An Investment Opportunity For Downtown Developers
One of the coolest things about being a part of BRO is that I get to meet developers who have done, are in the process of doing, or are planning to do some really great things to make downtown Buffalo a residential and commercial center. The finished lofts and office spaces weive been lucky enough to see firsthand and the plans developers have and the excitement with which they present them is inspiring.
The only thing missing is the glue tying these incredible developments togetherothe amenities that make downtown living not just attractive but livable. The general consensus seems to be ibuild it and they will comeiomeaning create enough residential density and the market will come in to take advantage of the opportunity with tricked-out coffee shops, upscale bodegas mid and upscale restaurants and bistros, etc. And thatis what usually happens except that thereis some significant risk of that not happening soon enough in Buffalo for one simple reason:
The cornerstone of downtownis residential renaissance is rentals.
There arenit enough people with skin in the gameodeeply tied to the area with a mortgage. And that's the way it has to be, at least for a while--until the market matures and developers can reasonably expect to sell these units for what they're worth instead of having to amortize their investment.
But all hot trends cool, and right now there are few things trendier than living downtown. What happens if the trend cools before the critical mass required to organically attract ilifestyle infrastructurei businesses is achieved? And what happens if the lack of ilifestyle infrastructurei specifically contributes to the cooling of the trend?
Hereis the opportunity: Put together and commit to a small to mid-size fund and become incubators of and investors in those businesses yourselves.
Identify and invest in strategic ilifestyle infrastructurei business opportunities that
- will help to effectively market downtown as a livable residential center to young professionals and empty-nesters and
- give you as investors in a unique and enviable opportunity to significantly decrease your risk in both businesses. In other words, your development efforts bring more people downtown to live thereby increasing density and demand for your "lifestyle infrastructure" investment. And compelling lifestyle infrastructure just increases demand for your residential development.
And itis pretty easy to do.
Partner with someone whois already doing something similar or, even better, find entrepreneurs who have experience managing such enterprises and a vision. Offer build out of the space, a year of free rent and six (6) months operating expenses as your all-in capital contribution so the business is set for the long haul. And give the entrepreneur the remaining shares of the business as incentive. Take advantage of QEZE for the employee tax credits, the lower utilities, as well as the potential state tax reduction.
- Not only is it cheaper than going to an ad agency and paying them to create and place a high impact iHow Cool Downtown Isi campaignOe
- Not only does it serve the long-term interests of the neighborhood and your business interestsOe
- It reduces risk and has upside. Not real estate development upside, but as long as you keep bringing people downtown, theyill be successful cornerstone businesses thatill pay out dividends over time. And, more importantly, theyire amenities that will continue to attract people who want to live downtown thereby maintaining demand for your primary investments.
Right now, downtown residential is being marketed on buzz and cool. The buildings are awesome. The build outs are sweet. And being a downtown pioneer is hip. But imagine how much more demand would be created if people could imagine not just a cool space but a cool hood that included things like:
A Destination Coffeehouse i Bar i Lounge Somewhere between home and work that serves as a ethird placei to go -- where locals can escape everyday stresses, start their weekends or even work from. Someplace you could linger during the day or get dressed up and go for a date. A place you could be part of an eclectic mix of characters, art, and ambience.
A Lux Urban Bodega Open early, closes late with a deli and stocked with quality consumer packaged goodsothe stuff you need to live and a wide selection of papers and magazines. And it would offer delivery: coffee eggs and OJ for those hung-over Saturdays, Ben & Jerryis for the TV night(s) of your choice.
A Consumer Electronics Boutique IPods, popular desktops and laptops, PDAs and cellphones, mid to high-end home electronics. It would not just serve the neighborhood, but would be a destination for folks in the city whoid rather stay here to satisfy their gadget fix.
A Distributed Concierge Service A desk in the lobbies of select residential buildings downtown where tenants can stop on their way to work to drop off dry cleaning and laundry, arrange to have their places cleaned, drop of grocery orders to have delivered to their flatsobasically offer all the services that people paying lots of rent require.
