Downtown and Business District
Market Analysis
Online Toolbox Now Available

Over the last several decades, small cities across our country have experienced economic leakage from downtown to outlying edge locations. Once the center for community and economic activity, downtowns have suffered the loss of retail and other business activities to shopping centers and commercial strips. As a result of intense competition from category killers, large discount stores, and regional shopping centers,many small city downtowns face high vacancy rates and a poor mix of businesses.

The on-line toolbox is compartmentalized so that a community can focus on the market sectors most applicable to their needs. Each section is designed to provide a community with analytical techniques than can be utilized immediately in their economic revitalization efforts. The process requires input from local residents so that the recommendations reflect both market conditions as well as community preferences. To involve the community, the toolbox provides numerous sample press releases that assist in publicizing the analysis. The guidebook's sections are divided into three major parts:

Part I: Understanding Market Conditions

Part I provides a series of tools needed to develop a broad and basic overview of the competitive environment. It includes tools for analyzing current building uses, business mix, trade area size, economic and consumer data, consumer attitudes and business operator needs. Special features of the toolbox include downloadable business and consumer survey templates and building/business inventory database tools, developed by the Wisconsin Main Street Program. Part I provides the necessary foundation for in-depth analysis of different business and real estate sectors.

Part II: Identifying Market Opportunities by Sector

Part II extends beyond typical market studies by providing tools used to analyze specific business and real estate development opportunities raised in Part I. Market analysis techniques are presented for seven sectors including retail, service businesses, restaurants, entertainment and theater, residential units, office space, and lodging facilities. Techniques for quantifying demand and supply conditions are presented for each sector. These advanced tools can be used as part of a full market analysis or on an as-needed basis.

Part III: Developing Market-Driven Strategies

In addition to Part II, this section also extends beyond typical market studies. Part III guides the user in developing conclusions and recommendations that are practical in the current marketplace. The intent is to look outside of traditional market analysis findings that attempt to create a one-stop shopping center. As a result, the toolbox employs a new downtown market analysis approach that looks beyond solutions solely driven by the retail sector. Instead, niche market, clustering and mixed-use strategies are suggested and emphasized as realistic solutions for revitalizing downtown.

The market analysis guidebook and its compartmentalized tools take advantage of the wealth of market data and technology currently available. To extend an understanding of market opportunities, readily available public and private data (secondary data) and locally collected survey and research information (primary data) are combined to drive the market analysis. Furthermore, various database software products, including geographic information systems (GIS), are used to enhance the analysis and provide new insight.

Whether communities utilize the online toolbox or the educational and technical assistance of Main Street and UW-Extension faculty and staff, the market analysis process should result in conclusions and recommendations for improving the economic vitality of a downtown or business district. Local study groups should be able to draw conclusions and make recommendations regarding business expansion and recruitment, downtown niche development, business clustering, and increasing performance of existing businesses.

Access the Downtown and Business District Market Analysis toolbox on-line at www.uwex.edu/ces/cced/dma/. For more information contact Todd Barman tbarman@commerce.state.wi.us or Bill Ryan bill.ryan@uwex.edu.