young, with a median age of 29.0 years. Households are a mix of types and
ethnic diversity is high. The median household income for this market is $26,800. Ten
percent of the households receive Supplemental Security Income; 11 percent receive
public assistance. Employed residents work full-time or part-time, primarily in the
service, manufacturing, and retail trade industry sectors. Unemployment is high and
educational levels are low. City Dimensions neighborhoods are a mix of housing types,
but more than half of the households live in apartments in multiunit structures.
•
Rustbelt Traditions (9.7% of Southtown Tier 1 Study Area): Rustbelt Traditions
neighborhoods are primarily a mix of married-couple families, single-parent families,
and singles who live alone, similar to the U.S. household type distribution. The median
household income is $45,300, slightly below that of the U.S. median. Half of the
employed residents work in white-collar jobs predominately in the service industry,
followed by manufacturing and retail trade. Overall, 80 percent of residents aged 25
years and older have graduated from high school, 12 percent hold a bachelor’s or
graduate degree, and 29 percent have attended college. Most residents live in
modest, single-family homes. They have lived, and worked in the same area for years.
Favorite leisure activities include bowling and fishing. Watching television is a common
pastime for Rustbelt Traditions residents.
•
Old and Newcomers (8.5% of Southtown Tier 1 Study Area): Old and Newcomers
neighborhoods are in transition, populated by renters who are starting their careers or
those who are retiring. The proportion of householders either in their 20s or aged 75
or older is higher than the proportion at the U.S. level. These neighborhoods have
more single-person and shared households than families. The median household income
and the median net worth are slightly below the U.S. medians. Educational attainment
is above average as well as college and graduate school enrollment. The distribution
of employed residents by occupation is similar to the U.S. distribution. Old and
Newcomers neighborhoods sustain a lot of transition. More than half the population
aged five years and older has moved in the last five years.
Page 24 of 46
Southtown Tier 1
•
Great Expectations (7.7% of Southtown Tier 1 Study Area): Young singles who live
diversity and racial composition of this segment are similar to overall U.S. (see pages
5-6 for statistics on he ethnic composition of the U.S). The median household income of
$36,600 and the median net worth of $66,400 is low compared to the U.S. levels as
are education levels. The manufacturing, retail, and service industry sectors are the
primary employers in this market. Approximately half of the households own their
homes; the other half rent. Great Expectations homeowners also enjoy a young and
active lifestyle, going out to dinner, to the movies, to bars, and to nightclubs.
Southtown Tier 1 Retail Sales Leakage
Excluding the Food Service and Drinking Places category, the retail industry of Southtown
is one where the Demand (resident spending of retail goods of $152 million) in general is
met by Supply (retail sales in the area of approximately $149 million). However, this
masks an unusual trend of very large surpluses and very large leakages in numerous subcategories of retail.
Page 25 of 46
Southtown Tier 1
Southtown Tier 1 Retail Sales Leakage
Industry Group
Supply (Retail
Sales)
$33,911,324
Demand (Retail
Potential)
$38,653,998
$3,485,205
$5,857,626
$825,894
$4,443,022
$3,617,128
$9,964,137
$4,800,504
($5,163,633)
Retail Gap
$4,742,674
$2,372,421
$20,513,849
$26,351,692
$5,837,843
$11,414,984
$24,267,284
$12,852,300
$257,592
$801,732
$8,841,273
$1,282,676
($7,558,597)
$544,140
$10,431,339
$3,431,358
($6,999,981)
$13,129,394
$19,585,066
$6,455,672
$3,664,155
$8,311,525
$4,647,370
$2,917,011
$6,702,021
$3,785,010
$747,144
$1,016,598
$269,454
$0
$592,906
$3,223,391
$2,658,863
$592,906
($564,528)
$1,235,397
$1,323,276
$87,879
$1,987,994
$1,335,587
($652,407)
$44,366,152
$23,590,782
($20,775,370)
$4,174,886
$1,510,636
($2,664,250)
$174,422
$304,465
$289,152
$312,687
$2,962,502
$89,154
$130,043
$23,535
($2,873,348)
$748,810
$804,330
$55,520
$1,550,742
$12,745,922
$11,195,180
$2,589,745
$23,000,440
$20,410,695
$0
$9,708,260
$9,708,260
$2,293,038
$10,376,825
$8,083,787
$80,500
$1,359,345
$1,278,845
$216,207
$1,556,010
$1,339,803
For example, each of the following sub-categories had a half million dollars or more of
surplus Supply:
•
•
•
•
•
•
•
Auto Parts, Accessories, and Tire Stores ($0.7 million)
Building Material and Supplies Dealers ($5.5 million)
Beer, Wine, and Liquor Stores ($7.6 million)
Health & Personal Care Stores ($7.0 million)
Book, Periodical, and Music Stores ($0.7 million)
Other General Merchandise Stores ($31.2 million)
Used Merchandise Stores ($2.9 million)
At the same time, the following sub-categories had a half million or more in sales leakage:
•
•
•
•
•
•
•
Automobile Dealers ($2.8 million)
Other Motor Vehicle Dealers ($2.7 million)
Furniture Stores ($2.0 million)
Electronics & Appliance Stores ($3.6 million)
Grocery Stores ($12.9 million)
Specialty Food Stores ($0.6 million)
Gasoline Stations ($6.5 million)
Page 26 of 46
Southtown Tier 1
•
•
Clothing Stores ($3.8 million)
Jewelry, Luggage, and Leather Goods Stores ($0.6 million)
In addition, the entire Food Service and Drinking Places category has a substantial net
leakage of over $20 million as Southtown consumers take their money and dine
elsewhere. This is explained largely by the almost total absence of full service restaurants
and relatively sparse number of limited-service restaurants in the area.
surplus.”
Southtow n Tier 1 Leakage/Surplus Factor by Industry Subsector
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
Gasoline Stations
Nonstore Retailers
Page 27 of 46
Southtown Tier 1
Southtown Business Inventory
The table to the right shows the results of the business
inventory that Neighborhood Ventures conducted in
Southtown. There are a number of industrial type businesses
in Southtown, in addition to a variety of retail and service
businesses, which include a relatively high number of
personal care services such as hair salons and barber shops,
as well as automotive service centers. Churches and nonprofit organizations are also very present in the microregion.
There are limited retail options in Southtown, according to
this inventory. There are relatively few clothing stores in the
micro-region and most of the restaurants included in this
table are not full-service restaurants.
