Creating Vibrant Retail Hubs: Lessons from Miami and Lancaster

What happens in Miami, shouldn’t stay in Miami. It should be a model for cities everywhere.

?

That’s what ran through my mind on a recent trip to the Magic City as I walked through the Miami Design District. ?It reminded me of how talented forward-thinking developers and business leaders are at creating exceptional retail cores.

?

The Miami Design District is essentially a Bal Harbor luxury pedestrian mall and a community anchor full of high-end retail shops, restaurants, hot spots, and original art. This successful development is proof-positive that design makes a difference, and the best design comes from putting experts in the driver’s seat.

?

The Design District is the brainchild of real estate development group Dacra and a commercial investment fund. The District is incredibly well-thought-out and a compelling attraction to the city center. It’s not just that it has the glitz and glamour of luxury brands like Ralph Lauren and Cartier (spoiler alert: it does). The area is full of an engaging sense of whimsy and wit, making it visually exciting and fun just to walk around. (I couldn’t help but smile at Paula Crown’s “Jokester 2” solo cup sculpture, which brought me right back to college beer pong parties.)

?

Developments like the Miami Design District stand in stark contrast to the publicly administered pedestrian malls that sprang up across the country in the 1960s and ‘70s. Only about one in four of those projects survived, largely because they were developed without significant input from the local retail owners and business leaders who would be based there. Most mid-century pedestrian malls didn’t consider the needs and desires of the people meant to visit the retail cores and subsequently failed to attract them.

?

Lancaster as a Before and After

The Miami Design District is far from the only example of how excellent business leaders, investors, and local principals can be in developing retail city centers. In fact, my home city of Lancaster, Pennsylvania, is another shining success story—and one that rose Phoenix-style from the ashes of a failed pedestrian mall project. ?

?

Lancaster’s first swipe at a downtown retail development suffered the same fate as so many pedestrian malls. In the early 1970s, city officials established a shopping district with little input from local community and business leaders. The result was a series of head-scratching decisions that worked at cross purposes to the goal of enticing visitors and shoppers into the area.

?

The development mandated storefront setbacks in what I suspect was an effort to create an open, airy, parklike feel. Unfortunately, the result was an unwelcoming emptiness that made the retail businesses less appealing. The mall also isolated parking on the third story of a nearby building, making for a long hike to the actual pedestrian area and shopping. Elevated walkways further separated visitors from retail.

?

The project failed two short years later. Thankfully, though, that wasn’t the end of the story.

?

A coalition of business leaders, locals, and residents built on the lessons learned in creating the non-profit Lancaster City Alliance in 1992. The alliance and its eleven-member board of directors formed the Downtown Investment District (DID). It has proven to be an enduring centerpiece attraction for Lancaster.

?

The Lancaster Blueprint for Success

Success doesn’t happen by accident. The Alliance made a series of careful, thoughtful decisions that served the interest of both the DID’s businesses and potential visitors to the District.

?

? Unique, not generic. Chain stores rarely make a destination. Attracting shoppers to a retail core is as much about the experience as the location. The DID focused on creating a mix of authentic, ethnic, independent restaurants and compelling dining concepts like microbreweries. Success hinged on offering goods and services shoppers couldn’t find in surrounding suburbs. As a result, the DID not only attracts a stream of visitors looking for one-of-a-kind experiences, but it also draws similar businesses with the opportunity to be part of a diverse, thriving, dynamic retail community.

?

? Diversification. Successful retail core districts appeal to a wide range of interests. Early government efforts didn’t curate businesses. Consequently, many pedestrian malls became monocultures—essentially overlarge food courts or clusters of lookalike clothing stores. In contrast, the Lancaster Alliance’s business board members helped develop a unique collection of fascinating retail establishments that includes Amish furniture and quilt stores, ice cream shops, a farmer’s market, and even a cigar bar.

?

??Business leader input. As part of the board of directors, local business leaders established an environment that fosters positive visitor experience. DID businesses fund “red shirt ambassadors” who patrol the district, providing an early alert system for needed repairs or maintenance and adding a layer of security. The ambassadors offer friendly assistance to visitors and shoppers, giving directions and answering questions. They reinforce a positive impression of the District and Lancaster at large. Businesses also pay for a “blue shirt cleaning team,” a neatly outfitted janitorial squad that keeps the entire District looking its best.

?

? Purpose beyond retail. The DID is more than a shopping district; it is a vital community center. Local residents enjoy it as an open-air gathering space, and the district hosts a schedule of year-round events that embellish community identity while consistently attracting a large and varied group of tourists.

?

The DID is expansive, including thirty-three commercial properties, but it still manages to feel intimate and engaging. It is a charming “neighborhood,” easy and fun to navigate. The collaborative approach entices investors and landlords with a civic mindset rather than a pure profit motivation. Participating businesses know that legacy institutions, typified by the board itself, ensure long-term support and robust district health. That “bottom-up” approach speaks for itself. It’s a strategy that has proven to work in for extremely different locations (I love Lancaster, but it’s far from downtown Miami), and is a model for any retail core district that hopes to attract visitors, enhance the community, and be successful.

___________

Paul Fulmer is the principal of the Fulmer Group, a multifaceted commercial real estate consulting firm. As a real estate specialist and thought leader, he has spent more than three decades advising clients on a wide range of real estate issues, from site selection, strategy, and risk management to lease-vs-purchase analyses. He has tackled development and expansion projects from restaurants to office, industrial, residential, and mixed-use buildings. He works with public and private companies, as well as family offices. Paul has served on a number of community development organizations and non-profit boards. He spends his free time indulging a passion for fine cooking, entertaining, and travel. His primary residence is in Lancaster, Pennsylvania, and he frequently spends time in New York and Miami. He is married and has two sons.