What are some other lifestyle infrastructure business ideas that would make downtown more livable?
Photo credit: Queenseyes.

As we mentioned in our previous post, we’re in the process of changing the Buffalo Rising site. We’re almost there as we expect to launch the new site on Friday, December 19th.
In the meantime, posting will be light as we log new stories in the new publishing system which will only be viewable when we launch on Friday.
As always, we appreciate our users’ patience as we make this transition but we promise it will be well worth it. With faster load times, a comment view …
Caroline Kennedy was in town for a visit with our mayor yesterday. A possible choice to succeed US Senator Hillary Rodham Clinton, Kennedy's name has been mentioned along with that of Attorney General Andrew Cuomo (son of former New York Governor Mario Cuomo) and our own Byron Brown, among others.
Certainly, Kennedy has "been around politics" all of her life, which is to say she was born into a family of politicos and lived in the White House--neither of which would necessarily f …
Free light rail rides on downtown's above ground section could be derailed thanks to the Niagara Frontier Transportation Authority's budget mess. That is the news coming out of a Buffalo Place meeting this morning. Facing a budget shortfall and reduced State operating assistance, the NFTA is scrambling for new revenue sources and is contemplating charging for rides along the lengthy downtown pedestrian mall.
Well it is Christmas time in the city and the NFTA helped put people and especially children into the mood in a very festive and fun way. One of my favorite memories of childhood was taking the train downtown with my grandfather. I would gaze out the windows and watch the tunnel speed by. It always felt like we were going a million miles an hour.
Then there was the ability to stand up and walk around during the ride without the need to be strapped down. It was always a fun time … 




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Dan
I've long been touting the benefits of a LARGE locally owned bookstore. No, not like Talking Leaves or Rust Belt, but more akin to Tattered Cover in Denver or Powell's in Portland. These bookstores are regional destinations, but they're also very much a "third place" for the surrounding community. I'd describe such bookstores as "neighborhood living rooms."
One trait that "cool cities" seem to have in common is that they're dog-friendly. Many single professionals and young couples have dogs; they fill the role that children did a couple of generations ago. Buffalo, unfortunately, is one of the least dog-friendly cities in the country. Few stores in the area allow shoppers to bring in their leashed pets. Many parks are off-limits to dogs, especially in the suburbs. True to the "everywhere but Buffalo" trend, it's one of only two major American metro area without a dog park. (The other, no surprise, is Rochester. The closest dog parks to Buffalo are in Syracuse, Cleveland and Hamilton) Businesses catering to downtown residents must be dog-friendly; the demographics of likely residents demand it.
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Shopitall
Fig, you're a genius!
I keep cruising around Downtown looking for "affaordable" retail space which is nowhere to be found.
For some reason, the real estate developers have "visions of dollar signs" dancing in their heads. There's lots of risks including "new neighborhoods", low density, the "behavioal modification" aspect of having people "think/remember" a Downtown shopping experience, etc. These risks are expected to be assumed by the retailer/business owner. So not only are you talking about stocking a business, usually on a COD basis in the beginning until you establish "credit," advertising, labor, utilities and all the various expenses the business owner must assume, and the fact that it takes about a year to BUILD a clientele!
You need VERY deep pockets to pay BIG rent and keep the doors open!
Interesting amenities ENHANCE & add value to residential real estate. How visionary was Washington Market to open ahead of the curve next to the Ellicott Lofts! Plus let's remember that Downtown also has weekday workers that eventially will begin to take advantage of access to unique retail.
The problem seems to me that there are really no experienced retailers included in the downtown developement process. It's mostly business wonks & commercial real estate people looking for the "chains" & the big bucks they have to offer. Unfortunately, Buffalo isn't on the radar of most chains for the easons stated above. The success of small, local retail is what is needed to ATTRACT chains, if indeed we do. As Fig states, think SOHO, think Toronto, think Elmwood forgodssake!
Hopefully Fig's post will serve as a springboard for developers with guts & vision to expand what they do.
This is a really genius post!
