Downtown Retail on Upswing

Downtown Retail on Upswing

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In the last two years, a number of restaurants, business services and retailers have opened, or announced plans to open, downtown. Restaurants include Chop-Chop, WJ Morrissey’s, Chow Chocolate, SeaBar, Andiamo!, and coffee purveyors Tim Hortons and Dunkin Donuts. Retailers include New Era Cap, Get Dressed, Jenny Shop and Marcell by Chaybeen. New businesses occupying ground-floor space include Avalon Copy Center, SEFCU credit union, Hair-2-Go Naturally, Document Advantage, and Fix Day Spa. There is talk of another retailer heading to Ellicott Commons and a new coffee shop coming to the east side of downtown. Due to development of downtown housing, retail is back!

Not so fast says one of downtown's busiest commercial realtors.

“I don’t think housing has done anything directly to spur downtown retail,” says Chris Malachowski of Hunt Commercial Real Estate. Rather, he says, there is a new sense of optimism encouraging businesses and entrepreneurs to open downtown.

“Downtown residential has helped, but there is no correlation yet,” says Malachowski. “The numbers are not there.”

Demographics drive retail. A strong, dense residential base will create the critical mass to support a robust retail scene.

Six hundred lofts and apartments have opened downtown in recent years with hundreds more including condos being planned. But thousands of units are needed.

“We still don’t have the chains yet,” says Malachowski. “When the chain stores move in, that will be a sign of the market shifting.”

The existing downtown market remains relatively untapped. Downtown workers are looking to eat and spend money, downtown events draw big numbers, and the number of folks calling downtown ‘home’ is increasing. The new stores and businesses are a good sign, and if successful, will encourage others. Bass Pro and Canalside will change the dynamic of downtown retail as well.

“The pervasive negative attitude is lifting,” says Malachowski. "Retail will pick up.”

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What Others Have To Say

  1. GDC

    0 ratings12345
    May 6th, 00:29

    What about promoting Downtown as a "Destination" to tourists? With the Canal Side coming along, Bass Pro and more downtown housing, developers should be promoting thier spaces to National Retailers now and spuring interests ASAP.

  2. gaustad

    4 ratings12345
    May 6th, 00:50

    I have said it before and I will say it again............Bass Pro will never come to Buffalo!

    The project was never meant to be....get it out of your heads people.....there are much better ways for Buffalo to invest millions other than a fish and tackle store on our historic waterfront.

    I aa tired of hearing about Bass Pro. It is draining.

  3. GDC

    3 ratings12345
    May 6th, 01:08

    Gausted, it's already been signed and the Aud is coming down to make way for BASS PRO, deal with it. it's coming.

  4. gaustad

    0 ratings12345
    May 6th, 01:13

    GDC, I appreciate your optimism. I have heard it all before.

    Bass Pro will go up when Isaa's city tower gets built.

  5. wizardofza

    1 ratings12345
    May 6th, 01:33

    The guy quoted in the article is right. A sparse sprinkling of lofts throughout downtown won't exactly reel in the retail.

    Downtown needs to have a lot more amenity value before it can draw in a mass market for residential in and near the core. This amenity value will only increase when there are a lot more good-paying jobs that employ young professionals and other urban-minded types with disposable income and no kids to worry about.

    The focus for downtown should be on getting more jobs downtown, not obsessing over unrealistic retail follies. It's simple, more jobs, more people who might consider living within walking distance of work. More residents in the core, more small retailers will open to service them. Successful retail will create a vibrant social atmosphere, therefore attracting more residents and casual visitors, therefore attracting retail, therefore attracting even more residents in and near the core.

  6. impressingagent

    0 ratings12345
    May 6th, 02:09

    bass pro should have a lasting impression on the commercial strip. It just needs to be closer to the buffalo news then the old sabres aud. I don't like it as a main attraction (because its the objective of the buildings to serve the waterfront) and considering our remorseful waterfront is cut of with the 190; I don't see how the current location suits the whole large fishing perspective? It does not have that one-two punch with Peal St. oh that’s even if it gets built! However the canals are a real selling point.

    The plan for the 500 block of Main Street sounds like a real homerun. There are enough housing options to almost make the 1 tim hortons seem like a real barnburner.

