HOW TO RECRUIT BUSINESSES THAT COMPLEMENT YOUR … · Greenberg Development Services BENEFITS FROM...
Transcript of HOW TO RECRUIT BUSINESSES THAT COMPLEMENT YOUR … · Greenberg Development Services BENEFITS FROM...
HOW TO RECRUIT BUSINESSES THAT COMPLEMENT YOUR CULTURAL
ARTS DISTRICT
Greenberg Development Services
ECONOMIC BENEFITS
• Captures more tourism $
• Sales and property tax revenue
• Reuse of buildings
• Employ local residents.
• Connects residents to community and attracts “creative class”.
• Changes image
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BENEFITS FROM DISTRICT
Florida:
• 30,000 businesses
• $50 M in revenue
• 6% of all businesses
Pinellas County
• 2,500 businesses
• 14,000 jobs
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TYPES OF DISTRICTS
INSTITUTIONAL
• Museums
• Theaters
• Parks
NOCD
• Artists
• Events
• Smaller spaces
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TYPES OF DISTRICTS
ENTERTAINMENT
• Music
• Movie Theaters
• Specialty dining
• Food
INDUSTRIAL
• Film and Music
• Entrepreneurial
• Design
• IT
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COMMON PROBLEMS
• Not every town can support an arts district.
• Top down approach not based on local identity.
• Insufficient funding
• Inadequate infrastructure
• Not inclusive
• Districts are constantly evolving.
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• Pioneer stage- low rent, vacancy, crime, edgy
• Incubator stage – Investment, destination restaurants, residential
• Vibrant stage - Recognition, safe, investment momentum
• Transitional stage – image change, loss of anchors, gentrification
COMMON PROBLEMS
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BUSINESS RECRUITMENT COMMON PROBLEMS
• Traditional market studies can’t determine demand for art or cultural uses.
• Visitor sales are difficult to quantify.
• Insufficient critical mass or anchor tenants.
• Available space does not match demand or clients’ needs.
• Perception of business
district
• Lack of ready to move-in
space
• Space is too large or too
small
• Unrealistic prices
• Surrounding tenants
• Unmotivated or passive landlords
• Lack of commercial realtors
• Commissions
• Lack of qualified prospects
COMMON PROBLEMS
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1. Identify market opportunities.
2. Evaluate strengths and weaknesses.
3. Improve physical infrastructure.
4. Develop financial Incentives.
5. Establish a business retention program.
BUSINESS RECRUITMENT PROGRAMGetting Started
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Residents
Regional patrons
Visitors
UNDERSTANDING THE MARKET
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CULTURAL ARTS MARKET
• Trade Area
• Demographic Profile
• Sales Leakage
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TRADE AREA CULTURAL ARTS MARKET
• Visitor Bureau
• Intercept survey
• Focus group
• Lodging data
• Special events data
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DEMOGRAPHIC PROFILE
• Age
• Income
• Education
• Lifestyle
• Gen Y- 70 M (10-29)• Boomers 76 M ( 55-69)• Ethnically and racially diverse households
DEMOGRAPHIC PROFILE
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LIFESTYLES
• Hobbies
• Leisure activities
• Attitudes and
politics
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Greenberg Development Services
LIFESTYLES
• Sophisticated Visitor• Latte and Laptops• Dorms to Diploma• Urban Pioneers• Museum Mavens• Affluent Homeowners
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SUPPLEMENTAL DATA
• ESRI and Claritas Segmentation reports
•Survey of Public Participation in the Arts NEA
• Surveys
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• Actual vs. Potential Sales.
• Shows whether residents’ retail needs are being met.
• Identifies strengths and weaknesses and opportunities for new retail.
• Does not measure demand for non-retail.
SALES LEAKAGE ANALYSIS
• Housing
• Office
• Arts and Craft
• Educational
• Recreational
• Entertainment
DEMAND FOR NON-RETAIL
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Greenberg Development Services
BUSINESS ASSESSMENT
• Vacancies and deferred maintenance
• Obsolete selling space
• Underutilized upper floors
• Unrealistic sale or rent
• Skewed retail mix
• Underperforming retailers
• Parking
• Property owner motivation
COMMON PROBLEMS
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Greenberg Development Services
•Buildings
•Redevelopment sites
• Streetscape
PHYSICAL ASSESSMENT
REDEVELOPMENT SITES
STREETSCAPE
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• Types of uses• Location• Viability
BUSINESS MIX
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Greenberg Development Services
TYPES OF USES
LOCATION OF USES
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BUSINESS MIXLOCATION OF USES
• Business Visitations
• Business Surveys
• Business Roundtables
• Block Meetings
• Focus Groups
• Mystery Shopper
• “First Impressions
BUSINESS VIABILITY
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CULTURAL ANCHORS
• Seats
• Price
•Audience
• Financial stability
LODGING
• Rooms
• Price
BUSINESS VIABILITY
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• Financial incentives
• Image improvements
• Promotions and marketing
• Business skills
STRONG BUSINESS RETENTION PROGRAM
• State grants
• Local tax-based grants and
loans
• City fees reduction or
waivers
• TIF and Tax abatement
• Regulatory Flexibility
FINANCIAL INCENTIVES
GRANTS
− Acquisition/renovation
− Facades or Signs
− Upper-stories
− Marketing/ad campaign
− Relocation, Rent
− Energy
LOANS
− Banks
− USDA
− Slow money, Conservation Fund
− Foundations
− EDC
FINANCIAL INCENTIVES
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TECHNICAL ASSISTANCE:
• Demographic reports
• Resource guide
• Web site
• Mentors
• Energy Audits
• Design Assistance
FINANCIAL INCENTIVES
• COMMUNITY FUNDS
• BUSINESS COMPETITION
• POP-UP PROGRAM
• PRE-PAYS
• CROWDFUNDING
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FINANCIAL INCENTIVES
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IMAGE IMPROVEMENTS
IMAGE IMPROVEMENTS
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PROMOTIONS AND MARKETING
PROMOTIONS AND MARKETING
BUSINESS SKILLS
• Workshops and Training
• Financing
• Mentors
• Publicity
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• Vision and market
position
• Key projects and
desired niches
• Policies
• Procedures
BUSINESS RECRUITMENT STRATEGY
VISION and MARKET POSITION
To create a culturally diverse place that attracts a variety of audiences.
