Denver
Retail Conditions and
Opportunities Study
Prepared for: City and County of Denver
Prepared by: Economic & Planning Systems
with David, Hicks & Lampert Brokerage
June 2013
ACKNOWLEDGEMENTS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
City and County of Denver
Michael B. Hancock, Mayor
Denver City Council
Mary Beth Susman, District 5, DRSAC Member
City Departments
Office of Economic Development
Department of Finance
Community Planning and Development
Denver Retail Strategic Advisory Council (DRSAC)
Marc Feder, Feder Commercial Realty Advisors
MC Genova, VISIT DENVER
Nick LeMasters, Cherry Creek Mall
Pat McHenry, Larimer Associates
Brian Phetteplace, Downtown Denver Partnership
Richard Sapkin, Edgemark Commercial Real Estate Services
Mark Sidell, Gart Properties
Julie Underdahl, Cherry Creek North BID
Joe Vostrejs, Larimer Associates
Consultants
Daniel Guimond, Economic & Planning Systems, Inc.
Chris Leutzinger, Economic & Planning Systems, Inc.
Matt Prosser, Economic & Planning Systems, Inc.
Steve Markey, David, Hicks & Lampert Brokerage, LLC
Scott Kaplan, CBRE
Erik Westedt, CBRE
Section 1:
Introduction
INTRODUCTION
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
This study was completed to provide information and insight to guide program development by the City and
County of Denver (City) to improve retail shopping opportunities within Denver. The need for both the study and
an enhanced retail development program is called for in the vision and strategies of Mayor Hancock’s
administration, and has been reinforced through the work of the City’s Structural Financial Task Force (SFTF).
The report of the SFTF emphasized that a strong and growing retail employment base is at the core of Denver’s
financial health and recommended that the City develop a more comprehensive and robust program to deliver
retail growth. The Denver Retail Conditions and Opportunities Study delivers proposed elements of that program,
providing analysis to understand the opportunities and challenges of enhancing Denver as a competitive market
for retailers and shoppers, while continuing to serve residents and neighborhoods.
In cooperation between the Mayor’s Office, the Office of Economic Development (OED), the Department of
Finance (DOF) and the Community Planning and Development Department (CPD), the City retained Economic &
Planning Systems (EPS), with David, Hicks & Lampert Brokerage to complete an analysis and study of the retail
conditions and opportunities affecting the Denver market. The study report is provided as recommendations to
these primary City clients for their shared efforts to develop strategies to meet the opportunities in Denver. The
OED formed the Denver Retail Strategic Advisory Council (DRSAC) in 2012 to provide advice and assistance in
promoting retail development and success. DRSAC has been a valued voice in the discussions and review of the
analysis underlying this study, along with vetting some of the ideas and recommendations within the report. In
the coming months, DRSAC will be a critical sounding board as the City’s retail program partners explore the
best methods for encouraging Denver’s retail market.
The EPS Team assignment, which is one part of a larger program initiative, was to:
 Examine the existing retail conditions and activity to provide information about the changing resident and
visitor (customer) needs and demands in the marketplace, and the market capture of current retail centers
and stores (by retail category);
 Review the immediate market strength and conditions of existing retail centers/areas, by category type;
 Identify existing gaps in the Denver market, both by retail category and by center type;
 Review and highlight best practices for retail development – program design, implementation strategies,
and appropriate tools (available currently and missing) for the City’s toolkit; and
 Recommend potential retail program approaches for consideration by the appropriate Denver retail
partner–city department, quasi-public agency, and private sector developers, brokers or other key
stakeholder.
This report is intended to be a starting resource for the next stage in the City’s retail initiative and strategic
program development. With the advice and insights from the DRSAC, private sector partners, public and quasipublic stakeholders, the Mayor along with the City’s leadership will work in the coming months to design a
successful, impactful retail program.
Study Goals
Improve the existing retail mix, increase retail sales tax revenue and attract new retailers to
the City and County of Denver without compromising existing retail.
Fully recognize and capitalize on existing consumer opportunities and identify retail gaps.
Add retail as a placemaking element consistent with citywide and small area plans especially
in identified mixed-use areas.
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INTRODUCTION
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Retail Aspirations
As a bustling metropolis set against the backdrop of the Rocky Mountains, Denver is nationally recognized for its
exceptional balance of outdoor lifestyle and urban amenity. With the continued implementation of FasTracks and
rapidly expanding transportation options, Denver is also quickly becoming one of the country’s most livable
cities. This unique combination of assets has attracted an ever-growing population base and increasingly diverse
economy as employees and employers alike chose to locate in the region. Over the last decade, new restaurants
and retailers have also taken notice, and Denver’s downtown and urban neighborhoods are benefiting from an
increasingly vibrant mix of shops and eating and drinking options. Thus, Denver has all of the ingredients that
make a city a great place for retail. Yet in certain retail segments, Denver lags behind many cities throughout the
West as a nationally-recognized shopping destination. In order for Denver to reach the next step in its aspiration
of becoming a world class shopping destination, Denver needs to become a great retail city. The fundamental
components of any great retail city include having a vibrant downtown shopping environment, strong regional
retail destinations, and unique neighborhood business districts.
Vibrant Downtown Shopping
As the front door to visitors and the focal point of activity for residents and
employees, a vibrant downtown shopping district featuring a mix of strong
retail anchors, unique retail boutiques, and exciting entertainment, eating,
and drinking destinations is essential to any great retail city. Vibrant
downtowns successfully balance more traditional street-level storefronts
with new infill retail formats and centers that meet the needs and
requirements of the full range of store types and retailers. Vibrant
downtown retail districts generally have an identifiable retail core,
supporting a critical mass of activity, and provide strong connections to
adjacent retail streets. Challenged with negative perceptions of public
safety, successful downtown retail districts provide an identifiable and
functional public realm that softens the urban environment, creates visual
coherency, and offers a unique and interactive experience to the shopper.
In addition, the most successful downtown shopping districts are
supported by a strong downtown residential base. Combined with a unique
sense of authenticity, these distinctive attributes allow great downtown
Pacific Place, Seattle, WA
retail districts to better compete with more traditional regional mall
destinations and provide both residents and visitors with a memorable and enduring experience.
Neiman Marcus, Union Square San Francisco, CA
Denver’s successful revitalization projects, including the 16th Street
Mall, Larimer Square, Denver Pavilions, Coors Field, Central Platte
Valley/Riverfront Park, and the soon to be completed Union Station,
have created vital pedestrian activity and elevated downtown’s status
as the region’s premier destination for eating, drinking, and
entertainment. However, downtown still lacks the diverse set of retail
stores found in cities with a core of downtown departments stores. In
addition, downtown’s flagship retail destination (REI) is located in an
isolated setting at the edge of downtown, limiting the ability to draw
customers to other downtown establishments. The linear pattern of
downtown established by the 16th Street Mall does not allow for a
sufficient critical mass of activity at any one segment, limiting its
ability to support new downtown retail. As a result, the quality and
mix of downtown retail is often cited as needing improvement by both
residents and visitors.
Strong Regional Anchors and Destinations
All great retail cities benefit from strong regional retail destinations throughout the city. This includes traditional
shopping malls, lifestyle centers, neighborhood business districts, and distinct retail corridors. While few
traditional shopping malls have been constructed nationally in the last decade, urban malls continue to perform
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INTRODUCTION
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
at peak levels and serve as home to many cities’ top retail attractions. These
retail centers not only provide critical format and demographic requirements
for some of the most desirable “one in the market,” specialty, and/or luxury
retailers. They often have some of the highest real estate values in the city
and anchor activity for a host of other uses, including residential and
employment. The best examples of strong regional retail destinations have a
defined sense of place, support enhanced densities, and frequently feature
the highest levels of vertical mixed-use development outside of downtown.
Similarly, regional retail corridors provide the necessary traffic counts to
attract and support a critical set of retailers. In great retail cities, these
corridors have undergone significant infrastructure (and often transit)
investment and have been reinvented from simple high-volume, automobileoriented thoroughfares to highly-functional economic places that support the
full-range of transportation modes, land use mixes, and modern urban retail
formats.
The Cherry Creek Shopping District, including Cherry Creek Mall and Cherry
Creek North, represents Denver’s strongest regional retail asset. Cherry
Creek Mall is home to Denver’s most diverse and highest quality retailers. Cherry Creek North is also host to a
strong collection of specialty and lifestyle-oriented retailers. Cherry Creek North has a strong mix of specialty
stores, contains the most progressive mixed use projects in Denver and landlords continually update outdated
space and users. Both locations within the shopping district could support the density and magnitude of vertical
mixed-use development found at world-class shopping destinations.
Nordstrom at Horton Plaza, San Diego, CA
Unique Neighborhood Business Districts
Particularly critical to any great retail city are unique neighborhood
business districts (NBDs). These districts contain a strong mix of unique
and local businesses, balance locally-serving and destination retailers,
and serve as the setting for some of a community’s highest quality eating
and drinking options. Great NBDs have a strong sense of place and
defined identity and/or brand. As they are generally embedded within
existing residential neighborhoods, these districts have a strong
attachment with the local community; however, some of the best
neighborhood business districts also provide for the opportunity to mix in
retailers that serve a broader, citywide role. All great neighborhood
business districts feature strong multi-modal connections to allow for
greater neighborhood access, utilize the public realm for retailing
opportunities (sidewalk dining, farmers markets, etc.), and work together
West Village, Dallas, TX
to create parking solutions that do not conflict with local residents. In the
best retail cities, NBDs are also supported by a strong business district program with active city and community
leadership and with programs in place to encourage new and unique small business entrepreneurship.
Denver is home to a strong collection of urban NBDs. Denver’s districts are located throughout the city, along
large arterials or small neighborhood streets. The majority of retailers in Denver’s district contain a mix of eating
and drinking establishments and professional services. While some “soft” good retail (clothing, gifts, books/
music, etc.) exists, the City could do more to encourage local entrepreneurs (and some national stores) to open
new retail shops and boutiques.
The Challenge
The quality and diversity of retail in Denver has made great strides over the last 25 years. Retail in Downtown
has grown and increased in quality. Cherry Creek has emerged as a destination for fashion and specialty
retailers. New neighborhood business districts continue to emerge and thrive as the city grows. The assets
needed for a great retail city are present in Denver, but steps still need to be taken to reach this aspiration. This
study outlines the challenges and opportunities facing Denver.
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Section 2:
Retail Conditions
RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Retail Trends
Changing Demographics
Net Migration of Population Age 25 to 34
Denver continues to grow, reaching a population of over
620,000 in 2011. Within this growth, there are five
major demographic shifts that are affecting retail
spending patterns.
The Denver metro area has become a major
destination for the Gen Y population in the past five
years. From 2008 to 2010, the Denver metro area had
the highest in-migration of 25 to 34 year olds in the
country. Gen Y has a higher preference for urban,
walkable neighborhoods and enhanced retail and
entertainment environments which is increasing the
market for neighborhood business districts in the city.
At the same time, Colorado is also a destination
for the Baby Boomer population. Colorado has
the fourth highest growth rate of people over age 65.
Many of these residents are choosing to downsize
their homes, which is changing their buying habits
and reducing demand for items to keep up their
homes. Although baby boomer spending patterns are
changing, they have the time and income for more
discretionary spending on natural and organic groceries,
dining, entertainment and travel.
American Community Survey Data
BROOKINGS
The city has become more ethnically diverse, which is generating demand for a wider variety of products and
retail formats, such as supermarkets and other specialty stores oriented to Hispanic and Asian shoppers.
Many of Denver’s older, historic neighborhoods are attracting new residents and new development,
which is creating demand for new retail options. However there is a limited amount of existing, quality retail
space or areas to expand in these historic business districts.
Lastly, Denver has been experiencing an infill housing boom in the past five years. Multifamily units have
accounted for half of new residential building permits in recent years. In the downtown area alone, 6,700 new
multifamily units will be built between 2012 and 2014. The retail needs and preferences are different for these
smaller households and new retail space will be needed to meet the demand of new residents.
Denver MSA Residential Building Permits
(2003 - 2012)
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City of Denver Capture of MSA Residential Building
Permits (2003 - 2012)
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RETAIL CONDITIONS
Growth in E-Commerce
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
US E-Commerce Retail Sales 2001 to 2010
Online retail purchases grew at a 20 percent annual
rate over the previous 10 years compared to just 2.7
percent for total retail stores. However, e-commerce
sales (non-automotive) still comprise only 6.1 percent
of total retail spending. Online shopping is
changing the demand for traditional brick and
mortar retail which is pushing retailers to alter their
store formats and incorporate internet sales and
marketing into their business concepts. The line
between traditional and e-commerce retailers
continues to blur; 12 of the top online retail
businesses are actually major retailers including
Walmart, LL Bean, JCPenney, Macy’s, Staples, Best
Buy, and Bed Bath & Beyond.
Retail Evolution
The retail industry is and will continue to evolve and become more specialized. The growth in retail stores is
becoming bifurcated due to growth of sales at discount and luxury ends of the spectrum as shoppers look for
either lower prices or greater quality. The sales and profitability of mid-market stores are being squeezed; this
applies to general merchandise and department stores as well as to grocery and supermarkets. Retailers are
downsizing stores sizes and becoming more selective. Store size reductions (e.g., Best Buy, Office Depot,
Target, Walmart) reflect the need for less showroom space as well as lower sales per square foot. The number of
retail chains has been decreasing, due to reduced demand. At the same time, retailers are using larger trade
areas resulting in less total stores. Retailers are also developing new store formats or going to alternative
or smaller store formats to fit into underserved areas, primarily urban infill sites. Lastly, shoppers prefer retail
to be a fun and entertaining experience which is leading to new shopping center formats and retail as a
placemaking element.
US Total Retail Inventory, 1979 to 2013
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Denver Metro Retail Conditions
From the mid-1990s to the start of the recession in
Metro Areas Retail Sq. Ft. Per Capita
2008, national retailers expanded at an
unprecedented rate and the amount of space
exceeded the growth of housing units needed to
support this space. In the Denver metro area,
Northfield in Denver, as well as Park Meadows in Lone
Tree, The Orchards in Westminster, Streets at
Southglenn in Centennial, Belmar in Lakewood,
Southlands in Aurora, Colorado Mills in Lakewood, and
Flatiron Crossing in Broomfield were built during this
growth period. Coupled with the national recession,
this growth resulted in a large overhang of space in
the metro market that has taken some time to
absorb. While over-building of retail space has been a
national trend, the Denver metro area also has one
Denver Metro New Retail Square Feet, 2006 to 2012
of the highest amounts of retail space per capita in
the nation and has a higher ratio of space per
capita than most of its peer metro areas. Denver
metro area has 66 square feet of retail per person
while the national ratio is 41 and other peer metro
areas are between 45 and 65.
Retail development in the metro area has slowed
greatly in the past five years. In 2008 and 2009, an
average of over 4 million retail square feet was
built. In 2012, only 700,000 square feet was built.
Retail center vacancy rates in the metro area have
fallen to 6.5 percent in first quarter of 2013 from
over 8 percent in 2009 and 2010. New retailers
added to the market in recent years have located in
existing space, in buildings replacing existing
space, or at stand alone sites.
Denver Metro Regional Retail Centers
Importantly, most of the major
retail growth in the metro area
over the past decades has
occurred outside of Denver. The
map below shows the location of
several national large and medium
format retailers. The map
illustrates how much of the retail
development has occurred outside
of Denver’s borders.
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Denver Retail Conditions
Retail Space
Retail Market
Denver (City)
Denver (Metro)
Retail Square Feet
34,000,000
190,000,000
There is approximately 34 million square feet of retail
space in Denver, which is 55 square feet of retail
Square Feet per Capita
55
66
space per capita and is less than the metro ratio of 66
Average Rental Rates
$16.97
$14.65
square feet. This means that Denver is closer to the
national average and considering the city’s higher
Vacancy Rate
5.6%
6.5%
incomes and spending power, Denver is therefore not
Source: CoStar
significantly overbuilt. The retail vacancy rate in
Denver was 5.6 percent in first quarter 2013, which is lower than the metro average of 6.5 percent. The average
rental rate is $16.97 per square foot which is higher than the metro area average of $14.65. While neighboring
cities continue to struggle to address their retail box vacancies, Denver has relatively few vacant boxes. The
vacant retail space that does exist is typically of poor quality and in less than prime locations. Thus, Denver is
better positioned to be more strategic in targeting sites for retail development.
The four major regional retail areas in the city are Downtown, Cherry Creek, Stapleton and Colorado Boulevard.
The city retail space is a mixture of space types with far less suburban style shopping centers than the
surrounding cities. Major recent retail additions include Northfield at Stapleton anchored by Macy’s, JCPenney
and Bass Pro Shops, and the Quebec Square power center anchored by Walmart, Sam’s Club, and Home Depot.
These two centers total over 1.8 million square feet of retail space.
There are few traditional shopping centers in the northern and central portions of the city. Much of the retail
space in these neighborhoods are in smaller buildings on shallow lots along major arterial corridors, such as
Colfax Avenue and Federal Boulevard, or in commercial blocks embedded within residential areas. These types of
retail spaces and buildings in the older portions of the city create both advantages and disadvantages. The
historic commercial building fabric in older neighborhoods is ideal for neighborhood business districts that serve
the surrounding neighborhoods. These districts have flourished in the past decade and can become vibrant
entertainment nodes with a mix of eating establishments and specialty retail. The development pattern has left
very few parcels that can accommodate larger, more modern retail development projects. Areas along I-25,
which runs through the entire city would be ideal for regionally oriented retail centers, but there is a lack of sites
suitable for retail development.
Major Denver Shopping Centers
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Retail Sales
Denver Retail Sales by Source
Sales tax generated from retail stores and restaurants in
Denver grew from $194 million to $226 million from
2008 to 2012, which is an annual rate of 3.8 percent. In
2009, there was a major dip in sales tax due to the
recession, but sales tax generation has rebounded
strongly since.
Denver attracts a significant portion of retail sales from
visitors . Approximately 30 percent of retail sales are
made by visitors and 10 percent are made by those who
work in Denver but do not live in the city. Sales to
visitors account for half of all food and beverage sales in
Denver.
There are five major retail store categories: convenience
goods, general merchandise, other shopper’s goods,
home improvement, and eating and drinking establishments (auto-related stores are excluded) (see definitions
in Appendix C). Annual sales tax from eating and drinking establishments increased the most of any category
over the past five years. Sales at convenience oriented stores (grocery stores, pharmacies), and certain other
shopper’s goods stores (clothing stores and miscellaneous retail) grew at a faster rate then the average for all
categories. General merchandise store (department stores, supercenters) sales increased by a modest amount
and at the lowest rate of any category over the past five years.
Denver Retail Sales Tax, 2008 to 2012
The comparison of expected sales from city residents to actual retail store sales illustrates the categories in
which the city is under or over performing. The typical Colorado household spends 36.5 percent of income on
retail purchases in the store categories included in this analysis. Each household, on average, makes 30 percent
of retail purchases on convenience goods and 20
Resident Expenditure Potential vs. Store Sales
percent at general merchandise stores. Compared to
actual store sales, these two categories only represent
20 percent of net taxable retail sales in the city. The city
therefore generates less sales at general merchandise
stores, home improvement stores, and grocery stores
than would be expected to be generated by residents
implying net outflow or leakage that is a greater than
the amount of retail sales coming in from non-resident
shoppers. Sales at liquor stores, pharmacies, clothing
stores, sporting good and hobby stores, miscellaneous
retail stores, and eating and drinking establishments are
much higher than the expected demand from residents
and therefore are attracting sales from people outside
the city (net inflow).
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Denver Subarea Conditions
Denver was divided into nine subareas to
Subarea Resident Expenditure Potential vs. Subarea Store Sales
determine which market areas are performing
better than others and which areas are
underserved by retail. The subareas are based
on neighborhood boundaries, retail center trade
areas, and major barriers (A complete analysis is
provided in Appendix B).
The Central subarea, which includes Cherry
Creek, has the most amount of retail space of
any subarea with 9.9 million square feet. The Far
East-DIA and North Central subareas have the
least amount of retail space, with 930,000 and
1.2 million square feet respectively.
The subareas that have more actual sales than
expected from subarea residents are considered to be (at least in aggregate) served adequately with retail
space. The Central subarea not only has the most retail space, but also generates more retail sales than
demanded by its residents. Most of the subareas had store sales equal to or slightly greater than expected
demand from their residents. Subareas that have less store sales than expected from residents are considered
underserved. The Northwest and Southeast subareas were identified as underserved.
All of the subareas, except the Northeast and Southwest subareas, are underserved by general merchandise
stores. In some subareas store sales aggregations or strong performing store categories mask the retail
deficiencies, which is the case for the North Central and Downtown subareas. Both of these subareas are lacking
convenience oriented retail, specifically grocery and health and personal care stores. These two subareas are
also experiencing a large amount of new infill housing development near downtown. As housing growth continues
in the area, the demand for retail to serve everyday shopping needs of the area residents will only increase.
Denver Retail Subareas
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Retail Store Category Strengths and Weaknesses
Strengths
Net Actual Sales vs. Expenditure Potential by Store Category
Convenience Goods – 38 percent of
convenience goods store sales are a result of
sales inflows from people from outside of Denver.
Sales at liquor stores and health and personal
care stores in the city attract over 60 percent of
their sales from non-Denver residents. The above
average sales are primarily driven by employees,
tourists and Denver’s central location.
Other Shopper’s Goods – Consisting of
clothing, furniture, electronics/appliances, sporting goods and hobby, and miscellaneous retail stores, 38 percent
of sales in this category are from non-residents. Specialty stores selling clothing and accessories, electronics and
appliances, and miscellaneous retail goods are the strongest performing.
Eating and Drinking Establishments – Half of
the sales at bars and restaurants in Denver
come from non-residents. While tourism is a
major contributor to this high level of sales
inflow, Denver has become the dining
destination for the Front Range and is starting
to garner national recognition for its dynamic
restaurant scene. This boom is driven mainly
by locally-owned restaurants.
Categories with High Sales Inflow
Weaknesses
General Merchandise – An estimated 65
percent of the retail expenditure potential from
residents for general merchandise is spent
outside of Denver. The loss of sales to
Supercenters and Warehouse Clubs (e.g. Super
Target, Walmart, Costco, Sam’s Club) outside
of the city, in many cases to store locations just beyond the Denver’s borders is the highest of any one store
type. There is also a large amount of unmet demand for department stores and discount department stores as
they are also underrepresented.
Home Improvement – 40 percent of
Categories with High Leakage
expenditure potential for home improvement and
garden center items from residents is spent
outside of the city. Similar to general
merchandise stores, purchases are often being
made at stores near the city limits.
Other Store Types – There are also other
store categories that are underserved.
Furniture/home furnishing stores and sporting
goods, hobby, music and book stores have
resident sales leakage of over 25 percent. The
City of Denver is also missing a number of
national retail chains that are present in peer
cities, specifically many of the luxury/fashion
retailers.
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Retail Areas of Strength and Underserved Areas
Areas of Strength
Denver’s strongest retail areas are the two existing major retail destinations, Cherry Creek and Downtown. The
city’s neighborhood business districts are also so a major strength.
 Cherry Creek Mall and Cherry Creek North together are a premier shopping destination and one of the largest
tourist destinations in the State. The Cherry Creek District is the largest generator of retail sales in the city
with approximately $800 million in annual sales. Cherry Creek North 2011 sales were $256 million including
$160 million in retail goods and $96 million in restaurant and bar receipts. The Mall sales are roughly twice
that level with an estimated $525 to $565 million in sales.
 Downtown is the largest restaurant and entertainment destination in the Rocky Mountain West and has a
strong base of clothing and accessory stores. The greater downtown area has more than 5.5 million square
feet of retail space and approximately $730 million in retail sales. The 16 th Street Mall is downtown’s prime
retail core with approximately 1.0 million square feet of space and $300 million in sales.
 Bolstered by the success of the Larimer Square and Cherry Creek North, a number of smaller neighborhood
business districts (NBDs) in the city have become major dining destinations. On average, restaurant and bars
constitute only a third of the storefronts in these NBDs, but contribute 60 percent of the net taxable sales
from these districts and are major drivers of visitation to these retail areas. Larimer Square and Cherry Creek
North are the two best performing dining destinations in the city. Restaurants in these two areas have the
highest per store sales of any of the dining areas in the city. Individually, these NBDs are relatively small
revenue generators, but collectively, the Top 10 NBDs in Denver account for approximately $400 million in
retail sales annually, which is comparable to sales at the major retail centers.
Underserved Areas
Four subareas were identified as underserved:

