by Bradley Parsons
Staff Writer
A national real estate research group told the Downtown Development Authority Wednesday that downtown’s residential real estate market was heading in the right direction, but a supermarket in the area could still be years away.
The City hired Miami’s Lambert Advisory to examine the pace of residential development in and around downtown. Lambert found plenty of reasons to be optimistic about the market’s potential.
Lambert found strong demand for downtown’s existing residences. Managing Principal Paul Lambert said new development in the urban core, in Springfield and on the Southbank is adding to the area’s momentum, but said a complementary retail market would likely wait until the buildings fill up with residents.
“The downtown area is developing a natural momentum,” said Lambert, during the DDA’s Wednesday morning meeting at City Hall. “But national retail isn’t going to come until they see the traffic on the streets and sidewalks.”
Lambert said the City had the right idea in using residential development to jump start downtown’s turnaround. The next phase of development was likely to be retail, he said. Supermarkets and drug stores, retail that caters to the basic needs of residents, would follow the residential building, he said. But downtown residents still face a wait before they can walk down the street to pick up a carton of milk.
“I would say you’re not there yet,” said Lambert. “But in three to four years, this downtown is going to be attractive to a grocer.”
A downtown grocery store is seen as an essential step by the City to legitimize downtown as a residential neighborhood. Once a core population and fundamental retail is established, bars, restaurants and clothing stores will follow, said Lambert.
But it won’t be enough simply to build apartments and condominiums, said Lambert. The national retail chains that the City wants to draw downtown don’t make a move until they see residents moving in.
“Local retailers might move based on construction,” said Principal Eric Liff. “But national retail makes moves based on what their computers tell them. It’s formula driven and they want to see people moving in.”