August 2013

Executive Summary:

Retail Analysis and Business Attraction for Myrtle Avenue

Submitted to the Myrtle Avenue Business Improvement District

1

Table of Contents

Highlights .................................................................................................................................... 2

Project Overview ...................................................................................................................... 3

Project Area ................................................................................................................................ 4

Neighborhood Accessibility .................................................................................................. 4 Trade Area Analysis ........................................................................................................................... 6 Overview ................................................................................................................................................ 7 Income .................................................................................................................................................... 9 Employment ...................................................................................................................................... 11 Destination for Immigrants ......................................................................................................... 11 Family and Household Types ...................................................................................................... 13 Age ......................................................................................................................................................... 14 Tapestry Segmentation ................................................................................................................. 14 LOA Lifestyle Matrix ....................................................................................................................... 17 Newcomers and Buzz ..................................................................................................................... 18 District Identity ................................................................................................................................ 20

Myrtle Avenue Corridor ...................................................................................................... 21 Business Mix ...................................................................................................................................... 21 Vacancies ............................................................................................................................................ 22 Block-by-Block Analysis ................................................................................................................ 22 Competitive Districts ...................................................................................................................... 24 Like Districts ..................................................................................................................................... 25 Retail Opportunities ....................................................................................................................... 26

Comprehensive Retail Recommendations .................................................................... 27

Conclusion ................................................................................................................................ 30

2

Highlights Ridgewood is a dynamic neighborhood on the border of Brooklyn and Queens. With a beautiful and affordable housing stock in a historic landmarked district, and a balanced mix of retail and services, it is a destination for families, artists and recent immigrants, coming together to create a culturally rich and vibrant community. Below are just a few of the corridor’s strengths: Accessible The Myrtle-Wyckoff station, a significant NYC transportation hub, brings riders to and from Union Square in 20 minutes on the L Train, and to Lower Manhattan and Midtown in 30 minutes on the newly-improved M Train. As of 2012 Myrtle-Wyckoff is the 20th busiest station of the outer boroughs, and the 79th busiest in New York City overall (out of 418), and its usage has increased by 4% on average, every year since 2007. There are also seven popular bus lines that serve the corridor and connect the district to neighborhoods throughout Brooklyn and Queens. Family-Oriented Retailers along Myrtle Avenue benefit from Ridgewood’s residential density, with nearly 60,000 residents per square mile. 71% of residents live in family households, higher than the borough average. It is no surprise that 26% of residents are kids and teens. Additionally, crime has gone down 35% since 2001. Because the community is historically very safe and continues to get safer, people come to Ridgewood to live, shop, start a business and raise a family. Culturally-Rich Myrtle Avenue’s residents and retailers enrich the community with a diverse mix of cultures. Puerto Rican, Polish, Italian, Thai, Nepalese, German, and Mexican restaurants are just a few examples of businesses that call Myrtle Avenue home. In addition, there are numerous art galleries and studios springing up all over the neighborhood, bringing new faces, ideas and creativity into the area. Strong Retail Environment A community-oriented shopping district, Myrtle Avenue’s retailers are a balanced mix of traditional and contemporary apparel, services, food and beverage stores, dining establishments, and general and specialty merchandise at a moderate price point. Tree-lined blocks and a solid building stock give Myrtle Avenue the look and feel of Brownstone Brooklyn, with retail spaces ranging from 800 to 20,000 square feet along the corridor. The corridor is home to independent, as well as national chain retailers. Anchor tenants include New York and Company and The Children’s Place, as well as local favorites including Art Cove, Kid City, Choco Latte café, Fruitti Yummi frozen yogurt, Rudy’s Pastry Shop, Pants Pantry, Ridgewood Eats and Liberty Department Store.

3

Project Overview In the spring of 2013, Myrtle Avenue Business Improvement District hired Larisa Ortiz Associates (LOA) to design a retail attraction program. The goal of this effort is to identify and attract retailers to Myrtle Avenue that will help to build a more balanced and effective retail mix that serves the needs of residents and visitors, and will have a healthy, long-term future on Myrtle Avenue. The team’s process involved an analysis of market and demographic data, physical conditions along the corridor, a block-by-block retail analysis, opportunity site analysis, competitive district analysis, as well as interviews with stakeholders, merchants, and residents in the community. This analysis also took into account the research and findings of the previous study commissioned by the BID in 2006. Each of these inputs informed the retail categories that Myrtle Avenue should target for their attraction efforts, as well as what types of retailers within those categories are a good fit for the district, its retail spaces and its residents and shoppers. The analysis informed the selection of a targeted list of retailers in the categories with customer profiles that matched those found in the primary and second trade areas serving Myrtle Avenue. Nearly two dozen retailers were identified, pre-qualified by expansion, size of space, and presence in the market. The Client received detailed sheets on each retailer for the purposes of outreach to both property owners, brokers and the retailers themselves. The strategy for retail attraction positions the Myrtle Avenue BID at the center of a collaborative partnership with the local real estate community, whose buy-in is essential to the success of this effort. A PowerPoint presentation highlighting key demographic indicators and consumer demand has been created for the Client to use as a tool for sharing their vision with prospective tenants, property owners and brokers. This presentation is designed to be updated with new information over time so it remains a useful communication and outreach tool. The LOA team presented the findings and prospect lists to a few select property owners in an effort to engage and enlist the active participation of property owners in the retail leasing efforts. The Client was also given a one-on-one training session in the mechanics of on-going attraction. The session included a three-year work plan and templates intended to aid in prospect database management. These templates include letters to prospective tenants and property owners, templates for prospect research, sell sheets, scout cards, and vacancy lists. The objective is to fully equip the Client to use these tools and keep momentum going over time. Marketing materials were designed that highlight the corridor’s strengths and desired retailers, and can be used by the BID, property owners, and brokers to communicate the BID’s vision and attract prospective tenants, with an emphasis on the targeted retail categories identified through this process. These materials and training are the foundation of Myrtle Avenue’s retail attraction program. In addition to the retail attraction program, this executive summary offers comprehensive retail