Downtown and North Central—These subareas are lacking retailers providing everyday convenience items
including grocery stores, convenience stores, pharmacies, and general merchandise stores.

Northwest—This subarea is lacking stores in almost every category except grocery stores and eating and
drinking establishments.

Southeast—This subarea is lacking general merchandise and most regionally-oriented retail store categories.
Underserved Areas
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RETAIL CONDITIONS
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Other Retail Observations
The successful retail areas and strong store categories in Denver are the result of several factors that are retail
strengths. Denver has strong retail leaders, especially in entertainment. The urban form and aesthetic of the
embedded neighborhood districts has proved to be the ideal fit for creating destination retail areas. The recent
surge of housing development in the city has driven up demand for retail growth and change. The workforce in
Denver generates 10 percent of retail sales. Lastly, 30 percent of total retail sales and 40 percent of food and
beverage sales are from visitors to Denver, both tourist, business visitors and residents of surrounding
communities.
However, there are underlying factors that have lead to obstacles to successful retail in Denver. The city lacks
development ready sites for new regional retail centers, particularly in northern subareas. There is a lack of
available Class A retail space and development sites. Large format retailers have located in the communities
surrounding Denver due to more attractive sites as well as the strong retail development programs in these
cities/towns. Denver has few local retail development companies in the market focused on projects in Denver as
compared to other cities. The city has not had an established retail development and recruitment program, which
has caused it to miss out on a number of major store location searches and decisions.
Surrounding Competition
(Example of General Merchandiser Locations)
Competing Trade Areas
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Section 3:
Retail Opportunities
RETAIL OPPORTUNITIES
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Denver Retail Opportunity Areas
Denver’s opportunities for retail growth are reviewed in four locational categories, Regional Expansion Sites,
Potential Regional Retail Sites, Emerging Business Districts, and Refill/Redevelopment Sites.
Regional Expansion Sites
The greatest opportunities for increasing retail sales activity are at the strongest existing regional nodes. Retail is
constantly evolving; centers and districts that do not reinvest and regenerate quickly become tired and
outmoded, and then lose sales to new competition. Therefore, identifying the opportunities for continued growth
and improvement in the city’s strongest retail districts should be a top priority.
1. Downtown/16th Street Mall
Much of downtown’s pedestrian traffic is funneled through the 16th Street supported by the Free Mall Shuttle
and pedestrian mall. As a result, 16th Street Mall has been most successful for restaurants and bars serving
this population for up to 18 hours a day. The Mall has been less successful developing a diverse mix of retail
shopping. Since downtown’s four remaining department stores closed in the early 1990s, the retail mix has
favored discount retail, oriented to a moderate income population and gift shops oriented to visitors. The
700,000 square foot Pavilions, built in 1998, provided an infusion of lifestyle and entertainment retail, but to
date has not generated as much spinoff development as anticipated. The remaining pockets of specialty retail
are dispersed throughout LoDo and the Central Platte Valley (CPV). Downtown, therefore has a solid retail
core but there are additional opportunities that can be pursued to achieve its potential full potential, such as:
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 Continue to pursue department and other general merchandise anchor stores along or in close proximity to
the 16th Street prime retail core.
 Redevelop key underutilized buildings and sites for retail and mixed use development including the
underutilized Gart’s building on California, Cottrell’s on Glenarm, and the Shames Makovsky site at 15 th and
California.
 Develop key cross streets between 16th Street and the Convention Center and Denver Center for the
Performing Arts on 14th Street including Champa and California.
 Capitalize on the growing concentration of outdoor sporting good and apparel businesses in Lodo and Central
Platte Valley. Downtown has evolved into a young, hip residential and retail hub. Tenants such as Patagonia
and REI, along with chef driven restaurants and entertainment, reflect these demographics and psychographics. In order to capitalize on this trend, Downtown should continue to differentiate itself from the luxury/
adult image of Cherry Creek.
2. Cherry Creek
The Cherry Creek District has been extraordinarily
successful in the nearly 25 years since the Mall opened in
1989 and the Cherry Creek North District organized and
created the BID and implemented the first streetscape
program. Cherry Creek North has continued to evolve with
updated streetscape improvements completed in 2011
and the addition of a number of high quality infill and
redevelopment projects including Clayton Lane (2006),
300 Clayton (2007), Steele Creek (2009), North Creek
(2011), and Fillmore Plaza (2012). The immediate
changes anticipated are the implementation of the Cherry
Creek North Neighborhood Plan 2012 and a number of
additional redevelopment projects including 200
Columbine and the First and Steele mixed use projects.
Cherry Creek North
Cherry Creek is a luxury destination, as well as a center for the adult/empty nester population groups. It is
important to continue to promote a separate and distinct brand for Cherry Creek. Both the Downtown and
Cherry Creek trade areas will benefit from a distinct, separate marketing approach.
Cherry Creek Mall faces the immediate challenge to reposition the vacant Saks Fifth Avenue Building, which is
expected to be developed as additional Mall retail space with improved access to First Avenue. Longer term
expansion opportunities include redevelopment of the Safeway/Rite Aid property on the east side of the Mall
and additional infill development on the original Mall property on the University Boulevard frontage.
3. South Colorado Boulevard
Colorado Boulevard is an important arterial retail corridor with a number of high performing community and
power centers serving the eastern portion of Denver. Extending from Alameda on the north to Yale on the
south, South Colorado Boulevard is one of the top suburban style retail corridors in the metro area supported
by a combination of high density population, high incomes, and office/daytime commuter activity. There has
been redevelopment of existing centers and sites on the corridor including the former supermarket at Evans.
More redevelopment, however, has occurred in Glendale than in Denver. The corridor suffers from shallow
retail parcels that do not fit the modern retail formats and relatively high land prices. The City should find
solutions to these challenges that are an impediment to further retail growth. The Colorado Boulevard corridor
continues to be a strong retail location with additional opportunities for infill and redevelopment including:
 University Hospital Redevelopment – This 30-acre redevelopment site north on Colorado between 8th and 9th
Avenues is planned as a higher density mixed use development. It has the potential to include a significant
retail component to serve the adjacent Congress Park and Mayfair neighborhoods.
 University Hills North Shopping Center – Immediately north of University Hills Plaza, this former community
shopping center maintains a strong mix of tenants in spite of being a dated property from the 1960s.
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 Colorado Center – The Colorado Center property has an opportunity for TOD on or surrounding the RTD light
rail station just east of Colorado on Evans.
 Belcaro Shopping Center – King Soopers has discussed the possibility of expanding its store in the Belcaro
Center at Exposition.
4. Northfield at Stapleton
Northfield is a 1.2 million square foot hybrid powerlifestyle center in Stapleton north of I-70 anchored by
Macy’s, Super Target, JCPenney, Bass Pro Shops, and
Harkins Theater. Completed in 2008, the center’s ancillary
retail space has underperformed due in part to access
constraints that were remedied with the completion of the
Central Park Boulevard interchange in 2012. The Center
and the adjacent I-70 interchange has additional
development capacity for regional retail uses serving the
northeast portion of Denver. Northfield also benefits from
low barriers to development as the property has one
owner, is fully served by utilities and now a full service
interchange. This location should continue to grow in
appeal to national retailers as Forest City moves forward
with residential development north of I-70 and as the
population and income of the trade area increase.
Northfield at Stapleton Entry Sign
Potential Regional Sites
One of Denver’s greatest current constraints is the lack of development ready sites to attract national retailers.
The following are vacant or underutilized sites in underserved areas of the city with superior regional access that
should be evaluated in greater detail for their potential for regional retail.
5. 9th and Colorado – The 30-acre former University of Colorado Medical Center property is a key
redevelopment opportunity. A number of retail anchors have been proposed on this site, but plans have not
gone forward. Feasibility and site constraints must be considered as new concepts are explored. The property
is well located for retail uses and it therefore remains a strong opportunity site.
6. Brighton Boulevard – The I-70 and Brighton Boulevard interchange is a viable site for regional retail uses
for the underserved North Central, Northwest and Downtown subareas. The National Western Stock Show and
the adjacent City-owned Coliseum are the major existing land uses in this area. The availability of land for
retail is therefore contingent on the NWSS’ plans or redevelopment or relocation.
7. I-25 and Broadway – The 65 acres of D-4
Development ownership (Broadway
Marketplace Shopping Center and the Denver
Design Center) along with the remaining 50
acres of the former Gates Rubber Plant (owned
by Gates parent company Tomlin) comprise
one of the best located land holdings for retail
development in the city. Both ownerships are
planning for TOD associated with the Alameda
and Broadway light rail stations. Major large
format regional retail uses should be
considered but must fit into a higher densities
development. The Gates property in particular
may have the potential to build mixed use
development at TOD densities east of the
tracks and lower density retail uses west of the
tracks fronting on Santa Fe Boulevard.
Former Gates Plant at I-25 and Broadway
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8. I-70 and I-25 – The 35-acre former printing plant south of I70 between Pecos and I-25 is at the intersection of Colorado’s
two major national interstates with the greatest traffic volumes
in the state. This location has appeal for unique “one in the
market” uses. However, the site has major infrastructure
constraints including local access and utilities that would need
to be addressed before it is development ready.
9. Lowry Vista – This 72-acre site is located on Alameda
Boulevard in the Lowry Redevelopment. International Risk
Group (IRG) remediated the former landfill in 2004 and
completed a general development plan (GDP) in 2010 for
I-25/I-70 Opportunity Site
mixed use development including retail. The site would have
marketability for community and regional retail uses including general merchandise, home improvement, and
other shoppers goods stores. The site is also a great opportunity for conventional retail design that is
otherwise in short supply in Denver.
10. Belleview Station – This TOD is a 42-acre master planned development located north of Belleview and
west of I-25 at the Belleview light rail station. The project is at the Denver’s border with Greenwood Village.
It is planned for 2 million square feet of office, 1,800 housing units, two hotels, and 250,000 square feet of
retail. It is one of the city’s best opportunity for lifestyle and specialty retail at a transit station outside of
downtown.
11. Sun Valley – The parking lots surrounding Sports Authority Field at Mile High as well as land near the new
light rail station comprise a significant amount of land with I-25 frontage just to the west of downtown that
would have great appeal for retail. This area has a heavy demand for parking on only a limited number of
days per year. However, their ownership and competing uses make their availability for retail a challenge, in
the near term.
Emerging Neighborhood Business Districts
High quality neighborhood business districts (NBDs) are an important amenity to desirable urban neighborhoods.
Most of Denver’s most desirable neighborhoods can claim a NBD. For both livability and revenue reasons, the
City should continue to promote and nurture the revitalization of older commercial areas into more specialized
retail and entertainment districts. Emerging NBDs have stores and restaurants that respond to the changing
demographics of the adjacent neighborhoods, but also contain unique local businesses and restaurants that
appeal to a larger citywide population.
12. East Colfax – East Colfax from York to Monaco
has become a more specialized district with newer
generation stores and restaurants serving the
nearby revitalizing neighborhoods including
Congress Park, City Park West, Mayfair, and Park
Hill. Businesses along the portion of Colfax from
York to Colorado recently formed the Bluebird
BID. A number of major new businesses have
been established including Marczyk’s Fine Foods,
Ace Hardware and Sprouts. There remain plenty
of sites for new stores to locate in existing retail
buildings or for new infill retail or mixed use
projects. However, similar to Colorado Boulevard,
Colfax is challenged by shallow, small parcels
prohibiting many larger users from finding a
location and providing services to residents.
East Colfax Avenue
13. Federal Boulevard – This segment of Federal (Alameda on the north to Mississippi on the south) has
developed a critical mass of Asian (mostly Vietnamese) shops and restaurants. This specialized retail cluster
has citywide appeal, but could benefit from the addition of an additional retail anchor, more specialty stores,
streetscape improvements and district identity improvements.
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14. River North (RiNo) – The developing area north of downtown
extending to I-25 is an emerging commercial and residential mixed
use district. Brighton Boulevard and Larimer Street have attracted
several new retail business, art galleries and a large amount of new
infill housing development. The area has potential for a cluster of
retail, restaurant and arts related businesses.
15. South Broadway – The City has supported South Broadway as a
revitalization district as early as the 1980s. The area from 6th
Avenue south to Alameda is finally gaining momentum as a hip
location for edgy local entrepreneurs to open boutiques, restaurants
and entertainment venues. This NBD is the most successful district
in the city in terms of the portion of sales from retail stores (not
restaurants) with 74 percent of the total activity. The intersection of
1st and Broadway is the epicenter of new activity supported by the
Mayan Theater and the new Punch Bowl Social (a nationally
recognized concept).
16. Central Platte Valley – The CPV is an area that is lacking a
defined NBD retail street or node. There are pockets of both
neighborhood serving and more regionally oriented specialty stores
including Platte Street, but a more comprehensive retail
development plan and image for the neighborhood should be
developed.
The Hornet restaurant on South Broadway
17. Welton Street – This historic NBD is in the heart of the largely African-American Five Points neighborhood
north of downtown. The City has invested an extensive amount of effort and funds into stimulating its
revitalization including the Wellington Webb Library and The Point housing development. It retains a mix of
other neighborhood oriented business and newer business start-ups. The high level of investment in new
infill housing and renovation of older homes in the neighborhood is both increasing area incomes and the
prospects for new neighborhood oriented business and restaurants.
Refill/Redevelop
There are a limited number of vacant large format retail stores and vacant or outmoded shopping center sites in
Denver. These stores and centers create the potential for neighborhood or community infill retail/commercial
development to better serve the residents of these neighborhoods.
18. Chambers Place Shopping Center – This Safeway anchored neighborhood shopping center at 48th Avenue
just east of Montbello has a vacant junior anchor building with 25,000 square feet. The Safeway is an older
property with only 40,000 of leasable space, making the entire center is also a redevelopment possibility.
19. Southwest Commons – This shopping center is located in Denver immediately north of Southwest Plaza
Mall in Jefferson County and contains a number of mass merchandisers commonly found near malls including
Jo-Ann’s Fabrics and Cost Plus.
20. Alameda Square – The 100,000 square foot former home improvement store in the Alameda Square
Shopping Center at Alameda and Tejon is vacant and available for re-tenanting.
21. Federal and Evans (former K-Mart) - This 90,000 square foot vacant site has approximately 9.5 acres
and could be redeveloped for a range of neighborhood or community serving retail uses including potentially
an Hispanic superstore like Pro’s Ranch or a large format, general merchandiser.
22. Evans and Monaco (former K-Mart) – A K-Mart Holding Company (part of the Sears Company) owns this
vacant K-Mart store and property at 2150 South Monaco. This site is a good location for neighborhood or
community oriented retail. The vacant King Soopers west of Monaco is being redeveloped for a Walmart
Neighborhood Center.
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Denver’s Retailer Targets
The list of national retailers looking to expand is lengthy, but also fluid. Many retailers’ plans change year to year
based on overall corporate performance and shifting business plans. Denver’s retail tenant recruitment strategy
should focus on:
 Building on existing strengths – Target and recruit additional retailers in the store categories and locations
of retail strength including fashion/luxury goods and home furnishings in Cherry Creek; general merchandise
and outdoor/ active lifestyle in downtown and Cherry Creek; and general merchandisers and mass
merchandisers on Colorado Boulevard and at the regional retail opportunity sites.
 Address market gaps – Target and recruit retailers in the store categories that are underrepresented in the
city and for which there is leakage to the surrounding cities including general merchandise and home
improvement.
 Capitalize on specialty/niche market opportunities— Denver’s ethnically diverse population creates
buyer demand for retail stores focusing on a specific consumer clusters. A recruitment strategy should identify
and pursue these market opportunities.
 Target profitable and expanding retailers – The greatest retail expansion is currently taking place in the
store categories, such as luxury fashion and specialized food stores, that have responded to demographic
shifts and preferences, and area less impacted by online sales .
A number of major retailer opportunities are highlighted in the following list due to their absence or under
representation and/or their interest in the Denver market. A full list of tenants can be found in the Technical
Appendix of this report.
From Left to Right and Top to Bottom: Target store, downtown Minneapolis, MN; Dillard’s department store at the Atlantic Station development, Atlanta, GA;
Van Maur department store, Beavercreek, OH; Costco storefront
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Convenience Goods
The grocery store market is growing due to changing demographics and consumer preferences. There are
additional store opportunities for ethnic grocers and natural food markets including:

Pro’s Ranch—Hispanic Superstore

H-Mart—Asian Supermarket

Trader Joe’s—Natural Foods Grocer
General Merchandise
Denver is underserved in general merchandise stores with considerable leakage to the suburbs. The following
successful chains are opportunities to open their first store in Denver or expand to underserved neighborhoods:

Von Maur—Department Store

Dillard’s—Department Store

Kohl’s—Department Store

City Target and Super Target—Super Center

Costco—Warehouse Club
Mass Merchandisers
The following mass merchandisers also represent opportunities due to leakage and interest by these retailers in
the Denver market:

