For two decades, David and Suzanne Miles adored their suburban
home in southeast Denver and all that came with it: a sprawling
yard, a safe neighborhood and an ideal setting for raising their
three children. But over time, the couple began to yearn for a
different kind of lifestyle. One where they could walk to top-notch
eateries, take in a play and attend the finest cultural and
sporting events around. One which only city life truly affords. So,
in July 1997, the Mileses left the 'burbs behind and moved
their family into a three-story historic building in the heart of
Denver's lower downtown (LODO) district.
Now that they've moved, the couple can take advantage of all
the perks bustling downtown Denver has to offer: 24-hour access to
entertainment; close proximity to a college for Suzanne, 48, to
take classes; and a hip, urban environment. "This area offers
all the high energy and excitement we were looking for,"
confirms David, 49.
The Mileses are just one example of a growing number of
empty-nesters, retirees and professionals shunning suburbia in
favor of city living. By moving into loft condominiums in converted
downtown warehouses and buildings, they're changing the face of
many downtown areas from sparse industrial centers to friendly
neighborhoods, which offers strong implications for small
business.
Content Continues Below
A recent study by The Brookings Institution Center on Urban and
Metropolitan Policy and the Fannie Mae Foundation, both in
Washington, DC, surveyed 24 cities nationwide and found that all
expect their downtown populations to grow by 2010. Houston expects
its downtown population to nearly quadruple; Memphis, Tennessee,
and Seattle anticipate twice as many downtown residents in the next
11 years. Even cities that had been losing residents for
decades--Chicago, Detroit and Philadelphia, to name a few--expect
the number of downtown residents to rise.
"Market, cultural and demographic shifts are all resulting
in the dramatic growth of downtown living," explains Bruce
Katz, director of The Brookings Institution Center on Urban and
Metropolitan Policy.
For many cities, these changes have been a long time coming.
"All the major public-private investments and the
refurbishment of warehouses into lofts and restaurants are
beginning to have a multiplier effect," Katz says. "Some
of these changes started in the 1970s, and we're just now
beginning to reap the whirlwind of benefits."
Experts say more people gravitating downtown is good news for
small business, particularly in the retail sector. A denser
downtown population brings increased foot traffic to existing
storefronts and new business opportunities. Denver's LODO area,
for one, has given rise to a slew of successful coffeehouses,
restaurants, breweries and bagel shops. "With more residents
with disposable income and more people walking by our stores,
retail businesses [in LODO] are doing very well," acknowledges
Jennifer Moulton, director of planning and development for the city
and county of Denver.
Service businesses catering to the influx of new residents also
hold real promise, from health-care services for older residents to
dry-cleaning establishments. "[Older and young professionals]
will continue to dominate downtown living in the future," Katz
says.
Relocating a small business downtown has its benefits, too.
David Miles didn't just move his family downtown--he also moved
his business, Miles Advertising, from a business park near his
suburban home into downtown Denver. His advertising agency, started
in 1986, now takes up the bottom and middle floors of his building,
while his home is situated in the huge, open loft upstairs. The
company's downtown digs have also cut employee commute times,
updated the agency's image and provided just the location his
young, creative employees wanted.
Of course, downtown businesses have their share of problems.
National chains could move in and knock out their smaller
competition (see "Chain Reactions," October 1998), and
parking and transportation problems typically plague high-growth
cities.
Still, the drive to dwell downtown is expected to positively
impact cities, businesses and residents alike. "The way
downtown living is proceeding, it's an enhancing phenomenon
that's both well-planned and governed," Katz says.
"It's smart growth."
Page 1 |
2 