4

recommendations that can be used to engage local stakeholders in supporting the retail leasing efforts and in improving the overall shopping environment in support of both new and existing businesses.

Project Area The project area consists of the entire length of the Business Improvement District: both sides of Myrtle Avenue with Wyckoff Avenue as the western boundary and Fresh Pond Road as the eastern boundary. The area is located in Ridgewood, Queens. By taking the broader context into account, our analysis considered trends not only in the district, but also in similar districts, competing shopping centers, the borough, and New York City as a whole.

Figure 1: Ridgewood Context Map. Larisa Ortiz Associates.

Neighborhood Accessibility Where people choose to live, shop and work is heavily influenced by the location of public transit stations and routes. The subway station that serves the Myrtle Avenue corridor is the Myrtle-Wyckoff Station, where both the L and the M trains stop. The station received a $50 million renovation in 2007. It is the 20th most used station in the outer-boroughs and the 73rd most used station in New York City as of 2012, out of 468 stations. In 2010, the M train was re-routed, allowing residents along that line in Brooklyn and Queens to travel to Midtown Manhattan without transferring to another train (prior to 2010, the M Train made only five stops in Manhattan – all on the Lower East Side and Downtown). This has been seen as a significant improvement, and has caused some of the largest increases in ridership at stations along the line, according to MTA ridership data. This change has also been cited as a cause for rising rents

5

and property values along the line, specifically in Bushwick, where the Myrtle-Wyckoff station is located*.1 In 2009, prior to the re-routing, the Straphangers Campaign ranked the M line 15th out of the 21 lines. In 2012, the first full year after the change, the line was ranked 9th out of 19 (the V and W trains were cut between the two years). The Myrtle-Wyckoff Station is the most used M line station in the outer-boroughs, with over 5.6 million riders annually. Each M line station between Manhattan and Ridgewood (with the exception of Knickerbocker, which was closed for six months for renovations in 2012), has experienced an increase in ridership over the last five years, between 2007 and 2012.

The L line has also seen annual increases in ridership at each station between Bedford Avenue and Myrtle-Wyckoff from 2007 to 2012. In Brooklyn, the Myrtle-Wyckoff station is second only to Bedford Avenue in terms of ridership. The increase in annual ridership along these lines points to increased residential density in the neighborhoods that these lines serve.

1 While the Myrtle-Wyckoff Station is located in both Bushwick, Brooklyn and Ridgewood, Queens, the MTA classifies the station as located in Brooklyn.

8,342,397

4,643,512

3,086,342 2,145,374

2,075,901 2,262,826

1,906,878

3,495,896

5,662,633

2,136,529

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000

L Train Stations 2012 Annual Usage (BK/QNS)

3,564,065

895,661 1,494,085

2,776,360 3,257,338

992,142 702,426

5,662,633

716,729

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

M Train Stations 2012 Annual Usage (BK/QNS)

Figure 3: L Train Stations 2012 Annual Usage. Source: NYC MTA

Figure 2: M Train Stations 2012 Annual Usage. Source: NYC MTA

6

There are also eight bus lines that serve the corridor: the B54, B52, B26, and B38 west to Downtown Brooklyn, the B13 and B20 south to Spring Creek, the Q39 north to Astoria, and the Q55 east to Richmond Hill.

Trade Area Analysis Myrtle Avenue, with its mix of convenience offerings and apparel merchandise is characteristic of what the retail industry considers a “Community Center”2. Community Centers typically offer general merchandise alongside convenience offerings, and have a wider range of apparel and other soft goods than smaller, more convenience-oriented districts. In a non-urban environment, this type of center typically has a trade area of three to six miles, or 5 to 15 minute drive time, but in an urban center where many customers walk and/or take public transit, trade areas are much smaller. A retail principle that helps to define trade area is that there is typically a 1:4 ratio of time spent traveling to time spent shopping, i.e. if a shopper walks 15 minutes to get to Myrtle Avenue, they will expect to have things to do for at least one hour. Because of the corridor’s types and mix of retailers, Myrtle Avenue’s primary trade area - or where roughly 70% of customers come from - is 0.5-mile from the center of the district. The secondary trade area – where the remaining 30% of customers come from – is roughly one mile from the center of the district. Therefore, data was obtained for a .5-mile radius and a 1-mile radius from the center of the Myrtle Avenue corridor (see Fig. 5). The .5-mile radius provides insight into what is happening at the micro-level, while the 1-mile radius is more appropriate to a general understanding. Additionally, data was obtained for .75-mile rings around the east and west ends of the corridor to shed light on the “sub-districts” that exist along the Avenue, which have significantly different demographics from one another. The data to follow represents the .5-mile trade area unless otherwise specified.