Conn’s—Electronics

Dicks Sporting Goods—Sporting Goods

Lowe’s—Home Improvement

Menard’s—Home Improvement

Scheels—Sporting Goods
Specialty Stores
Based on a survey of specialty retailers found in Denver’s peer cities including Seattle and Dallas, there are
several candidate apparel, home furnishings, and jewelry/accessory stores not present in the Denver. Below is a
list of potential retailers that may be attracted to Denver. In addition, a list of over 40 additional luxury retailers
present in other cities is provided in the Technical Appendix .
Specialty and Apparel
 Lego
 Burton
 Areosoles
 Original Penguin
 Columbia Sportswear
 Build A Bear
 Pottery Barn
 ecco
 C Wonder
 Sperry Topsider
 Helly Hanson
 CB2
 Splendid
 mont-bell
 Club Monaco
 TopShop
 Moosejaw
 dELia's
 UniQlo
 Mountain Hardwear
 Disney
 ZARA
 Marmot
 Fuego
Outdoor/Active Lifestyle
 Merrell
 Hanna Andersson
 Adidas Sport
 New Balance
 Intermix
 Billabong
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Section 4:
Retail Blueprint
RETAIL BLUEPRINT
DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Program Development Observations
Great retail cities take a variety of approaches to support the retail sector, ranging from relatively hands off to
very intentional. They require strategic planning, leadership, adaptability, and careful coordination among a
variety of public and private partners. There is no one right program or organizational structure. The optimum
city staffing for implementing a retail program should be based on identified city needs and the strengths of
existing public and private entities with a role in retail development and recruitment.
Denver has no strategic program or policy for growing the retail sector to date. The City’s economic development
initiatives have focused primarily on recruitment of new office and industrial based firms, as well as retention and
expansion of existing businesses. The retail sector has been secondary, particularly because of the lower wage
rates associated with most retail jobs. However, the importance of the retail sector has grown for a number of
reasons:
 Denver has become a regional draw in a number of specialized retail sectors, including fashion, outdoor
lifestyle apparel and sporting goods, and restaurants and entertainment uses. The collective impact of these
attractions generates significant inflow of retail spending and sales tax revenues for the City.
 There is greater recognition of the importance of having retail goods and services conveniently located near
and within the city’s neighborhoods to add to the quality of the neighborhood . The most desirable areas of
the city have close-by grocery and other convenience goods stores and restaurants and specialty merchants
in walkable neighborhood business districts.
 A significant portion of Denver households do not have retail stores close by, resulting in retail sales leakage
and the loss of associated sales tax revenues. This is particularly true in the northern subareas of the city.
 The City is increasingly dependent on sales tax revenues for fiscal viability. Retail store sales taxes account
for approximately 25 percent of general fund revenues and will continue to are a grow as other sources,
including employment and property taxes, have been increasing at a slower rate.
For these multiple reasons, EPS recommends the City take a more proactive stance toward growing and
attracting new retail business. EPS outlined its recommendations for an overall vision, specific objectives and
specific strategies based on a review of programs and policies of other cities’ programs and the opportunities
identified in the analysis.
Larimer Square
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Conceptual Vision
The City and County of Denver seeks to attract new retail businesses
and investments in existing and new retail centers and districts to serve
the needs and desires of residents and visitors, increase city retail sales
tax revenues, and improve the quality and livability of its neighborhoods,
transit oriented developments, and neighborhood, community, and
regional centers.
Objectives to Achieve the Vision
EPS recommends six retail development and marketing objectives designed to help the City achieve the above
vision and its goals for retail expansion and enhancement. For each objective, a series of high priority strategies
are recommended.
1
Ensure that all Denver residents have the opportunity to buy
the full range of retail goods and services within the city
2
Support the expansion of Denver’s existing regional retail
destinations
3
Attract additional regional retail stores and centers
4
Cultivate and expand Denver’s neighborhood business
districts
5
Promote Denver’s brand as the premier destination for
outdoor/active lifestyle retailers
6
Maintain and grow Denver as the entertainment destination
of the Rocky Mountain West
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Ensure that all Denver residents have the opportunity to buy the full
range of retail goods and services within the city
In addition to being underserved in large-format retailers, several subareas are lacking in the full range of
convenience-oriented goods that are necessary for everyday living including grocer and drug stores. Without the
addition of new retail in these areas, existing and future residents will be increasingly forced to leave their
neighborhood, as well as the city, to acquire retail goods. To prevent this growth in retail leakage, the City
should actively recruit new retailers in convenience-oriented store categories to these subareas, as well as
revitalize existing outmoded neighborhood retail space to accommodate new tenants.
Create a recruitment strategy for convenienceoriented store categories in underserved areas. The
City should actively market underserved retail areas to
convenience-oriented store categories, including grocery,
health and beauty (pharmacies), as well as smaller-scale
home improvement and/or eating and drinking
establishments that serve neighborhood needs. The
subareas with the most need include Downtown and North
Central. Opportunity to attract new quality national
Hispanic-oriented supermarkets offering discount and
specialty food items also exists in the West subarea.
Create tools and policies for retailers in underserved
store categories. In addition to marketing, the City
should investigate using financial tools to target
underserved store categories. This includes structuring
criteria specific to convenience-oriented retailers, as well
as evaluating the use of the recently established Colorado
Fresh Food Financing Fund to target new grocery and
supermarket stores.
Provide support for the renovation of outmoded
retail centers and stores and technical assistance in
underserved neighborhoods. Many of the underserved
subareas possess existing neighborhood retail centers that
feature a significant amount of deferred maintenance and
are outmoded for today’s retailers. The City should create
Ross and Slyderman food chart, 16th Street Mall
financial tools that promote the reinvestment of these
centers in order to fit the needs of new tenants. In addition, the City should expand its technical assistance
services to encourage local entrepreneurs to open new retail establishments to meet the needs in the community
where national retailers are unwilling to locate.
South Federal Blvd retail
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Support the expansion of Denver’s existing regional retail destinations
The City should take every measure to help support and promote its existing regional destinations. These assets
are often the most desirable locations for new retailers to locate, and thus, should be given considerable
attention in communications with brokers, developers, and national retailers for high priority tenants and
developments. As many of these regional assets have existing points of contact, the City should clearly define
the roles of communication between OED and public and private partners.
Determine the roles and staffing for OED to serve as the primary point of contact for retail
development. As existing regional destinations, Downtown (Downtown Denver Partnership), Cherry Creek Mall
(Taubman), Cherry Creek North (Cherry Creek North BID), and Northfield (Forest City) already have their own
retail promotion and marketing efforts in place. Thus, establishing definitive roles with external partners will be
particularly critical in order to avoid the duplication of efforts and miscommunication with potential retail targets.
For areas outside of these large private-ownership or special districts, OED should be the primary point of
contact for retail development, including new store recruitment, retail center development, local public and
private improvements, and ongoing support of existing retailers.
Develop information marketing materials for retail recruitment and promotion. OED should develop
trade area profiles and customized market studies for tenant recruitment, and all regional retail assets should be
highlighted as major shopping destinations in tourism outreach efforts. OED should also compile a
comprehensive inventory of key retail sites and buildings in each of the regional retail nodes to track ongoing
performance and identify tenant opportunities in support of recruitment efforts.
Provide appropriate development assistance and incentives for identified retail stores and/or
categories. Specifically, sales tax sharing is an effective tool for assisting in attracting key retailers to a specific
location. OED should have pre-established criteria for the use of any tools in order to provide transparency and
consistency to public and private partners. OED should support the expansion of all regional assets, providing
development assistance incentives and polices where appropriate. This is particularly true for identified targeted
retailers and/or retail store categories.
16th Street Mall
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Attract additional regional retail stores and centers
Despite strong regional assets, Denver is currently
underserved by regional retail uses and should encourage the
development of new regional stores and centers. This includes
the addition of general merchandise, furniture, home
improvement, and other large-format retailers with significant
sales tax generation potential. Attracting these types of
retailers requires the identification and creation of regionallyaccessible sites, as well as establishing a “business-friendly”
reputation to the national retail and brokerage community.
Identify potential sites for regional retail uses and one
in the market retailers. An evaluation of potential new
regional retail sites that could serve identified underserved
areas and also possess the qualities (acreage, regional access,
demographics, etc.) desired by new retailers yielded two
potential locations; a northern location along I-25 between 6th
Avenue and I-70 and a midtown location along I-25 near the
intersection with Broadway. The City should factor the
potential for new regional retail uses in its future planning
H&M, Denver Pavilions
efforts in these areas, including the evaluation of necessary
property assemblage, remediation, and regional infrastructure improvements.
Actively recruit additional general merchandise retailers and major retail sales tax generators. As
noted, the city is underserved in general merchandise, furniture, and home improvement retailers and has
limited large retail sales tax generators. In order to attract these types of retailers, the City should be proactive
in its marketing efforts and incentive policy, and identify specific criteria and tools focused on large sales tax
generators.
Market Denver as a business-friendly retail destination to the retail development and brokerage
community. In order to establish its vision and commit to creating great places; the City should clearly
communicate to the brokerage and retail community that it is willing and able to think creatively to
accommodate new large-format retailers, including working to meet financial and physical needs of priority
stores and categories. This involves meeting regularly with the local retail brokerage and development
community, as well as attending national showcases such as the ICSC RECon Marketplace.
City Target, Seattle, WA
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DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Cultivate and expand Denver’s neighborhood business districts
While more traditional retail formats are important for providing necessary goods and services to residents and
generating sales tax dollars to the city, neighborhood business districts are critical to supporting local
entrepreneurship, as well as providing unique shopping, entertainment, and dining destinations to residents and
visitors throughout the city. In aggregate, the city’s strong collection of established and emerging neighborhood
business districts also generate a substantial sales tax revenue to the city and should continue to be cultivated
and expanded as critical retail assets.
Create a coordinated citywide marketing program to promote local businesses and neighborhood
retail districts. The city currently has a mix of programs used to market its neighborhood business districts,
including neighborhood profile brochures, as well as various business district profiles on Visit Denver’s tourism
website. In order to successfully market its neighborhood retail districts, the City needs a coordinated effort that
includes a consistent set of marketing materials and separate business district website that effectively
communicates the unique identity of each district, as well as highlights shops, restaurants, and local
entrepreneurs.
Establish a citywide neighborhood business district program eligible to all neighborhood business
districts. The city currently has two primary financial tools targeted to assist neighborhood business districts, as
well as more traditional national programs including Enterprise Zones and CDBG funds. While these are
important, the City should evaluate the potential to expand some form of eligibility to all neighborhood business
districts through a qualifying process in order to support local entrepreneurship throughout the city. In addition
to expanding assistance to neighborhoods of all economic status, the City should continue to expand the amount
of available tools and technical assistance.
Platte Street, Central Platte Valley
Little Man Ice Cream and Linger Restaurant, LoHi
Talulah Jones, East 17th Avenue
Fancy Tiger Clothing, South Broadway
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DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Promote Denver’s brand as the premier destination for outdoor/active
lifestyle retailers
As Colorado’s front door, Denver’s nationally known as a premier outdoor
activity destination, and this reputation should continue to be promoted.
This includes developing a strong cluster of outdoor lifestyle retailers and
advertising the Denver brand to national retailers and visitors.
Develop a list of desirable targeted outdoor/active lifestyle
retailers not present in Denver, including fashion, apparel, and
sporting goods retailers, and market Denver to these retailers in
recruitment efforts. Denver’s outdoor lifestyle brand should span several
retail categories, including fashion and apparel, sporting goods, and even
health food retailers. The City should develop a list of the most desirable
retailers not currently present in Denver, and target these retailers in its
recruitment efforts.
Designate a retail node as the regional hub for outdoor/active
lifestyle attractions, including identified development sites and/or
store locations. In order to attract a cluster of similar retailers, the City
should designate a retail node, or nodes, that serve as the regional
destination for outdoor lifestyle shopping. This includes identifying existing
buildings, sites, streets, and store locations. The co-tenancy requirements
of these retailers is strong and will require a critical mass to be successful.
REI Flagship store, Central Platte Valley
Hold fashion and retail showcase events during outdoor lifestyle conventions and sporting events
including the SIA Snow Show, International Sportsman Expo, USA Pro Challenge, and Colorado
Crossroads Volleyball Tournament. The City of Denver should leverage the national visitation of its large
outdoor lifestyle events to include the promotion of its outdoor lifestyle retailers. This includes holding fashion
shows at targeted sporting events and industry conventions. It also includes elevating the status of the city’s
existing fashion industry by holding premier fashion events that integrate traditional fashion and apparel with
outdoor lifestyle retailers, as well as the growing “fashion truck” scene.
Patagonia, 15th Street, LoDo
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DENVER RETAIL CONDITIONS AND OPPORTUNITIES STUDY
Maintain and grow Denver as the entertainment destination of the Rocky
Mountain West
With the magnitude of sports teams, cultural amenities, music venues, and growing collection of world-class
eating and drinking establishments, Denver has established itself as the premier entertainment destination of
the Rocky Mountains West, attracting 11 million visitors per year from the length of the Front Range and
frequent visitors from states such as California, Arizona, and Texas. As the city’s primary retail strength, the City
should continue to grow and develop this desirable market niche.
Market available financial tools to local eating and drinking restaurateurs. Eating and drinking
businesses have experienced the most significant growth of any retail category over the last five years. Local
chefs are beginning to receive national acclaim and a growing group of world-class chefs are beginning to
migrate to Denver, attracted by its increasing urban sophistication and laid-back attitude. Yet, few restaurants
have utilized small business assistance programs. To maintain the city’s momentum and elevate its stature as a
world-class dining destination, the City should actively market available tools to and support local and national
restaurateurs.
Continue to support restaurant promotion programs such as EatDrinkDenver.com and Denver
Restaurant Week. Denver Restaurant Week has successfully expanded into a renowned eating and drinking
event, promoting dining options throughout the city to local and regional residents. In addition, VisitDenver
recently launched an independent eating and drinking website that successfully highlights Denver’s strengths,
such the local brewing industry, growing street food scene, and strong neighborhood dining destinations. The
City should closely evaluate how this effort should be incorporated into its own promotion of retail and
neighborhood business districts.
Build on Create Denver program and art events such as First Friday. The City has recently recognized the
importance of its local arts and culture destinations and has two art districts, Sante Fe Arts District (certified)
and RiNo Arts District (prospective) qualified with the Colorado Creative Industries program. The City should
continue to support these districts, as well as include additional growing districts such as the Golden Triangle
and Tennyson Street. The City has also established its own program, Create Denver, which promotes the city’s
creative industries and provides financial assistance through a revolving loan fund. First Fridays continues to
provide an important opportunity for residents and visitors to interact with the local arts scene and generate
retail sales dollars to artists and galleries.
Work with Visit Denver to market Denver’s entertainment attractions on a regional and national
level. The city’s strong collection of local arts districts and word-class downtown cultural amenities, including
the DAM, MCA, Clyfford Still Museum, and Denver Performing Arts Center should be promoted as regional and
national attractions in coordination with VisitDenver’s efforts.
Leverage and expand food and beverage festivals such as the Great American Beer Festival, Civic
Center Eats, The Big Eat, and DSTILL. The city continues to add exciting new Eating and Drinking-focused
events. The city’s largest events, including the Great American Beer
Festival, should better leverage national visitation to highlight and
promote local restaurants to a national audience with simultaneous
eating and drinking programs and opportunities.
Identify ways to reduce and maintain low barriers to entry for
restaurant and beverage businesses including food carts,
breweries, and local food manufacturers. Denver is home to a
growing collection of startup businesses in the food and beverage
industry that are developing national reputations for quality. These
businesses are thriving by creatively finding affordable and accessible
entry points to sell goods and services, such as food carts and former
industrial locations supporting small breweries and food manufactures.
The City should evaluate its ability to continue to provide low barriers
to entry in order to support and grow the industry among local
entrepreneurs.
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Prost! Brewing, Central Street
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Appendix A:
Retail Toolkit
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APPENDIX A
Retail Program
The implementation of the identified retail objectives will require the City to take a more proactive role in retail
development and marketing. The following program roles and responsibilities are recommended based on a
review of the City’s existing public and private organizational capabilities, as well as the best practices of other
cities.
Marketing
Retail Recruitment
A primary function of the retail program is marketing and outreach to targeted retailers including stores in
underserved retail categories and desirable national retailers considering expansion to Colorado and Denver. The
City should coordinate and work with existing business district organizations for recruitment where they exist
including DDP, Cherry Creek BID, Taubman Company (Cherry Creek Mall) and Forest City (Stapleton). For the
rest of the city, OED should be the primary point of contact. These functions include attending national retail
events, hold meetings with national retailers, providing market and demographic data, customized market
studies and data on available sites and locations.
Neighborhood Business District Support
The existing and emerging NBDs are one of the city’s retail strengths. These districts however are largely
comprised on local entrepreneurial businesses and restaurants that often need help with organization and
marketing, such as the formation of BIDs and identifying retail gaps and opportunities. The retail program should
continue to provide outreach and business assistance to these districts. Because many of the City’s programs are
housed in OED, it is the logical place for the retail marketing function to be housed. The following business
assistance coordination functions are anticipated:
 Develop a comprehensive package of retail specific business assistance materials to be provided to interested
businesses including both brochures and web site materials.
 Market the City’s small business assistance programs to existing business districts and retailers.
 Assist new retail prospects seeking financial or technical support to access City programs and incentives.
Targeted Marketing Profiles
With a more comprehensive retail sales and retail space inventory, the City would also be in a position to provide
customized retail market data for prospective retailers and developers. This could be in the form of customized
trade area socioeconomic profiles for an identified retail location and/or a competitive market study for a retail
store category that is underserved in the city as a whole or in a specific subarea. Market data should also be
provided for neighborhood business districts. OED already has neighborhood profiles of 12 neighborhood
business districts on its website. These profiles provide pertinent summary information on demographics, retail
conditions, and map business locations. These profiles should be updated and expanded to cover a number of
the emerging business districts where there is a greater opportunity for new business location.
Central Marketing Website
A separate dedicated retail website with links to the city’s main website is recommended. Several cities have
dedicated websites featuring comprehensive profiles of all neighborhood business districts, including highlights of
local businesses and entrepreneurs, as well as various programs and financial tools. Philadelphia (Be In It Be On
It), Seattle (Only In Seattle), and Portland (Venture Portland) all have stand-alone websites communicating a
brand for the city retail destinations.
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APPENDIX A
Tools and Support
Financial Analysis and Tools
As with existing economic development functions, the retail program will need to provide information and
outreach on the city’s business and financial assistance programs as well as specific financial analysis of project
need. These functions are currently provided by OED with assistance from Finance. These analyses and support
should be made a priority for assisting in both retail development and retail store opportunities.
The City should explore the use of effective best-practice tools, specifically sales tax sharing, land-holding
programs, and retailer center reinvestment financing, to provide support for market-making centers and retailers
to locate and invest in emerging market locations. The establishment of new tools should be undertaken in
partnership between Finance and OED.
A number of these programs may also utilize innovative use of existing tools, e.g., TIF and special districts, and
public-private partnerships (P-3s), and thus may require partnerships between OED and Finance, DURA, and
private developers.
Data Research and Analysis
A primary function of a new retail marketing and outreach initiative will be to provide city-wide and project
specific retail market area and targeted market research. An important component of market trend data is
tracking annual retail sales by retail NAICs category based on sales tax data. Colorado has a distinct advantage
over other states because most large home rule cities collect their own sales tax data and are therefore able to
compile reports for customized geographies, for example sub-areas or major retail centers. Sales tax data can
and should also be used to track the sales performance of major retail centers and districts and identified subareas of the city including the city’s most important retail districts, Cherry Creek, Downtown, Northfield, and
Colorado Boulevard.
Retail Site and Space Inventory
The City should compile and maintain an inventory of available space database provided by major retail brokers
including size and lease rates. Many cities have an online retail inventory of available retail sites for prospective
retailers and developers. The inventory can either be provided through an interactive web map (City of Lone
Tree), by submitting search criteria through an online form, enabling city staff to track site requests (City of
Dallas), or calling the city directly (City of Colorado Springs).
Further, the City should embark on an analysis to identify potential retail-led development sites to encourage the
identification of prime sites for future retail centers in Denver, especially in underserved neighborhood areas.
With this information, the City can more effectively attract the attention/interest of national retail developers.
Development Review Ombudsman
Our review of the best practices from other cities revealed that a key consideration for encouraging new and
innovative retail businesses to locate is an effective, speedy development review process. The City could help
