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The Harbor Companies have sought the
experience and consultation of Allen and
Associates for assistance in the full-scale mixed-use
retail/residential development of an existing
retail site in Ann Arbor, Michigan. The
developer contemplated re-developing the site
currently occupied by a grocery-anchored strip
mall with residences and some supportive retail
on Packard Road near the University of
Michigan.
Allen & Associates was asked to examine the
site and its marketability for residential and retail
considerations and provide recommendations.
Some of these recommendations are the potential
layout of the uses within the site, the sizes of the
residential and retail units, amenities for the
development, the most likely customer bases and
the depth of demand and appropriate rental rates
for the retail and residential units
The assignment is further complicated by the
necessity to appropriately track bachelor level
degree, post-graduate, and professional students,
as well as local employment depth and trends.
Allen & Associates determined the market area
for the two uses based upon an analysis of the
competitive supply of retail within a reasonable
drive time, physical and psychological |
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boundaries and, the geographic locations of
likely shoppers. The market analysis provided a
general discussion of the local housing market,
as well as estimates of future demand for the
market area.
The demand analysis analyzed data to arrive at
estimated demand levels. The indicated demand
levels are then further analyzed to arrive at
penetration rates and capture rates on a unit type
level. The demand analysis section also provides
an opinion of residual demand.
We then provided an overview and opinion of
demand for the proposed subject retail
component. Data compiled and analyzed in this
section was secured from major brokerage firms,
Claritas, U.S. Census, Site-to-Do-Business and
Costar. Demand potential from inside and
outside of the market area was examined
From these analyses estimates for absorption
rates and stabilization dates were developed.
Based upon our analysis we determined that
there was in fact sufficient demand in the market
for this proposed development |