2 International Council of Shopping Centers, Shopping Center Definitions

Figure 4: Ridgewood Bus Map. Source: NYC MTA

7

Figure 2: Myrtle Avenue Trade Area Map. Larisa Ortiz Associates.

Physical barriers and the location of public transportation influence the size of the trade area. A significant physical barrier is the cluster of cemeteries to the southeast. The size of the trade area is also influenced by competitive shopping districts and shopping centers (see Fig. 28). For example, while it is easy for a resident of Bushwick or Middle Village to travel to Myrtle Avenue, each neighborhood has its own shopping district that provides similar convenience offerings. Destination shopping districts in Manhattan and nearby shopping malls also limit the area from which people come to Myrtle Avenue to shop. The demographic analysis that follows is based on residents living in the primary or secondary trade area, as specified.

Overview Myrtle Avenue’s trade area is culturally and economically diverse, with significant differences in housing stock, median household income, density and Hispanic origin between the east and west ends of the district. While retailers will be interested in data for the trade area overall, this analysis also considers demographics by census tract to reveal more fine-grained differences between each “sub-district” within the BID area and its shoppers. To put Myrtle Avenue into context, the analysis also compares the demographics of residents living within a half mile of Myrtle Avenue, to the borough of Queens overall. In some cases, it also compares Myrtle Avenue’s trade area to that of Steinway Street in Astoria, which was used for comparison in the 2006 Retail Study, and is often cited as a corridor that Myrtle Avenue aspires to be like by stakeholders in the community.

8

Residents living near Myrtle Avenue are younger than the borough average. They have a median age of 32.4, younger than the borough’s median age of 37.4. Median household income, at $36,867 is lower than the borough median of $53,421, and more similar to that of Brooklyn ($40,269). 84% of residents in the trade area rent their homes – much higher than the borough average of 57%.

Population The population within the primary trade area is 46,827. The size of the population grew by 14% between 1990 and 2000, but has not changed significantly since 2000 (there was a slight decrease in population between 2000 and 2010) and is projected to experience a slight growth through 2017. This growth has been slower than the previous market study anticipated, but could pick up, as growth is especially difficult to predict in dynamic urban areas. For Myrtle Avenue, the improved M subway line may contribute to an increase is residential population, as it has made the trip between Ridgewood and parts of Manhattan much easier, which is a determining factor in where many families choose to live. The trade area has a higher density at the west end of the district than the east.

2012 Demographics Total

Population Median Age

Median Household

Income

Average Household

Size Renters Population

Density

Myrtle Avenue (.5 mi) 46,827 32.4 $36,867 3.02 84% 59,101 ppl/sq mi

Queens 2,250,879 37.4 $53,421 2.82 57% 20,554 ppl/sq mi

Table 1: 2012 Demographics. Source: US Census via Esri Business Analyst 2012.

Sub-Districts West East

Population 122,317 59,586 Median Household

Income $29,609 $43,349

Hispanic Residents 81,001 26,744

A closer look at each .75-mile sub-district further reveals who is living and shopping in the district. See the maps in the sections to follow for a visual representation of this data by Census Tract.

Table 2: Sub-Districts. Source: US Census via Esri Business Analyst 2012.

41231

47134 46415 46827 47927

36000

38000

40000

42000

44000

46000

48000

50000

1990 2000 2010 2012 2017

Population, 1990-2017

Figure 3: Population 1990-2017. Source: US Census via Esri Business Analyst 2012.

9

Figure 4: Population Density. Source: US Census via Esri Business Analyst 2012. Larisa Ortiz Associates.

Income The median household income within .5mi of Myrtle Avenue is $36,867, and has steadily increased over the past 20 years. To put these numbers into context, the following chart compares the change in income in the primary trade area to Steinway Street’s primary trade area, which is frequently cited as a retail district with similar characteristics to Myrtle Avenue and with retailers that may be appropriate for Myrtle Avenue down the line. Myrtle Avenue has, since 1990, had a lower median income than Steinway Street, however, the gap in income between the two areas has grown over the past two decades, as Steinway Street’s income rises at a faster rate.

$25,653

$31,602 $36,867

$42,203

$27,857

$37,238 $45,228

$53,763

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1990 2000 2012 2017

Income Comparison: Myrtle and Steinway

Myrtle Ave Steinway St

Figure 5: Income Comparison: Myrtle and Steinway. Source: US Census via Esri Business Analyst 2012.

10

While the median income within the trade area is moderate, the incomes of specific households within the trade area vary significantly. 21% of households in 2012 made less than $15,000, while 18% made over $75,000, with the remaining households distributed between (see Fig. 9 below). Additionally, the income distribution in the trade area has shifted over time. The chart below shows this change, with the percentage of households making less than $50,000 per year decreasing and those making $50,000 and over, increasing. This income diversity suggests that retailers have the opportunity to reach different kinds of customers along Myrtle Avenue.

Figure 6: Households by Income 1990-2017. Source: US Census via Esri Business Analyst 2012.

Figure 10 below demonstrates how these varying incomes are distributed throughout the area, by census tract.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

<$15,000 $15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 +

Households by Income 1990-2017

1990

In 2012, 21% of households made under $15,000 and 25% made over $75,000.