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FancyWow
Thata Boy Dan! Great thoughts! We've talked about dog parks before and should be looking to formalize something through a Councilman....certainly there is a vacant parcel that can be taken to higher use.
Urban Bodega's? check out City Feed and Supply in JP (Boston)
http://www.cityfeed.com/
A basic business model that includes hitching posts for canines, fair trade coffee, fresh breads locally baked, the Times, some tofutti cuties, and it is on. Near a train station and mid-block in JP, this could be a great business-model to locate near Canisius and provide a transition to the EV.
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JohnINBROOKLINE
Just out of curiosity, how is Old Editions, the beautiful bookstore on East Huron with a cafe doing? Does anyone go there?
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Another Big Mouth
Dan should visit Old Editions on Huron St., which is one of the largest antiquarian bookstores in the Northeast.
Here are some random things that could help along downtown's residential renaissance:
* Traffic calming on the Oak/Elm arterials. They are barren, godforsaken barriers cutting downtown off from all the investment east of Main Street. Which leads to...
* Eliminate all remaining one-way streets. Downtown should be navigable at a reasonable pace, not confusing and speed-ennabling. There's nothing like fast traffic to destroy residential amenity.
* More evening activity at downtown churches. Elmwood does not have an official "community center," it has the Unitarian-Universalist Church, which generously and unofficially serves as one. One of the downtown churches needs to adopt the downtown neighborhood as part of its mission, regardless of the individual religious affiliations of downtown residents. Downtown residents need noncommercial places which enable them to inexpensively hold meetings and develop networks that help them organize their voices and wishes.
* More evening hours at the downtown library. Nearly all branch libraries are open at least two nights a week, Central should be the same.
* More government meetings, hearings, and sessions in the evening. How are citizems supposed to communicate their wishes to their public servants if the public's business is always conducted when the public cannot participate?
* ECC stands to be an enormous beneficiary of and contributor to the downtown residential boom, if only it took the effort to study the educational needs of new residents and offer classes, lectures, and adult ed offerings, matriculating or otherwise.
* A clean, well-lit thrift store. I am not kidding. In the 1990s, the best women's apparel store in downtown was the Goodwill on North Division street, a gem that was destroyed by the new Public Safety complex. Today it would be championed on BRO as a downtown retailing pioneer. Nothing has replaced it. Downtown should have "tricked out" shopping but it should also have inexpensive goods for those who don't earn doctor/lawyer wages.
* More pushcart food and craft vendors, some of whom will then grow into bricks-n-mortar shops or cafes. This is an excellent low capital business opportunity.
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Edward Street
On dog parks:
I used to walk my dog in Delaware Park, in the hilly/wooded area near the rose garden/ Shakespeare bowl. It was pretty dog-friendly there about 5 years ago. I even made friends with other dog owners that way. I stopped going after the old pup passed away on me, but I can't imagine that people have stopped flocking to Delaware park to take part in that dog community.
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pauldub
Just checked out Old Editions Website. Looks like a good place for a day trip. As for dogs? I realy am not too keen on people taking their dog shopping. Health laws get involved, people leaving their pets outside amongst strangers, the inevitable mess, I just don't know. And unfortunately many owners leave their dogs in an unfriendly environment without water on hot days, subject them to large crowds at street festivals, etc. Maybe nice for the owner, but not for the dog. And I do own a dog. Nothing would be better than dog parks scattered throughout the city. A place to take your pet to enjoy fresh air, excercise, and a healthy environment for your dog.
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Dan
Old Editions ? Tattered Cover / Powell's / Joseph-Beth / BookPeople / Strand / others Rust Belt ? Tattered Cover / Powell's / Joseph-Beth / BookPeople / Strand / others Talking Leaves ? Tattered Cover / Powell's / Joseph-Beth / BookPeople / Strand / others
Tattered Cover in Denver has 500,000 books in stock, on the shelves. Powell's in Portland occupies an entire four story building that covers a city block. BookPeople in Austin has four stories and 50,000 square feet of GFA. Strand Bookstore in New York claims to have "18 miles of aisles"
"But Buffalo's too small to have a large independent bookstore!" Tell that to the owners of Joseph-Beth, a regional chain that started in Lexington, Kentucky. I'll say it again - Kentucky. The Lexington store now occupies 40,000 square feet. There's Boulder Book Store, a large two-story bookstore in ... uhh, Boulder. Page One in Albuquerque. And so on, and so on.