applicants navigate the City’s development review process and ensure timely review of projects through an
ombudsman role on the retail team. Denver’s existing review process frequently starts with an initial meeting
between the project team and representatives from each of the reviewing agencies, such as land use,
engineering, traffic, building services, fire department and utilities. Denver’s approach has been to coordinate
and streamline the development review process for improved timeliness, and progress in this direction should be
continued and encouraged.
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APPENDIX A
Staffing and Organization
The above retail program functions will involve multiple City departments and will therefore require a highly
coordinated internal team. The City should therefore clearly define the roles and responsibilities for carrying out
each function. The City should ensure that specialized retail experience and knowledge is an attribute of internal
team. The retail team must have an understanding of private sector retail development, marketing, leasing and
brokerage, and should be responsible and accountable for the following:
 Serving as the point of contact for recruitment and retention efforts and responsible for coordinating all City
of Denver retail oriented business assistance programs and incentives.
 Coordinating with and supporting the existing retail marketing functions provided for downtown by the
Downtown Denver Partnership and for Cherry Creek by the Cherry Creek BID.
 Coordinating the city’s retail recruitment outreach functions including participating in the ICSC RECon
Marketplace and other national events.
 Providing information on business assistance and incentive programs to retailers and retail development
projects, and coordinating the fiscal outcome analysis and approval process.
 Directing development and maintenance of a City retail website and compiling trade area demographic
information and targeted market research.
Forest Room 5, 15th Street, LoHi
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APPENDIX A
Financial and Incentive Toolkit
The retail development environment is highly competitive. Denver has been successful in attracting destination
entertainment and specialty retail uses desiring a downtown or Cherry Creek location. It has been less successful
capturing its appropriate share of more standard shoppers goods and convenience goods retailers providing
everyday goods and services to a residential-based trade area. In the past, the suburban cities surrounding
Denver have been more aggressive at developing retail shopping centers and attracting major stores including
larger format department, discount department, superstores, and home improvement centers. As a result, there
is a pattern of shopping centers outside of the city, but close to its borders, that is capturing a sizeable portion of
retail expenditures by city residents and reducing the city’s potential sales tax capture. The city would benefit
from a more comprehensive package of incentive tools in order to be actively engaged in retail development and
recruitment. Some of the existing incentives and business assistance programs are summarized in this section
along with options for additional incentives to be used for retail competition or addressing project feasibility
gaps.
Toolkit Criteria
Cities use retail tools and incentives to accomplish specific economic development goals. These typically include
sales tax generation, attracting unique and highly-desired major tenants, attracting grocers or other anchor
retailers to underserved neighborhoods, or to address regional competition (protect sales tax base). Cities
frequently take a reactive approach to using these tools, responding to new retail opportunities as they emerge
and then figuring out what can be offered. However, a more proactive approach to the use of retail tools allows
for greater alignment with a city’s retail vision and other economic development policies and provides political
justification and transparency for public assistance. Retail tool criteria can range from extremely general to
extremely specific. The key when establishing retail tool criteria is to define specific metrics that can be tested,
while maintaining sufficient flexibility in the internal decision-making process. Cities generally use a combination
of criteria to focus on their retail objectives. Retail tool criteria often include the following:
General Economic Development Objectives – The most general (and most flexible) example of retail criteria
are economic development objectives that are found in most economic development policies and are not
specifically related to retail. General objectives include job creation, positive fiscal or economic impacts on the
local economy, spurring additional economic growth, or resulting in a higher and better use.
Financial Need – Many cities only use retail tools where there is an identified financial need. In other words,
the project would not happen “but for” the financial assistance, eliminating the potential to “line the pockets” of
retail developers. The “but for” test is generally most applicable to retail projects, as many desirable retailers
receive financial assistance regardless of need in a competitive retail environment with other cities vying to
provide the lowest cost opportunity.
Geographic Locations – Many cities focus retail tools on
general or specific geographic locations such as identified
revitalization areas, neighborhood business districts, or
underserved areas. Other cities have established a defined
retail priority area. Frequently, the retail priority area is a
block or collection of blocks in the city’s downtown central
business district. In this case, retail incentives are
generally targeted to attract specific tenants rather than
support new retail projects, but can be used for both.
Washington D.C.
Encourage commercial development in the
District of Columbia, expand the tax base through
the use of tax increment financing, and provide
economic assistance to encourage development
of retail facilities in the District of Columbia in
Retail Priority Areas.
For example, Washington DC has an identified Retail
Priority Area for several blocks along H Street that uses
TIF for tenant improvements to retailers that sell home
furnishings, apparel, or general merchandise goods. Other
cities with defined retail priority areas include Portland
(Downtown Retail Core), Dallas (Main Street District Retail
Activation Strategy), and Houston (Houston Downtown
Mixed-Use Retail Core).
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APPENDIX A
Retail Store types/Categories – Some cities have established criteria targeted at specific retail store types or
categories. Store types include one in the market or new to market retailers, major anchor tenants, tenants that
frequently co-locate with other desired retailers, or simply specialty or local businesses. Other cities focus on
specific store categories and/or merchandise, such as apparel, home furnishings, general merchandise, grocery,
or eating and drinking. The store types and categories should be based on the strengths and weaknesses of a
given market and align with the city’s retail vision and objectives.
Sales Thresholds – As retail policies are frequently focused on increasing sales tax collection, many cities
establish minimum retail sales thresholds that must be met in order to receive financial assistance. For instance,
in Oklahoma City retail incentives are focused on retailers with average annual sales exceeding $20 million. This
sales threshold represents an average to above average department store ($200 per square in sales for 100,000
square foot store). Thus, this threshold provides some flexibility in the evaluation process, as it prioritizes large
sales tax generators, but not necessarily the top performer in a given retail category.
Sales Inflow/Leakage – Many cities desire to attract new retail in order to attract new retail customers from
outside of the city (sales inflow), while also prevent the leakage of sales by city residents to other adjacent
communities (sales leakage). Thus, retail criteria frequently includes language regarding the ability for the project
or retailer to serve as a regional destination that attracts new retail customers to the city, as well as the ability
reduce leakage.
Sales Cannibalization - While a new retail project or tenant can increase retail sales in a city, a portion of the
sales often represents sales that would have occurred otherwise at other retail destinations in the city (sales
cannibalization) as a result of similar or competing merchandise or services. Thus, many cities limit eligible retail
incentives to net new sales, or the additive sales that occur as a result of a new retail project or tenant. Some
cities estimate the specific amount of net new sales through a cannibalization study, while others simply include
the desire to minimize the impacts of cannibalization when applying their retail toolkit.
Pacific Ocean Marketplace, Alameda Square Shopping Center
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APPENDIX A
The City currently uses a combination of tax increment financing (through DURA) and special districts to provide
financial incentives for retail development.
Existing Financial Tools
Urban Renewal Authority (URA)
Urban Renewal Authorities (URA) are designed to address blighted economic conditions through the use its
redevelopment powers including land assembly and tax-increment financing (TIF). TIF allows new property taxes
from all taxing entities, as well as new local sales, and/or lodgers tax generated in the URA district to be
earmarked for public improvements in the district. URAs have a limited life of 25 years, after which the increase
in property tax is returned to the City’s General Fund. URA tax dollars can either be applied to project costs as a
“pay as you go” model, or future tax dollars can be bonded against to fund upfront capital costs.
Tax increment financing in URAs is a very effective financing tool as it leverages the incremental property taxes
of not only the city but also all taxing entities including Denver Public Schools. Property tax TIF is also a relatively
predictable revenue stream that can be used to finance revenue bonds for project related improvements. An
additional advantage for retail projects is the City can also TIF the future local portion of sales tax under its home
rule powers. Its greatest limitation is that there are large areas of the city that would not easily qualify for an
URA area. An additional disadvantage is that setting up an URA is time consuming as it requires a blight study
and creation of an urban renewal plan. DURA currently has 21 URAs in the city and additional 12 TIF districts
located throughout downtown.
Example: Denver Urban Renewal Authority (DURA)
Downtown Development Authority
A DDA is a district-based quasi-public agency governed by a council-appointed board designed to improve
economic areas specified as a central business district. Similar to a URA, a DDA also has the ability to utilize TIF,
including property, sales, and/or lodging tax, but does not have the power to condemn property. Once TIF is
initiated by a DDA, it has a limited life span of 30 years (with the option of more limited TIF for up to 50 years).
In addition to TIF, a DDA can assess an additional mill levy of up to five mills for operating purposes.
Denver recently established the DDRA around the 31.5 acres surrounding Denver Union Station (DUS). All TIF
revenues from the DDRA are pledged to help pay off the RRIF loan for the DUS project. Given the statutory
guidelines, it is also unlikely the city could establish a second DDA area.
Example: Denver Downtown Development Authority (DDDA)
Title 32 Metropolitan District (Metro District)
A Metro District is an independent special district formed to develop and/or operate two or more public
infrastructure improvements such as roads, utilities, parks, or public parking. A metro district is most often
created by a land developer (but requires the city’s approval of the service plan) to apply an additional mill levy
to future development to create a revenue stream to help pay for infrastructure costs. There is a statutory
maximum of 50 mills but no time limit on duration of the district. Metro districts are an effective financing tool for
many development projects. There are limitations to the mill levy that can be imposed on retail tenants without
negatively impacting lease rates and project NOI. This financing tool also is not effective for recruiting individual
major retail targets.
There are over 50 metro districts in the city including large scale districts in Stapleton, Central Platte Valley, and
Gateway. Metro Districts are also often used as a partial public financing for retail and other infill redevelopment
projects. Metro districts were created for the Gates Broadway redevelopment (Cherokee), Alameda Station
redevelopment (D-4 Development), and Denargo Market (Cyprus Development) redevelopment.
Examples: Madre Metro District (Belleview Station TOD)
BMP Metro District (Alameda Station TOD)
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APPENDIX A
Improvement Districts (PIDs/LIDs)
A public improvement district (PID) in a county (general improvement district in a city) is a public infrastructure
district that applies additional property tax levy to a specific improvement area to pay for new public
infrastructure. PID/GIDs are commonly used to fund shared infrastructure facilities. A PID can cover multiple
public infrastructure goals and can be structured to address capital improvements such as parking garages,
pedestrian improvements, and/or storm water management.
Local (county) or special (city) improvement district is a public infrastructure district that assesses specific
improvement costs to abutting property. A LID does not assess property tax, but rather charges an assessment
of a specific capital improvement project. A LID is best applied for very specific infrastructure costs relating to a
very specific set of abutting properties that directly benefit from the improvements. LIDs/SIDs are not separate
governmental entities. Thus, they are under full control of the governmental entity.
Example: South Broadway LID
Business Improvement District (BID)
A BID is a district-based quasi-public or private agency governed by a board of directors that can be appointed by
the mayor, elected by the district, or assumed by an existing URA, DDA, or GID board. BIDs are by commercial
property owners (requires 50 percent of non-residential property) in a contiguous (or noncontiguous) area to
provide necessary services such as planning, managing development activities, promoting or marketing, business
recruitment, and/or maintenance. BIDs are generally more operationally-focused than URAs or DDAs and act as a
type of manager of a business district, similar to a retail mall manager. BIDs have the power to assess costs of
service to local property owners through either an additional property tax (mills) or a special assessment charge.
BIDs are important management tools for existing business districts addressing “clean and safe,” marketing and
promotions, events, and economic development. They do not have the revenue generating potential for specific
recruitment incentives or gap financing. There are currently six BIDs in the city: Cherry Creek, Cherry Creek
North, Downtown, Old South Gaylord, Colfax, and West Colfax.
Examples: Cherry Creek North BID
Gaylord (Street) BID
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APPENDIX A
The City’s existing financial tools are effective for their intended purposes. DURA has used TIF to address retail
project feasibility issues within its urban renewal areas including projects like the Denver Dry Goods
redevelopment and Denver Pavilions in downtown. Special districts, especially metro districts, have also been
used by developers of retail and mixed use projects to help with financing, often jointly with urban renewal TIF.
The City could provide project specific financing gap assistance to individual retail prospects outside of URAs. A
specific program approach has not been established. For a program to be affect should be consistent and reliable.
The following additional financing tools are widely used in Colorado for retail projects. EPS recommends that the
City avail itself of these financing mechanisms to be strategically used on a limited basis for projects meeting the
City’s retail development targets.
Additional Financial Tools
Sales Tax Sharing
Sales tax sharing enables the city to pledge a portion of the new sales taxes generated by a new retailer or retail
development towards eligible public improvements. In practice, the city would forgo a portion of the future sales
tax (typically no more than 50 percent) on an annual basis up to an agreed upon maximum contribution. The
amount of sales tax that can be applied is generally limited to “net new” sales tax, or sales tax revenue that
would not have occurred but for the location or renovation of the business. These agreements are commonly for
a maximum number of years and a total amount cap whichever comes first. Sales tax sharing can be
accomplished through a development agreement under the city’s home rule powers.
A more formalized sales tax revenue sharing agreement is referred to as an Enhanced Sales Tax Incentives
Program (ESTIP) and is where the city adopts it retail development and recruitment priorities and its criteria for
the use of incentives as part of its City Code. The adoption of criteria for the use of sales tax sharing is
recommended.
Examples: Front Range Village (Fort Collins)
Public Improvement Fee (PIF)
A public improvement fee (PIF) is a fee imposed by developers on retail/service tenants used to fund public
improvements. The fee is generally imposed as a percent of a retail transaction, similar to a sales tax, but is
considered part of the bill of sale, and is thus subject to sales tax. The fee is administered through covenants on
the retail lease and is usually collected by the City for a metro district established as part of the project. Because
the additional fee (0.5 percent to 2.0 percent but averaging 1.0 percent on recent projects) can result in a higher
effective overall tax rate, a retailer or retail project can potentially be at a disadvantage to competitive retail
destinations that do not include a PIF. For this reason, PIFs are usually used for major regional retail projects
with no immediately adjacent competition. In some cases, cities have agreed to a “credit PIF” which foregoes a
portion of the existing sales tax rate to offset the cumulative impact of the PIF. This is effectively a sales tax
sharing variation and is generally temporary. PIFs can be combined with TIF and/or special district revenue to
support revenue bonds to front the upfront cost of public infrastructure at the project. PIFs have been used as a
financing tool on a number of major retail developments and redevelopments in the Denver region.
Examples: Belmar, Colorado Mills (Lakewood)
River Point (Sheridan)
Retail Sales Fees (RSF)
Similar to a PIF, a Retail Sales Fee (RSF) is a fee imposed by developers on retail tenants as a percent of a retail
transaction. However, an RSF is generally a lower rate than a PIF and is used exclusively for retail operations,
primarily in the form of marketing, events, and promotions. As with PIFs, RSFs are administered through
covenants on the retail lease and collected by a metro district or similar entity as part of a retail project.
Example: Promenade at Centerra (Loveland)
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APPENDIX A
The City offers a number of financial assistance programs oriented toward small businesses, some focused
specifically on retail uses and districts and others oriented toward a wider range of business types. OED’s
JumpStart 2013 Strategic Plan proposes the use of a handful of new programs and tools not currently provided by
the City. The City’s existing programs are first summarized, followed by recently formed or proposed programs.
Existing Business District Assistance Tools
Revolving Loan Fund (RLF)
The Denver Office of Economic Development has a revolving loan fund that provides up to 25 percent of projects
costs for a startup business. The goal of the fund is to create permanent jobs and retain existing jobs for low and
moderate income Denver residents, provide economic opportunities in targeted industrial and commercial areas,
and stimulate redevelopment in deteriorated commercial areas. To qualify for an RLF loan, a business must be
located in the RLF target area and the majority of new jobs must be made available to low and moderate income
Denver residents. The maximum loan amount is $350,000, with the target of one job for each $35,000
investment, or 10 jobs for the maximum loan amount.
Neighborhood Business Revitalization (NBR) Loan Program
The NBR program works by assisting entrepreneurs in starting up or expanding a business in targeted business
neighborhoods throughout the City of Denver. The primary goals of the NBR program are to stimulate
revitalization of aging neighborhood commercial districts, provide economic opportunities for new and expanding
business, enhance the quality and level of goods and services available in low and moderate income residential
neighborhoods, and create permanent jobs for low and moderate income Denver residents. To qualify for an NBR
loan, the new business must be located in one of Denver’s targeted NBR commercial districts (currently 8
districts). The business must provide locally-serving goods and services and create permanent jobs for low and
moderate income residents. NBR loans provide up to 50 percent of project costs and can be used for real estate
acquisition, new construction, rehabilitation, equipment purchases, and working capital. There is no stated loan
maximum.
Create Denver Revolving Loan Fund
The Create Denver Revolving Loan Fund (CDRLF) offers creative enterprises in the City and County of Denver
access to affordable and flexible business capital to increase income and build assets. Funded through
Community Development Block Grant monies, the CDRLF supports Denver’s creative economy with small
amounts of capital provided at reasonable rates, combined with recommendations for business improvements.
Creative enterprises are defined as non-profit organizations and for-profit businesses producing or selling fine art,
photographic and graphic art, performance art, handcraft and design and media. CDRLF loans range from $5,000
to $30,000.
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APPENDIX A
In addition to the wide range of small business assistance programs available to new and existing retail and
restaurant businesses in the city, there are a number of new or proposed programs that may be useful for
business assistance moving forward.
Additional Small Business District Assistance Tools
Fresh/Healthy Food Fund
A healthy and/or fresh food fund is a fund established to facilitate the development of healthy food markets in
underserved communities. Fund participants can obtain financing for capital projects and related predevelopment
activities, including real estate acquisition, construction or rehabilitation, leasehold investments, equipment and
infrastructure. The fund can assist for-profit, nonprofit, or cooperative food markets located in underserved
areas, meeting income and/or food desert metrics. Generally, projects often must accept food stamps/vouchers
and meet minimum square footage requirements (such as 66 percent floor area for general food, 50 percent nonprepared and 30 percent perishable). The HFHC Fund in New York provides low-interest financing between
$250,000 and $5.0 million. Other fresh food funds are active in Pennsylvania, Washington D.C. and California.
Modeled on these examples, the State of Colorado recently established the Colorado Fresh Food Financing Fund
(CO4F) capitalized with $10.0 million in foundation grant dollars. The loan and grant fund will provide financial
incentives for grocery stores and other food retailers in underserved communities throughout the state. The fund
will be administered by the Colorado Housing and Finance Authority (CHFA). To date, specific eligibility
requirements have not been defined.
Matching Grant Program
As part of JumpStart 2013’s program to support underperforming retail neighborhoods in Denver, OED is creating
a program to fund up to 50 percent of store improvements, re-merchandising, or retail lessee rent abatement (up
to $15,000 per business) for businesses located in identified underperforming retail neighborhoods. This fund is
being setup now; however, the tool is similar to matching grant programs used in many other cities. In Portland,
local retailers or national retailers in specific store categories and locations (URAs or downtown retail core) can
receive a grant for up to 75 percent of storefront improvements ($32,000 maximum). Matching grants are also
provided to fund feasibility studies for up to 80 percent of predevelopment costs ($12,000 maximum).
Targeted Loans
While Denver’s RLF program provides low-interest debt to small business in targeted areas, some cities also
provide low-interest loans for specific costs to open a new store or location at any location. These costs include
tenant improvements, equipment purchase, property development and/or rehabilitation, property acquisition, and
working capital. Loan terms for each specific cost are different. For example, the Portland Development
Commission provides up to $2.0 million earmarked for tenant improvements at new small businesses located in
urban renewal areas at prime + 3 percent amortized over 10 years, while loans are available citywide for the
purchase of working capital with a maximum of $100,000 at prime + 4 percent amortized over 7 years.
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Appendix B:
Subarea Profiles
CENTRAL SUBAREA
APPENDIX B
Demographic Character
The Central subarea has the highest
population of Denver’s subareas. This subarea contains many of the most
stable and oldest neighborhoods in the city and has the highest housing
density of any of subareas, as well as a higher percent of renters than
homeowners. The household income of the subarea residents is diverse
but overall has one of the highest average household incomes of the
subareas. Residents are younger than the average for the city, with 50
percent of the residents under the age of 35.
Subarea Demographics
Avg. HH Income
$65,552
Tapestry Segments
Employment
108,290
Population
Population Density (per acre)
Households
2012
126,244
11.07
70,900
Housing Unit Density (per acre)
6.76
Avg. HH Size
1.72
Employment Density (per acre)
9.50
Percent of Residents by Age
The most prevalent Tapestry Segments are Metro Renters and
Metropolitans. These tapestry segments are younger, either renters
or own older homes, typically enjoy more experience oriented retail
environments and make a higher percentage purchases online.
Retail Conditions
The Central subarea is home to the premier retail area in the state, Cherry Creek Mall and
adjacent Cherry Creek North. Cherry Creek is the luxury retailer destination in the metro area and is the preferred
location for most of the upscale apparel, home furnishings and specialty retailers in the market. Colorado Boulevard
is a major commercial corridor that is the location of many
larger format, regionally serving retailers. The other two
commercial corridors, Broadway and Colfax Avenue, are
becoming major entertainment oriented retail districts with
several restaurants, bars and unique specialty retailers. The
subarea also has several neighborhood business districts that
are community gathering points, with a mixture of
convenience oriented retailers and restaurants.
Neighborhood Districts:
Key Retailers:
















