DOWNTOWN

NEW HAVEN

Retail Market Report Q1 2013

Downtown Business Centerwww.towngreendistrict.com

• With an increasing residential population, world-renowned health care institutions and a hub for higher education Downtown New Haven offers a strong retail environment with potential for growth.

– New Haven boasts the second largest population by city in Connecticut with 130,000 residents.

– 867,338 people live within a 30 minute drive time of downtown.

• The downtown’s retail composition resides in four main districts, Chapel Street, Audubon Arts and Retail District, Ninth Square and the Broadway Shopping District.

• To gain an understanding of the current small business environment and market potential in downtown New Haven, an inventory of all retail establishments in downtown is conducted on a quarterly basis. This research was done December 2012 (Q4 ‘12) and will be compared to Q1, Q2 and Q3 ‘12. Highlights include:

– A vacancy rate of 15%, or 60 retail spaces in downtown which is a slight 1% increase over the previous three quarters. Key to note is a shift in businesses, particularly a number of new vacancies on Temple Street versus the previous quarter.

– Eating and drinking establishments are downtown’s dominant niche, accounting for half of all occupied storefronts.

Downtown New Haven Retail Market Report- Background and Key Findings

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NEW and NOTEABLE Q4 ‘12 Downtown New Haven

Downtown New Haven continues to experience growth and change moving into Winter 2012.

Yale University Art Gallery reopened on an expanded and renovated site which unites the 1953 museum building by Louis Kahn, the 1928 Old Yale Art Gallery and the 1866 Street Hall into a single treasure chest. The cost was $135 million but admission remains free

Luck & Levity Brewshop opened on Court Street converting a service space vacant for over 15 years into a new retail use.

New Haven’s restaurant scene continues to be touted, most recently in TheDailyMeal.com, with mentions of Claire’s Corner Copia, Thali, Oaxaca, and Bar.

Shine On9’s Holiday Cookie Crawl raised over $500 to help support Gateway Community College’s “Neighbors in Need” dinner.

Two hours of free parking in select shopping areas every Saturday during the December holiday season added incentive to come explore downtown’s unique offerings.

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RETAIL MARKET Downtown New Haven

There are 403 retail spaces available in downtown, with a current vacancy rate of 15%. This represents a slight increase over the previous three quarters.

Within the districts there have been shifts; Temple Street saw an increase in the number of available spaces since last quarter.

TOTAL NUMBER OF VACANCIES Downtown New Haven

Retail Vacancy Data:Q4 2012 TGSSD Retail Assessment.

Downtown Chapel Street Audubon Ninth Square Broadway Other

53

16 1318

3 3

52

16 1317

2 3

54

20

1116

5 2

60

24

1317

3 3

Q1 '12Q2 '12Q3 '12Q4 '12

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RETAIL COMPOSITION Downtown New Haven

There are 343 occupied retail spaces in Downtown, with 60 currently vacant spots.

The majority of these vacancies are concentrated in the Chapel Street area.

83%, of all downtown stores are considered local/independently owned.

Broadway has the highest volume of franchise or chain stores such as Apple, J. Crew and Urban Outfitters.

NEW RETAIL SPACES OPENING IN Q4 ‘12 Downtown New Haven

Retail Composition Data: Q4 2012 TGSSD Retail Assessment.

Ninth Square- Allstar Apparel- Capture Salon - Yolande’s Bistro & Creperie- Luck & Levity

Chapel Street- Shen- The Russian Lady

Broadway- Therapy

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RETAIL COMPOSITION Downtown New Haven

Eating and drinking establishments make up nearly 50% of businesses in downtown.

The vast majority of these being independently owned and offering a broad spectrum of cuisine options.

Retail stores make up nearly one-third of all establishments in downtown.

The shops along Chapel Street offered a great holiday shopping experience to residents and visitors alike.

Bar/Club; 4%

Beauty; 8%

Dining; 40%

Services; 12%

Retail, 23%

Other; 6%

Retail Composition Data: Q4 2012 TGSSD Retail Assessment.

RETAIL COMPOSITION Downtown New Haven

BUSINESS SPOTLIGHTDowntown New Haven

Elm City Market and 360 State received The Pinnacle Award, the highest honor the International Downtown Association's bestows to a city for its downtown success and innovation.