Southtown Business Inventory
Type
Number
Accounting/Tax
2
Appliances
2
Architect
1
Automotive Sales
8
Automotive Services
20
Bank/Financial Services
1
Bar/Night Club
6
Beauty
1
Business Service
2
Café/Coffeehouse
1
Church/ministry
43
Cleaning
1
Clothing
11
Construction
6
Convenience
10
Dollar
2
Educational
2
Electric
1
Electronic
1
Engraving
1
Funeral
1
Furniture
1
Gas
4
Gifts
1
Glass
1
Government
5
Grocery
1
Hair Salon/Barber
16
Hardware
1
Health Care/Service
1
Heating/Cooling
2
Home Improvement
1
Insurance
2
Keys
1
Laundry
1
Marketing
1
Medical/Dental
2
Modeling
1
Music
1
Organization
24
Pest Control
1
Pharmacy
1
Plumbing
1
Printing
2
Property Management
1
transpiration
1
Realty
3
Rent to Own
1
Restaurant
15
Retail, General
1
Sales
2
Secondhand
2
Shoes
1
Specialty
1
Storage
2
Surveying
1
Technological
1
Tobacco
1
Transportation
3
Source: Neighborhood Ventures,
Camoin Associates
Page 28 of 46
Southtown Tier 2
Southtown Tier 2 Study Area
The study area shown below is bounded to the north by Burton Street, to the south by 60th
Street SE, to the east Division Avenue and to the west by Fulton Avenue. This area is
hereafter referred to as “Southtown Tier 2.” This area was defined by Neighborhood
Ventures and local business owners as the area outside of the Southtown micro-region
from which many customers come to frequent local businesses in Southtown.
Page 29 of 46
Southtown Tier 2
Southtown Tier 2 Demographics
As shown in the table to the right, basic
demographic data for the region
reflects steady growth in population
and the number of households.
Average household size is very slowly
shrinking, and the number of families is
expected to rise, but not at the same
rate as the number of households. Most
people own the homes they live in. The
median age is slowly rising.
Southtown Tier 2 Basic Demographic Indicators
2000
2007
2012
Population
81,816
84,872
87,191
Households
33,081
34,878
36,008
Families
20,603
20,864
20,900
2.44
2.40
2.39
Owner Occupied HUs
19,815
20,736
21,193
Renter Occupied HUs
13,266
14,142
14,815
32.6
33.4
33.7
Median Age
Source: ESRI
Southtown Tier 2 Population by Age
18.0%
16.0%
2007
14.0%
2012
Percent
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
The graph above shows the age distribution in the trade area in 2007 and the projected
age distribution in 2012. Compared to state averages, the 25-34 age group represents a
large share of the population in the Southtown Tier 2 region. The region is projected to
lose 25 to 54 year olds between 2007 and 2012, while the 55 to 74 age groups are
expected to grow as a percentage of total population.
Southtown Tier 2 - Race and Ethnicity
2000
2007
White Alone
Black Alone
Asian Alone
Two or More Races
Number
62,311
10,889
340
3,959
29
1,943
2,345
4,459
Percent
76.20%
13.30%
0.40%
4.80%
0.00%
2.40%
2.90%
5.50%
Number
59,990
13,255
351
5,866
40
2,560
2,810
5,899
2012
Percent
70.70%
15.60%
0.40%
6.90%
0.00%
3.00%
3.30%
7.00%
Number
58,283
14,782
357
7,537
52
3,046
3,135
7,035
Percent
66.80%
17.00%
0.40%
8.60%
0.10%
3.50%
3.60%
8.10%
The table above shows the ethnic composition of Southtown Tier 2, which has experienced
some significant changes since 2000 that are projected to continue. The percentage of the
population that is White is declining at a fast rate, while the percentages of African
Americans, Asians and Hispanics are increasing.
Page 30 of 46
Southtown Tier 2
Southtow n Tier 2 2012 Projected Household
Incom e
4%
7%
5%
Southtow n Tier 2 2007 Household Incom e
3% 2%
12%
8%
9%
11%
16%
9%
10%
14%
13%
14%
17%
23%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
23%
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
Median household income in the Southtown Tier 2 region is $53,689 and expected to
increase to $62,261 in 2012, which is in line with state averages and trends. Increases in
income are evenly spread between the three top brackets, with the income bracket
$35,000 to $49,999 expected to grow the most from 12.1% in 2007 to 16.3% in 2012.
It is expected that the four least affluent income groups will become an increasingly
smaller percentage of the population. Southtown Tier 2 residents have an annual median
disposable household income of $40,512.
Southtow n Tier 2 Educational Attainm ent
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
re e
re e
re e
re e
rad e i ploma ra dua te
Deg r' s Deg te Deg
Deg
D
th G
G
e
o
9
t
o
l
a
N
o
o
a
n
i
N
l
,
a
oc
he
ch o
cto r
d e,
s th
lege
Ass
Ba c
Gra High S
l/ Do
Les
Col
a
h
t
n
e
2
o
i
-1
Som
fess
9th
/Pro
's
r
e
t
Mas
Southtow n Tier 2
State of MI
Educational attainment in the Southtown Tier 2 region is slightly higher than the Michigan
State average, with a high concentration of individuals with a Bachelor’s degree.
Page 31 of 46
Southtown Tier 2
Southtown Tier 2 Market Segmentation
•
Southtown Tier 2 Tapestry Segments
Milk and Cookies (15.2% of Southtown
15.2%
Tier 2 Study Area): This segments Milk and Cookies
Young
and
Restless
13.4%
represents young, affluent married
11.9%
couples who are starting their families or Aspiring Young Families
Main
Street,
USA
8.8%
already have young children. The
Metropolitans
7.8%
median age is 33.5 and nearly half of
Source: ESRI
the households include children. The
diversity of the population is comparable to the U.S. Almost all income is derived
from wages and this segment has one of the highest concentrations of multiple
wage earners in the family. The median household income is $60,700, and
approximately 58 percent of residents aged 25 years and older hold a
bachelor’s or graduate degree or have attended college. They are often insured
and have car loans. Many households own a dog. In their spare time, residents
watch professional sports and do maintenance work on their homes and vehicles.
•
Young and Restless (13.4% of Southtown Tier 2 Study Area): This young, onthe-go population has a median age of 28.9 years. Fifty-nine percent of these
households are either single person or shared. Neighborhoods are diverse. The
median household income is $40,900, and the median net worth is $87,000.