Figure 7: Median Household Income by Census Tract. Source: US Census via Esri Business Analyst 2012. Larisa Ortiz Associates.

11

Employment People living in the half-mile trade area work primarily in construction, manufacturing, transportation, health care, and in the service industry (retail, restaurants, and hotels). As a result, the neighborhood is known for its “blue collar” residents.

Figure 8: Top Industries for Employment, 2005-2009. Source: ACS 2005-2009 via Esri Business Analyst 2012.

Destination for Immigrants Between 1990 and 2000, the Latino population in the Myrtle Avenue trade area grew from 38% to 56%. Though continuing to grow, the increase in population has slowed. This is a deviation from the projections in the previous study, which anticipated that this population would grow at a faster rate. From 2000 to 2010, the Latino population grew by 2%, and is projected to grow by an additional 2% between 2012 and 2017.

Figure 9: Population: Latino and Non-Latino 1990-2017. Source: US Census via Esri Business Analyst 2012.

10.9%

9.0%

11.2%

8.0%

13.0%

9.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Construction Manufacturing Retail trade Transportation and

warehousing

Health care and social assistance

Accommodation and food services

Top Industries for Employment, 2005-2009

28,686

26,683

26,042

15,852

19,589

19,734

20,777

25,377

0% 20% 40% 60% 80% 100%

2017

2010

2000

1990

Population: Latino and Non-Latino

Latino

Non-Latino

12

Latino residents are primarily: Mexican, Puerto Rican, Dominican and Ecuadorian (which makes up the majority of the South American population). There is also a large Polish population living in the trade area. This population is growing as members of the Polish community are priced out of Greenpoint, Brooklyn, which has one of the largest concentrations of Polish residents and businesses in New York City. According to American Community Survey 5-year estimates (2007-2011) 3, there are over 5000 people in the trade area who have reported Polish ancestry4.

3 This chart does not include those who fall into the category, “Other Groups”; approx.. 92,000 people.

4 According to the US Census Bureau, Ancestry refers to a person’s ethnic origin or descent, "roots," or heritage, or the place of birth of the person or the person’s parents or ancestors before their

7488

19204

239

11927

2719

11752

1257 0

5000 10000 15000 20000 25000

Hispanic Origin by Country

5261 4113

3120 2861 1368

0

2000

4000

6000

Polish Italian German Irish Albanian

Ancestry (Top 5 Reported)

Figure 15: Ancestry. Source: American Community Survey 5-year estimates 2007-2011

Figure 10: Hispanic Population by Census Tract. Source: US Census via Esri Business Analyst 2012. Larisa Ortiz Associates.

Figure 11: Hispanic Origin by Country. Source: 2010 US Census.

13

Family and Household Types 71% of residents in the trade area live in family households, 20% live alone and 9% live in a non-family household with two or more people (with roommates or in institutional housing, for example). Families, especially those with children, tend to have different spending habits than singles with fewer financial obligations. Steinway Street in Astoria, which has a similar population size within its .5-mile trade area, has significantly fewer family households than Myrtle Avenue, at 45%, therefore its residents are likely to have more disposable income to spend on apparel and dining. This is visible in Steinway Street’s retail mix, which is primarily moderately-priced clothing and clothing accessory stores, compared to Myrtle Avenue, which has many discount apparel stores serving families with children. Despite the vast majority of residents renting their homes, 72% are considered long-term residents, and have been living in their homes for 5 years or more. 20% of householders have been living in their homes since before 1990. Since residents tend to stay in the neighborhood, they may be more likely to invest in housewares, furniture or gardening supplies than residents in areas with higher turnover.

Figure 17: Occupied Housing Units by Year Householder Moved Into Unit. Source: US Census via Esri Business Analyst 2012.

arrival in the United States. A person’s ancestry is not necessarily the same as his or her place of birth.

196

677

888

448

436

434

3,917

3,492

2,755

935

479

197

0 1000 2000 3000 4000 5000

Moved in 2005 or later

Moved in 2000 to 2004

Moved in 1990 to 1999

Moved in 1980 to 1989

Moved in 1970 to 1979

Moved in 1969 or earlier Occupied Housing Units by Year Householder Moved Into Unit

Owner Occupied

Renter Occupied

20% 34% 26%

71% 45% 68%

9% 21%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Myrtle Steinway Queens

Comparison of Household Types

Nonfamily Household Family Household

Figure 16: Comparison of Household Types. Source: US Census via Esri Business Analyst 2012.

14

Age 26% of the population is 19 or under. This large youth population has drawn retailers to the street that sell children’s goods, and will continue to be an opportunity to draw businesses that cater to kids and families.

Figure 18: Population by Age (2010) Source: US Census via Esri Business Analyst 2012.

Tapestry Segmentation Esri Business Analyst, a leading provider of mapping, retail and market data, has created a psychographic categorization system called Tapestry Segmentation, which divides residential areas into segments based on socioeconomic and demographic characteristics. This analysis paints a more vivid picture of who is living in the trade area and what their habits and preferences are. There are 65 unique segments in total. The majority of residents fall into the International Marketplace category (42%), followed by Urban Melting Pot (30%).

