LISC CORE MetroEdge Market Assessment of the Downtown Mesa market. The CORE program, an initiative of LISC, uses experienced commercial corridor consultants to conduct on the ground assessments and market analysis to support local community and business leadership in developing and implementing strategies for improving targeted commercial corridors.
LISC MetroEdge and Corridors of Retail Excellence (CORE) are programs of the Local Initiatives Support Corporation (LISC). They work in urban markets nationwide assisting CDCs,
local governments, developers and business associations to define their market potential and develop and implement strategies to achieve that potential.
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Downtown Mesa Retail Market Assessment - 2014
1. Draft
Downtown Mesa
Retail Market Profile
LISC MetroEdge is a program of the Local Initiatives
Support Corporation (LISC). It works in urban markets
nationwide assisting CDC’s, local governments,
developers and business associations to define their
market potential and develop and implement strategies
to achieve that potential.
12/9/2014
2. Draft
Downtown Mesa Trade Area
This is a Convenience Trade
Area. Its boundaries are:
East: Mesa Drive
West: Alma School Road
North: Tempe Canal
South: Broadway
Shoppers would typically expect
to find “Saturday morning”
shopping options in this area
such as pharmacies, groceries,
dry cleaners, auto repair stores
or hardware stores.
This area is 3.97 square miles
12/9/2014
3. Draft
Retail Float - Defined
For the Downtown Mesa Trade Area we analyzed:
Demand – The amount of money people living in the trade area spent
in 2014 for specific retail categories. These dollars are spent both
within and outside of the trade area.
Supply – The amount of estimated sales by retail stores in the trade
area.
Retail Float (also known as retail leakage) – The difference between
supply and demand. This represents opportunity – for new businesses
to open and capture Float, or for existing businesses to re-tool, adapt
and market to capture Float.
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4. Draft
Retail Float Example
For the Downtown Mesa Trade Area:
Demand – In 2014, residents in Downtown Mesa spent $32 million at
general merchandise stores (both within and outside the trade area)
Supply – In 2014, the general merchandise stores in the Downtown
Mesa Trade Area had estimated sales of $25 million.
Retail Float - $32 million – $25 million = $7 million
Downtown Mesa Trade Area residents are spending at least $7 million
outside the trade area at general merchandise stores.
12/9/2014
5. Draft
Definitions
Retail Float, a measure of the amount of retail opportunity in the trade area,
and is calculated as the difference between buying power (demand) and retail
sales (supply)
When Retail Float is a positive value there is unmet demand by residents in the
trade area, representing opportunities for new or existing businesses to target.
When Retail Float is a negative value there is either a healthy concentration of
retail to build from, or there is a saturation of retail that indicates limited
opportunity for business growth or expansion.
– Retail such as restaurants, clothing or furniture stores attract shoppers looking for
multiple stores. In many cases negative float for these categories indicates a
business opportunity to start or grow a business to complement what already exists
in the market.
– Retail such as hardware stores, general merchandise stores and grocery stores are
less likely to grow or expand when there is negative float (when there is little or no
unmet demand in the surrounding market)
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6. Draft
Concentrated Buying Power
Definition: Potential dollars available to be spent by trade area
residents per square mile
There is an estimated concentrated buying power
of $ 74 million in the Downtown Mesa Trade
Area
This represents the buying power for the
residential community living in the Trade Area.
12/9/2014
7. Draft
Retail Float
Category Demand
Trade Area
Supply
Trade Area
Float Float as %
of Demand
Furniture & Home Furnishings
Stores
4,249,409 5,003,842 -754,433 -18%
Electronics & Appliances Stores 4,554,716 77,575,428 -73,020,712 -1603%
Building Material & Garden
Equipment
22,157,919 18,843,875 3,314,044 15%
Food & Beverage Stores 37,504,840 15,592,515 21,912,325 58%
Health & Personal Care 13,024,194 14,113,746 -1,089,552 -8%
Clothing & Clothing Accessories
Stores
10,535,026 14,076,152 -3,541,126 -34%
Sporting Goods, Hobby, Book, &
Music Stores
4,749,341 16,034,232 -11,284,891 -238%
General Merchandise Stores 32,256,948 24,938,806 7,318,142 23%
Miscellaneous Store Retailers 6,645,817 19,656,916 -13,011,099 -196%
Foodservice & Drinking Places 29,532,463 39,236,700 -9,704,237 -33%
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9. Draft
Health & Personal Care Stores
Category Demand
Trade Area
Supply
Trade Area
Float
Pharmacies and Drug Stores
10,377,723 11,406,884 -1,029,161
Cosmetics, Beauty Supplies and Perfume Stores
907,991 670,443 237,548
Optical Goods Stores
535,898 779,830 -243,932
Other Health and Personal Care Stores
1,202,582 1,256,589 -54,007
Source: Nielson 2014, LISC MetroEdge Metrics
12/9/2014
11. Top Ten Employers
Source: City of Mesa; Maricopa Association of Governments; Nielson, 2014
Business Name Address NAICS Description Location Type
Number of
Local
Employees
Banner Corporate Center
Mesa 525 W Brown Rd Health Care and Social Assistance Single Location 784
Canyon State Drywall, Inc 301 S Westwood Drywall & Insulation Contractors Single Location 350
Mesa City Plaza 20 E Main St Public Administration Single Location 302
Westwood High School
945 W Rio Salado
Pkwy Educational Services Single Location 248
City of Mesa Central
Police Bldg 130 N Robson Public Administration Single Location 208
City of Mesa Utilities 640 N Mesa Dr Public Administration Single Location 186
Wells Fargo 305 E Main St Finance and Insurance Single Location 184
City Of Mesa
Communications Dept. 161 E 6th Pl Public Administration Single Location 147
Mesa Christian Health 255 W Brown Rd Health Care and Social Assistance Single Location 138
City Of Mesa 55 N Center Public Administration Single Location 135
13. Draft
Downtown Mesa Population by Age
Source: Nielson 2014, LISC MetroEdge Metrics
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Age 0 - 4 Age 5 - 9 Age 10 - 14 Age 15 - 17 Age 18 - 20 Age 21 - 24 Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 - 84 Age 85 and
over
2010 2014 2019
Median Age 2014 (33)
12/9/2014
14. Draft
Downtown Mesa Race/Ethnicity
Source: Nielson 2014, LISC MetroEdge Metrics
0%
10%
20%
30%
40%
50%
60%
70%
80%
White African American Asian Alone Other Hispanic
2010 2014 2019
12/9/2014
15. Downtown Mesa Households
Source: Nielsen Corporation, 2014;
Households by Tenure and Mortgage Status, 2014
Total 9,854 100%
Owner Occupied 2,504 25%
Owned with a Mortgage/Loan 1,904 76%
Owned Free and Clear 767 24%
Average Household Size 2.46
Renter Occupied 5,607 57%
16. Downtown Mesa Household Income
Source: Nielsen Corporation, 2014;
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Income Less than $25,000 Income $25,000 - $34,999 Income $35,000 - $49,999 Income $50,000 - $99,999 Income $100,000 - $149,999 Income Greater than
$150,000
2000 2014 2019
Median Income 2014 ($30,559)
17. Density of Middle to Upper Income
Households
Source: Nielsen Corporation, 2014;
501
557
589
2000 2014 2019