  7. Andrew

    0 ratings12345
    May 6th, 06:21

    i hope this little trickle of businesses starts an avalanche

  8. sbrof

    0 ratings12345
    May 6th, 06:50

    I think the most important thing to take from this trend is things have gotten better for downtown. It might not be bringing in chains (who freaking cares) or an avalanche but slow steady progress is important to buildings momentum. We don't want to be a city that grows faster than its means and there are sure a lot of other issues we need to work out along the way. So I say bring on the retail and downtown living options, support them and enjoy the newfound sense of optimism and take it as a tool for pressuring for change in our schools, sewer system, environment, taxes etc.

  9. mpitman

    0 ratings12345
    May 6th, 08:36

    “We still don’t have the chains yet,” - I echo sbrof, who cares? If you want to shop at a chain, go to the Galleria. Give me one of our many fine local eateries over a chain restaurant any time. Sure, chain retail stores tend to feature lower prices than independents, but when you can walk or take public transit to your retail destination, especially with the cost of gas and vehicle maintenance, I think you'll find the added expense is offset and the quality of service is superior.

  10. WCPerspective

    3 ratings12345
    May 6th, 08:53

    CM's references the national retail chains only as a benchmark- when you start seeing national retailers locate downtown, it will be a harbinger that downtown's demographics (population and income) have reached the thresholds they look for. Most chains base their location decisions strictly on the numbers, local entrepreneurs less so.

  11. girlinthebuff

    0 ratings12345
    May 6th, 09:00

    mpitman - You're missing the point. The article is simply stating that until the national chains want to develop downtown, then there hasn't been a real change in downtown. Furthermore, until they are willing to open retail locations in that area there is no point in really promoting downtown as a tourist destination. National chains appeal to a wider range of people.

  12. GTsnowracer

    5 ratings12345
    May 6th, 09:02

    I'm still trying to figure out why BRO has such a fascination with retail. They seem to equate success in Buffalo with people opening stores. Who is going to shop at those stores? Other than a few places in tourist areas, no money comes into the area in local retail! When a company comes in who sells their products outside the area (say, a financial services company, or even a customer service operation like Geico), they pay salaries to local people, moving money from outside the region to the people here. When you open a retail shop, you move money from the people here to outside suppliers. Why do you relentlessly promote this at the expense of real economic growth?

    Sure, cool stores add to our quality of life here. But I'd much rather see office buildings being filled by tech startups over coffee shops and chain stores that suck the money away from our area.

  13. sally

    0 ratings12345
    May 6th, 09:23

    Gausted - you are foolish if you think Bass pro is not going to happen - it is real. They have even stated that they would like to move the opening date up to 2009 from 2010. BTW for those that think there will be too many Bass Pro's too close together, please note thet Bass Pro has officially killed their plan to build in the Pittsburgh area. They have already removed the Pittsburgh store from their web site as a future location too! Seems they could not get the sales tax breaks they were looking for.

  14. sally

    1 ratings12345
    May 6th, 09:31

    Girl in the buff - just because downtown has not reached the magic 10,000 residents within 1 sq mile that the national chains require does not mean it has not turned around. Going from 1,800 resident to 4,000 is still a turnaround. I think the downtown comeback is becoming obvious to anyone with open eyes... and an open mind to observe. It wonderful simply wonderful

  15. DJB

    0 ratings12345
    May 6th, 09:37

    At a time when most businesses are struggling due to the economic climate, it is encouraging to see more shops opening in downtown Buffalo. At least it isn't continuing to slide, as it has been doing for several decades. Certainly better paying jobs and more people working downtown will help, but these all go hand in hand. With more development downtown, retail or otherwise, there will be more people interested in living downtown, opening stores downtown, visiting etc.

    I can say that the company I work for is looking at the development downtown with interest to see if it is right for us to open a store there as well. Maybe it will be a few years down the road, but we are hopeful that the development will continue.