6th Avenue
Bluebird District
Bonnie Brae
Capitol Hill/Colfax
Old South Pearl
South Gaylord Street
University and Evans
Uptown/17th Avenue
Macy’s
Nordstrom
Neiman Marcus
Whole Foods (3)
Sam’s Club
Crate & Barrel
Home Depot
King Soopers (3)
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
9,916,417
79
$22.46
3%
DENVER RETAIL STUDY
CENTRAL SUBAREA
APPENDIX B
Current Performance
Advantages
 Central subarea has the most retail sales of any of the
 Superior regional access and proximity to I-25
 Cherry Creek is the luxury retail destination in
subareas with 30 percent of the city total
 Over half of subarea store sales are made to people who do
not live in the subarea (inflow)
 General merchandise and home improvement store categories
have sales significantly less than the expected demand from
residents
 The neighborhood business districts make up 25 percent of
restaurant and bar sales in the subarea
the metro area
 Dense neighborhoods with high incomes
 Major shopping destination for out of town
visitors
 Three major arterial corridors; Broadway,
Colfax, and Colorado
 Premier Retail Area (Cherry Creek) in Denver
Metro Area
 Main shopping destination for most City
residents
 Strong neighborhood business districts
Barriers
 Small parcel sizes along arterials limit
opportunity for larger format stores and centers
 Lack of sites for new major retail destinations
 Large amount of sales leakage to Glendale,
especially for general merchandise
 Demand for higher density housing potentially
in competition for potential regional retail
locations
Subarea Opportunities
Cherry Creek
Cherry Creek Mall has the immediate challenge to redevelop and reposition the vacant Saks Fifth Avenue Building
which is expected to be developed as additional Mall retail space with improved access to First Avenue. Longer term
expansion opportunities include redevelopment of the Safeway/Rite Aid property on the east side of the Mall and
additional infill development on the original Mall property on the University Boulevard frontage.
9th and Colorado – The 30-acre former University of Colorado Medical Center property is under contract to be sold
for a redevelopment project. A number of retail infill anchors have been proposed by previous proposers on this site
and all have been rejected due to feasibility constraints or community opposition. The property is well located for
infill retail uses and it therefore remains a strong opportunity site.
I-25 and Broadway – The 65 acres of D-4 Development ownership (Broadway Marketplace Shopping Center and
the Denver Design Center) along with the remaining 50 acres of the former Gates Rubber Plant (owned by Gates
parent company Tomlin) comprise one of the best located land holdings for infill retail development in the City. The
Gates property in particular may have the potential to build mixed use development at TOD densities east of the
tracks and lower density retail uses west of the tracks fronting on Santa Fe Boulevard.
South Broadway – This City supported revitalization district is gaining momentum as a hip location for edgy local
entrepreneurs to open boutiques, restaurants and entertainment venues. The intersection of 1st and Broadway is the
epicenter of new activity supported by the Mayan Theater and the new Punch Bowl
Bowling alley as anchor uses.
East Colfax – A number of major new businesses have been built on East Colfax
including Marczyk’s Fine Foods, Ace Hardware and Sprouts. There remain plenty of
sites for new stores to locate in existing retail buildings or for new infill retail or mixed
use projects. However, similar to Colorado Boulevard, Colfax is challenged by shallow,
small parcels prohibiting many larger users from finding a location and providing
services to residents.
Economic & Planning Systems, Inc.
DOWNTOWN SUBAREA
APPENDIX B
Demographic Character
The Downtown subarea has
traditionally had very few residents. However, Downtown is becoming
a rapidly growing residential location, especially in the Central Platte
Valley. Downtown employment is over 100,000 and has the highest
employment density of any subarea. Most residents of Downtown live
in multifamily buildings, are young (60 percent are under the age of
34), have high incomes (average household income of $71,000) and
live alone or with one other person (average household size of 1.6
persons per household).
Tapestry Segments
Subarea Demographics
Population
Population Density (per acre)
Households
16th Street Mall is one of the
major retail destinations in the City, anchored by the Denver
Pavilions. Larimer Square is the premier eating and drinking
destination in the City. The Santa Fe Arts District is location
of the most vibrant arts scene with several small art
galleries and has largest First Friday event in the City. The
redevelopment of Union Station provides the opportunity to
build more retail destinations in the City and anchor the end
of the 16th Street Mall. The Broadway corridor north of 6th
Avenue is also a major retail arterial that is primarily
occupied by eating, drinking and entertainment
establishments. The majority of the retail in Downtown is
also entertainment oriented.
Neighborhood Districts:
Key Retailers:
 Larimer Square
 Union Station
 Santa Fe Arts District