3322 3006 2956 3348 3830

8991

7108 6132

4143

2131 1079

368 0

2000

4000

6000

8000

10000

0 - 4 5 - 9 10 - 14 15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+

Population by Age

26% are 19 and under

International Marketplace,

42%

Urban Melting Pot,

30%

NeWest Residents,

12%

High Rise Renters, 9%

City Lights, 6%

City Strivers, 1%

Figure 19: Tapestry Segmentation. Source: Esri Business Analyst.

15

Steinway Street Comparison There is more tapestry segmentation variety among residents near Myrtle Avenue than Steinway Street. While Steinway and Myrtle each have many Urban Melting Pot residents (30% of Myrtle and 40% of Steinway), all other segments of their populations differ from one another.

The following brief summaries describe the segmentations that make up Myrtle Avenue’s trade area. Full descriptions of each of the area’s segmentations can be found online at www.esri.com/data/esri_data/tapestry. 30% Urban Melting Pot neighborhoods are ethnically diverse, made up of over 50% foreign-born residents. Fashion conscious, yet cost conscious, Urban Melting Pot residents love to shop. Macy’s is a favorite but they also shop at other upscale retailers, as well as warehouse/club stores, especially for clothes and jewelry. 42% International Marketplace neighborhoods are developing urban markets with a rich blend of cultures and household types. A fifth of International Marketplace households have one or more persons who has difficulty speaking English. They buy groceries, diapers, and children’s clothes. They keep in touch with overseas relatives by long-distance calls or traveling to visit. They shop at Marshalls and Costco. They pop in to 7-Eleven or am/pm for quick purchases such as a gallon of milk. 12% NeWest Residents are not only new to the United States, they’re also building their careers and starting their families. Hispanic cultures dominate this family oriented segment. Putting their children first, NeWest Residents lead a strong, family-oriented lifestyle that emphasizes buying groceries and baby and children’s products. They usually buy only the essentials such as baby food, baby supplies,

0% 20% 40% 60% 80% 100%

Steinway

Myrtle

Tapestry Segmentation Comparison: Steinway and Myrtle

Urban Melting Pot

International Marketplace NeWest Residents

High Rise Renters

City Lights

City Strivers

Trendsetters

Laptops and Lattes

Figure 20: Tapestry Segmentation Comparison: Steinway and Myrtle. Source: Esri Business Analyst 2012.

16

baby car seats, and children’s clothing. To save money, they prepare meals from scratch at home. 9% High Rise Renters residents are a diverse mix of race and ethnicity. More than half of the residents are Hispanic. Because so many must care for children at home, part-time workers are just as prevalent as full-time employees. They buy household items and apparel at discount stores and affordable department stores and will also search the clearance racks at Macy’s. They do not dine out regularly; even their fast-food purchases are limited. They buy necessary baby and children’s clothes; however, tight budgets limit their spending. 6% City Lights residents earn a good living working in white collar and service occupations. They buy household furnishings, groceries, personal goods, and entertainment. They shop for clothes, shoes, jewelry, and toys at stores such as Target, Macy’s, and Costco. City Lights residents take vitamins, practice yoga, and do aerobics to stay fit. They travel domestically and abroad, take cruises, go to the movies, and watch family and classic movies on DVD. 1% City Strivers shop at wholesale clubs for groceries and children’s essentials.

17

LOA Lifestyle Matrix To better understand what these profiles mean for retailers, we plot them on the LOA Lifestyle Matrix, a tool for mapping psychographic profiles in terms of lifestyle and income. This tool communicates what types of retail offerings are a good fit for the consumers of a particular district. The horizontal axis represents “lifestyle” with more traditional consumer preferences to the left, contemporary in the middle, and trendy or hip to the right. The vertical axis shows consumer income, from low to high. Along Myrtle Avenue, customers fall primarily into a Contemporary lifestyle with a Low-to-Moderate income, as shown below. As such, the retailers that are recruited should fall within the boundaries of the Primary or Secondary customer in terms of the type of offerings and price point.

Figure 21: LOA Lifestyle Matrix. Source of Tapestry Segmentations: Esri Business Analyst 2012. Larisa Ortiz Associates.

18

Newcomers and Buzz Ridgewood has received a significant amount of press and “buzz” in recent years. The conversation taking place suggests that artists and young professionals have started to move to the neighborhood in the last three years, influenced in part by the active art and music scene in nearby Bushwick. This change does not appear in 2010 census data, so to better understand what is taking place, other data sources were utilized. Google Trends A web search interest report has been generated to track the frequency of Google searches for “Ridgewood NY” between 2005 and 2013. The graph below reveals that Ridgewood has been searched for most frequently in 2012 and 2013, suggesting new interest in the area. Overlaid onto this graph are excerpts and headlines from news articles throughout the timeline, showing the types of conversations happening about the community.

Figure 12: Web Search Interest. Source: Google Trends, May 2013. Larisa Ortiz Associates.

19

Activity Mapping Because Myrtle Avenue is a neighborhood commercial corridor, it is important to consider how it fits into the broader Ridgewood neighborhood context. Ridgewood is known for its diverse cultures, historic building stock, and in recent years, for its budding art scene, as artists and galleries begin to spill over from Bushwick. Local community groups have formed to engage residents in their neighborhood through events like the Ridgewood Bar Crawl and Ridgewood Market, a flea market at Gotscheer Hall. Bushwick Open Studios, an annual arts event included studios in Ridgewood. The Queens Museum of Art coordinated a Ridgewood Art Crawl entitled, Actually, It’s Ridgewood, in May 2012.

