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Market/Economic Analysis & Policy Implications For North Avenue Commercial Corridor
Client: The Village of Oak Park, Illinois
Gruen Gruen + Associates (GG+A) was engaged by the Village of Oak Park (IL) to undertake a market and economic reconnaissance of the North Avenue commercial corridor in order to complete an independent assessment of conditions and trends in the area. GG+A was also requested to identify potential opportunities for improvements in the area and to recommend actions for Oak Park to take to encourage beneficial development, redevelopment and tenanting of the study area.In order to accomplish these objectives, GG+A inspected the area, and analyzed applicable zoning regulations; reviewed secondary time-series demographic and socioeconomic data as well as assessed valuation, property sales, tenant turnover, and retail sales tax data to identify patterns of economic change with respect to land use, density, and tenure and to evaluate sales performance of the area; conducted interviews to identify market opportunities and constraints, and to obtain insights on the underlying motivations, factors or determinants of land use/real estate trends found to apply to the area; synthesized the results of the analysis of secondary data and interviews to reach conclusions about the types of land uses and products for which demand exists, and the character or environment needed to capture such demands; analyzed the relevant real estate economics of prototypical projects given the conditions that exist and evaluated the potential feasibility of prototypical redevelopment options, in light of identified demands and the real estate economics that exist now, and are anticipated to exist in the future; and recommended public policy changes and actions likely to encourage the revitalization of the area.
We found that although situated within a relatively large consumer market, the strong and increasing competition from other locations has placed the study area in a vulnerable position, and on a gradual downward path. While the potential for remodeling and redevelopment that will strengthen the competitive attraction of the area exists, the status quo also contains incentives for disinvestments in existing properties. Moreover, since the study area contains parking, increasing concerns about safety, and other constraints, the proposed widening of the street to highway standards could, in the absence of countervailing action, further reduce the area's competitive position, so as to significantly accelerate tendencies for deterioration. To avoid its potential downward slide, we recommended steps for improving the strength of the area. These included specific recommendations to improve the physical environment and lessen parking and security constraints and for the formation and implementation of a strategic revitalization plan and regulatory changes that included cooperation with the City of Chicago, which controls the north side of the street. Key specific recommendations relate to public actions and regulatory changes to encourage parcel assemblage and to alter the regulatory constraints found to inhibit beneficial adaptions in response to market demands as well as marketing strategies for capturing the identified demands. A mitigation program with respect to the proposed road widening was outlined that would provide alternative parking and create value-enhancing redevelopment opportunities, while avoiding extremely high severance damages typically associated with partial takings.