Patagonia
H&M
Forever 21
Sports Authority
Rockmount Ranch Wear
Tattered Cover
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
5,685,397
333
$20.87
3%
8.98
9,798
6.05
Avg. HH Size
1.59
Avg. HH Income
$71,574
Employment
101,234
Percent of Residents by Age
Retail Conditions
17,061
Housing Unit Density (per acre)
Employment Density (per acre)
The most prevalent Tapestry Segment is Metro Renters, which is young,
educated and predominately apartment renters. This tapestry segment
typically enjoy experience oriented retail environments, spend retail
dollars on clothing and eating and drinking and make a higher percentage
purchases online.
2012
53.26
DENVER RETAIL STUDY
DOWNTOWN SUBAREA
APPENDIX B
Current Performance
Advantages
 The majority of retail sales in Downtown are made to visitors
 63 percent of the retail sales in the Downtown subarea are
 Largest employment base in the State
 Location of the majority of the major
from eating and drinking establishments
 Sales at eating and drinking establishments in Downtown
account for a quarter of all the eating and drinking sales in
the City
 Clothing and accessories stores, sporting goods and hobby
stores, and miscellaneous retail stores are the strongest
retail store categories
 The Downtown subarea residents are underserved in most
other store categories including convenience goods and
general merchandise
entertainment, cultural and art attractions in
the State
 16th Street Mall is the most visited tourist
attraction in the State
 Growing residential base with high incomes
Barriers
 Lacks major retail anchors
 Lack of sites for new major retail destinations
 Overlapping trade area with Cherry Creek is
often stated as reason more retailers are not
located in downtown
 Large format retailers cannot fit in Downtown,
with urban formats required for most potential
stores
 The length and linear orientation of 16th Street
Mall makes it difficult to cluster retailers to
create significant retail cluster
Subarea Opportunities
16th Street Mall
Much of downtown’s pedestrian traffic is funneled through the Mall supported by the Free Mall Shuttle and the
adjacent pedestrian mall for strolling and circulation. As a result, 16 th Street Mall has been most successful for
restaurants and bars serving this population for up to 18 hours a day. The Mall has been less successful developing a
diverse mix of retail shopping. The 700,000 square foot Pavilions, built in 1998, provided an infusion of lifestyle and
entertainment retail, but it has not generated as much spinoff development as anticipated. Specific
recommendations for 16th Street include:
 Continue to pursue department and other general merchandise anchor stores close to and connected to the 16 th
Street prime retail core.
 Redevelop key underutilized buildings and sites for infill retail and mixed use development including the vacant
Gart’s Fast Food building on California, Cottrell’s on Glenarm, and the Shames Makovsky site at 15 th and California
 Develop key cross streets between 16th Street and the Convention Center and Denver Center for the Performing
Arts on 14th Street including Champa and California.
Central Platte Valley/Union Station
The CPV is an area that is lacking a defined NBD retail district. There are pockets of both neighborhood serving and
more regionally oriented specialty stores including Platte Street, but a more
comprehensive retail development plan for the neighborhood should be developed.
 Capitalize on the nascent concentration of outdoor sporting good and apparel
businesses in the CPV. LoDo and CPV has evolved into a young, hip residential and
retail hub. Tenants such as Patagonia and REI along with chef driven restaurants and
entertainment reflect these demographic and psycho-graphics. Further, it can be and
should be distinguished from the luxury/adult image of Cherry Creek.
Economic & Planning Systems, Inc.
FAR EAST-DIA SUBAREA
Demographic Character
APPENDIX B
The Far East and DIA subarea is a
mixture of industrial uses, suburban single family housing and airport
related development. Green Valley Ranch and Montbello neighborhoods
are newer suburban style areas with the majority of residents being
families. The Montbello neighborhood is the oldest portion of the subarea
and has a diverse mixture of residents of different races. The average age
in this subarea is 28 years old, due mainly to the large amount of young
families with kids under 18.
Subarea Demographics
Tapestry Segments
Employment
Population
Population Density (per acre)
Households
2012
63,122
1.80
18,326
Housing Unit Density (per acre)
0.55
Avg. HH Size
3.44
Avg. HH Income
Employment Density (per acre)
$61,262
30,916
0.88
Percent of Residents by Age
The most prevalent Tapestry Segment is Up and Coming Families
and other similar household types, which is one of the youngest tapestry
segments and are typically homeowners with young kids on the urban
fringe. Retail purchases are typically for children’s goods and supplies,
home garden supplies and basic household furniture.
Retail Conditions
The Far East - DIA subarea is on the eastern fringe of the City and metro area. The retail
stores in this subarea are either located in one of the three neighborhood shopping centers along 48th Avenue or
retail oriented to the hotels located in the subarea. The retailers in the neighborhood shopping centers serve the local
neighborhoods and include service commercial uses such as dry cleaners, banks, salons. There is a significant
number of casual chain restaurants supporting the limited service hotels along Tower Road and along 40th Avenue
between Pena Blvd and Chambers Road. These neighborhoods shop outside the subarea at either the Gateway Town
Center in Aurora or the Northfield/Quebec Square stores for general merchandise goods, other shoppers goods, and
home improvement goods.
Key Retailers:
 King Soopers
 Walmart Neighborhood
Market (Coming Soon)
 Safeway
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
997,619
15
$22.52
1%
DENVER RETAIL STUDY
FAR EAST-DIA SUBAREA
APPENDIX B
Current Performance
Advantages
 The Far East subarea inflows sales due to sales at DIA
 The subarea has sufficient convenience goods retail space to
 Airport travelers drive retail sales particularly
meet resident needs
 General merchandise and home improvement are
underrepresented in the subarea due to the proximity to
centers outside the city with these types of retailers
 Major planned travel and employment oriented
eating and drinking
developments along Pena Blvd and Tower Road
will drive up demand for retail
Barriers
 The Gateway Town Center on Tower Road at
I-70 in Aurora is the location of the regionally
oriented retail serving the area
 Small number of people in trade area
 Lack of sites along major roads
 Large number of competitive sites and
developments near subarea
Subarea Opportunities
Airport Related Retail
Demand for retail oriented to the hotels and business parks along Pena Boulevard and Tower Road will continue to
grow as activity at the Airport increases, the commuter rail line opens, and more businesses locate in the area.
Specific areas for retail development in should be planned so they can best capture demand from growing travel and
employment base. New development should be clustered retail near, transit stations, hotels and office buildings in
area at locations with the highest density and visibility.
Chambers Place Shopping Center
This Safeway anchored neighborhood shopping center at 48th just east of Montbello has a vacant junior anchor
building with 25,000 square feet. The Safeway is an older property with only 40,000 of leasable space so the entire
center is also a redevelopment possibility. The property owner and retail brokers should be engaged to locate a
anchor tenant for vacant box. Possible users include relocating existing Safeway as part of a renovation of center,
lower end general merchandise retailer such as Family Dollar or Dollar General, or apparel stores such as Ross, Dress
Barn, etc..
Economic & Planning Systems, Inc.
NORTH CENTRAL SUBAREA
APPENDIX B
Demographic Character
The North Central is a diverse mixture
of household types, races and incomes. The majority of the subarea
consists of historic single family neighborhoods, newer residential
development near downtown and industrial uses along I-70. This subarea
has the lowest average household income of the nine subareas. The
distribution of ages in the subarea matches closely with the city average.
However there is a slightly higher proportion of younger residents ages 19
to 34 than in the city average, which are likely due to the number of
apartments built close to downtown.
Tapestry Segments
Subarea Demographics
Population
Population Density (per acre)
Households
2012
41,584
7.18
16,515
Housing Unit Density (per acre)
3.12
Avg. HH Size
2.38
Avg. HH Income
Employment
Employment Density (per acre)
$39,516
28,383
4.90
Percent of Residents by Age
There is no prevailing Tapestry Segment in the subarea. The Old and
Newcomers segment, which makes up nearly 20% of the subarea, is
a great description of portions of this subarea. Old Newcomers is a
segment typically found in transitional areas.
Retail Conditions
The North Central subarea has a lack of retailer serving this area, The area has recognized
by the City as a Food Desert meaning its residents lack access to fresh produce and groceries. There are no major
shopping centers in this subarea and most resident leave the subarea to do the majority of their shopping. There is
one traditional grocery store in the subarea, Safeway at 20th and Park Avenue on the border of the subarea and
serving residents of the Central, North Central and Downtown subareas. There are few major arterial roads in this
subarea which means most of the traditional shopping centers have not been built here. Colorado Boulevard borders
the subarea on the east and has high traffic volumes but there are very few parcels that have retail or are big
enough for new retail development. There is growing development demand along Brighton Blvd, Blake Street, Walnut
Street and Larimer Street stemming from downtown that has spurred retail growth in the form of restaurants and
bars, the emerging RINO arts district, and the TAXI development. The National Western Stock Show and Denver
Coliseum are the middle of this subarea and soon to be commuter and light rail stops.
Neighborhood Districts:
Key Retailers:




