Neighborhood Commercial District Business Attraction and Retention Strategy

By Keira Williams, City of Oakland

For a Microsoft Word version of this information click here

The City of Oakland's Neighborhood Commercial Revitalization Division (NCR) works with community stakeholders--business owners, commercial property owners, residents and other interested parties--in over 25 neighborhood commercial areas in Oakland to transform these areas into vital shopping districts. One element of NCR's revitalization "toolbox" is business attraction and retention: attracting and retaining businesses that contribute to a vital neighborhood commercial area.

Indicators of a successful and economically healthy neighborhood commercial district include:

  1. Involve Stakeholders and Create Work Plan
    A successful commercial district business attraction and retention strategy involves all the key stakeholders: business owners, residents, commercial property owners, NCR staffer, commercial real estate brokers, others who have a vital interest, such as nearby institutions, as well as people with special skills (writing, graphic design, marketing, statistics, finance, organizational development) or available resources (capital to invest, knowledge of related fields).

    Getting started:

    • Recruit representatives of various stakeholder entities to be part of a Business Attraction and Retention working group and schedule a meeting to get started.
    • Identify goals and how to accomplish them (work plan), identify other volunteers and interested parties, form committees, schedule deadlines, etc.

  2. Build Relationships with Existing Business Owners
    Even more important than recruiting new businesses is strengthening the existing businesses in your area. These are businesses that have already made a significant investment in your area and will most probably continue to be there for some time. Are there businesses you would patronize more if they carried different products or offered different services? Is the storefront inviting? Does litter accumulate on the sidewalk? Do you think they're doing a great job at serving your community? Good or bad, let them know! You are their customer and it is you to whom they listen most.

    Maybe you have noticed that businesses in your area could perhaps be operated in a more sophisticated and strategic manner. Ask the business owner if they are aware of the City of Oakland's One Stop Capital Shop which offers financing and dozens of low-cost workshops every month (510-238-3703).

  3. Know Your Neighborhood--What Customers Want
    You need to know what the customers want. What do they buy now? What would they like to be buying in the neighborhood that they aren't now? Who are the customers? Where do they come from? How much of their shopping do they do in the district and how much elsewhere? Where is "elsewhere"? What kind of place would they like the district to be? How much do customers have to spend?

    Getting started:

    • Conduct a survey among area residents and/or shoppers. Surveys can be conducted via person, phone, mail. NCR has sample surveys available.
    • Consider conducting a comprehensive market study of your area which analyzes demographics, location, disposable income, etc.

  4. Build Relationships with Property Owners and Brokers
    Once you have all this great information, it is imperative to effectively convey it to property owners so that they will lease to the kind of tenant you want to see in the neighborhood. They will be more receptive if you bring them in early and invite them to give input.

    Commercial real estate brokers can be a good resource as they are often aware of vacancies in the greater area, and leasing and business trends. Keep in mind that they work entirely on commission-not receiving any remuneration until a lease is signed-and that their profit margin on small properties such as those in neighborhood commercial areas is relatively low. Some brokers specialize in retail leasing and chain stores. If your area is interested in specific chains, contact NCR for more information.

    Getting started:

    • Contact property owners and invite them to participate in the process. NCR can provide property owner contact information. Share with them information you gather as to preferred uses, customer demographics and improvements in the area. Offer to help market their vacancies. Offer to contact prospective tenants supporting their move to your area, stating that you believe they will find a strong customer base in your neighborhood. (NCR is in the process of creating leasing guidelines for property owners.)
    • Contact real estate brokers who are active in the area (look for contact information on vacancy signs) and invite them to participate in the process. Share with them information you gather as to preferred uses, customer demographics and improvements in the area. Offer to help market their vacancies. Offer to contact prospective tenants supporting their move to your area, stating that you believe they will find a strong customer base in your neighborhood.

  5. Know Your Neighborhood-What Business Owners Want
    What businesses would be good additions to your commercial district? What businesses do you want to discourage from moving in? How is your area unique? What does your district have to offer prospective business owners? What space is available? What do you expect of business owners? These are questions to answer in order to properly market your area to prospective businesses. Business owners will ask specific questions such as:

    • What is the typical customer in your area?
    • What space is available? How many square feet? How much does it cost? Will the property owner finance tenant improvements?
    • What is foot traffic like? What about freeway and arterial access? Parking and transit?
    • What amenities do you offer? What city incentives are available?

    Getting started:

    • Inventory all commercial space, noting vacancies, former uses and desired prospective uses. Enter information on a spreadsheet (NCR can provide property owner contact information and may have already completed an inventory in your area).

  6. Disseminate Information About Your Area
    It is beneficial if you can compile information on your neighborhood commercial area and what it has to offer--overall description, unique qualities, demographics, existing businesses, access, vacancies, etc.--into a readable one to four page document, preferably with some photos, a map and so forth, so that when you talk to brokers and prospective tenants you have something to leave with them to review and absorb. NCR has already produced attractive one-page profiles of several neighborhood commercial areas in Oakland (these flyers are also available at the One Stop Capital Shop, and we hope to have them at the city's business license and planning/zoning counters). The Laurel District used some its NCR funds to produce a snappy four page brochure on what it has to offer to businesses.

    Getting started:

    • Think about the community groups area residents and business owners are involved in--would there be an opportunity to make a presentation about business opportunities in your neighborhood?
    • NCR can provide you with a supply of your neighborhood profile (if completed) and potentially work with you to create one if one doesn't yet exist.
    • NCR is working to incorporate the information on the neighborhood profiles as well as up-to-date information on neighborhood vacancies on the NCR website: click here. Stay tuned.

  7. Approach Businesses You Like Elsewhere About Expanding into Your Area
    Where are the businesses you want to be in your neighborhood going to come from? A great place to look is elsewhere in your community or in the region. Be on the lookout as you go to work, visit friends, do errands and so forth. Call or visit these businesses, and ask the owner if they are considering expanding and if so, what kind of place they are interested in? What are their needs? When making contact them information on the neighborhood which you've compiled on overall description, unique qualities, demographics, existing businesses, access, vacancies, etc.