Young and Restless is an educated market; many have a college education or are
enrolled in college or graduate school. Career is a common element shared by
these ethnically diverse residents. Both men and women participate in the labor
force at much higher rates than the U.S. average and most employed residents
work in professional, sales, service, and office/administrative support positions. A
large share of this segment rent their homes and this market is very mobile. The
Young and Restless residents rely on the Internet to communicate with friends and
families, shop, bank, and look for new employment opportunities.
•
Aspiring Young Families (13.4% of Southtown Tier 2 Study Area): Most
Aspiring Young Families residents are young, startup families, a mix of marriedcouple families with and without children and single parents with children. Median
age is 30.4 years with a high degree of ethnic diversity. The median household
income is $47,200, and income is derived mainly from wages. The median net
worth for this market is $94,300. Approximately 60 percent of employed
residents have professional, management, sales, or office/ administrative support
positions. Aspiring Young Families residents spend much of their discretionary
income on their children and their homes. Leisure time includes dining out, dancing,
going to the movies, and attending professional football games.
•
Main Street USA (8.8% of Southtown Tier 2 Study Area): Main Street, USA
neighborhoods are a mix of household types, similar to the U.S. distribution. The
median household income for this market is a comfortable, $51,200, mainly
derived from wages. Residents of Main Street, USA are active members of their
communities, participating in local civic issues and working as volunteers. They take
trips to the beach, visit theme parks, and occasionally go on domestic vacations. In
the evenings, they might eat out or play billiards at their favorite bar.
Householders invest in small home remodeling and improvement projects.
Page 32 of 46
Southtown Tier 2
•
Metropolitans (7.8% of Southtown Tier 2 Study Area): Metropolitans residents
favor city living in older neighborhoods. Approximately half of the households are
composed of singles who live alone or with others. However, married- couple
families comprise 40 percent of households. The median age is 37.1 years and
ethnic diversity among this group is low. Metropolitan residents are educated and
half of employed persons hold professional or management positions. The median
household income is $57,600 and the median net worth is $134,500. They travel
frequently, personally and for business. Leisure activities include going to museums
and zoos, watching foreign films on video or DVD, and reading epicurean
magazines. Preferring to own and use a laptop computer, they use the Internet
daily.
Page 33 of 46
South West Tier 1
South West Micro-Region
South West Tier 1 Study Area
The third study area is shown in red on the map below and will be referred to hereafter
as “South West Tier 1.” South West is comprised of the neighborhoods surrounding the
Grandville Avenue and Burton Heights business districts.
Page 34 of 46
South West Tier 1
South West Tier 1 Demographics
For the most part, the demographics of
South West are changing at an almost
imperceptable rate.
Population,
households, average household size, and
the relative percentage of owner
occupied housing units are virtually
unchanged. The number of families is
decreasing slightly compared to a
positive growth rate for the nation.
South West Tier 1 Basic Demographic Indicators
2000
2007
2012
Population
18,807
19,282
19,562
Households
5,193
5,211
5,254
Families
3,936
3,846
3,796
3.62
3.70
3.72
Owner Occupied HUs
3,180
3,187
3,167
Renter Occupied HUs
2,013
2,024
2,088
24.8
25.8
25.7
Median Age
South West Tier 1 Population by Age
25.0%
2007
Percent
20.0%
2012
15.0%
10.0%
5.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
From 2007-2012, the median age in South West will remain virtually unchanged at 25
years old, much younger than a national average of 36.7. However, the proportion of
the population in the 15-24 and 45-65 age ranges will increase while the 25-44 range
will decrease. As was the case for Southtown, South West has a disproportionate
concentration of its population in the 0-35 categories, dropping off quickly in age groups
over 35. Since the population growth trend is flat, this means that adults over 35 are
leaving the area.
South West Tier 1 - Race and Ethnicity
2000
2007
White Alone
Black Alone
Asian Alone
Two or More Races
Number
10,049
2,736
174
177
41
4,530
1,100
9,632
Percent
53.4%
14.5%
0.9%
0.9%
0.2%
24.1%
5.8%
51.2%
Number
9,607
2,822
155
223
49
5,248
1,178
10,980
Percent
49.8%
14.6%
0.8%
1.2%
0.3%
27.2%
6.1%
56.9%
2012
Number
9,356
2,822
141
259
53
5,710
1,221
11,813
Percent
47.8%
14.4%
0.7%
1.3%
0.3%
29.2%
6.2%
60.4%
The table above shows the racial composition of South West Tier 1, which has a rapidly
growing Hispanic segment that makes up the majority of the population. The percentage
of the population that is White is declining. The African American population in South
West Tier 1 appears to remain relatively stable over the time period. A significant and
Page 35 of 46
South West Tier 1
growing portion of this population is self-categorized as “Some Other Race,” which likely
captures a significant number of people who consider themselves to be Hispanic. One of
the problems with the 2000 Census data is that it does not include a separate ethnic
category for Hispanics. To compensate for this, ESRI estimates the number of people of
Hispanic origin within a given geographic area based on the Census data and its own
statistical models. The table above shows both projections for all ethnic categories
included in the Census data, as well as a separate category for Hispanics. Therefore, the
total number of people shown in the table does not equal the total population of this
micro-region since the numbers shown in “Hispanic Origin (Any Race)” are already counted
in the other categories listed above.
South West Tier 1 2007 Household Incom e
7%
2%
1%
South West Tier 1 2012 Projected Household
Incom e
2%
13%
2%
11%
13%
12%
11%
13%
12%
10%
12%
20%
20%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
25%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
14%
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
Household income, on the other hand is growing at a fast annual rate of 3.6% and
median household income is projected to rise from $44,806 to $53,458 by 2012,
compared to a national trend of 3.3% annual growth. The biggest changes to the various
brackets shown above are a decrease of 5.6 percentage points in the $35,000-$49,999
bracket, an increase of 4.2 percentage points in the $50,000-$74,999 category and a 6
percentage point increase in the $100,000-$149,000 bracket. South West Tier 1
residents have an annual median disposable household income of $32,842.