The map above shows neighborhood art spaces and venues that have been included in these events, along with other destinations that draw people from in and around the neighborhood. Myrtle Avenue is in a position to tap into this activity taking place in the broader Ridgewood community by partnering with organizers of neighborhood events, or working with destinations to encourage their patrons to shop and dine on Myrtle.

Figure 23: Ridgewood Activities Map. Larisa Ortiz Associates.

20

Trulia Real Estate Trends Trulia, a real estate listing service provides data on residential sales prices over time. Trulia’s median sales price estimates in the graph below show that prices in Ridgewood have remained stable between 2008 and 2013, while the borough of Queens overall experienced ups and downs, with a significant drop in prices in recent months. Although the neighborhood has not experienced high peaks in price, it has remained a steady, despite recessions in recent years, which signifies a strong, stable community.

District Identity Based on the above analysis and insight gleaned from stakeholder interviews, we can communicate to prospective retailers that Myrtle Avenue is a safe and accessible retail corridor with “good bones” and culturally rich community of families and retailers. The four user profiles below will be utilized in the retail attraction marketing materials that will be delivered subsequent to this report, to allow retailers to understand who is living and shopping on and around Myrtle Avenue:

1. Latino Families 2. Long-time Residents 3. Polish Families 4. Artists and Young Professionals

Figure 24: Ridgewood Median Sales Price May 2008-May 2013. Source: Trulia.com.

21

Myrtle Avenue Corridor

Business Mix Myrtle Avenue’s anchor tenants are a mix of local independents and national chains. They are primarily concentrated between Seneca and Onderdonk, the “100%” block. The corridor has a moderate clothing niche, with 50 clothing and accessories stores, and a mix of services, dining and retail uses.

Figure 25: Myrtle Avenue Business Mix (NAICS codes). Source: Myrtle Avenue BID. Larisa Ortiz Associates.

Clothing and Accessories Stores,

50

Personal and Laundry Services, 42

Food Services and Drinking Places, 40

Food and Beverage Stores, 31

Banking/Medical Services, 31

General Merchandise, 30

Health and Personal Care Stores, 22

Electronics and Appliances, 21

Home Furnishing, 14

Misc Retail, 9

Arts/Ent/Rec, 5 Sports/Hobby/Books

, 5

22

Vacancies As of May 2013 there were 17 vacant storefronts on Myrtle Avenue and 10 on side streets and upper floors within the BID district. Spaces range from 830 square feet to 5,280 square feet (not including the Ridgewood Theater). The average size on the Avenue is around 2,000 square feet. The retail vacancy rate along the corridor is 8%, which is low compared to national averages of about 10.5%5 as of July 2013. Because there are minimal vacancies, the focus of the BID’s ongoing retail recruitment efforts must be to manage turnover by having a repository of prospective tenants who are ready to fill spaces as they become available.

Figure 26: Commercial Vacancies along Myrtle Avenue, May 2013, Larisa Ortiz Associates

Block-by-Block Analysis Retailers have specific requirements and conditions that need to be met in order for the businesses they run to survive and thrive. Perhaps most significantly, this includes access to a steady flow of customers. Ultimately, businesses know that a distance of 200 feet can make or break successful retail. In a world where office workers typically venture less than 400 feet from their desks at lunch time, it is critical to look at Myrtle Avenue not as a single monolithic retail district, but rather as a series of individual “retail micro-climates” that require customized retail attraction strategies. The retail micro-climates along Myrtle Avenue are driven by a variety of factors, including the size of spaces available, proximity to major transportation thoroughfares, and the existing anchors on the street. Additionally, retailers typically cluster by use, lifestyle and price. Co-tenancies allow people to cross-shop and compare goods, strengthening the district as a strong shopping environment. Understanding these micro-dynamics is critical to steering the right retailers to the right spot along the street. The map below shows a selection of retailers located on Myrtle Avenue, color-coded by block. Anchor tenants, marked on the maps below, are a mix of local independents and national chains. In addition to the retail anchors, the Ridgewood Post office, Ridgewood Savings bank, and the 71st Triangle plaza are significant drivers of foot traffic throughout the corridor.

5 ICSC, U.S. retail vacancy hit lowest level in three years at end of second quarter: Report. 07/10/2013

= Commercial Vacancy

23

The micro-climates and their anchor tenants, listed from west to east, are as follows: Wyckoff to Seneca

• Latino-serving • Discount stores • Convenience

Shopping Seneca to Forest • Shopping core • Comparison

shopping • Destination retailers Forest to Fresh Pond • European-serving • Convenience

shopping • Services Mapped together, these micro-climates can be used to inform the leasing plan for the corridor. This will help the BID, the real estate community and prospective tenants understand where they best fit along the street. For example, a national moderately priced clothing retailer is most likely to locate on the 100% block, where other retailers offering comparable goods are located and a European deli may prefer to locate east of Forest Avenue where there is a higher concentration of Eastern European families.

24

Competitive Districts Myrtle Avenue shares its shoppers with a number of other shopping districts and centers, as illustrated in the map below. Residents living near Myrtle Avenue can easily access these alternative districts by subway, bus or car.

