Laserfiche WebLink
<br />Ms. Catherine Mehelich <br />November 20, 2006 <br />Page 3 <br /> <br />information is utilized to determine future residential growth patterns within each growth <br />corridor. <br /> <br />Market areas for shopping centers in Elk River and the proposed Gateway Business <br />Center are located in the North Highway 10 and Northwest 1-94 growth corridors. <br />Historic residential growth patterns for communities within the retail market area will be <br />reviewed to determine historic residential market share trends. Growth trends for those <br />corridors that overlap the proposed trade area will be used to estimate future residential <br />market share and growth. <br /> <br />Market area residential growth likely to occur over the next 15 years will be estimated. <br />This analysis will result in a market driven estimate of residential development potential, <br />population, and household growth that differs from estimates prepared by the <br />Metropolitan Council and the State Demographer. This analysis will reflect development <br />trends based on market trends and experience. <br /> <br />When household projections through 2020 are completed, future demographic <br />characteristics will be evaluated. This will include: population, households, age <br />distribution, and household income levels for the years 1990, 2000, 2005 and 2010. <br />Retail purchasing power within the trade area will be estimated by merchandise category <br />from 2005 to 2020 to determine future trends in retail and service spending. McComb <br />Group's proprietary purchasing power model, which contains household spending <br />potential for over 100 retail stores and services, will be used for this analysis. <br /> <br />+ Retail Development Potential <br /> <br />Market area retail sales potential will be estimated taking into consideration trade area <br />purchasing power, competitive shopping centers, retail sales potential and market share. <br />This will include retail sales estimates and supportable square feet of retail space for over <br />100 types of retail stores, food service, services and office service establishments for a <br />IS-year period using McComb Group's proprietary purchasing power model. Retail sales <br />potential for the proposed Gateway Business Center will be identified including sales <br />potential and supportable square feet by business type. <br /> <br />3. INDUSTRIAL MARKET RESEARCH <br /> <br />Industrial market research includes both multi-tenant and single tenant buildings in the <br />market area. T databases for office and industrial buildings include only multi-tenant <br />buildings. Single tenant buildings need to be identified by field research. Single tenant <br />buildings can represent as much as 50 to 75 percent of the total industrial absorption. If <br />analysis of the single tenant buildings is not included, the demand for space will be <br />understated. This work program is designed to identify single tenant buildings. <br />