Page 36 of 46
South West Tier 1
South West Tier 1 Educational Attainm ent
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
re e
re e
re e
re e
rade i plo ma radua te
Deg r' s Deg te Deg
Deg
hG
D
t
G
e
o
9
t
l
o
N
a
o
a
N
,
an
o ci
he lo
ch o
cto r
de,
s th
lege
Ass
Bac
Gra High S
l/ Do
Col
Les
a
h
t
e
n
2
o
i
-1
Som
fess
9th
/Pro
s
'
r
te
Ma s
Southw est Tier 1
State of MI
The educational attainment distribution in South West tells a somber story of just under
half the 25+ year old population benefiting from the completion of a high school
education. Relatively few residents of South West have done post-secondary class work
or hold advanced degrees.
South West Tier 1 Market Segmentation
•
South West Tier 1 Tapestry Segments
Las Casas (38.2% of South West Tier 1 Study
Las
Casas
38.2%
Area): This is a young, predominately Hispanic
Industrious
Urban
Fringe
31.0%
segment. Nearly half of the residents are
12.6%
younger than 25 years; two out of three Rustbelt Traditions
NeWest Residents
7.2%
residents are younger than 35 years and
City Commons
5.6%
households have the highest average household
size (4.27) of any market segment. The median household income of $35,400 and the
median net worth of $61,600 are relatively low compared to the national medians.
Most households derive their income from wages and salaries; some receive
Supplemental Security Income or public assistance income. Employed residents work
predominantly in the service and manufacturing industry sectors. Educational
attainment levels are much lower than national levels. Family outings are a favorite
recreational activity.
•
Industrious Urban Fringe (31.0% of South West Tier 1 Study Area): Family is central
to Industrious Urban Fringe neighborhoods. The comparatively low median age of 28.5
years reflects the high proportion of children. Fifty-seven percent of these residents
are Hispanic. The median household income is $40,200; the median net worth is
$60,900. The large average household size of 3.42 lowers the amount of
discretionary income compared to segments with similar income. Settled on the fringe
of metropolitan cities, these households take advantage of the proximity to
metropolitan cities to pursue employment opportunities. Educational attainment levels
are lower than U.S. levels, and the unemployment rate is higher. Single-family
Page 37 of 46
South West Tier 1
dwellings are the dominant household structure in these neighborhoods. Having pets,
particularly dogs, is an integral part of their family lifestyle.
•
Rustbelt Traditions (12.6% of South West Tier 1 Study Area): Rustbelt Traditions
neighborhoods are primarily a mix of married-couple families, single-parent families,
and singles who live alone, similar to the U.S. household type distribution. The median
household income is $45,300, slightly below that of the U.S. median. Half of the
employed residents work in white-collar jobs predominately in the service industry,
followed by manufacturing and retail trade. Overall, 80 percent of residents aged 25
years and older have graduated from high school, 12 percent hold a bachelor’s or
graduate degree, and 29 percent have attended college. Most residents live in
modest, single-family homes. They have lived, and worked in the same area for years.
Favorite leisure activities include bowling and fishing. Watching television is a common
pastime for Rustbelt Traditions residents.
•
NeWest Residents (7.2% of South West Tier 1 Study Area): The NeWest Residents
market possesses the third largest average family size (4.01) of all the Community
Tapestry segments. Children are present in 54 percent of the households, either in
married-couple families or single-parent families. This segment has a median age of
25.3 years and nearly 38 percent of householders are younger than 35 years of age.
Hispanic cultures are predominant in this family-oriented segment although other race
groups are also represented in this market, making it one of the most diverse of all
markets. The median net worth is about $45,400. Because many in this segment are
new residents to the Nation, language is a barrier. Low educational attainment levels
limit their employment options. Most residents who are employed work in service and
skilled labor occupations. The median household income for this segment is $26,600.
•
City Commons (5.6% of South West Tier 1 Study Area): Single-parent families or
singles who live alone comprise most of these very young households. With a median
age of 24.2 years, this represents a market where approximately half of the
households have children. Some homes are multigenerational, with adult children still
living at home or grandparents providing child care. This market is not ethnically
diverse; 82 percent of the residents are black. Approximately 31 percent of the
employed residents work in service occupations (twice the national level) and many
households receive public assistance. Because educational levels are low and their
employment options are limited, more residents work in part-time than in full-time
positions. Unemployment is at 27 percent, almost four times the national level. The
median household income is $16,300, and the median net worth is $21,800. This
group visits nearby city parks and playgrounds for recreation.
Page 38 of 46
South West Tier 1
South West Tier 1 Retail Sales Leakage
Overall, the retail industry in South West is very healthy, with total Supply (retail sales)
exceeding Demand (South West residents’ retail spending) by $42 million. With a few
notable exceptions, all local demand is being met by local retailers and a substantial
amount of retail spending from non-residents is flowing into South West.
South West Tier 1 Retail Sales Leakage
Supply (Retail
Sales)
$41,436,314
Demand (Retail
Potential)
$25,636,749
$1,159,134
$3,773,890
$3,318,625
$2,974,125
($344,500)
$35,444,097
$3,058,572
($32,385,525)
$18,607,498
$17,116,188
($1,491,310)
$16,383,792
$15,779,801
($603,991)
$1,238,606
$533,089
($705,517)
($181,802)
Industry Group
Retail Gap
($15,799,565)
$2,614,756
$985,100
$803,298
$1,780,438
$2,066,792
$12,131,076
$12,535,711
$404,635
$1,957,366
$5,297,628
$3,340,262
$1,815,117
$4,249,091
$2,433,974
$0
$653,140
$653,140
$142,249
$395,397
$253,148
$794,513
$1,792,292
$997,779
$357,546
$935,757
$578,211
$286,354
$436,967
$856,535
$32,498,249
$15,214,967
($17,283,282)
$419,568
$2,077,480
$931,042
($1,146,438)
$0
$170,130
$170,130
$843,562
$199,068
($644,494)
$146,538
$61,408
($85,130)
$1,087,380
$500,436
($586,944)
$686,269
$8,061,080
$7,374,811
$3,354,010
$14,453,035
$11,099,025
$0
$6,088,492
$6,088,492
$1,892,953
$6,568,566
$4,675,613
$585,456
$860,542
$275,086
$875,601
$935,435
$59,834
Of the major categories, the following had substantial surplus supply:
•
Motor Vehicle & Parts Dealers ($15.8 million)
Page 39 of 46
South West Tier 1
•
•
•
•
Bldg Materials, Garden Equip. & Supply Stores ($32.4 million) - This large surplus
seems to be due to the existence of several building supply, plumbing and
appliance stores in South West that likely draw customers from all over the Grand
Rapids area.