  16. GDC

    0 ratings12345
    May 6th, 09:45

    Anyone who ever visits the current retail stores, Get Dressed, Jenny Shop, etc. will see for themselves just how busy they get and why they plan to STAY Downtown and why we NEED more retail downtown. A demand is there already, national or local, we already have a large amount of people working and visiting downtown daily who do support the current and any new retail to the area. It's slow right now, but with more interest, more housing and companies taking interest and moving to the city's core, you're gonna see the city actually look like a real city again.

  17. NBJOHN

    0 ratings12345
    May 6th, 09:46

    Will the Main Place Mall ever turn around and get a national/anchor retailer? (other than the dollar store?) Or should it be knocked to the ground?

    Back in the mid ninties when I lived with down state friends during college they used to call it the crack mall. Granted I have not been there in along time, has it changed much?

  18. dpbflo

    0 ratings12345
    May 6th, 09:48

    theres no denying downtown and buffalo is shaping up and progress is being made. We still need more police on the streets, Ive been helping my friends move into the Webb Lofts this week- Twice in one week people had their car windows smashed in right in front of the webb building, they got a GPS out of a black escalade (a woman from NYC living in the webb lofts on a 6 month stay in buffalo). This happened in broad daylight on a saturday afternoon. and the other im not sure what they got it was a gust of my friends dinner party. If this stuff keeps up the thousands that have moved downtown in the past 2 years will be out just as fast as they were in. And of course one of the new fancy cameras are no where to be found.. most likely because rocco or the owner of pearl street arent kissing mayor browns ass.

  19. GDC

    0 ratings12345
    May 6th, 09:53

    The Main Place Mall is still a dead mall, it just needs new managment and a marketing director to get it Going Again- Promoted to National Retailers and Revamped to attract them.

  20. sbrof

    2 ratings12345
    May 6th, 10:15

    "until they [chains] are willing to open retail locations in that area there is no point in really promoting downtown as a tourist destination"

    because the reason i travel to cities is to shop at GAP and JC Penny to buy the same stuff I can buy at home.. I understand using it as a metrics of a changed demographic but thinking that downtown isn't good enough without chains is a total misconception.

  21. nick

    1 ratings12345
    May 6th, 10:38

    sbrof, you don't have to travel to a city just to shop at GAP, but if its there in conjunction with other events you may just puruse. Cities need to have the full gammit of novities and activities for both residents and visitors. I bet some of those new young professionals in the lofts would love a GAP or other national retailor. Just because they may not be the vision of certain people, many others like to shop at chains, and would see their return to downtown as a reason to go down there, as an alternative to the mall. Besides, cities tend to have a hierarchy of retail and its a good thing. There's nothing wrong with having local shopping districts (Elmwood) and areas with national retailers. As long as they take up storefronts instead of being in strip malls then it is a win for the city. Main street could surely use an influx of these types of tenants.

  22. MikeJ

    1 ratings12345
    May 6th, 10:48

    GDC, you dont think the MPLG has tried to get national retailers in? Like it has been already said, without a magical number of certain incomes of people living within a certain square mile it is not going to happen. To think the MPLG doesnt want to make money is ludicrous, can you imagine the cost of heat and AC alone in the mall? If there was a way I'm sure they would have brought them in. I promise they are working on it.

  23. lauras

    1 ratings12345
    May 6th, 11:01

    Main Place Library Group doesn't want retail. They make more $ from office space.

  24. ToughintheStreets

    0 ratings12345
    May 6th, 11:06

    Id like the remind people that the proposed Bass Pro shop is not just some yee-haw Bob's bait & tackle shop. From what I understand it would be a Dicks, EMS, gander Mt. rolled into one selling hunting, fishing, camping, climbing, outdoor products as well as ATV's, Boats, Kayaks Jet Ski's etc. With room for you to test out equipment including the Kayaks & jet skis. Coming or not whats so horrible about that? If we get one great if we don't lets do something else with it. Either way I say the more development the better!

  25. scooter

    0 ratings12345
    May 6th, 11:11

    Who cares about Bass Pro (i would like to see them open), but i'm more excited about all of these small businesses opening. Much better for our economy as well. The money we spend here is all recycled in our community.

    This new retail is a positive sign.....it's not alot....it's not time square.....many of these businesses will fail and be replaced by a new store. But these are people and businesses making an investement in a part of our region that hasn't seen investment in decades. The spin off (new taxes, construction jobs) benifit all of us, even us in Amherst!

