City of Georgetown

Retail Strategy and Recruitment Plan

October 25, 2016

Agenda

• Background• Project Outcomes• Process• Findings and Recommendations• Implementation/Next Steps

Background

• City Council Goal – Expand and diversify the (commercial) tax base

• Initiative to create a Comprehensive Strategy to attract quality retail to the community:– Generate a snapshot of existing retail conditions and

trends– Identify trade areas– Calculate Retail Sales Demand and Leakage– Identify Top Retail Sites/Centers

Retail Strategy and Recruitment Plan

To identify targeted retail aimed to sustain and improve retail vitality in Georgetown, including: Attract quality infill development

Recruit anchors for active projects

Identify new growth along emerging nodes

Comprehensive Assessment

1 Downtown2 Wolf Ranch Town Center3 Wolf Lakes4 The Rivery5 Williams Dr6 Ronald Reagan Blvd at

Williams Dr & CR 2457 SH 29/University Ave &

SH130 Toll8 SH 195 & I-359 Longhorn Junction10 Lakeway Dr & I-35

12

34

5

6

7

8

9

10

Process1 Market Assessment2 Trade Area Analysis3 Market Analysis4 Competitive Assessment5 Property Analysis6 Potential Tenant Identification7 Merchandising Plan

1 MARKET ASSESSMENT

Retail Market Assessment

Effective Marketing Tool1 Brief2 Focused for Retail3 Brand Awareness

2 PRIMARY TRADE AREA

134,031PTA POP

57,958City POP

Primary Trade Area

• Creates a statistical foundation for decision making• Enhances prospective retailers to understand

customer shed• Creates ability for existing retailers to understand

customer base• Establishes a baseline to measure changes and

factors that impact the PTA

3 MARKET ANALYSIS

Stakeholder Interviews

• Commercial balance critical to the fiscal health of Georgetown

• Moment in time to activate key assets in Georgetown• Bring commercial “to the people”• Need to understand current capacity for retail• Strong potential to activate “Eastside” and Ronald

Reagan corridor and Williams Dr.• Anchor buy-in is soft – need to strengthen value

proposition

Demographic Highlights

1 Georgetown has 10% greater Baby Boomers than Texas average and 5% more 75+

2 Georgetown Household income is greater than both Texas and Austin

Demographics

1 City ownership rates are over 15% greater than the Texas average of 50%.

2 Current population is estimated at 57,958 with a growth rate of almost 40% (in 10 years)

3 Current housing growth rates will increase retail demand by 62,000 square feet per year (about the size of a grocery store)

Retail Leakage (“demand”)53

2,89

5

323,

409

268,

089

144,

639

137,

618

127,

786

127,

255

91,4

59

83,2

11

59,7

26

51,4

08

31,8

48

31,8

20

22,9

77

21,9

60

16,1

01

15,1

78

10,9

66

6,39

5

6,19

1

6,01

5

3,84

4

-

100,000

200,000

300,000

400,000

500,000

600,000

Total Demand 2016 - 2046

2016 Total Unmet Demand: 1,015,721SFProjected 2046 Total Demand: 2,403,952 SF

4 COMPETITIVE ASSESSMENT

NTS

5 PROPERTY ANALYSIS

Emerging

Active

Market potential & property owner interested in developing in 12-24 months• Longhorn Junction• Wolf Lakes• The Rivery• Lakeway Dr and I-35

Market potential in the next 3 to 10 years• Ronald Reagan Blvd at Williams Drive and CR 245• SH 29 (University Ave) and SH 130 Toll• SH 195 and I-35

Available today• Williams Drive corridor• Downtown• Wolf Ranch Town Center

In-Fill

Longhorn Junction

Population 30,635

Households 10,342

Daytime Pop 10,516

MedianIncome

$69,230

Supportable SF 1.696M

Active

Active

Wolf Lakes

Population 26,665

Households 9,538

Daytime Pop 14,519

MedianIncome

$60,320

Supportable SF 1.29M

The Rivery

Population 32,010

Households 11,569

Daytime Pop 16,447

MedianIncome

$62,384

Supportable SF 1.6M

Active

Lakeway Dr/I-35

Population 28,017

Households 10,046

Daytime Pop 14,271

MedianIncome

$73,991

Supportable SF 1.66M

Active

Williams Drive & Ronald Reagan Blvd

Population 6,347

Households 2,614

Daytime Pop 177

Median Income $85,999

Supportable SF 436k

Emerging

University Ave/SH 130 Toll

Population 13,305

Households 4,923

Daytime Pop 4,092

Median Income $87,827

Supportable SF 934,830

Emerging

I-35/SH 195

Population 13,305

Households 4,923

Daytime Pop 4,092

MedianIncome

$87,827

Supportable SF 934,830

Emerging

Williams Drive

Population 31,607

Households 11,562

Daytime Pop 16,192

MedianIncome

$69,087

Supportable SF 1.75M

In-Fill

In-Fill

Downtown

Population 34,065

Households 11,875

Daytime Pop 15,836

MedianIncome

$60,730

Supportable SF 1.65M

Wolf Ranch Town Center

Population 26,665

Households 9,538

Daytime Pop 14,519

MedianIncome

$60,320

Supportable SF 1.29M

In-Fill

6 TENANT ANALYSIS

Tenant Analysis

• Identified over 40 potential operators that align with Georgetown’s characteristics

• Categories include but not limited to:– Specialty food stores, – Specialty retail stores, – Sporting goods, – Book stores, – Department stores, and– Full-service restaurants

IMPLEMENTATION/NEXT STEPSActivating the Plan

Implementation Scope of Work

1 Align merchandising targets to key properties2 Create targeted marketing for each prospect to support

locational factors and operational needs3 Continuous recruitment4 Track sales cycle for prospects “evaluating” market5 Attend trade shows to champion Georgetown (i.e.

ICSC, Retail Live, ICSC Recon)6 Ongoing measurement on pipeline, “net new” SF, # of

prospects, and conversions.7 Monthly review of all prospects

Implementation Approach

Brokers

DevelopersRetailers

Implementation: Brokers & Developers

• Continue developing relationships• Outreach to brokers and developers to share attributes

and opportunities within Georgetown• Have information online and readily available• Customizable reports

Implementation: Retailers

• Directly target identified retailers with customized packages

• Continue to identify retailers• Attend relevant trade shows and recruitment trips• Include retailers in business retention program

City of Georgetown

Retail Strategy and Recruitment Plan

October 25, 2016