Introduction | Economic Development Insight | Business Survey
Economic Development Insight
Introduction | Financial Considerations | History of Economic Development | Master Plan | Commercial Districts | Mixed-Use Development | Market Analysis
WHEN OPPORTUNITY AND NECESSITY CONVERGE
Mixed-Use Development Continues to Make Sense for Upper Arlington
The following links will download pdf files for sections of the Boulevard Strategies report entitled "Market Analysis for Retail and Office Uses, Upper Arlington, Ohio."
Introduction | Historical Perspectives | Retail Market/Current Conditions (1) | Retail Market/Current Conditions (2) | Office Market/Current Conditions | Future Outlook
It has been four years since Upper Arlington City Council formally adopted its new Master Plan. A Master Plan is a community’s long-term vision setting forth guiding principles, which frame community objectives. Its implementation occurs over decades and as such should be a living flexible document which responds to changing community needs as well as market conditions.
Today, our leaders and administrators continue to make decisions using the spirit and letter of this important document. To make sure the Master Plan remains relevant and on track, it requires a continual monitoring. Not only does City administration and City Council monitor the plan itself but we also check in with the market to be certain we have a realistic understanding of the market forces that influence the plan. In fact, a current Master Plan principle cites that “market realities must inform the City’s land use preferences (Vol. 2, p.2.9).
In order to fulfill the requirement of conducting such a “check-up,” the City contracted with consultant Christopher Boring of Boulevard Strategies to take a close look at the retail and office trends that define and impact Upper Arlington. (This was the same company that conducted the analysis in 2001 as we worked on the Master Plan.) The City requested the study in July 2004 and it was completed in December 2004.
Just as we learned in 2001, the study reveals that Upper Arlington is over-served with retail square footage, evidenced by a 19% vacancy rate versus Columbus’ 12% vacancy rate or the national average of 8%.
Recent upgrades made to some of our retail centers, most notably the Shops on Lane Avenue, have greatly improved residents’ shopping experience. The reality is, however, that Upper Arlington is no longer the regional shopping destination it once was…and with the glut of increased competition in the region, it probably never will be again.
It is important that we understand our place in the market. Undeveloped land is all but gone, Upper Arlington is only 10 square miles, and 99% of it is developed. However we have an excellent location and highly desirable demographics for the right businesses. Companies that want easy access to downtown Columbus, OSU, or Central Ohio major hospitals and health care centers find Upper Arlington to be extremely attractive. In addition, we have residents who are following the tradition of King Thompson, Don Casto, Leo Yassenoff, and others by seeking opportunities to re-invest in our community, thus making it that much stronger.
A Celebrated Retail History
The report from Boulevard Strategies captures Upper Arlington’s renowned retail history and applauds our desire to take a new direction. Our tradition of retail excellence began in the 1920s when Phil Houston built a two-story Tudor structure on Arlington Avenue and signed the first lease there with Kroger. Within two years, Don Casto and Ralph Campbell finished the rest of the Mallway buildings as they stand today. The former high school (now Jones Middle School) and city administration building soon followed.
When the Shops on Lane Avenue (originally called The Lane) opened in 1949, followed by the Tremont Center in 1953, people from neighboring suburbs began to patronize Upper Arlington retailers. The mid-1950s saw the opening of the Golden Bear Center and the Scioto View Center at Fishinger Road and Riverside Drive. Nothing compared, however, to the debut of Kingsdale Shopping Center in 1959 after it rose out of the land that was once the Galbraith farm. The Union was Kingsdale’s first tenant, and the world’s first Limited store opened there, too. People came from throughout central Ohio to spend their money at the region’s best retail center.
In the 1960s, increased retail competition began to impact us, first with the opening of the giant malls (Northland, Eastland, Westland) then, in the 1970s with the unique mixed-use centers like The Continent. Sawmill Road became king of the 1980s “big box” era as large one-stop retailers attracted shoppers all hours of the day and night. From the 1990s until today, large destination centers like City Center, Tuttle Mall, Easton, and Polaris have all but erased Kingsdale from the memory regional shoppers.
Today, Upper Arlington is served by nine shopping centers within our borders and three large-scale stores. We have 29.7 square feet of shopping space per capita, compared to 26.7 square feet/capita for Columbus and 23.2 square feet/capita nationally. In the report, based on resident and daytime worker spending habits (demand), Boulevard Strategies estimates that Upper Arlington can support 1.65 million square feet of retail space. In contrast, over 2.1 million square feet of retail space is available to these same consumers. One can easily conclude we need the right retail in Upper Arlington, not more retail space.
Office Market Opportunities
Today, Upper Arlington has approximately 1,000 businesses with 9,400 employees. More than 75% of our businesses have been here for at least 10 years, which is excellent news. However, the competition in the office market is fierce. Greater Columbus has one of the highest office vacancy rates in the nation, and rents have declined steadily over the past several years.
Yet Upper Arlington’s office vacancy rate is much lower, at the time of this study between 11-14%, compared to the region’s average of 24%. Again, it is important to understand market supply and demand in order to understand our office absorption potential. From the supply standpoint, Upper Arlington does not have industry-defined Class A office space with much of our office space aging with modest finishes and amenities, ranking as Class B and Class C spaces yet achieving higher than the regional average rental rates. Combined, these and other factors cited by Boring suggest Upper Arlington has an unmet office demand.
To the extent that the market will support it, the City continues to encourage reinvestment in existing and new office developments. Freestanding or as a part of a mixed use development with retail and residential, office development yields a higher fiscal return for the City and will continue to be a priority given market support.
We are not taken by surprised by the news revealed in the Boulevard Strategies report. On the contrary, we are reassured that we are on the right path with our development aspirations. The Master Plan is still relevant in its long-term vision and we will continue to perform periodic market studies to assure it continues to stand the test of time.
As Upper Arlington residents, business owners, business executives, consumers, tax payers and voters, you can make a difference in the future of our City by becoming an advocate for business recruitment, retention and expansion in our city.
Matt Shad
Deputy City Manager-Economic Development
City Manager's Office
City of Upper Arlington
3600 Tremont Road
Upper Arlington, Ohio 43221
Phone: 614-583-5046
www.ua-ohio.net
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