    More office tenants and alot more living opportunities will just mean more small retail businesses. I can't imagine we will see a target or a walmart in downtown buffalo in our lifetime, not enough people in the CBD. But who cares, when i have to go there.....it's a 20 minute drive.

    I'm excited about whats happening in the city.....slowly but surely!

  26. RisingDamp666

    0 ratings12345
    May 6th, 11:16

    It will definitely be too close to the Bass Pro in Tonawanda. But I'm all for it if they have the deep sea shark fishing gear I want for summertime fun on the lakes. What Downtown really needs is a mondo steakhouse like Morton's or Smith and Wollensky. There's just something about carnivorous gluttony surrounded by high towers that really appeals.

    BTW notice how much busier it is in this picture than downtown Minneapolis.

  27. MJWorthington

    2 ratings12345
    May 6th, 13:09

    The area as a whole has the demographics. What is needed for the Main Place mall is a one-stop place to shop at unique retailers not found anywhere else in the area. If there are locations out in the burbs it will not get off the ground. It needs to be a unique shopping environment to get people to go out of their way to visit.

    The amount of people in the picture above is not the norm. Another thing about that picute is it reveals just how much the current metro-rail stops block visual access to Main St. This is a problem at all of the cross streets to the pedestrian mall.

    Retail is just one aspect of life. Trying to make it better in the city is not at odds with promoting new jobs, etc. Lets bring up schools too while we are at it ;)

  28. tonyarmani

    1 ratings12345
    May 6th, 13:19

    damp - those people in the picture are paid actors. Nobody from the burbs walks down main st in the middle of the day.

  29. RisingDamp666

    2 ratings12345
    May 6th, 13:56

    ^ You know, I kinda suspected as much, tonyarmani, but the conclusive proof wasn't there. Then, looking closely at that woman at the right with her handbag slung over her shoulder, it's clear as day: that's a SAG card hanging off of it!

  30. carl

    3 ratings12345
    May 6th, 14:08

    has anyone in buffalo actually been to a bass pro?...because they aren't that great. It is like a big dicks or gander mountain, with a fish tank in the middle.

    if we are pinning our downtown development on a fish tank/bait shop, then the city is doomed.

    i think all the businesses listed above will have more economic benefit to downtown than any stupid bait shop.

  31. coolrobc

    2 ratings12345
    May 6th, 14:23

    Yes Carl I have, and I disagree that they aren't that great. They have a far greater selection of products than Gander Mountain, Dicks, or any of the other local outdoor stores combined.

  32. CKBuffalo

    4 ratings12345
    May 6th, 14:57

    If you look at any successful plaza or mall, they all have one thing in common, an anchor store. That's what Bass Pro is. They are the anchor store for the Canalside project. They will bring the masses, allowing for the smaller, dependant retail stores to follow. This will cause Canalside to be a destination center, unlike the rest of downtown because the demographics are not there and is too far from Canalside to feed off of it.

    Retailers look at the trade area around the proposed store. They will look at a 1-mile, 3-mile and 5-mile ring to carve out a trade area. The majority of their customers will come from the 1-mile and 3-mile rings. When they look at the population, it is a good possibility that, in downtown, they will be satisfied. But when they look at the all important median household income and disposable income, it will not work. Here is an example:

    Famous Footwear Looking for : 100,000+ population within a 5-mile radius Median HH Income of $50,000+ within 5-mile radius

    Using the Tishman Building at 10 Lafayette Square as a reference point, the demographics show: 1-Mile 3-mile 5-mile Population 15,347 112,378 274,495 Med. HH Income $19,529 $24,038 $27,639

    Doesn't work, does it. Until these income figures change, downtown will not see a critical mass of retail. Small, locally owned shops will open, but all will be specialty shops catering to the daytime population or the small, wealthier, residential population. Large amounts of retail will not fill the storefronts of the city, local or national.

    I wish this was different, as my profession is as a real estate broker in retail sales and leasing, but it isn't.