Uses reflect values and lifestyles of patrons.
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Greenberg Development Services
• Catalyst projects
• Retailers
• Housing
• Incubator space
CULTURAL DISTRICT KEY PROJECTS AND TENANTS
• Restaurants,
Microbrews
• Specialty foods
• Housing
• Ed’s and Med’s
CATALYST PROJECTS
•Museum
• Art
galleries
•Theater
• Music
CATALYST PROJECTS
• Existing clusters
• Market study
• Surveys
• Consumer Trends
• Space constraints
DESIRED NICHE BUSINESSES
DESIRED NICHE BUSINESSES
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• Work-life
• Artist
• Target Market
• Lodging
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HOUSING
INCUBATOR SPACE
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INCUBATOR SPACE
SHARED SPACE
• Master Lease
• Ad budget
• Consignment & leased floor area or departments
• Full-time employee
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INCUBATOR SPACE
• Types of tenants
• Priority locations
• Committee responsibilities
• Property owner and Realtor Support
• Leasing guidelines
RECRUITMENT POLICIES
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TYPES OF TENANTS
• Destination vs.
Impulse
• Complementary
vs Competitive
• Locally-owned,
franchise,
chain, start-up
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PRIORITY LOCATIONS
• Site characteristics
• Property owner
support
• Compatible to
surrounding
businesses
• Market the District opportunities
• Market vacant properties
• Referrals and networking
• Contacting desired tenants
• Negotiations and Deal making
COMMITTEE RESPONSIBILITIES
DISCUSSION POINTS
• Leasing or sales objective
• Desired tenants
• Planned improvements
• Realtor’s Role
• Rent/incentives
• Timeframe for action
TYPE OF ASSISTANCE
• Information on rents and sales
• Marketing material
• Introductions to prospects
• Website listing
• Help tenants
• Financial assistance
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PROPERTY OWNER SUPPORT
PROPERTY OWNER SUPPORT
CARROTS
• $$$$
• Public Recognition
• Technical or
financial assistance
• Options
• CID
• Purchase
STICKS
• Peer pressure
• Building codes
• Historic District
• Ordinances
• Eminent Domain
LEASING GUIDELINES
• Marketing
• Identifying
prospects
• Making the
Pitch
• Closing the
Deal
• Sign the lease
RECRUITMENT STRATEGY
MARKETING CAMPAIGN
PRODUCTS:
• Brochures
• Fact sheets
• Opportunity signs
• Web sites
• Tours
• Referral network
• Why locate Downtown?
• Market opportunities
• Site opportunities
• Incentives
• Testimonials
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MARKETING PRODUCTS
Downtown Graphics Network
MARKETING CAMPAIGN
TOURS
• Broker Tours• Apartment Tours• Virtual Tours
WEB SITE
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LOCAL BUSINESSES:
• Realtors
• Referrals
• Website
• Media
• Field work
FINDING PROSPECTS
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FINDING PROSPECTS
NEW BUSINESS
• Trade shows
• Schools
• Community
• Biz Competition
• Incubator
FINDING PROSPECTS
CHAIN OR FRANCHISE
• Trade show (ICSC)
• Brokers
• Buxton, Retail Lease
Trac
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• In-store evaluation
• Financial report
• Ad budget
• Lease constraints
• Customer profile
EVALUATING PROSPECTS
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• Realtor or property
owner
• ER volunteers
• Direct mail
• Social media
• Invitation to TourGreenberg Development Services
CONTACTING PROSPECTS
TALKING POINTS:
• Market demand=$$$
• Site matches store
criteria
Downtown location:
− Financial incentives
− Special events
− Promotions Greenberg Development Services
CONTACTING PROSPECTS
• Practice on businesses.
• Set up tours or open house
events.
• Ask for a referral.
• Maintain contact through
newsletter, emails etc.
CONTACTING PROSPECTS
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SIGNING THE LEASE
• Tenant upfit allowance
• Facade or sign
• Hours of operation
• Participation in downtown events
• Employee parking
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KEY TO SUCCESS• Determine your own
vision
• Establish high standards
• Realistic work plan
• Business and property owner support
• Begin by focusing on what you have not what you are missing