 Safeway
Ballpark Neighborhood
RINO Arts District
TAXI Development
Welton Street/Five Points
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
1,196,597
29
$13.97
1%
DENVER RETAIL STUDY
NORTH CENTRAL SUBAREA
APPENDIX B
Current Performance
Advantages
 The Safeway store on Park Avenue accounts for an
 Regional access and frontage on I-25 and I-70
 Proximity to downtown
 Redeveloping areas, especially Brighton Blvd




estimated 80 percent of the grocery store sales in the
subarea
At least half of grocery store sales potential from residents is
being spent outside the subarea
The gas stations, convenience stores and liquor stores in the
subarea are capturing a significant amount of inflow sales
Eating and drinking sales are twice as high as resident
expenditure potential; however the numbers are inflated due
to wholesaler and catering establishments
The building material sales are strong due to a concentration
of wholesale and specialty material shops located north of
downtown
allow for advanced planning
Barriers
 Limited number of streets with favorable traffic
volumes
 Lack of sites for new major retail destinations
 Poor demographics make up
Subarea Opportunities
Brighton Boulevard
The I-70 and Brighton Boulevard interchange is a viable site for regional retail uses for the underserved North
Central, Northwest and Downtown subareas. The National Western Stock Show and the adjacent City-owned
Coliseum are the major existing land uses in this area. The availability of land for retail is therefore contingent on the
NWSS’ plans for redevelopment or relocation.
I-70 and I-25
The 35-acre former Denver Post printing plant south of I-70 and west of I-25 is at the intersection of Colorado’s two
major national interstates with the greatest traffic volumes in the state. This location would therefore have appeal to
unique one in the market uses. However, the site has major infrastructure constraints including local access and
utilities that would need to be addressed before it is development ready.
River North (RiNo)
The developing area north of downtown extending to I-25 is an emerging commercial and residential mixed use
district. The amount of residential infill has been unprecedented over the last 10 years. The area has potential for a
cluster of retail, restaurant and arts related businesses with major activity occurring currently on Brighton Blvd and
Larimer Street.
Economic & Planning Systems, Inc.
NORTHEAST SUBAREA
APPENDIX B
Demographic Character
The Northeast subarea is mixture of
older (pre-1970’s), predominately single family neighborhoods and two major redevelopments, Stapleton and Lowry. There is also a mixture of affluent
neighborhoods and neighborhoods with lower incomes. The average household income of the subarea is $67,999, which is among the highest of the
nine subareas. The subarea has lower housing unit density of 2.46 but there
are pockets of higher density housing. Sixty percent of the households are
homeowners. The residents are generally older than the City average with
many families with older kids.
Tapestry Segments
Subarea Demographics
Population
Population Density (per acre)
Households
2012
81,979
5.67
33,270
Housing Unit Density (per acre)
2.46
Avg. HH Size
2.33
Avg. HH Income
Employment
Employment Density (per acre)
$67,999
45,907
3.17
Percent of Residents by Age
The most prevalent Tapestry Segments are Metropolitans and
Trendsetters. These tapestry segments are typically younger singles
or married couples, either renters or own older homes, typically enjoy
more experience-oriented retail environments, price competitive
fashion stores, and make many purchases online.
Retail Conditions
The Northfield and Quebec Square regional shopping centers in Stapleton added a large
amount of regionally oriented retailers to the subarea. The Stapleton and Lowry redevelopment projects have also
added neighborhood oriented retail, such as grocery stores, that support the surrounding neighborhoods which
previously have been underserved. Aside from the new retail developments at Lowry and Stapleton, there is a
small amount of retail space in this subarea. Colfax Avenue is the major retail arterial in the subarea but has only
recently re-emerged as a retail destination for subarea residents despite the presence of nearby stable and
affluent neighborhoods. The older neighborhoods have traditionally had their retail needs met by the retailers at
Cherry Creek, Colorado Boulevard or outside the City. Some small, historic neighborhood districts, including Colfax
Avenue, are re-emerging as retail nodes anchored mostly by small and local businesses that serve the surrounding
neighborhoods.
Neighborhood Districts:
Key Retailers:
















3rd and Holly
9th and Colorado
23rd and Kearney
29th Street Town Center
East Colfax
Lowry Town Center
Oneida Park
Bass Pro Shop
Super Target
Walmart
Sam’s Club
Home Depot
Macy’s
JCPenney
King Soopers (2)
Harkins Theatre
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
3,944,865
47
$19.39
5%
DENVER RETAIL STUDY
NORTHEAST SUBAREA
APPENDIX B
Current Performance
Advantages
 Northeast subarea is one of the few subareas that has more
 Regional access and frontage on I-70
 Neighborhoods with appealing demographics
general merchandise sales than resident expenditure
potential
 The department stores and super centers in Northfield and
Quebec Square attract half of their sales from outside the
subarea and mostly from outside the City (Aurora and
Commerce City
 There is lack of stores in the other shoppers goods
categories, except apparel.
 There is significant leakage of grocery store sales outside of
the subarea or to other store categories (e.g. super centers)
(Park Hill, Hale, Montclair, Hilltop)
 Regional centers with major national tenants
 Growing neighborhoods (Stapleton, Lowry)
Barriers
 Limited number of sites for larger format
retailers within the middle of the subarea, major
centers are on the edges of the subarea
 Cherry Creek and Colorado Blvd trade areas
overlap with large portions of subarea
 Poor demographics of neighborhoods
surrounding subarea outside of Denver
Opportunities and Action Steps
Northfield at Stapleton
Northfield is a 1.2 million square foot hybrid power-lifestyle center in Stapleton north of I-70 anchored by Macy’s,
Super Target, JCPenney, Bass Pro Shops, and Harkins Theater. Completed in 2008, the center’s ancillary retail space
has underperformed due in part to access constraints that were remedied with the completion of the Central Park
Boulevard interchange in 2012. The Center and the adjacent I-70 interchange has additional development capacity for
regional retail uses serving the northeast portion of Denver and a larger trade area extending into Aurora and
Commerce City. Northfield also benefits from low barriers to development as the property has one owner, fully served
by utilities and has a new interchange. This location should continue to grow in appeal to national retailers as Forest
City moves forward with residential development north of I-70 and as the population and income of the trade area
increase.
Lowry Vista
This 72-acre site is located on Alameda Boulevard in the Lowry Redevelopment. International Risk Group (IRG)
remediated the former landfill in 2004 and completed a general development plan (GDP) in 2010 for mixed use
development including retail. The site would have marketability for community and regional retail uses including
general merchandise, home improvement, and other shoppers goods stores. The site is also a great opportunity for
conventional retail design that is otherwise in short supply in the City of Denver.
Economic & Planning Systems, Inc.
NORTHWEST SUBAREA
APPENDIX B
Demographic Character
The Northwest subarea is a rapidly
changing yet shrinking subarea. The subarea decreased in population by
over 5,000 people but increased in households by 1,600 in the past 12
years. The subarea is mostly single family homes but a portion of the
Highland neighborhood near I-25 has seen an increase in multifamily
apartments and condos. The subarea has attracted many young professionals between the age of 25 and 34 in the past decade, which replaced
the older residents and Hispanic families that have traditionally lived in
the subarea. The subarea has a collection of senior living developments
and residents over 65 years old make up 12% of the population.
Subarea Demographics
Population
Population Density (per acre)
Households
58,099
9.51
26,299
Housing Unit Density (per acre)
4.64
Avg. HH Size
2.16
Avg. HH Income
Employment
Employment Density (per acre)
Tapestry Segments
2012
$47,370
22,246
3.64
Percent of Residents by Age
The most prevalent Tapestry Segment is Metropolitans. This tapestry
segment are well educated people who prefer to live in older city
neighborhoods, singles who live alone, or married couple families, and
are predominately white. The majority of residents live in homes built
before 1960. Many retail purchases are made on maintaining or remodeling their older home.
Retail Conditions
The retail space in the Northwest subarea is mostly in older buildings in small
neighborhood commercial nodes that were located along the original trolley lines serving this area or along the two
commercial corridors 38th Avenue and Federal Boulevard. The Highland Garden Village redevelopment, which
replaced the old Elitch Gardens Amusement Park, was at least partially responsible for stimulating a revival of this
subarea. The commercial space in the Highland Garden Village redevelopment is minimal but is anchored by a
Sprouts grocery store (originally a Sunflower Market). The old
commercial nodes in the subarea have re-emerged in recent
years as destination bar and restaurant areas, with the
Highland Square (32nd and Lowell) node being the longest
standing. Most of the retail in the subarea is oriented to the
local residents. There is significant retail centers on the west
side of Sheridan outside the City that capture many of the
sales of the Northwest subarea residents.
Neighborhood Districts:
Key Retailers:








Platte Street
Highland Square
LoHi
Tennyson Street
REI
Sprouts
Safeway (2)
Walgreens
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
2,644,573
47
$18.18
2%
DENVER RETAIL STUDY
NORTHWEST SUBAREA
APPENDIX B
Current Performance
Advantages
 The Northwest subarea is underserved by retail in most
 Regional access from I-70 and I-25 and close
store categories
 Eating and drinking has become a destination use with the
strength of the neighborhood districts
 The subarea is adequately served by convenience oriented
retail including grocery stores, with leakage occurring mainly
to retailers on the border of the subarea
 There are only two retailers in the general merchandise
category and most of the sales potential for this category
is lost to retail outside of the City
proximity to downtown
 Two major arterial corridors which are largely
underutilized
 Eating and drinking destination for the City and
metro area
 Urban neighborhoods experience investment
from new homeowners and developers with
improving demographic make-up of residents
 Rapid development of multifamily housing near
I-25
Barriers
 Small parcel sizes and quality of buildings along
Federal and 38th arterials limit opportunity for
larger format stores and centers
 Lack of sites for new major retail destinations
 Several competitive retailers located on or near
border of subarea outside of the City
Opportunities and Action Steps
Sun Valley
The parking lots surrounding Sports Authority Field at Mile High as well as the vacant land surrounding the Aquarium
comprise a significant amount of land with I-25 frontage just to the west of downtown which would have great
appeal for retail. These sites have heavy demand for parking for only a limited number of days per year. However,
their ownership and competing uses make their availability for retail a challenge.
Neighborhood Business Districts
The entertainment oriented businesses (bars and restaurants) in the subarea’s neighborhood business districts have
turned the area into a destination in the metro area. The growth of these districts should be encouraged through use
of incentives to allow for renovation of older buildings and creation of new spaces for new retailers especially along
arterial corridors. The City should also aid in marketing efforts for subarea and support formation of business
improvement districts and organized business owner districts or organizations to guide and protect retail nodes.
Arterial Corridors
The two main arterial corridors in the subarea, Federal and 38th Avenue, have the potential to be the location of
more retail uses. The City should identify larger development opportunities along Federal and 38th Avenue to find
locations for larger retailers or organized centers to add retailers to serve subarea residents. Also the City should
identify ways to assemble sites and aid redevelopment, and identify retailers that fit
the neighborhood needs or existing retailers looking to expand.
Economic & Planning Systems, Inc.
SOUTHEAST SUBAREA
APPENDIX B
Demographic Character
The Southeast subarea has the
second largest highest population of the City’s subareas and has a
relatively high population density despite having a largely suburban housing stock. This subarea has a higher percent of renters than
homeowners. The household income of the subarea residents is diverse
and the average annual household income is $61,519. Residents are on
average older than the City average, with a higher proportion than the
City average of residents in the age cohorts over 55 years of age.
However, there is also higher proportion of residents between the age
of 20 and 24 than the City average.
Subarea Demographics
Population
Population Density (per acre)
Households
100,503
9.69
51,502
Housing Unit Density (per acre)
5.39
Avg. HH Size
1.93
Avg. HH Income
Employment
Employment Density (per acre)
Tapestry Segments
2012
$61,519
57,219
5.52
Percent of Residents by Age
There is a wide range of Tapestry Segments in the Southeast subarea.
There is a collection of younger tapestry segments such as the Young
and Restless, but there is also segments indicative of retirees and empty
nesters. The subarea is largely transitional due a consistently changing
resident base and has several pockets of differing types of residents.
Retail Conditions
The Southeast subarea is one of the few subareas that has more suburban style
commercial corridors and shopping centers due to when the area was developed. The retail space in this subarea
primarily exists along four main arterial commercial corridors; Leetsdale Drive/Parker Road, Colorado Boulevard,
Evans Avenue and Hampden Avenue. Several of the older shopping centers on these corridors have reached the end
of their original lifespan and have been repurposed. There were three first generation shopping malls, with indoor
corridors, in this subarea, all of which have since been redeveloped into more contemporary centers. Two of these
centers are on Hampden Avenue. Tiffany Plaza was redeveloped into a power center anchored by Whole Foods, and
Tamarac Square which is currently being redeveloped into a Super Target. K-Mart recently closed its store at Monaco
and Evans.
Key Retailers:
 Best Buy
 Whole Foods
 Super Target (opening
soon)
 Scandinavian Designs
 Safeway
 King Soopers
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
4,634,488
46
$14.70
5%
DENVER RETAIL STUDY
SOUTHEAST SUBAREA
APPENDIX B
Current Performance
Advantages
 The Convenience Goods retail in the subarea is strong and is
 Regional access from I-25
 Four major arterial corridors with larger
attracting sales from outside the subarea and city. The
grocery stores in the subarea are well located, abundant and
serve residents outside the areas well as within, Whole
Foods in particular.
 The closing of the K-Mart at Evans and Monaco results in
there being virtually no general merchandise retailers in the
subarea. The new Super Target being built at Tamarac and
Hampden will be a major improvement for the city and
subarea but there will still be leakage of sales.
 There is demand for additional retailers in the other
shoppers goods categories, which typically include large and
mid box format stores
 The subarea is leaking sales in the home improvement
category
redevelopment opportunities than older portions
of the City
 Large vacant stores are an opportunity to
attract new retailers
 Recent investment by retailers along Hampden
Avenue
 Belleview TOD has ability to attract significant
retail component due to its location
Barriers
 Subarea is within trade area for three regional
shopping mall centers (Cherry Creek, Park
Meadows, Aurora Town Center) which may limit
the opportunity for regional retailers
 Opportunity sites require redevelopment of
existing centers which may make them less
competitive
 Limited opportunity sites on I-25
Subarea Opportunities
South Colorado Boulevard
Colorado Boulevard is an important arterial corridor with a number of high performing community and power centers
serving the east portion of the City. Colorado Blvd is one of the top suburban style retail corridors in the metro area
supported by a combination of high density population, high incomes, and office/daytime commuter activity. The
corridor’s challenge is it suffers from shallow retail parcels that do not fit the modern retail formats and relatively high
land prices. The Colorado Boulevard corridor continues to be a strong retail location with additional opportunities for
infill and redevelopment in the subarea include; the University Hills North Shopping Center, which is a former
community shopping center that still maintains a strong mix of tenants in spite of being a dated property from the
1960s, and the Colorado Center property, which has an opportunity for TOD development on or surrounding the RTD
light rail station just east of Colorado on Evans.
Belleview Station
This TOD is a 42-acre master planned development located north of Belleview and west of I-25 at the Belleview light
rail station. The project is at the City’s border with Greenwood Village. It is planned for 2 million square feet of office,
1,800 housing units, two hotels, and 250,000 square feet of retail. It is the City’s best opportunity for lifestyle and
specialty retail at a transit station outside of Downtown. The City should work with developer to make a successful
TOD with retail to be used as model for other TOD’s in the City.
Evans and Monaco (former K-Mart)
A K-Mart Holding Company (part of the Sears Company) owns this vacant K-Mart store
and property at 2150 South Monaco closed in 2012. This site could also be a good
location for neighborhood or community oriented retail. The City should attract a major
retail anchor(s) to site to catalyze redevelopment. There are opportunities for anchor
retailers in the general merchandise, apparel, home furnishing, sporting goods/hobby,
and home improvement categories. The City should consider the use of incentives to
attract an anchor and/or aid in cost of redevelopment.
Economic & Planning Systems, Inc.
SOUTHWEST SUBAREA
Demographic Character
APPENDIX B
The Southwest subarea is a low
density, suburban residential area. The subarea residents are on average
older than the City average and over 40 percent of residents are 45 years
old or older. The area is predominately middle aged householders with
older children, older singles or empty nesters, but there is a concentration
of 20 to 24 year olds in the subarea’s apartment communities. Despite a
predominately single family housing stock, 40 percent of households are
renters. The average household income is $66,569. There is a relative
high percentage, 32 percent, of Hispanic residents.
Subarea Demographics
Tapestry Segments
Employment Density (per acre)
2012
Population
37,462
Population Density (per acre)
6.85
Households
15,461
Housing Unit Density (per acre)
2.99
Avg. HH Size
2.38
Avg. HH Income
$66,569
Employment
8,605
1.57
Percent of Residents by Age
There is no prevalent Tapestry Segment in the subarea. Young and
Restless and Enterprising Professionals tapestry segments have the
highest percentage of any segment but are not indicative of the rest of
the subarea. The subarea has large mixture residents types.
Retail Conditions
There are two main retail areas in the Southwest
subarea. Bear Valley Shopping Center at Sheridan Blvd and Highway 285, which
is anchored by a larger format King Soopers Marketplace and Home Depot. This
center serves the major convenience oriented retail center for most of the west
side of Denver. Along Wadsworth Blvd from Belleview Avenue to Bowles
Avenue, there is a collection of several large shopping centers serving the
southwest portion of the metro area. The Wadsworth corridors is anchored by
the Southwest Plaza Mall at Bowles Avenue in unincorporated Jefferson County.
The majority of the land along Wadsworth is
not in Denver, however the portions that are in
the city have several major retailers located on
them including the city’s only Costco, Wal-Mart,
Sam’s Club, and Home Depot. These retailers
serve a trade area that is almost entirely made
up of people who do not live in the Denver.
Key Retailers:
 Costco
 Wal-Mart
 Sam’s Club
 Home Depot
 King Soopers
 Sprouts
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
2,019,071
54
$16.38
8%
DENVER RETAIL STUDY
SOUTHWEST SUBAREA
APPENDIX B
Current Performance
Advantages
 General merchandise retailers in the Southwest subarea
 Largest collection of supercenters and
account for 37 percent of the category’s citywide sales
 Home improvement sales account for 15 percent of the
Citywide sales in this category
 Residents in the subarea are well served by retail; however
half of resident purchases are made at retailers located
outside in the city
warehouse clubs in the city
 Two major home improvement stores
 Part of a larger regional retail node in the
southwest portion of the metro are with four
major retail centers along Wadsworth Blvd.
 Major portion of sales from people who do not
live in the city
 Contains large retail parcels that can easily be
repurposed if original user leaves
Barriers
 Retail serves very few city residents
 Wadsworth corridor is aging and competition
for viable anchors may increase as the corridor
evolves
 Large amount of competition from surrounding
communities for retailers to fill vacant retail
spaces
Subarea Opportunities
Southwest Commons
This shopping center is located in Denver immediately north of Southwest Plaza Mall in Jefferson County and
contains a number of second tier mass merchandisers commonly found near malls including Jo-Ann’s Fabrics and
Cost Plus. There is a vacant medium size space in the development that could attract a national retailer.
Wadsworth Corridor
The Wadsworth Boulevard is a major retail destination for residents of the southwestern portion of the metro area
and is anchored by the Southwest Plaza Mall in Jefferson County. Denver currently has some major retailers located
along this corridor, including Costco and Wal-Mart. The City should ensure that the retailers currently on the corridor
are able to continue to compete and remain viable uses. When opportunities to refill vacant space or revitalize
centers occur, the City should be proactive in aiding the shopping centers along the corridor in identifying new
tenants and making improvements to the centers.
Economic & Planning Systems, Inc.
WEST SUBAREA
APPENDIX B
Demographic Character
The West subarea is the third most
populated subarea and has the highest population density of any of the
subareas at 11.12 people per acre. However the housing unit density is
near the City average. Over 70 percent of the residents in the West
subarea are of Hispanic origin. The West subarea has a high average
household size, 3.16. The subarea has the lowest per capita income of
the subareas, but the average household income is not the lowest of the
subareas. 34 percent of the subarea residents are under the age of 18,
which is nearly double the city average. The tenure of residents is split
evenly between renters and owners.
Subarea Demographics
Population
Population Density (per acre)
Households
Retail Conditions
The West subarea is served mainly
by older shopping centers along Federal Boulevard and
Sheridan Boulevard. Most of the convenience oriented
purchases of the residents are made at stores within the City.
There is a small collection of Hispanic oriented retailers and
centers along Federal Boulevard, but not nearly as many as the
demographic profile of the subarea would suggest. The subarea
has only neighborhood shopping centers with no regional
centers. The main general merchandiser in the subarea was KMart on Evans before it closed in 2011. There is a large
collection of Asian oriented retailers and restaurants on Federal
between Alameda and Mississippi and in the Alameda Square
Shopping Center. Although, there is a very small Asian
population in the subarea, Asian-oriented businesses serve a
citywide trade area.
Neighborhood Districts:
Key Retailers:
 Federal Boulevard
 Morrison Road