  33. sally

    1 ratings12345
    May 6th, 15:02

    40% of a typical Bass Pro's floor selling space is occupied by clothing. So if the store is 225,000 sq ft that equates to 90,000 sq feet of clothing. Shirts,sweaters, jackets, shoes etc. It is the equivalent of the floor space of the old downtown LL Bergers and Hengerer's combined.

  34. sally

    0 ratings12345
    May 6th, 15:15

    err Shirts that is!

  35. GDC

    1 ratings12345
    May 6th, 18:13

    It's true, the Main Place Mall would rather turn the entire building into one big office, just look at the second floor today and half the first floor and what about the delay of 50 Court Street? (surface lot right now) that Main Place wants to take over it's OFFICE TENENTS. If they really tried to lure National Retailers they would Update the 1960's look inside and out and make it ATTRACTIVE for retailers and visitor's. And create a marketing technique that would be made news worthly that it would even make a story on this very site.

  36. vgs

    0 ratings12345
    May 6th, 18:56

    If the plan comes together it is important to remember that the retail developement for the inner harbor/canalside is a multi tenant plan, probably suburban in make up and Bass Pro is only the anchor tenant. Benderson is to use its national influence to attract up to 80 retailers. The news sources really need to stop calling this Bass Pro as people quickly take a very jaded point of view of this developement

    This is not some stand alone tackle shop stuck on the end of main street, it is a major retail, hotel, restaurant and entertainment plan. I am not saying for a second that I think this plan is going to happen but lets make sure we are all talking about the same thing.

  37. TonyMacaroni

    2 ratings12345
    May 6th, 20:11

    Do you really call this an upswing?

  38. carl

    1 ratings12345
    May 6th, 20:23

    bass pro...filling the need for camouflage underwear since 1972.

  39. GetReal

    1 ratings12345
    May 6th, 21:58

    After spending a few years living on the west coast and frequenting cities with vibrant downtown areas, Ive observed a lot of things that Buffalo is lacking in and how things could get better and the whole "retail" issue has piqued my interest. In order for retail to flourish downtown, there need to be better paying jobs downtown which will attract more resident to live downtown which will attract more retail. I agree that nice mom and pop stores are uniqe to Buffalo but I notice so many people take such a hard-line stance against national retail chains moving into the area. Its seems like native Buffalonians are scared to have a major retail giants like a Nordstrom or a Ruth's Chris (steakhouse) move into the area. The attitudes and ideas of people are so narrow-minded. I don' live in Buffalo but did for about 25 years. After moving back to the area (I don't live in Buffalo but a few hours away), the narrow-mindedness is one of the things I notices was so prevalent upon coming back to the area.

    How nice would it be to see a Banana Republic or Gap-like national chain stores open up on Main Street which would appeal to the young professionals. Or some nice high-end restaurants like someone mentioned a Morton's or a PF Changs.

    Now Buffalo is no San Diego but look at their downtown. THey have the vibrant Horton Plaza which boasts ALL kinds of national retailers and is a toruist destination for all who come to visit the city of San Diego. San Diego has a LOT of downtown housing albeit it is way more expensive than Buffalo's. THey also have a lot of high paying jobs that fuel the economic and business activity in their downtown core. Buffalo has an uphill battle in attracting the high paying jobs to its core due to the high taxes, construction costs, political climate, and cold weather which make it less attractive to lure out of towners but if there are jobs, people will come. However, if the city can succesfully attract high paying jobs to the downtown core, more disposable income, more people to spend it, more retail.

  40. GetReal

    1 ratings12345
    May 6th, 22:00

    Oh and I forgot to add, I wouldn't be getting too excited about a Tim Horton's or a Dunkin' Donuts opening up downtown.

  41. vgs

    1 ratings12345
    May 7th, 06:23

    sure Jobs are nice for for downtown retail, but the real push comes from visitors in the form of tourists and conventioneers. We have a ready and willing population of southern Ontarioians that will gladly converge on our downtown if or when canaside gets built (which I would imagine will be a similar make up of national retailers as Horton Plaza in San Diego). The silly saying "if you build it" is somewhat true in this case. It will be a destination retail and entertainment center that will pull people from all over the region (Ontario, Southern Tier, North PA, Roch and of course Erie Co.) Thousands of people do not converge on Cheektowaga each week because of jobs there, it is because of a concentration of what they want, shopping and dining.