Food & Beverage Stores ($1.5 million)
General Merchandise Stores ($17.3 million)
Miscellaneous Store Retailers ($1.1 million)
Despite these very large surpluses, there are a few instances of retail leakage in the
major categories as well:
•
•
•
•
Furniture & Home Furnishings Stores ($2.6 million)
Clothing and Clothing Accessories Stores ($3.3 million )
Sporting Goods, Hobby, Book, and Music Stores ($1.0 million)
Food Services & Drinking Places ($11.1 million)
surplus.”
South West Tier 1 Leakage/Surplus Factor by Industry Subsector
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
Gasoline Stations
Nonstore Retailers
Page 40 of 46
South West Tier 1
South West Business Inventory
South West Business Inventory
The table to the right shows the number of
different business types in South West,
according to an inventory of businesses
compiled by Neighborhood Ventures.
Interestingly, the largest category is churches
and ministries, with 36 present in the area.
Of commercial businesses, automotive
services and repair shops are at the top of
the list, followed closely by grocery and
convenience stores. Personal care services
also seem to be a high priority among local
consumers illustrated by the 15 salons in the
area. In general, the area holds a wide mix
of retail and services, with a number of small
specialty stores offering clothing, home
decorating supplies, antiques, electronics and
plumbing supplies. There are a few
restaurants and coffee shops, as well as a
handful of bars and night clubs.
Type of Business
Antiques
Appliance
Automotive Service & Repair
Bank/Financial Service
Bar/Night Club
Bowling
Business Services
Business, Tax, Accounting
Cell phones, Accessories, Pager Services
Church & ministry
Clothing store
Communications
Construction
Convenience/Gas Station
Educational
Electronics
Entertainment
Financial
Food/Retail
Gallery
Gas
Gift
Government
Number of
Facilities
1
4
26
4
4
1
8
7
1
36
8
1
6
6
12
1
1
6
2
1
1
1
3
Grocery/Food/Convenience
21
Health Care/Service
8
Home Decorating
6
Manufacturer-automotive
1
Marketing Services
1
Media
3
Medical/ Dental
4
Music
2
Organization
12
Other/ Appliance
1
Other/ Business Machines
1
Other/ Daycare
1
Other/ Exterminator
1
Other/ Tattoo
1
Other/Shoe Repair
1
Other/Upholstery
1
Photography studio - portraits
2
Plumbing Supplies
2
Printing
3
Probation/Community Corrections
2
Prop. Mgt.
1
Restaurant
12
Restaurant -Coffee-Bakery
3
Retail
6
Retail Miscellaneous
5
Roofing, siding, windows, equipment
1
Salon
15
School-Education
1
Security
2
Sporting/ Recreational
3
Technology Resources
3
Transportation
3
Travel/ Hotel
4
Video
1
Wholesale/ Specialty building materials
4
Source: Neighborhood Ventures, Camoin Associates
Page 41 of 46
South West Tier 2
South West Tier 2 Study Area
The South West Tier 2 study area is comprised entirely of the City of Wyoming, as shown
in red on the map below.
Page 42 of 46
South West Tier 2
South West Tier 2 Demographics
South West Tier 2 Basic Demographic Indicators
The demographics of the South West Tier
2000
2007
2012
2 region indicate that population,
69,368
72,070
74,004
households and families are growing but Population
26,536
27,885
28,714
at a very slow rate. Although renter Households
17,540
17,750
17,756
occupied
households
account
for Families
2.60
2.57
2.56
approximately one third of the total Average Household Size
17,948
18,795
19,179
households in the area, the number is Owner Occupied HUs
8,588
9,090
9,535
anticipated to grow at a faster rate than Renter Occupied HUs
31.3
32.3
33.1
owner occupied homes. The median age Median Age
of this region is lower than state
averages and is not anticipated to increase at the same rate as other regions.
South West Tier 2 Population by Age
20.0%
18.0%
2007
16.0%
2012
Percent
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
0-4
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
75 - 84
85 +
Age Groups
The population distribution of the South West Tier 2 region shows a high concentration of
adults ages 25 to 54. The baby boomer effect is also present, represented by an increase
in the 55 to 64 year old age group by 2012.
South West Tier 2 - Race and Ethnicity
2000
2007
White Alone
Black Alone
Asian Alone
Two or More Races
Number
58,491
3,362
406
2,025
27
3,260
1,797
6,704
Percent
84.3%
4.8%
0.6%
2.9%
0.0%
4.7%
2.6%
9.7%
Number
57,716
4,225
421
3,019
38
4,451
2,200
9,084
Percent
80.1%
5.9%
0.6%
4.2%
0.1%
6.2%
3.1%
12.6%
2012
Number
56,974
4,764
430
3,896
48
5,404
2,488
10,969
Percent
77.0%
6.4%
0.6%
5.3%
0.1%
7.3%
3.4%
14.8%
The table above shows the ethnic composition of South West Tier 2. Whites currently make
up the largest percentage of the population, but that is declining quickly over time as the
Hispanic segment of the population grows significantly. Increases are also seen in Black,
Asian and Some Other Race, although they makeup smaller percentages of the
population.
Page 43 of 46
South West Tier 2
South West Tier 2 2007 Household Incom e
3% 1%
10%
7%
9%
South West Tier 2 2012 Projected Household
Incom e
6%
4% 4%
8%
16%
9%
15%
12%
14%
16%
17%
26%
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
23%
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
< $15,000
$25,000 - $34,999
$50,000 - $74,999
$100,000 - $149,999
$200,000+
$15,000 - $24,999
$35,000 - $49,999
$75,000 - $99,999
$150,000 - $199,999
In 2007 median household income in the South West Tier 2 region is projected at $53,819
which is slightly lower than the state average of $54,480. Median household income is
growing faster in the region and is expected to reach the state level by 2012. The
percentage of households in the income group $100,000 to $149,999 is expected to
have the strongest growth, increasing from 10.2% of the population in 2007 to 15.7% in
2012. South West Tier 2 residents have an annual median disposable household income
of $40,421.