Pacific Ocean Marketplace
Walgreen’s
Safeway
King Soopers’
Retail Market
Retail Square Feet
Square Feet per Capita
Average Rental Rates
Vacancy Rate
3,102,461
32
$11.75
10%
11.12
31,039
3.76
Avg. HH Size
3.16
Avg. HH Income
Employment
Percent of Residents by Age
The most prevalent Tapestry Segments are Industrious Urban Fringe and
NeWest Residents. These tapestry segments are typically large, multigenerational Hispanic households. These households make a high portion
of retail sales at general merchandisers such as Target and Wal-Mart and
spend mostly on goods for their family and children.
98,367
Housing Unit Density (per acre)
Employment Density (per acre)
Tapestry Segments
2012
$42,427
29,414
3.33
DENVER RETAIL STUDY
WEST SUBAREA
APPENDIX B
Current Performance
Advantages
 The West subarea residents are well served by convenience
 Large concentration of Hispanic residents
oriented retailers due to households making general
purchases at convenience oriented stores normally made at
general merchandise stores, and the inflow of sales to the
subarea from Asian oriented grocery stores
 The subarea is under served by general merchandisers, which
was exacerbated by the closing of K-Mart
 The West subarea is adequately served in most store
categories except general merchandise
generates the opportunity for a market niche
for Hispanic-oriented stores to serve these
residents
 The Asian oriented businesses have generated
a market niche that serves a regional trade
area
 Underutilized retail parcels along Federal
Boulevard
Barriers
 Limited retail sites along major, regional
roadways and highways
 Lacks a major general market retail anchor
(i.e. not Asian oriented)
 Low quality existing retail space and low rental
rates for retail spaces
Opportunities and Action Steps
Federal and Evans (former K-Mart)
This 90,000 square foot former K-Mart store is vacant and on a 9.5 acre site that could be redeveloped for a range of
neighborhood or community serving retail uses including potentially an Hispanic superstore like Pro’s Ranch, another
Hispanic oriented anchor, or general merchandise anchor.
Alameda Square
The 100,000 square foot former Lowe’s Home Improvement Center in the Alameda Square Shopping Center at
Alameda and Tejon is vacant and available for re-tenanting. The City should identify any potential single tenant users
to refill the space, explores ways to attract multiple retailers to share building, or explore alternative uses of building
for non-traditional retail.
Federal Boulevard
This segment of Federal (Alameda on the north to Mississippi on the south) has developed a critical mass of Asian
(mostly Vietnamese) shops and restaurants. This specialized retail cluster has citywide appeal, but could benefit from
the addition of an additional retail anchor, more specialty stores, streetscape improvements and district identity
improvements.
Economic & Planning Systems, Inc.
Appendix C:
Definition of Terms
DEFINITION OF TERMS
APPENDIX C
Retail Store Categories
For purposes of analysis, retail stores are categorized into major groups based on their shopping and trade area
characteristics including Convenience Goods, Shoppers Goods, Eating and Drinking, Building Material and Garden, and Auto Related. A definition of each of these store categories is provided below.
Convenience Goods
Convenience Goods are stores that generally sell “everyday” necessities, such as household items, food, alcohol,
personal care, and drugs. These types of stores generally have smaller trade areas and tend to co-locate together in community and neighborhood shopping centers.

Supermarkets/Grocery Stores – Supermarket/Grocery Stores includes traditional supermarkets, such as
King Soopers and Safeway; specialty grocers and natural foods stores, such as Whole Foods, Sprouts and
Trader Joes; and ethnic-oriented grocery stores such as Mi Pueblo and H-Mart.

Convenience Stores – Convenience stores includes small-scale neighborhood shops and corner stores, such
as 7-11, as well as retail associated with gasoline stations. Revenues from gasoline sales are excluded from
their sales potential.

Beer, Wine, and Liquor – This subcategory includes all beer, wine, and liquor stores, such as Argonaut or
Colorado Liquor Mart.

Health and Personal Care – Health and Personal Care includes traditional drugstores, such as Walgreen’s
and Rite Aid, as well as specialty health retailers, such as GNC, and beauty and cosmetic stores, such as Ulta
and Bath and Body Works.
Shoppers’ Goods
Shoppers’ Goods stores include general merchandise, apparel, furniture and home furnishings, and specialty
goods stores. These items are typically more expensive, less-frequently purchased items, and people are more
likely to comparison shop and are often willing to travel farther to buy them. These types of stores typically have
larger trade areas than Convenience Goods and tend to co-locate together in power centers, lifestyle centers,
and regional malls.
General Merchandise
General Merchandise stores generally sell a full-spectrum of goods across several retail subcategories. As a result, these stores are generally large (100,000+ sq. ft.) and act as anchors for a range of center types.

Traditional Department Stores –Department stores have historically been located in downtown areas but
remain downtown only in the largest cities, In recent decades, two to three department stores have developed as anchors for enclosed malls, but can also be located in newer open-air lifestyle or town centers. Department stores have been consolidating over the last 20 years and these mergers have resulted in numerous store closings in malls where these former competitors are co-located.

Discount Department Stores – Discount Department Stores are limited service department stores typically
found in free-standing locations or as anchors for power and community centers. The largest Discount Department Stores include Target, Walmart, and K-Mart, and more recently Kohl’s and JC Penney which is
building more discount stores than traditional mall stores. Both Walmart and Target have also migrated to
building superstores combining grocery and general merchandise under one roof. The discounters are also
beginning to scout out more urban locations in attempt to draw in new customers.

Warehouse Clubs & Supercenters – This subcategory includes two store types, warehouse clubs and
supercenters. Warehouse clubs are large-format membership-based retailers that sell items in bulk at deep
discounts. Examples of Warehouse clubs include Costco and Sam’s. Supercenters include discount department stores that have expanded to include a full-line of groceries. Examples include Super Target and
Walmart Supercenter.
Economic & Planning Systems, Inc.
Appendix C
DEFINITION OF TERMS
APPENDIX C
Other Shopper’s Goods
Other Shoppers’ Goods refers to the collection of mass merchandisers and specialty stores that generally focus
on a specific line of goods and services. These goods are often referred to as “soft” goods, as they are not necessarily everyday necessities, but rather more specialty items for which customers generally “shop around” before purchasing.

Clothing and Accessories – This subcategory includes retailers that specialize in clothing, apparel, and accessories (belts, hand bags, jewelry). Old Navy represents a mass merchandiser in the Clothing and Accessories subcategory. Smaller format examples include J Crew, Gap, and Ann Taylor Loft.

Furniture and Home Furnishings – Furniture and Home Furnishing retailers include large format stores
such as IKEA and American Furniture Warehouse, as well as smaller format stores featuring more home decor, such as Crate and Barrel and Restoration Hardware.

Electronics and Appliances – Electronics and Appliances include large format stores such as Best Buy and
Conn’s, as well as smaller format stores such as Apple and GameStop.

Sporting Goods, Hobby, Book, and Music Stores – This subcategory includes specialty retailers selling
the full array of recreation goods. Examples include REI, Sports Authority, Hobby Lobby, JoAnne Fabrics,
and Barnes and Noble.

Miscellaneous Retail – Miscellaneous retail generally refers to specialty gift shops that feature a variety of
different goods, such as Paper Source or Spencer’s Gifts.
Eating and Drinking
Eating and Drinking establishments refers to the full spectrum of restaurants and bars. This includes fast-food
(McDonald’s), quick-casual (Chipotle), and full service restaurants (Red Lobster), as well as drinking and nightlife
destinations.
Building Material and Garden
This category refers to small (True Value) and large-format (Home Depot and Lowe’s) home improvement
stores. Stores in this category sell a large array of goods including lumber, garden/landscaping, tools, cabinetry,
plumbing, paint, lighting, and an expanding list of home appliances.
Retail Center Types
The definitions of the five primary retail center types are defined below.
Regional Center
Large-scale, enclosed malls, lifestyle centers, or town centers anchored by a high concentration of apparel, home
furnishings, and specialty stores serving a regional trade area.

Regional Mall—Enclosed shopping centers anchored by two to four department stores and complementary
specialty store space totaling 750,000 square feet or greater in urban markets.

Lifestyle Center – Lifestyle centers are open air pedestrian-oriented regional shopping complexes most often located near affluent neighborhoods and have an upscale orientation. These centers generally range between 300,000 and 7000,000 square feet of leasable retail area. The Tenant mix is usually comprised of
predominantly national upscale apparel and home furnishings stores and national upscale chain restaurants.
Lifestyle centers are frequently anchored by a traditional department store or a collection of mass merchandisers.
Economic & Planning Systems, Inc.
Appendix C
DEFINITION OF TERMS

APPENDIX C
Town Center – Similar to a lifestyle center, Town Centers are walkable, integrated open-air developments,
anchored by retail, dining, and leisure uses. Town Centers are frequently located in downtowns, large master-planned communities, and transit-oriented developments. While retail-focused, Town Centers generally
integrate a greater mix of vertical mixed-use development, including residential and office and frequently
feature civic amenities such as libraries and other government offices. Local examples include the 29 th
Street Town Center in Stapleton and Belmar in Lakewood. National examples include Santana Row (San Jose), Atlantic Station (Atlanta), and Rockville Town Center (Rockville, MD).

Hybrid Center – Increasingly, a lifestyle element is being added to enclosed malls and power centers in order to increase the attraction to a wider-range of customers.
Power Center
Power Centers are large, open strip centers with three or more mid- or big-box tenants as anchors. Power Centers typically range in size from 300,000 square feet to over 500,000 square feet. Power Centers serve as subregional centers that serve a trade area of around five miles in size. Anchors can account for as much as 75 percent of the gross leasable area in the center, with other small- to mid-sized retailers integrated as ancillary
space.
Community Center
Historically Community Centers were anchored by a grocery store and a junior department store. They have
evolved to be largely discount supercenter-anchored shopping centers, typically around 300,000 square feet in
total size, including a supercenter of 100,000 square feet or greater and ancillary retail space.
Neighborhood Center
Neighborhood Centers are Supermarket or grocery-anchored centers, typically ranging from 80,000 to 150,000
square feet that generally contain a mix of convenience goods and personal services serving a local trade area.
Strip Center
Unanchored retail centers with a collection of small space in a wide range of sizes from 10,000 to 75,000 square
feet. Parking is generally provided on-site in front of the stores.
Neighborhood Business District (NBD)
Neighborhood business districts are typically small commercial districts a block or two long imbedded in the older
historic neighborhoods of the city. When the neighborhoods were built these district contained a mix of convenience good and services such as a grocery, deli, bakery, drug store, newsstand, barber, beauty, and the like. The
advent of the supermarket and neighborhood shopping center made most of these stores defunct. In recent decades, these districts have evolved to contain a mix of neighborhood oriented restaurants, bars, and specialty
stores within walking distance of many patrons. However, many of the most popular restaurants and businesses
have achieved a wider clientele. Portions of the City’s commercial arterials such as Colfax and Broadway are also
developing a similar business mix to serve the revitalizing neighborhoods that abut these areas.
Economic & Planning Systems, Inc.
Appendix C