"Mission Hill Main Street Business District Market Analysis

MISSION HILL MAIN STREETS

Market Research Overview - 2008

This report will provide Mission Hill Main Streets, and its stakeholders, a variety of quantitative and qualitative information to understand the commercial district’s existing and future market conditions, within the context of greater Boston. Further, the report will provide insight into opportunities for business retention, expansion, recruitment, and development.

Context

Fenway

Back Bay

Brookline

Village

Dudley

Square

Jackson-Hyde

Context

Trade Area

Context: Facts & Figures

Residential Population (2000 census): approx. 21,000

Daytime Population Approximately 25,000 Non-resident student population

Approximately 10,000 Area: approx. 0.75 square miles Major Roads: Huntington Ave, Columbus Ave,

Tremont Street, and South Huntington Ave Transit: Green Line E Branch, Orange Line,

#66 Bus line, and #39 Bus line

Businesses

90+ currently functioning enterprises (not including home businesses)

Concentrations in restaurant/food service, convenience/grocery, pharmacy, personal (i.e. hair salons), and professional (i.e. banking) services

Heavy concentration of institutional uses (i.e. hospitals, schools, churches, not-for-profit organizations, and public agencies) within the district and sometimes occupying commercial/retail buildings

Buildings

More than 650,000 SF within commercial district (does not include LMAA)

Building Stock is predominantly “historic” in nature (more than 50 years old) and is heavily multi-use in design with small floor-plates

One large scale modern-commercial development (OBC) with a large floor-plate

Moderate commercial vacancy rate… …though “under-developed” conditions do

exist on a number of parcels/properties

Vacancies

Location Square Footage

714 B -722 Huntington Ave 6,606

808 Huntington Ave 8,000

2-6 South Huntington Ave 4,076

12-14 South Huntington Ave 3,492

35 South Huntington Ave 4,000

81 South Huntington Ave 6,901

1443 Tremont Street 1,318

1447 Tremont Street 1,680

1455-61 Tremont Street 5,391

1596 Tremont Street 3,750

1612-(20) 1,500

144 Smith Street 2,080

Total Vacant Square Footage 48,794

Existing Conditions

Parking & Transit

Anchors & Clusters

Current Conditions

Anchors Businesses (Stop & Shop, Restaurants (collectively),

BMRCC) Culture/Institutions (BCYF, The Mission Church, & Library) Other (Green Space, Transit)

Clusters Brigham Circle (anchored by OBC & BWH) Neighborhood Core/Tremont Street (anchored by the

Mission Church, the Tobin Center, & Sheehy Park) Roxbury Crossing & Terrace Street (anchored by ORC

(future), Building Materials Co-op, Diablo Glass, & Mississippi’s)

South Huntington (the forgotten cluster)

Current Conditions

The Good Views Architecture Street-life/pedestrian traffic Green Space Robust Cultural & Institutional Anchors

The Bad Congestion (ambulances, through/commuter traffic) blank walls/closed blinds dilapidated buildings/lots streetscape (litter, maintenance, street trees)

Trade Area

Trade Area Determination

Identified a representative Sample of Commercial District Businesses

Interviewed/Surveyed Sample Businesses Concerning Customer Demographics/Geography