South West Tier 2 Educational Attainm ent
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
a
re e
re e
re e
re e
ua te
rad e
lom
Deg r' s Deg te Deg
Deg
Di p ol Gra d
th G
e
o
9
t
o
a
N
o
n
a
i
N
l
o
,
a
oc
he
ctor
d e,
Sch
s th
lege
Ass
Ba c
Gra
l/ Do
igh
Les
Col
a
h
t
H
e
n
2
o
i
-1
Som
fess
9th
/Pro
's
r
e
t
Ma s
Southtow n Tier 2
State of MI
Educational attainment in the Southtown Tier 2 area is concentrated in the lower
educational levels. A smaller percentage of the population, compared to state averages,
receive a Bachelor’s or higher degree.
Page 44 of 46
South West Tier 2
South West Tier 2 Market Segmentation
South West Tier 2 Tapestry Segments
•
31.0%
Rustbelt Traditions (31.0% of South West Tier Rustbelt Traditions
12.1%
2
Study
Area):
Rustbelt
Traditions Aspiring Young Families
7.8%
neighborhoods are primarily a mix of married- Great Expectations
Boomburbs
7.3%
couple families, single-parent families, and
Inner City Tenants
7.1%
singles who live alone, similar to the U.S.
household type distribution. The median household income is $45,300, slightly below
that of the U.S. median. Half of the employed residents work in white-collar jobs
predominately in the service industry, followed by manufacturing and retail trade.
Overall, 80 percent of residents aged 25 years and older have graduated from high
school, 12 percent hold a bachelor’s or graduate degree, and 29 percent have
attended college. Most residents live in modest, single-family homes. They have lived,
and worked in the same area for years. Favorite leisure activities include bowling and
fishing. Watching television is a common pastime for Rustbelt Traditions residents.
•
Aspiring Young Families (12.1% of South West Tier 2 Study Area): Most Aspiring
Young Families residents are young, startup families, a mix of married-couple families
with and without children and single parents with children. Median age is 30.4 years
with a high degree of ethnic diversity. The median household income is $47,200, and
income is derived mainly from wages. The median net worth for this market is
$94,300. Approximately 60 percent of employed residents have professional,
management, sales, or office/ administrative support positions. Aspiring Young Families
residents spend much of their discretionary income on their children and their homes.
Leisure time includes dining out, dancing, going to the movies, and attending
professional football games.
•
Great Expectations (7.8% of South West Tier 2 Study Area): Young singles who live
diversity and racial composition of this segment are similar to the U.S. levels (see
pages 5-6 for statistics on the ethnic composition of the U.S.). The median household
income of $36,600 and the median net worth of $66,400 are low compared to the
U.S. values. Education levels are slightly lower than US averages. The manufacturing,
retail, and service industry sectors are the primary employers in this market.
Approximately half of the households own their homes. Great Expectations homeowners
also enjoy a young and active lifestyle. They go out to dinner, to the movies, to bars,
and to nightclubs.
•
Boomburbs (7.3% of South West Tier 2 Study Area): The newest additions to the
suburbs, these communities are home to young families who are living a busy, upscale
lifestyle. Boomburbs is the fastest-growing market in the United States and is also
home to one of the highest concentrations of young families with children. The median
age is 33.8 years. Residents are well educated and the labor force is employed
primarily in management, professional, and sales occupations. The median household
income is $103,700, which is more than double that of the U.S. median.
Homeownership and median home values are high. Their product preferences reflect
Page 45 of 46
South West Tier 2
their suburban lifestyle. They tend to employ professional household cleaning services
and family vacations are a top priority for these residents.
•
Inner City Tenants (7.1% of South West Tier 2 Study Area): Inner City Tenants
residents are a microcosm of urban diversity. This multicultural market is younger than
average, with a median age of 27.8 years. Composed of a mix of household types,
turnover is high in these neighborhoods because many individuals are enrolled in
nearby colleges and work part-time. These neighborhoods are also a stepping-stone
for recent immigrants. The median household income for this segment is $30,800; the
median net worth is $56,100. Because few own their homes, most of their net worth
comes from savings. This market has twice the national level of residents who work in
the accommodation/ food services industry. Inner City Tenants residents go to the
movies and attend professional football and basketball games.
Page 46 of 46
Appendix I
Strategy Matrix
NEIGHBORHOOD VENTURES BUSINESS RECRUITMENT STRATEGY MATRIX
UPTOWN MICRO-REGION
#
1.0
Goal/ Action
Speciality/organic grocery store
1.2
Specialty dining
1.3
Additional boutique retail shops
1.4
Coffee shops, cafes, pubs, bar, wine bar
1.5
Independent movie theater
1.6
Electronics, gaming
1.7
Health & wellness services: spas, pilates, yoga
1.8
Unique furniture & home furnishings stores
2.0
Comments/Detail
In addition, NV should identify and pursue other businesses that
would serve local needs, such as banks.
Businesses,
residents,
realtors,
property
owners, Local
First
Reach out to existing business owners in these categories already in
the Grand Rapids area to explore possibility of opening a new location
in Uptown; outreach to local colleges (MBA programs) to generate
Immediate and interest in Uptown among young entrepreneurs; target market to
ongoing
existing microenterprise training programs in the Grand Rapids area to
find people looking for space for their new business. Create an Uptown
marketing sheet to hand out to people that captures the demographic
and sales leakage information in the Mind the Gap Report.
Immediate and Create incentive program with realtors to lease vacant neighborhood
ongoing
business space
Garden supply & small hardware stores
Emphasize Filling Small Retail Spaces
2.1
Continue to educate local realtors of the desired retail
business types for Uptown.
Property
owners,
realtors, Local
First
2.2
Funnel business owners looking for space to realtors.
Realtors
3.0
Timeframe
Recruit Business Types Identified in Report
1.1
1.9
Partners
Immediate and
ongoing
Establish a Business Improvement District/Corridor Improvement District for
Uptownage 1
3.1
Educate local businesses of the benefits and fairness
of a BID/CID that covers all of Uptown.
Volunteer local
business
owners &
residents,
Uptown group
6-8 months
Provides a structure and staff to handle maintenance, landscaping and
beautification, and security issues. Also can be used as a business
recruitment tool to show potential business owners that the
neighborhood is healthy and locating in Uptown is a good investment.
3.2
Begin formal process of forming a BID/CID in
Uptown.
Volunteer local
business
owners &
residents,
Uptown group
9-13 months
Intensive effort, local leaders needed.
4.0
Expand the Brand for Uptown
1 year
In order to solidify the overall brand, there must be buy-in by the
individual business associations and increased coordination,
identification as "Uptown" businesses.Education of business owners on
the benefits of retail clustering and how organizing as "Uptown"
provides that advantage in attracting customers will be important.
