Commercial Development

This report consists of a qualitative evaluation of the existing retail, restaurant, and entertainment uses in Downtown Baton Rouge, and proposes a supportable retail strategy for the future.

The findings of this report identify the Downtown as presently economically underdeveloped and, with proper management and leasing efforts, capable of supporting an additional 300,000 square feet of retail and restaurant establishments, capturing an additional $54 million in annual revenue. It is recommended that the commercial growth primarily occupy Third Street between Main and North Boulevard. Additional service retail and a Public Market are recommended at Main Street between River Road and Seventh Street. The commercial growth is recommended to occupy new infill buildings and existing buildings that are presently vacant or underutilized.

Specifically, the recommended supportable tenants for the Downtown area include (Exihibit A):

Department Store 150,000 SF

Public Market 15,000 SF

Drug / Convenience Stores 20,000 SF

Arts / Crafts / Antiques 20,000 SF

Restaurant / Bar 17,000 SF

Personal Services 2,500 SF

Coffee / Bagel Shops 3,900 SF

Music 2,000 SF

Office Supply 15,000 SF

Book Store 18,000 SF

Ice Cream Parlor 1,000 SF

Apparel 18,000 SF

Fashion Footwear 5,000 SF

Fast Food 3,000 SF

Health Club 10,000 SF

A number of factors affect the ability of the Downtown to absorb this new retail activity. Many existing structures in the study area are in need of repair or renovation to better utilize their commercial street level space and develop uses for upper floors. Current traffic patterns harm shopping due to confusing access routes into and around the city, as well as poor signage. In addition to encouraging shoppers to travel to Downtown, increasing housing opportunities within the study area is essential. A larger population of people living in the Downtown area will support increased retail while returning Baton Rouge to a twenty-four hour city.

Also detailed in this report are a variety of visual and practical merchandising steps for the central business district to pursue. Recommendations include improvements to streetscape, light­ing, parking, signage, traffic and tenant mix. These recommend­ations recognize that any downtown expansion or renovation must be designed to reinforce Baton Rouge’s unique historical and architectural characteristics.

[A Market Assessment and Merchandising/Leasing Strategy for Downtown Baton Rouge was prepared by H. Blount Hunter Retail and Real Estate Research in February 2000. The purpose of the analysis was to connect the design elements of Plan Baton Rouge with the dynamics of existing and potential market support for retail, restaurant, entertainment and related uses.]

Issues

The issues to be addressed in this retail market analysis of Downtown Baton Rouge include the following:

Downtown Baton Rouge is comprised of five land use types: Residential, Riverboat Gaming, Commercial, Government, and Convention/Tourist, generating five different patron segments. How can each of these be best attracted?

What trade areas can merchants expect to serve in Downtown?

What retail types, restaurant and entertainment components are currently supportable in Downtown?

What are the retail tenant types, store sizes and sales forecasts for the supportable components?

Methodology

To address the questions outlined above, Gibbs Planning Group (GPG) employed the following methodology:

• Location Evaluation. A thorough evaluation of the locational characteristics of the retailers and restaurants in Downtown Baton Rouge.

• Competitive Inventory. An inventory of competitive retail to Downtown Baton Rouge. The competitive evaluation included observations and comments concerning site characteristics, tenant mix, consumer appeal, price points, merchandising and presentation. (See Appendix B: Com­petitive Profile)

• Population and Demographic Characteristics. A definition of trade areas that are currently being served by Downtown Baton Rouge. For these trade areas, GPG collected the most recent population estimates and future population projections for the defined trade areas, and the most recent demographic characteristics such as median household income, income distribution, median age, oc­cupational characteristics and average household size. (See Appendices C - E)

• Expenditure Potential Determination. Using GPG’s proprietary models of expenditure potential and other sources, the expenditure potential for various retail/restaurant/entertainment uses within the trade area were calculated. This data was used to generate supportable square footages for each retail category, which were compared to the actual square footages provided in Downtown Baton Rouge. This comparison determined which categories of commercial use were under- or over-stored within the district.

• Retail Void Analysis. Based on the results of the Competitive Inventory, the Population and Demographic Characteristics, and the Expenditure Potential Determination, a retail void analysis was conducted. The purpose of this void analysis was to compare the supportable square foot­age for each retail category with the actual square footage provided.

• Supportable Retail / Restaurant / Entertainment Components and Estimated Sales Potential. Based on the results of the Void Analysis, GPG identified which additional retail/restaurant/entertainment types can be supported in Downtown Baton Rouge, forecasting sales for these retail types and making recommendations as to specific operators, where appropriate. (See Exhibit A: Recommended Retail Mix)

This study is based upon the following assumptions:

• The population and demographic data collected is accurate and reliable.

• New residential developments in the Downtown area will increase the population by approximately 2,000 persons.

• The economic conditions of the Baton Rouge market will remain constant.

The conclusions expressed in this report are based upon analysis of the present facts and circumstances. To the extent that these facts or circumstances change, or new assumptions are warranted, then re-evaluation is warranted. The likelihood of such change increases over time.