Figure 28: Competitive Districts Map. Source: Stakeholder Interviews. Larisa Ortiz Associates.

Figure 27: Retail Micro-Climates. Larisa Ortiz Associates.

25

These districts include: • Greenpoint and Fresh Pond Road: significant clusters of Polish businesses • Williamsburg, particularly on and around Bedford Avenue: easily accessible

by the L train and home to small boutiques and destination retailers • Metro Mall on Metropolitan Avenue in Middle Village: a nearby shopping

center with BJ’s, Conway, Sleepy’s and other discount retailers. • Austin Street, Forest Hills: a 10-15 minute from Myrtle Avenue, the corridor

offers national apparel retailers including Ann Taylor Loft, Victoria’s Secret, Boltons, and Banana Republic.

• Rego Park Center, Queens Center Mall and Roosevelt Field Mall: indoor shopping malls located in Queens and Long Island, and typically accessed by car.

• As is the case with all districts in New York City, Manhattan’s destination shopping dining and entertainment offerings often draw shoppers from the outer-boroughs.

This retail attraction effort serves to help the BID position Myrtle Avenue as an alternative to these districts, where possible, and to influence the retail mix so that the Avenue is able to compete with these other retail centers and districts.

Like Districts To find retailers that may be interested in coming to Myrtle Avenue, we canvass shopping districts with similar characteristics to the trade area. Retailers in these markets are likely to understand and cater to the Myrtle Avenue customer. The neighborhoods highlighted in the map below have comparable median incomes and similar demographic characteristics, specifically high populations of Latino and/or Polish residents. The information on prospective retailers that will be delivered subsequent to this report includes retailers that fit the identified categories and have, in many cases, locations in some of these similar districts.

Figure 29: Like Districts Map. Source: 2010 US Census, Esri Business Analyst 2012. Larisa Ortiz Associates.

26

Retail Opportunities An analysis of market data reveals significant retail leakage in general merchandise stores (department stores fall into this category), full-service restaurants, garden supply stores, and home furnishing stores. These are the categories where Myrtle Avenue should focus retail attraction efforts. The need for these types of retailers is reinforced by input gleaned from interviews with stakeholders, as well as the demographic analysis, which has illuminated what price point and lifestyle categories are appropriate for this attraction effort. New retailers will have the opportunity to capture spending that is getting lost to other districts, as illustrated in the .5-mile and 1-mile Retail Leakage Analysis tables below.

Secondary Trade Area (1-mile) Demand (Retail Potential)

Supply (Retail Sales)

Retail Gap

Total Retail Trade and Food & Drink $ 968,691,226 $ 715,767,009 $ 252,924,217 General Merchandise Stores $ 106,075,765 $ 64,685,543 $ 41,390,222 Full-Service Restaurants $ 52,463,225 $ 20,516,406 $ 31,946,818 Bldg Materials / Garden Supply Stores $ 21,321,403 $ 6,752,064 $ 14,569,339 Home Furnishings Stores $ 10,564,657 $ 3,863,011 $ 6,701,646

Primary Trade Area (0.5-mile) Demand (Retail Potential)

Supply (Retail Sales)

Retail Gap

Total Retail Trade and Food & Drink $297,048,624 $225,271,851 $71,776,773General Merchandise Stores $32,518,336 $12,031,128 $20,487,208Full-Service Restaurants $16,166,376 $10,050,819 $6,115,557Bldg Materials / Garden Supply Stores $6,565,273 $2,444,802 $4,120,471Home Furnishings Stores $3,210,998 $1,387,206 $1,823,792

What is Retail Leakage? Retail Leakage is calculated as the difference between buying power (demand) and retail sales (supply) with a defined Trade Area. When Retail Leakage is a positive value there is unmet demand by residents in the trade area, representing opportunities for new or existing businesses to target. When Retail Leakage is a negative value there is either a healthy concentration of retail to build from, or there is a saturation of retail that indicates limited opportunity for business growth or expansion.

27

The types of retailers that emerged during the interview process as places that stakeholders would like to see come to Myrtle Avenue generally align with the categories that show opportunity in the market data. They are as follows:

Comprehensive Retail Recommendations The Myrtle Avenue BID has done a tremendous job advocating for streetscape improvements, keeping the district clean and safe, and organizing events and marketing efforts that make the corridor an enjoyable place to shop. These recommendations serve to build on the BID’s successes and to provide the BID staff with additional strategies to help attract and retain new shoppers and businesses. Strategic Positioning Myrtle Avenue is a family-oriented, culturally-vibrant, stable, safe and accessible commercial corridor in the heart of Ridgewood. These qualities are what make Myrtle Avenue a great place to live, shop, and do business. It is important to communicate and highlight these local assets to potential retailers whenever the opportunity arises: through events, in marketing material, and on the BID website, social media, and in the press to paint a positive, accurate picture of the community. In addition to keeping consistent with messaging, it is important to be consistent in the look and feel of materials (signage, flyers, websites and social media pages) to help build the Myrtle Avenue, Ridgewood “brand”. This will help to establish Myrtle Avenue as Ridgewood's shopping district by setting it apart from Bushwick (the border of Brooklyn and Queens has been confusing residents for over a century) and

28

the BID along Myrtle Avenue in Brooklyn, which has become highly visible in recent years. Clean/Safe

• Use this study to leverage additional grant funding for façade improvements Stakeholder interviews suggest that the south side of the street poses challenges for the district and should be a priority. There are also a number of properties that would benefit from improvements to facades, awnings and displays. While the BID has done a tremendous job supporting businesses in making these improvements in the past, this study can be used to leverage additional funds to continue these types of improvements in the public realm.