Complimentary Data from Intercept Survey

Developed a Composite Map Representative of Contributing Data Averages

Trade Area Sample

AUTOMOTIVE Boston Clutch Works Crossing Auto Body LukOil ARTS & MUSIC Diablo Glass and Metal Studios CLEANING Joseph Sullivan Carpet Care DRY CLEANERS/LAUNDRAMATS Hollywood II Cleaners Sofia's Alterations and Cleaners FINANCIAL Citizen's Bank Sovereign Bank HEALTH SERVICES & FITNESS Chi Wellness Clinic at Longwood Crossfit The Family Van PERSONAL CARE Carmen's Beauty Salon Cut It Up Haircutters Liz's Hair Care Nail Spa by Time PROFESSIONAL SERVICES Dahabshil (Multi-Service Center) Spinney's Insurance Agency REAL ESTATE and PROPERTY MANAGEMENT Sunrise Real Estate & Mortgage FOOD and BEVERAGE COFFEE SHOPS & CAFES Butterfly Café JP Licks Mike's Donuts RESTAURANTS & PUBS Brigham Circle Diner Flann O'Brien Pub Mississippi's Penguin Pizza TGI Friday's The Squealing Pig PIZZA, SUBS AND TAKE-OUT AK's Take-Out and Delivery Chacho's Pizza IL Mondo Pizzeria Joseph's Pizzeria Kwik-E Subs RETAIL AC Hardware Boston Building Materials Coop Martin's Beepers Tiny's Flowers of Mission Hill Orchard Skateshop CONVENIENCE STORES AND GROCERIES Stop and Shop WAN Convenience Pun JAB Mini Mart LIQUOR STORES ODB Liquors Dara's Wine and Spirits

2005 Trade Area DemographicsTrade Area Characteristics

Population 21,238

Households 7,508

Median Age 30.25

Avg. Persons p/ Household 2.83

Owner-occupied 14.8%

Family Households 38.4%

Non-Family Households 61.6%

Group Quarters Population 4,431

Households w/ no Vehicle 46.4%

Public Transit, Bicycle, or Walking as Primary Mode of Transportation

88.3%

2005 Trade Area DemographicsIncome

Median Household Income $45,373

Average Household Income $34,018

Per Capita Income $17,860

Education Attainment

Some College/Associates 29.8%

Bachelors 21.8%

Masters or Higher 10.8%

Gender

Male 49%

Female 51%

2005 Trade Area DemographicsAge % (according to 2007

intercept survey)

Under 18 25.9% (5.8%)

18-34 26.1 (49%)

34-54 30.7 (27.9%)

55+ 17.4 (7.4%)

Race/Ethnic Origin

White 53.6%

Hispanic 15.7%

African American 20.2%

Asian 12.8%

Native Indian, Alaskan or Hawaiian or Pacific Islander

0.6%

Other Race Alone 7.8%

Two or More Races 4.9%

Trade Area Demographic Projections

2000 to 2010 residential population projectionaccording to the US Census is for flat to slightly negative growth for the overall trade area.

However, Boston (among numerous other large urban centers) has repeatedly and successfully corrected Census Projection Methodology, which unfortunately does not reach down to the tract level for estimates

Trade Area Demographic Projections

Key Considerations 1,400 + dormitory beds added within trade

area since the year 2000 2.2 million SF of space added to the LMA

area (partially overlapping with trade area) since 2000

2.4 million SF of additional space planned/under construction in LMA area through 2010

One Roxbury Crossing Proposed Development

Nearly 500 units of new housing approved/under review

Understanding The Mission Hill Patron: Intercept Survey

Original Survey conducted in 2000 gathered information from 200 customers

2007 survey gathered information from more than 600 customers

Identical survey format

50.1

28.9

9.5

11.4

Customers Surveyed

ResidentsStudentsLong-wood EmployeeBusiness Owner/Employee

2007 Intercept Survey

Changes that would increase

patronage

# %

Business Open Earlier 136 5.0

Business Open Later 255 9.3

Better Selection of Goods/Services

280 10.2

Better Quality of Goods/Services

251 9.2

Restaurant Delivery 208 7.6

Better Customer Service 218 8.0

Better Information 251 9.2

Increased Policing 250 9.1

Lower Prices 291 10.6

Improved Cleanliness 321 11.7

More Attractive Stores/Storefronts

278 10.1

What the Mission Hill Customer Wants

Top Ten Desired Business/Retail Options

1. Sit-down restaurants

2. Clothing stores

3. Retail stores

4. Bookstores

5. Convenient Food restaurants

6. Laundry/Cleaners

7. Cafes

8. Supermarket/Grocery/Specialty

9. Bars

10. Community/Social

Retail Sales (see hand out for detail)

