Prince Georges County Office of the County Executive David S. - PowerPoint PPT Presentation

Prince George’s County Office of the County Executive David S. Iannucci, Assistant Deputy Chief Administrative Officer Brad Frome, Assistant Deputy Chief Administrative Officer Prince George’s County Economic Development Corporation Larry Hentz, Director of Business Development Prince George’s County Department of Housing and Community Development Eric C. Brown, Director Prince George’s County Redevelopment Authority Stephen J. Paul, Associate Director Prince George’s County Council The Honorable Dannielle M. Glaros, Councilmember (District 3) Jackie W. Brown, Committee Director, Planning, Zoning and Economic Development (PZED) Committee Prince George's County, Maryland Conference & Visitors Bureau, Inc . J. Matthew Neitzey, CAE, CDME, CEcD, Executive Director Prince George’s County Planning Department Jacqueline Philson, Master Planner, Project Manager/Facilitator Derick Berlage, Chief, Countywide Planning Division Ivy A. Lewis, Chief, Community Planning Vanessa C. Akins, Chief, Strategy and Implementation 2 Ted Kowaluk, Planner Coordinator

About the RCLCO team Practice Groups  Public Strategies  Community Development  Urban Development RCLCO is a land use economics  Management Consulting firm delivering real estate  Institutional Advisory strategies , market intelligence , Offices and implementation assistance.  Washington, DC  Los Angeles  Austin  Orlando 3

Agenda  Project Overview  Countywide Retail Market Analysis  Countywide Retail Opportunity Analysis  High-End/Luxury Retail Consumer  Marketability Analysis  Focus: Southwest and Southeast Trade Areas  Questions 4

COUNTYWIDE RETAIL MARKET ANALYSIS Surveyed Qualitative and Quantitative Factors for 241 Shopping Centers & 10 Main Streets  tenant quality  building vacancy  surrounding land uses Shopping Centers by Type Shopping Centers by Trade Area Regional/Super- 2.1% Regional Outlet 0.4% 116 Lifestyle 1.2% Power 4.1% Community 9.5% 59 Neighborhood 36.1% 33 31 46.5% Strip/Convenience 2 0.0% 20.0% 40.0% 60.0% North Central Central Southwest Southeast Market Inside 495 Outside 495 Market Market 5 Market Market

Power Center Discount Stores Replace Tenant Department Stores In-Line Tenant Fitness Center In Anchor Space Strip Center Tenant Strip Tenants In Community 6 Center Space

County Shopping Center Distribution by Center Rating 140 117 120 Number of Shopping Centers 100 80 69 60 47 40 20 8 0 A B C F/Defunct Rating of Center Quality

County has potential to capture additional $1.4 billion retail sales annually  Retail sales = $7.2 billion  Retail demand = $8.6 billion  Spending gap = $1.4 billion annually that the County could capture  $9,000,000,000 $8,594,982,688 Sales and Demand $8,500,000,000 Gap = $1.4B $8,000,000,000 $7,500,000,000 $7,222,066,667 $7,000,000,000 $6,500,000,000 Total Retail Sales Generated incl. Estimated Grocery Total Retail Demand 8

LEAKAGE SURROUNDING THE PRINCE GEORGE’S COUNTY RETAIL MARKET 9

THE COUNTY HAD DEMAND FOR 22.2 MILLION SQUARE FEET OF RETAIL SPACE IN 2014  By 2020: Demand will support 24.1 million square feet  By 2025: Demand will support 25.6 million square feet 8,000,000 Supportable Square Footage 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 10 Current 2014 Supportable by 2020 Supportable by 2025

Retail Supply-Demand Within Trade Areas Central Central South North Southwest Inside Outside east 6,000 405 5,000 Thousands 4,000 230 3,000 185 191 178 163 154 2,000 122 113 74 1,000 0 2014 Demand 2020 Additional Demand 11

CO COUNTY TY HAS ST AS STRONG UN UNDER DERSER SERVED VED MI MIDD DDLE LE WITHIN EXTREMELY AFFLUENT REGION 1% 3% 1% 7% 7% 5% 4% 10% 2% 2% 7% 8% 22% 6% 4% 12% 13% 11% 14% 9% 32% 9% 13% 33% Prince George’s 13% top 30-40% of 27% consumers likely underserved by 11% 32% 22% available retail in 21% County 19% 20% 31% Region and nearby 21% counties have 30- 25% 40% of consumers 33% 27% in top spending 22% tiers; County only 8% 11% has 11% 9% 3% Washington- Prince George's Montgomery County Howard County Anne Arundel County Fairfax County Baltimore Region County First Second Third Fourth Fifth Sixth Seventh Consumer Segment Tier (Median Income) 5 th ($53,514) 1 st ($145,649) 12 2 nd ($100,269) 6 th ($42,114) 3 rd ($80,740) 7 th ($36,240) 4 th ($59,134)

WHAT WHA T IS IS HIGH HIGH END/L END/LUXUR UXURY Y RET RETAIL? AIL?  Luxury High-quality, high-status products sold at full retail price. Exclusive products not available at other stores that convey prestige based on brand name. Limited in distribution to 400 or fewer retail outlets in the US.  Traditional Examples: Tiffany’s, Prada, Barney’s  Customer: Age 25-45, Single, Net worth $500k+, Income $150k+  The New Luxury Unique ─ No Longer about the Brand Name. “Functional Luxury,” Quality, Authenticity, Craftsmanship.  Customer: “HENRY” ─ High earner not rich yet, Income $100-250k, Increasingly Millennials  Examples: Apple, Whole Foods, Sleep Number, Rent the Runway, Uber 13