Tenant Mix

• Position the BID as a Clearinghouse of Information With vacancy rates low, it is important to focus on staying ahead of store turnover by working with property owners to find out when leases are up so that the BID can provide them with information on prospective tenants before a space becomes vacant. In order to do this, the BID must position itself as a clearinghouse of information for retailers, brokers and property owners. This does not mean becoming a broker (encouraging property owners to use brokers will elevate the quality of tenants in the district.) It means offering quality market information and materials, packaging and distributing them; promoting new business openings to build buzz; and working with local media outlets to drum up interest in the corridor and highlight the BID’s role.

Marketing/Promotion

• Launch a New and Improved BID website The Myrtle Avenue BID’s website will be a key component of the retail attraction program. With this study and marketing materials, BID staff is now poised to help the local real estate community bring appropriate retail onto

Commercial District Organization Broker

Provides market research data and district marketing material that offer evidence of market strength

Uses data and marketing material to make the case to a potential tenant

Collects information on and delivers quality prospects that meet community retail leasing objectives

Focuses on the pursuit of any credit worthy tenant in an effort to lease the space

Promotes the district Promotes the vacancy Seeks to fill vacancy with tenant that improves the overall tenant mix

Seeks to fill vacancy with tenant that meets the property owner’s cash flow criteria

Motivated by the desire to improve district-wide retail mix

Motivated by the need to close the deal quickly

29

the corridor and expedite transactions by serving as a repository for prospective tenants. Having a clear, easy to use website with a page dedicated to retail attraction is critical to success of this effort. This website should be live prior to the distribution of marketing materials, which will direct its readers to the site for additional information about the district, spaces and retail attraction program.

• Use marketing and events to strengthen the brand, attract more

shoppers and improve foot traffic a. Coordinate family-focused entertainment in partnership with local

organizations There are an increasing number of local organizations in the neighborhood, each representing different segments of the community. Partner with these groups on events to attract their constituents to Myrtle Avenue, with programming that will interest them. By working with groups that have an established membership base, it will help to ensure that the word gets out, and that the events and programming will appeal to the intended audience. For example, a multi-cultural, family-oriented street fair may be of interest to families with young children in the neighborhood. The POMOC, Ridgewood Mothers group, Ridgewood Social, the Ridgewood Public Library and the Artist Resource Center could each serve as co-sponsors and coordinators to bring together merchants and restaurants, artists, cultural groups and family attendees. Local schools also provide an opportunity to get the word out to kids and their parents, by sending flyers home in backpacks. Coordinating with these organizations may also reveal opportunities to bring existing events to Myrtle Avenue. Other ideas for ambient entertainment - activities that patrons do not have to pay for - include street musicians, performing artists, portrait artists (watching them is entertainment!), light shows on buildings, and so on. These free, somewhat low-key activities give visitors and families a reason to come to the corridor. Increased foot traffic will in turn drive retail sales. Impulse entertainment is another form of event marketing that focuses on low-cost activities. Activities like face painting or portraits are common examples of impulse entertainment. During any and all events, it is important to use it the opportunity to distribute sales marketing materials such as shopping guides containing coupons, or other district-branded promotional materials. No event should occur without a strong and coordinated effort to engage local merchants and neighborhood organizations.

b. Use Social Media to Leverage the Ridgewood “Buzz”. People are talking about Ridgewood now more than ever. Local blogs dedicated to the neighborhood promote the community to residents and to outsiders, newspapers have recently featured the neighborhood and its restaurants and cultures, destination restaurants and events bring people to Ridgewood from all over the City. It is important that Myrtle Avenue

30

becomes part of this conversation and benefits from the press and exposure, to establish the corridor as Ridgewood’s commercial district so that businesses consider Myrtle Avenue when looking for a location. This can be done by building relationships with local media outlets, including blogs and Facebook groups (Wyckoff Heights Blog, Ridgefood, Ridgewood Social, etc), and posting information or links to the BID’s website on their online platforms. These “advertising” opportunities are typically free or low-cost. Other opportunities to get Myrtle Avenue in on the “buzz” is by identifying potential partnerships with arts and cultural organizations that have, or that may be interested in doing programs in the neighborhood. For example, the Queens Museum’s Actually, It’s Ridgewood tour, which highlighted art spaces in the community that are often thought to be located in Bushwick, Brooklyn. The BID is in an excellent position to contact this type of institution and others about incorporating Myrtle Avenue’s businesses, restaurants, or historical sites into their programming. Partner with this and other local institutions to bring people and businesses to the Avenue.

Conclusion Myrtle Avenue is a strong market with opportunities to build on the retail mix. This report outlines the block-by-block merchandising recommendations for the Myrtle Avenue Business Improvement District as well as recommendations that will set the stage for successful retail attraction efforts. Ultimately, the success of this effort lies in the ongoing execution and commitment to building strong relationships with property owners, brokers and retailers whose participation is critical to ensuring that the tenant mix is the right one for the community and district as a whole.