My friend Margo McNabb posted some pretty astute words on social media today, worth repeating considering the current situation and the Special Council meeting June 9, 2020. I want to thank her and post what she wrote in it's entirety:
Everyone needs to approach a situation with caution, and hear out both sides, then arrive at an agreement, or walk away if one side is too invested in their own side to work together. In the case of Downtown Oshawa, there is a third party, the City; they also need to be in part of the loop; not in the primary discussion but certainly in the overall situation.
With landlords offering commercial rent, the rent range relates to the traffic flow and potential for customers. Large malls command top dollar and possibly an audited share of the net revenue, regional malls somewhat less, strip plaza sites lower again and somewhat by the corner convenience aspect or by the traffic pattern.
If the city is not contributing to the general situation by providing a good environment then they need to be brought into the dialogue. They are an integral part of a healthy downtown.
Rents should be based on traffic studies, both driving and local walking traffic. Part of the peculiar situation with Oshawa's E-W main streets, is that they are a part of a regional traffic flow and not all people using these streets have any intention to shop; a fair proportion are just passing through.
Traffic surveys need to be done as they are done at the Oshawa Shopping Centre, to see why people are there in the first place. The professional survey will find out where the patron is from, why they are at this location, how frequently they come to this area, and how they compare this venue with others from a similar driving distance.
This sort of data is part of what any competent store owner should be interested in and that the local landlord should be able to supply when asked; that information he/she would get from the BIA or the city.
For example, every McDonalds location requires a 20,000 vehicle count per day. Based on that count and McDonalds as an anchor tenant, you will find other franchises and successful businesses locating nearby. That traffic count establishes a main corner and helps set the rent.
If this city is not doing their part by offering safe and clean streets; ease of parking, comparable to malls with free and accessible parking; general streetscape amenities, and community policing, then a larger dialogue needs to be brought about.
It is not up to the BIA to be the main orchestrator of all things City. They are not responsible for street cleaning or safety. They are there to help with marketing plans and promotion to make an historic downtown able to compete with malls that have taken a significant share of the general shopping from Downtowns.
There has to be a seamless continuity and dialogue between city, landlord and tenant.
I have been watching this BIA situation but am representing a client who has property in the CBD/BIA area and feel that I could be compromising their position by getting directly involved.
Everyone involved needs to step back, take a deep breath and lay their facts out clearly stated and try to come to an agreement.
If there is no traffic, tenants are at the bottom of the pyramid with the least resource base to negotiate from. That is why the Arbitration part of the Legal profession has been so successful these last few years."
Everyone needs to approach a situation with caution, and hear out both sides, then arrive at an agreement, or walk away if one side is too invested in their own side to work together. In the case of Downtown Oshawa, there is a third party, the City; they also need to be in part of the loop; not in the primary discussion but certainly in the overall situation.
With landlords offering commercial rent, the rent range relates to the traffic flow and potential for customers. Large malls command top dollar and possibly an audited share of the net revenue, regional malls somewhat less, strip plaza sites lower again and somewhat by the corner convenience aspect or by the traffic pattern.
If the city is not contributing to the general situation by providing a good environment then they need to be brought into the dialogue. They are an integral part of a healthy downtown.
Rents should be based on traffic studies, both driving and local walking traffic. Part of the peculiar situation with Oshawa's E-W main streets, is that they are a part of a regional traffic flow and not all people using these streets have any intention to shop; a fair proportion are just passing through.
Traffic surveys need to be done as they are done at the Oshawa Shopping Centre, to see why people are there in the first place. The professional survey will find out where the patron is from, why they are at this location, how frequently they come to this area, and how they compare this venue with others from a similar driving distance.
This sort of data is part of what any competent store owner should be interested in and that the local landlord should be able to supply when asked; that information he/she would get from the BIA or the city.
For example, every McDonalds location requires a 20,000 vehicle count per day. Based on that count and McDonalds as an anchor tenant, you will find other franchises and successful businesses locating nearby. That traffic count establishes a main corner and helps set the rent.
If this city is not doing their part by offering safe and clean streets; ease of parking, comparable to malls with free and accessible parking; general streetscape amenities, and community policing, then a larger dialogue needs to be brought about.
It is not up to the BIA to be the main orchestrator of all things City. They are not responsible for street cleaning or safety. They are there to help with marketing plans and promotion to make an historic downtown able to compete with malls that have taken a significant share of the general shopping from Downtowns.
There has to be a seamless continuity and dialogue between city, landlord and tenant.
I have been watching this BIA situation but am representing a client who has property in the CBD/BIA area and feel that I could be compromising their position by getting directly involved.
Everyone involved needs to step back, take a deep breath and lay their facts out clearly stated and try to come to an agreement.
If there is no traffic, tenants are at the bottom of the pyramid with the least resource base to negotiate from. That is why the Arbitration part of the Legal profession has been so successful these last few years."
This picture is from 8 years ago, when I was with Margo and Cathy helping the Business Improvement Area (BIA) decorate the downtown planters.
A busy time, with a feeling of comradery and desire to help beautify the downtown for the winter season.
A busy time, with a feeling of comradery and desire to help beautify the downtown for the winter season.