Downtown retail scene appears to be holding its own
Sunday News
February 22, 2009
"Downtown retail is so different from the county," said Lisa Riggs, executive director of the James Street Improvement District.
Though the economy has hurt county retail, city retail is faring slightly better and might even get a boost from the opening of the convention center and hotel later this year, the Lancaster County Association of Realtors said.
"Downtown continues to be the most active part of our area," the Lancaster County Association of Realtors reports, citing stable property values as a primary reason for new retail activity.
The city has a retail vacancy rate of about 10 percent, which is about on par with similar-sized cities - and lower than the national average.
Marketing retail space in the city is much different, and more challenging, than at suburban shopping centers, said Riggs.
Unlike larger shopping centers such as Park City Center and Red Rose Commons, the city isn't counting on drawing big-box national retailers. It's better suited for small, independent retailers who don't have deep pockets, Riggs said.
And new vacancies present an opportunity for potential retailers, said JSID vice-president, Marshall Snively.
Commerce Bank of Harrisburg still plans to complete a $5 million project to construct offices on the first floor of the Bulova Technologies building at North Queen and Orange streets. The plans include aesthetic improvements to the building's windowless facade and upper levels zoned for retail use.
"There are still a lot of question marks and we're going to have to wait," Riggs said. "It's a significant investment to retrofit a building."
But with bad financing and banks putting holds on credit, it has become more difficult for independent retailers to open here.
"It certainly wasn't as strong as a year ago," Snively said.