THE CNU MIDWEST INTERVIEW - Kathleen Norris
CNU Midwest sat down with Kathleen Norris the owner of Urban Fast Forward, a commercial real estate and planning firm based in Cincinnati, Ohio. Kathleen is an expert in retail strategies and specializes in creating neighborhood and downtown destinations.CNU-Midwest: Some years ago many people thought neighborhood retail, especially locally-owned business, would die due to Internet shopping. COVID-19 and recent inflation has also hurt neighborhood retailers. What’s the future for neighborhood retail?
Kathleen Norris:
Those predictions were premature. Neighborhood centers are having a revival in many areas and new spaces being created as part of mixed-use developments. Younger consumers, who shop online, also value the personality and personalization of brick and mortar. The pandemic strengthened independent retail in many ways as well. Separation and isolation created a real appetite for both experience and connection. Independents, with a curated vision, can create that much more readily than a chain. Omni channel retail operations are increasingly important but as digital native operators come into the market; they are much savvier about how to offer that connected experience.
CNU-MW: Midwestern downtowns have faced particular difficulties since COVID-19 due to the slow return of workers to offices. Do you think downtowns will have as many daytime workers as they used to? How can city leaders re-invent their downtowns to best prepare for the future?
Kathleen norris:
Don’t count downtowns out. There is growing impatience with work from home among many employers. A year ago, they may have said flexibility was an important piece of their value proposition but increasingly they want their folks back on site. It will still take some time, and the 5-day week may never come back for all, but we’re going to see 3 – 4 days a week in office as the minimum standard for most companies I believe. Also important to note that many of our downtowns are growing as neighborhoods – which will drive a different kind of decision - and we’re going to have to factor that in as well. Lastly, downtowns make great entertainment destinations. Arts organizations, stadia, convention centers, programmed public parks and plazas, restaurants, walkable streets – those are all big draws for both locals and visitors, creating endless opportunities for differing populations to intersect.
CNU-MW: Downtown and neighborhood restaurants and cafes are crucial for pedestrian-friendly areas – especially sidewalk cafes. How can communities recruit and sustain these?
Kathleen norris:
This is a continuing challenge with a slow-moving solution. The pandemic was brutal for restaurants. We lost some and others are still working their way back to success. But approximately half the money Americans spend on food goes to dining out (all categories including chocolate chip cookies and chicken strips!). People love the care and conviviality that comes with eating out and we continue to produce quality operators in every category – coffee houses to fine dining. But the ones who succeed are those with deep experience and a plan. This is an area where an enthusiastic wish is not enough – so make sure you have someone with expertise helping to identify and qualify potential operators. Then, attraction keys are location and money. Opening a food service operation is expensive. So what assistance is available? Does the community have site control or good landlords? Do they have other aid to offer? Is the location right for the product? Are there good co-tenants? Strong area marketing? Attracting restaurants and cafes is an all-in effort and it takes real expertise at every juncture to make it work.
CNU-MW: What can real estate developers, neighborhoods, and small cities with significant first floor vacancy do to court retailers? Is it as simple as hanging “FOR Rent” signs in windows? What should their first step be?
Kathleen norris:
The most important thing they can do is to hire the right recruiter. Building a retail and restaurant district takes a plan and a ton of tenacity. For lease signs will probably generate calls but are they from the businesses wanted? Maybe but not always. To get the perfect mix, recruitment must be proactive. You also need the right deal structure. Chains and independents have very different needs, both financial and operational. You must understand those and match them with what you’ve got or can get. Patience is also required. Making a snap decision feels great but doing business with the same successful tenant for a decade feels better in the long term.
CNU-MW: It seems like many communities want their own local grocery store. Some people live in legitimate food desserts while others simply live a little too far away from their favorite grocery store. How can communities recruit food retailers?
Kathleen norris:
Every neighborhood wants their grocery store back and that’s not going to happen. Consolidation in that industry is bad for neighborhoods but good for bottom lines. Think small. How can you get a decent provider of fresh food in miniature? Is there a corner store that might be improved? Have you got a farmers market? Is there a social benefit agency which might get involved? And, if you are lucky enough to find that operator, support them, every day in every way. If they don’t have what you want or there’s a problem, tell them. Build a cooperative relationship. Independent retailers survive because they have loyal customers. Be one.
CNU-MW: Do you have any final advice for leaders of communities struggling to find and retain neighborhood retailers?
kathleen norris:
Stay the course, build relationships, identify resources, talk to your retailers, work with your landlords, shop in your local stores, always be scouting for new recruits and call me if we can help.AUTHOR BIO: Kathleen Norris is the owner of Urban Fast Forward a commercial real estate brokerage and microplanning firm. Her special area of interest is the creation and recreation of downtowns and
neighborhood centers. The U>> team works from vision to implementation with independent retailers and restaurateurs, mixed use developers and with communities large and small throughout the Midwest.