Downtown Berkeley Retail Market Study

Strategic Economics, Downtown Berkeley Retail Market Study (July 11, 2007), http://www.downtownberkeley.org/templates/dbaAboutDBA/BerkRetailMarketStudy_071707.pdf.

Strategic Economics, an urban and regional economics consulting and research firm, submitted the report of its retail market study of downtown Berkeley to the Downtown Berkeley Association in July 2007. The report “summarizes a study of opportunities to improve the vitality of retail businesses in Berkeley’s downtown.”

In addition to providing results on spatial and sales tax analyses, the report includes summaries of interviews with merchants, property owners, and real estate brokers taken to illuminate retail upgrade and expansion barriers and concerns related to changes to the downtown. These results and interviews informed the firm’s key findings and final recommendations for improving retail vitality in the downtown area. Those findings and recommendations are provided below in full and are elaborated on more fully in the report.

It should be noted that the Downtown Berkeley Association, a "non-profit membership organization that represents over 800 businesses, non-profits, financial institutions, and property owners,"[1] participated in the update of the Downtown Area Plan. Much of the following was therefore likely foundational to or incorporated into DAPAC's final plan.

Key Findings:
• The current boundaries of Downtown Berkeley Business Improvement District are too large to define as one area
• Shattuck Avenue is not the only pedestrian spine for retail activity.
• Perpendicular streets will play a key role for further retail activity.
• Downtown Berkeley is an emerging arts and culture hub, not a traditional commercial district.
• Downtown Berkley’s lack of a comprehensive parking program means the general public is uninformed about the extent and availability of parking in Downtown Berkeley.
• Downtown Berkeley retail serves a diverse set of market segments.
• Overall sales tax revenue is declining in Downtown Berkeley, but sales tax revenue from restaurants is increasing.
• Office uses create a significant amount of sales tax revenue through business to business sales.
• Permitting and other City regulations are a major barrier to attracting retailers in the Downtown.

Key Recommendations:
• Strengthen synergies that already exist in downtown.
• Focus resources in three main sub-areas. [NOTE: These sub-areas include: (1) Center St. between Shattuck Ave. and Oxford St., (2) Shattuck Ave. between Center St. and University Ave., and (3) Addison St. between Shattuck Ave and Oxford St.]
• Develop a comprehensive parking strategy.
• Provide clean and safe streets.
• Encourage new cultural uses and U.C. Berkeley cultural facilities in the downtown to strengthen Downtown Berkeley’s position as a regional destination.
• Support non-U.C. Berkeley office uses in downtown.
• Support the physical connection between the U.C. Berkeley Campus and Downtown Berkeley by leveraging UC investment.
• Consider subsidizing the rent of unique stores that are highly desirable to have in the downtown.
• Downtown Berkeley’s retail identity should focus on niche stores and restaurants.
• Investigate secondary revenue sources for the Downtown Berkeley Association as a way to fund additional maintenance and improvements.
• Attract mid-size and national tenants only for larger spaces in Downtown Berkeley.
• Review retail design guidelines to make sure the result is a leaseable retail space for new construction and good urban design.
• Set high urban design standards for downtown to ensure that each new development project makes a strong positive contribution towards the public realm.
• Implement a fast-track permitting system for commercial spaces in Downtown Berkeley.
• Develop a set of metrics to measure progress in the downtown beyond sales tax growth.

Other Sources:
[1] Downtown Berkeley Association, About DBA, Mission, http://www.downtownberkeley.org/index.php?option=com_content&task=view&id=15&Itemid=30 (last visited Feb 03, 2008).