Complements the work to establish a BID/CID.
1 year
As part of #4.1 above, facilitate discussions to identify the traits that
make Uptown unique and to develop a vision statement for the microregion, along with a slogan or tag-line that reflects that vision.
4.1
Create an overarching merchant's association for
Uptown to coordinate events, marketing, etc.
Business
Associations,
Uptown Group
4.2
Further define Uptown's identity - what makes it
unique from other business districts in the City?
Business
Associations,
Uptown Group
4.3
Incorporate local colleges into business recruitment,
business development and district marketing efforts.
Since students and young adults are key market segments in Uptown,
Colleges,
Immediate and this could be a helpful perspective and partnership to build. Get
Uptown Group
ongoing
representatives of the colleges to attend regular business association
meetings.
4.4
Continue to promote district-wide usage of Uptown
logo, directional signage, etc.
Colleges,
Immediate and
Incorporate new tag-line into these materials after developed.
Businesses,
ongoing
Uptown Group
5.0
Enhance Marketing of Uptown
5.1
More actively promote micro-region to college and
young adult population of the City.
Colleges,
Businesses,
Uptown Group
2 yrs.
Use e-mail, text messaging, college websites, direct mail and other
media preferred by Gen X and Gen Y.
5.2
Sponsor annual street festival with music and
vendors that appeal to Gen X and Y’ers.
Colleges,
Businesses,
Uptown Group
2 yrs.
Possibilities: gaming event, music festival, arts festival.
5.3
Website and on-line calendar of events
Colleges,
Businesses
1 yr.
Post music performances, special events, sales, other activities. Start
monthly e-zine and distribute to mailing list, link on
rapidgrowthmedia.com and other pertinent sites.
1 year
Build on City's pilot program for wireless in the Uptown area. Explore
future possibility of paying for part of the wireless access with the
BID/CID once established; reach out to City and The Right Place for
help with funding for this.
6.0
Other
6.1
Identify a group of neighborhood residents and
business owners to act as NV's "ambassadors" to
Uptown.
6.2
Work to implement free wireless Internet in the
business districts of Uptown.
Business
associations
and local
community
groups
City, Colleges,
Businesses,
Right Place
SOUTHTOWN MICRO-REGION
#
1.0
1.1
2.0
Goal/ Action
Partners
Timeframe
Establish NV as a Primary Resource for Southtown Businesses.
Business
associations,
Continue outreach and relationship building with local local community Immediate and
ongoing
groups,
business owners.
business and
property owners
2.1
2.2
As NV's outreach builds more relationships with local
Organization
After 6 months
businesses, NV should refer appropriate businesses
identified in #2.1
for microenterprise training.
Urban League
6 months
Lobby business associations to set up regular, joint meetings to discuss
micro-region wide issues. Begin a visioning process after a few months
Businesses, Immediate and
to help identify potential initiatives and new brand themes for the microproperty owners
ongoing
region in the future. Lay the groundwork for establishing a BID/CID
through this process.
3.1
3.2
Identify individuals with leadership capacity to act as Local churches,
Grand Rapids
NV's "ambassadors" to Southtown and seek funding
Immediate and
for them to attend leadership seminars and economic philanthropists,
ongoing
business
or community development conferences and
owners
workshops.
4.1
4.2
Locally owned grocery store
4.3
4.4
Smaller electronics store (Radio Shack)
4.5
Childrens apparel
4.6
5.0
Businesses,
residents,
realtors, Local
First
business types for Uptown.
Property
owners,
realtors, Local
First
5.2
Realtors
Immediate and
ongoing
City, other nonprofits
1-2 years
6.1
Having a cadre of neighborhood leaders who understand and are
committed to doing the work needed to organize local businesses and
spearhead neighborhood improvement efforts will help NV achieve
longer-term goals in Southtown.
In addition to the business types listed here, NV should identify
and pursue other business that would serve local needs, such as
banks.
in Southtown; outreach to local colleges (MBA programs) to generate
interest in Southtown among young entrepreneurs; target market to
Immediate and
ongoing
find people looking for space for their new business. Create a
Southtown marketing sheet to hand out to people that captures the
demographic and sales leakage information in the Mind the Gap
Report.
5.1
6.0
NV does not currently have the capacity nor stated desire to provide
extensive microenterprise training services. However, NV does have
the local knowledge and contacts to identify another organization that
may be more well-suited to deliver this service. The Urban League is
one potential partner with a local presence and experience in
microenterprise training.
Build Leadership Capacity & Vision in Southtown
Work with existing business associations to create
one unified group that can pool resources (time,
money, volunteers) to address business concerns,
issues and coordinate promotion of entire microregion.
4.0
NV has already made progress in this area by dedicating one of its
staffers to outreach and marketing in the Southtown micro-region. This
dedicated staff person should try to meet at least once per year with
every business owner in Southtown and administer a brief business
survey to learn about their challenges and needs. These survey results
can inform future planning/funding needs for Southtown.
Enhance Available Business Development Assistance
Identify an appropriate partner to provide
microenterprise training to Southtown business
owners.
3.0
Comments
ongoing
business space
Other
Explore feasibility of a museum or other anchor
attraction that celebrates the neighborhood's history.
Page 2
Although outside the scope of a retail attraction strategy, this
complementary activity could have a transformative effect on the
neighborhood.
7.0
Expand the brand for Southtown
7.1
Create an overarching merchant's association or
group for Southtown to coordinate events, marketing,
etc.
Business
Associations,
Southtown
group
7.2
Further define Southtown's identity - what makes it
unique from other business districts in the City?
Business
Associations,
Southtown
group
7.3
Incorporate local colleges into business recruitment,
business development and district marketing efforts.
7.4
Continue to promote district-wide usage of Southtown
logo, directional signage, etc.
8.0
8.1
Colleges,
Southtown
group
Colleges,
Businesses,
Southtown
group
1 year
In order to solidify the overall brand, there must be buy-in by the
individual business associations and increased coordination,
identification as "Southtown" businesses.Education of business owners
on the benefits of retail clustering and how organizing as "Southtown"
provides that advantage in attracting customers will be important.
Complements the work to establish a BID/CID.
1 year
Facilitate discussions to identify the traits that make Southtown unique
and to develop a vision statement for the micro-region, along with a
slogan or tag-line that reflects that vision.