The award was presented at IDA’s 58th Conference and Tradeshow in Minneapolis, MN.

Congratulations to everyone involved in this huge success for Downtown New Haven.

Ninth Square- SnapshotQ4 2012

• There are 112 total retail spaces in Ninth Square as of Q4 2012.

– 95 of the spaces are currently occupied (85%), leaving 17 spaces (15%) vacant.

– The large majority of Ninth Square businesses are independently owned and operated.

• Dining options account for one-third of establishments in Ninth Square.

– Yolande’s Bistro & Creperie opened in October adding a French bistro to the international culinary experience along Orange Street.

• Retail and Services each account for about ¼ of the businesses in Ninth Square.

– Graffio Jewelers celebrated its nine year anniversary during Shine On9 and Artspace City Wide Open Studios 10 years.

RETAIL COMPOSITION

Beauty13%

Dining31%

Bar/Club5%

Services 12%

Stores25%

Other12%

Ninth Square

Retail Composition Data: Q4 2012 TGSSD Retail Assessment.

Chapel Street-SnapshotQ4 2012

• There are 137 total retail spaces in the Chapel Street area of downtown as of Q4 2012.

– 82% of the spaces are currently occupied (113), leaving 20 spaces (18%) vacant.

– This change in vacancy rate is directionally higher than the previous quarters; previously there had been an average of 16 spaces.

• The spaces are mostly along College, Temple and Chapel Streets.

• 86% of occupied retail space in Chapel Street are owned and operated locally.

• Dining options account for the majority of Chapel Street establishments (48%).

• Retail (19% of establishments) on Chapel is predominantly apparel, jewelry and accessories.

• Chapel hosts the majority of the bars and clubs in downtown, most located along Crown Street.

– The newest addition which opened in Q4 ‘12 was The Russian Lady featuring 25 house infused vodkas, 40 craft beers on tap, dinner menu, tapas, billiards, a club DJ in one room, live music in another, and a chill vodka lounge.

RETAIL COMPOSITION

Beauty6%

Dining48%

Bar/Club7%

Services 10%

Stores19%

Other6%

Chapel Street

Retail Composition Data: Q4 2012 TGSSD Retail Assessment.

Audubon Arts and Retail District- SnapshotQ4 2012

• There are 70 total retail spaces in the Audubon Arts and Retail District as of Q4 2012.

– 57 of the spaces are currently occupied (81%), leaving 13 spaces (19%) vacant with the majority of those vacancies on Audubon Street itself.

• 88% of occupied retail space in the Audubon area are owned and operated locally.

• Dining and retail options account for the majority of establishments in Audubon, with services and stores making up the rest of the retail space.

– While several new eateries are slated to open after the new year, Judies European Bakery on Grove Street closed its doors in late December after serving the downtown for 15 years.

RETAIL COMPOSITION

Beauty7%

Dining42%

Bar/Club0%

Services 19%

Stores19%

Other5%

Audubon

Retail Composition Data: Q4 2012 TGSSD Retail Assessment.

Broadway Shopping District-SnapshotQ4 2012

• There are 51 total retail spaces in the Broadway Shopping District as of Q4 2012.

– 48 of the spaces are currently occupied (94%), leaving 3 spaces (6%) vacant.

• Broadway hosts the largest portion of national retailers (35%) of all the districts including the largest Barnes & Noble between Boston and New York, as well as an Apple store.

• Dining (44%), followed closely by stores (38%), make up the large majority of establishments in the Broadway area.

– Therapy, a women’s retail boutique opened this fall on York Street adding another independent specialty store to the district.

RETAIL COMPOSITION

Beauty4%

Dining44%

Bar/Club4%

Services 8%

Stores38%

Other0%

Broadway

Retail Composition Data: Q4 2012 TGSSD Retail Assessment.

• The Town Green Special Services District is a business improvement district (BID )funded by a sur tax on property in Downtown New Haven to fund programs such as public space improvements, cleaning and maintenance (Downtown Ambassadors),  INFO New Haven visitor center communications, advocacy,  economic prosperity initiative and  www.infonewhaven.com website.

• The 2012 TGSSD Retail Assessment was conducted in December 2012 by taking an inventory of all retail establishments in the BID. Information gathered included vacancies, current occupants, types of business and whether locally or nationally owned.

2012 TGSSD Retail Assessment- Background and Methodology