  42. completelyoverplayed

    0 ratings12345
    May 7th, 09:14

    I so love that so many voices are saying the same thing: It's about the high-paying jobs, not retail (mom-and-pop, chain, or otherwise). And the points people make about local residents being narrow minded (and myopic in obsessing about retail) I really don't mean to be negative but I think it's important to listen to these voices and understand that high-paying jobs need to be a public concern and ongoing public discussion. I see many issues tackled in this blog but I don't see any consistent coverage of that topic.

  43. onestarmartin

    0 ratings12345
    May 7th, 10:15

    God, I am so tired of Bass Pro "the saviar of Buffalo". People seem to forget thay we are paying them to open here. I am sure we would get a Banana Republic, Gap etc if we built them buildings, give them tax relief and nominal rent also. I went to "Canal Side" the other evening. Done after 7 minutes. The area still needs a lot of work, lots and lots of retail, theatres and eatery's before it is considered a destination point. Sure, Bass Pro will be a stepping stone, but a small one at best. Now, if we had the high paying jobs and a few hundred thousand new jobs in the area, these chains would be clamoring to get to our waterfront.

  44. ToughintheStreets

    0 ratings12345
    May 7th, 10:57

    Jobs?!, concern for what might interest and attract young professionals?! You mean I'm not the only one here who cares about these things and thinks we should discuss them more?! I can't believe what I'm reading! I'd love to see a Gap or Banana right along with Jenny and Get Dressed and whoever the hell else wants to be down there local, national or otherwise! It'd be like our own little Magnificent Mile.

    To clarify my original post, Bass Pro will never be a savior and I don't think anyone here has suggested that. But its a step in the right direction.

  45. sally

    0 ratings12345
    May 7th, 11:07

    Risingdamp66 - Downtown Buffalo needs many things but a chain steakhouse such as Morton's is not one of them. We already have the far superior EB Greens which was named the 6th BEST Steakhouse in the entire country by a national food magazine. EB Greense is awesome simly awesom:)

  46. GetReal

    0 ratings12345
    May 7th, 20:38

    I love EB Greens but, as with a LOT of other restaurants like the Chop House, EB Green's and others have had to entice people to come to the restaurant with coupons in the Gusto and honoring Entertainment Card discounts. Restaurants that are thriving and doing well don't need to entice people to come down by the use of coupons in the Gusto. Its a bad sign. You would never see a prominent high-end steakhouse or restaurant in a major downtown center trying to entice people to come to eat via the use of coupons.

  47. vgs

    0 ratings12345
    May 8th, 07:57

    You are kidding about EB Greens, right. Please tell me you do not believe those rankings that you have to pay to be listed in. I am not sure we are giving Bass Pro that much to open here. The expense comes from demolition and site preparedness after that they pay a nice chunk of rent. It is not uncommon that developements like this (Horton Plaza, Fanuaiel Hall, Baltimore Inner Harbor) are heavily funded by taxpayers.

  48. sally

    0 ratings12345
    May 8th, 16:13

    Get Real - you are wrong. The Cleveland Entertainment book has a coupon for Morton's. $25.00 off. And they are no where near as good as EB Greens. They were not even in the top ten.

  49. dagner

    0 ratings12345
    May 9th, 07:24

    |sure Jobs are nice for for downtown retail, but the real push comes from visitors in the form of tourists and conventioneers| Is this true? That retail success stems from occasional, random visitors and not from the repeat business of customers frequently nearby? Seems too subject to the whims of discretionary spending.

    When I've worked in downtowns, Buffalo's included, I saved an enormous amount of time and carbon by buying clothes, gifts, and sundries while on walking lunches. Now, working in a suburb, the smallest purchase must be scheduled, driven to, and eats an hour.

    I've got to believe that increasing the number of workers in an area increases the number of customers.

    However, it is unrealistic to expect lunchtime buyers to haul the weighty and/or bulky items I usually buy at big box stores: paper products; pet food; household stuff. Maybe there's a retail model between big box and boutique to serve downtown workers.

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