ACHIE CHIEVAB ABLE LE LUXU UXURY Y RE RETAIL AIL FOR PRINCE GEORGE’S COUNTY No Hard and True Definitions Across All Retail Categories Fashion Examples Luxury Likely Out  Luxury/Designer: Gucci, Prada, Versace, Barney’s of Reach in Near Term High-End/Upscale  Bridge: Ellen Tracy, DKNY  Better: Anne Klein, Jones New York, Armani Could County get Moderate more of  Contemporary: BCBG, J. Crew, Rebecca Taylor  Moderate: Gap, Nine West, Land’s End, Zara these? Low End County has  Discount/Off-Price: TJ Maxx, Nordstrom Rack this level  Budget/Mass Market: Target, Old Navy, Forever 21 of retailer 14

Radius adius Inc Income ome Other her Crit iter eria ia Ret etailer ailer Pop opula ulation ion (Miles) (Miles Inc ncom ome Metr Metric ic (Cot (C otenant enants, s, Tr Traff affic, ic, Psychograp Psychographics) hics) App Apparel Saks Off 5th 400,000 N/A $85,000 Average Loft/Chico's/White House 150,000 5 $75,000 Average Black Market J. Crew 200,000 10 $75,000 Average Site Selection Criteria for Selected Retailers South Moon Under N/A N/A $100,000 N/A Cotenants: lululemon, Blue Mercury, Banana Republic Bevello 200,000 N/A $75,000 Average Sterling Jewelers 250,000 10 $75,000 Average Servi vices, s, Fitness, ss, Entertainme ment Cobb Theaters 100,000 5 $75,000 Average LA Fitness 60,000 3 $20,000 Per Capita Complete Nutrition 50,000 Trade Area $70,000 Average Hand & Stone Massage Spa 100,000 5 $60,000 Average Massage Heights 30,000 3 $80,000 Average Lifetime Fitness N/A 5 $70,000 Median Gro Groce cery ry Wegmans 50,000 3 $85,000 Average Publix 20,000 3 $50,000 Median Kroger 20,000 3 $40,000 Median Fresh Market 150,000 5 $75,000 Median Psychographics of "leading edge of food" in area; like sites near Whole Foods 200,000 5 $75,000 Median large universities; 50% college educated; Home Owner (60%+ Owner Occupied Homes) "above Sprouts Farmers Market 100,000 3 N/A "High % white collar jobs"; 40% college educated avg." Median age of 44; 36,000 college educated in 5 mile; Home Owner Trader Joe's N/A 5 $64,000 N/A (60%+ Owner Occupied Homes) Costco 200,000 5 $75,000 N/A Ho Home megoods s and Ou Outdoors s Go Goods Crate & Barrel N/A N/A $75,000 Average Pier 1 Imports 150,000 5 $60,000 Median Mattress Firm 100,000 5 $65,000 Average Dick's Sporting Goods N/A Trade Area $70,000 Average Cabela's 250,000 30 N/A N/A 75,000 cars per day (cpd) Performance Bicycle 700,000 10 $75,000 Average Res Restaurant -Qu Quick Servi vice La Madeleine 60,000 N/A $75,000 N/A Female-oriented retail; 50,000 cpd Pei Wei 250,000 5 $75,000 N/A Smashburger 50,000 3 $60,000 N/A 50,000 cpd CeFiore Italian Yogurt 45,000 1.5 $75,000 Average Rest estau aura rant nts s - Fu Full Ser ervi vice ces J. Alexanders 150,000 3 $60,000 N/A Wolfgang Puck Pizza Bistro 200,000 N/A $80,000 N/A "Recycled funky sites such as gas stations" World of Beer 75,000 N/A $80,000 N/A 15 Cheesecake Factory 25,000 5 $75,000 Average Bloomingdale's, Nordstrom, Neiman Marcus Chuy's 50,000 5 $65,000 Average Dickey's BBQ Pit 30,000 N/A $60,000 Average Ted's Montana Grill 60,000 3 $100,000 N/A Urban properties Pay most attention to performance of surrounding restaurants - Bonefish Grill 200,000 5 $100,000 Median demographics aren't the whole story

LUXURY AND “HENRY” CONSUMERS LIVE IN DIFFERENT LOCATIONS TODAY “HENRY” Consumers Luxury Consumers (Laptops and Lattes, Trendsetters, Metro Renters) (Top Tier Tapestry) Chevy Chase, Bethesda, Fairfax, Annapolis, Capitol Hill, Georgetown, Shaw/U Street, Rosslyn- Howard County, Potomac Ballston, Alexandria  Metro Accessible 16

MARKET MARKETABIL ABILITY ITY OF TH OF THE E COU COUNTY NTY Retailer Site Selection Criteria An Intersection of Location and Demographics  Median Income  Education Levels  Population Density  Employment Proximity  Traffic Patterns (Both Pedestrian and Vehicular)  Surrounding Land Uses  Co-tenants 17