Since students and young adults are key market segments in
Immediate and Southtown this could be a helpful perspective and partnership to build.
ongoing
Get representatives of the colleges to attend regular business
association meetings.
Immediate and
Incorporate new tag-line into these materials after developed.
ongoing
Establish BID/CID for Southtown
Educate local businesses of the benefits and fairness
of a BID/CID that covers all of Southtown.
Volunteer local
business
owners &
residents,
Southtown
group
1 year
Page 3
Provides a structure and staff to handle maintenance, landscaping and
beautification, and security issues. Also can be used as a business
recruitment tool to show potential business owners that the
neighborhood is healthy and locating in Southtown is a good
investment.
SOUTH WEST MICRO-REGION
#
Goal/ Action
1.0
Build Relationships with South West Businesses
1.1
Intensify outreach and relationship building with local
business owners.
1.2
Dedicate an NV staff person to conducting outreach
in South West
2.0
2.1
3.0
Identify and train 5-10 South West neighborhood
leaders to be NV's "ambassadors."
3.2
As NV's outreach in South West creates stronger
relationships with local businesses, NV should refer
appropriate businesses owners for microenterprise
training.
NV faces some unique challenges in building trust with South West
businesses. Language and cultural barriers exist, as well as a general
Immediate and
mistrust of strangers offering assistance at no cost. NV may initially
ongoing
need to rely on local volunteers to bridge these communication gaps
and help build trust in NV among neighborhood business owners.
2 years
Person must be bilingual and ideally should have experience working
with first generation Hispanic immigrants.
Business
associations
and local
community
groups
2-3 years
NV staff person should find five bilingual volunteers and provide them
with leadership and community development basic training, particularly
on benefit of tools such as BIDs/CIDs to lay the groundwork for an
eventual BID/CID in South West.
Local
community
groups,
colleges,
churches
1 year
Must have bilingual trainers and have experience working with
immigrant populations for greatest chances of succes.
Organizations
After 6 months
identified in #3.1
4.1
Cafes, pubs catering to commuters
4.2
Children's apparel
4.3
4.4
4.5
Local
businesses,
residents,
realtors, Local
First
in South West; outreach to local colleges (MBA programs) to generate
interest in South West among young entrepreneurs; target market to
Immediate and
ongoing
find people looking for space for their new business. Create a South
West marketing sheet to hand out to people that captures the
demographic and sales leakage information in the Mind the Gap
Report.
ongoing
business space
5.1
business types for South West.
Property
owners,
realtors, Local
First
5.2
Realtors
Immediate and
ongoing
Business
Associations
2 yrs.
6.0
Comments
Enhance Available Business Development Assistance
3.1
5.0
Business
associations
and local
community
groups
Timeframe
Build Leadership Capacity in South West Business Community
Identify an appropriate partner to provide
microenterprise training to South West business
owners.
4.0
Partners
Establish brand for South West
Page 4
Work with neighborhood leaders to identify most unique traits of the
micro-region upon which a brand can be based.
OTHER ACTIONS NOT SPECIFIC TO ONE MICRO-REGION:
#
Goal/ Action
Partners
Timeframe
Comments
City of Grand
Rapids
Immediate and
ongoing
TBD
City Planning or Economic Development departments may have
contact information.
TBD
Should include in-person meetings at least annually with local business
owners to complete a standardized survey aimed at identifying
challenges that then inform City policies to promote retention of existing
businesses.
1.0
General retail recruitment activities
1.1
Ensure zoning and building codes promote development
of themed commercial districts and allows for outdoor
dining (i.e. color, architecture, etc.)
1.2
Where appropriate, contact local developers affiliated
with local or national franchises to present market
research and neighborhood retail objectives.
TBD
1.3
Establish formal city-wide business retention and
expansion program for all neighborhood commercial
districts
City of Grand
Rapids
2.0
Address blighted buildings and other social issues (real or perceived) that are acting as barriers to economic development
2.1
Identify Brownfields and blighted buildings for
remediation and/or redevelopment
City of Grand
Rapids
TBD
2.2
Lobby City officials to ensure redevelopment deals in
neighborhoods are identified and implemented
Neighborhood
Business
Alliance
immediate and
ongoing
2.3
Develop Neighborhood SWAT Team that includes
various City officials (Public Works, Highway, Law
Enforcement, Planning, Code Enforcement, Community
& Economic Development), institutional leaders, banking
officials, real estate professionals and developers to
provide input and assistance
TBD
TBD
2.4
Examine City judicial system and penalties to ensure
courts are enforcing building code and criminal violations
Neighborhood
Business
Alliance
1 yr.
2.5
Promote workforce training and higher education
opportunities to residents
TBD
TBD
2.6
Partner with local College or University to have
Landscape Architecture and Architecture students
develop streetscape plans for commercial districts.
TBD
TBD
3.0
Build partnership/ leadership capacity of neighborhoods districts
3.1
Establish neighborhood leadership program
3.2
Establish Community Advisory Committees that includes
City representatives
3.3
Engage City Colleges and Universities in revitalization
efforts (i.e. planning and design, management
consulting, small business technical assistance and
workforce training)
4.0
Secure funding for neighborhood and commercial district improvements
4.1
Lobby City for financial investment in maintenance,
capital improvements, cleaning, code enforcement,
eminent domain and other City services.
Neighborhood
Business
Alliance
Immediate and
Ongoing
4.2
Work with financial institutions to offer affordable
commercial loans.
Lighthouse
Communities
1 yr.
4.3
Pursue further local and national foundation support for
neighborhood improvements
Neighborhood
Immediate and
Business
ongoing
Alliance
4.4
Lobby State officials for financial supprt
Neighborhood
Business
Alliance
1 yr.
4.5
Work with City development office and other funders to
establish CDBG funded commercial building
improvement program.
Neighborhood
Business
Alliance
6-8 months
TBD
TBD
City of Grand
Rapids
TBD
TBD
TBD
Page 5
5.0
Identify vacant, blighted and underutilized properties for redevelopment
5.1
Contact local developers to present neighborhood
commercial and/or residential redevelopment vision
TBD
TBD
5.2
Identify and develop database of vacant, blighted and
underutilized properties. Identify key parcels for
redevelopment and work with City to present
redevelopment ideas and financial incentives for
developers
TBD
TBD
5.3
Work with the City's Economic Development Deparment
to discuss securing property for redevelopment
TBD
TBD
Page 6
Achieve success before tackling Southtown and South West