Retail Type

Groceries (minus beer, wine & liquor)

$18,060,994

Restaurants & Taverns $73,939,963

Apparel, Accessories & Merchandise

$2,807,991

Furniture & Home Goods $0

Hardware, Building Materials & Garden

$2,247,003

Office Supplies, Gifts, Stationary & Novelty

$4,922,999

General Merchandise $12,747,000

Electronics & Appliances $3,337,998

Retail Sales Potential (see handout)Retail Type

Groceries (minus beer, wine & liquor)

$69,180,043

Restaurants & Taverns ($18,442,945)

Apparel, Accessories & Merchandise

$36,709,016

Furniture & Home Goods $8,882,002

Hardware, Building Materials & Garden

$35,473,008

Office Supplies, Gifts, Stationary & Novelty

$3,017,000

General Merchandise $64,227,028

Electronics & Appliances $13,599,006

Total Leakage (minus pharmaceuticals and institutional sales)

$180,469,060

Retail Sales Potential Analysis Certain Categories Currently Exceed Traditional,

Residential Expectations due to adjacency/overlap w/ LMAA (i.e. Restaurants, Textbooks, and Pharmaceuticals) but may still have room for growth

Nearly all “traditional” commercial district categories show significant leakage (i.e. apparel, general merchandise, home goods, office supplies and novelties, and electronics)

Other sales such as entertainment and hotel/lodging, while not considered retail sales, show market potential

Challenges & Barriers

Institutional encroachment Fragmented market, transient populations High property valuations, market values for

leasing = barrier to small businesses and start-ups

Little retail presence Lack of commercial/cultural anchors with strong

linkages to business (i.e. Theatre, Anchor Stores/Attractions)

Excessive institutional/“office” presence on first floor retail spaces

Strengths

Excellent access to large employment and student base in the adjacent LMAA: 50,000+

Excellent access to transit (orange line, green line, #66, and #39 buses) and surface routes (Huntington Ave, Columbus Ave)

Excellent access to parks and green spaces Institutional Anchors (i.e. the Mission Church, Library,

MFA, BCYF Headquarters, LMAA) The Mission Hill business district serves a diverse

population: i.e. race/ethnicity, age, socio-economic status, student/transient, professional, and long-term residents/families

MHMS Action Strategies

Business Member Program that incorporates high quality technical support and advising for sustainability and growth

Business Member Program that provides valuable and detailed market research for members (i.e. customer identification (a la zip codes), Claritas data, etc.

Collective Branding/Identity Coordinated Calendar of Promotional Events & Activities

(substantially organized by businesses) Business Recruitment/Expansion targeted towards

“complimentary” and “leveraging” enterprises according to current/project market trends

Implementation of the Holy Trinity- Clean & Well-maintained Storefront/Windows, Pretty Flowers/Plantings, Clear & Clean Sidewalks

Top Areas for Business Expansion/Recruitment

Home goods, hardware Entertainment/Engagement (i.e. cooking school) Niche Retail: Artistic creative (i.e. funky t shirt

shop), Shoe store, second-hand clothing and goods

Hybrid: i.e. Comics/Music/Movies/Books, Bookstore/Café/Bakery, Videostore & Inde-Theatre, Laundry & Arcade

Sports/Fitness/Lifestyle: i.e. Yoga Studio, full-scale gym a la BSC, Gym/Sporting Goods Store

Hotel/Extended Stay

Market Position Statement

Mission Hill is… The crossroads for Boston’s Medical, Research &

Academic communities Among the best connected commercial districts outside

of downtown w/ two rapid transit lines, commuter rail access, multiple high-capacity bus and shuttle routes situated between Rtes. 9 and 28

A vibrant and diverse community representing a true cross-section of Boston (students, young professionals, and families)

A neighborhood with architectural character and amazing parks (and views) alongside restaurants, shops, and services