Comparing Talking Leaves or some other Buffalo indie bookstore to the large general indies in many other cities is like comparing a Cheektowaga Cape Cod to a mansion on Delaware Avenue.
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Dan
Just to clarify: I'm talking about general interest bookstores, not specialty bookstores (science fiction, antiquarian, used paperbacks, lesbian poetry, etc.)
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gabe
Very great ideas here, fig!
For once something that can actually take a realistic approach to luring these coveted "young professionals." When Jobs and business opportunities come downtown then more and more residents will pour in.
Also, a consumer electronics boutique is a wonderful idea...I can't believe this has yet to be done. Either one downtown or on Elmwood would really hit it big among city residents. Everyone would love to have a place nearby where they can grab everyday gadget needs like an Svideo cable, a power adapter or some batteries, in addition to the more glamorous things like ipods or laptops.
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eliz
The Strand is great, but I'd be satisfied with something like the Book Corner in Niagara Falls. It has one large floor of new and two large floors of used. Much more of a selection than anything in Buffalo. The guy is very knowledgable and he'll order anything.
Very few people in Buffalo know about this place.
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batavia tumbleweed
I agree with the dog friendly idea. You don't need to take your dog to the Allentown Festival where his toes will get stepped on, but if you could, on your evening walk stop at the upscale bodega for ice cream and walk in with your well behaved canine to make a quick purchase that would be great. If you can walk the dog and get some small errands done at the same time it results in a happy dog and happy owner and a businesses that make money. In some cities, I've seen dog drinking fountains outside of businesses, which of course get their owners to stop right in front of their display window. Fiendishly clever marketing ploy.
Lots of brownfields just waiting to be fenced in and utilized for dog parks.
Also agree that they shouldn't put too many luxury pads downtown. Developers overdo this everywhere.
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viking
Figmo great topic, Niagara St. from City Hall to the city line is full of under developed sites. Between the Peace Bridge and Grand Island Bridges the view presented to visitors sucks. First impressions do count and possibly, potential new residents could be discouraged from considering the city. The boarded up store fronts could achieve new life with residential density creating a customer base. Affordable housing, privately controlled by responsible developers and landlords creating a safe integrated community might be beckoning. We don't need more politically controlled projects, making or encouraging ghettos. Co-opted housing as indicated by your posts maybe the answer.
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pauldub
Batavia - during the Elmwood Festival of the Arts I did see some concerned individuals put out water dishes. I also saw a greyhound in absloute panic mode. With the right environment. well behaved owners would be encouraged to take their dogs out (Never blame the dog). As for the view between bridges, what's wrong with backs of buildings and inaccessable waterfront?
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N. W. Farnsworth
keeping in mind that Buffalo is still a "snow city" a fact we like to forget by the 1st of June...we should remember that not all the lifestyle activities can be outside or assume that even the bravest will actually attempt anything outside as far as living during the winter months. Buffalo should use cities like New York or Boston for direction, we are beginning to see big gains in the loft and condo market and with Bioinformics, and all the stuff going on at the Roswell campus...I know Buffalo is gaining brains.
Coffee shops, Book stores, Markets, restaurants and the common sights on Elmwood are what Buffalo needs, but I think the best idea is to get these types of businesses downtown as well. Look at Boston, New York or Atlanta even...once you provide these services with a list of others to a community, the area will take off. Housing availability in Buffalo is at a prime, if the downtown market takes off these prices will increase and we will have to provide everything to the residents for continued growth. I hope we can get something happening. Maybe these businesses can be designated in a certain area...like in the Goodell, Washington and Main area (Trico?)
Great article, hope it opens some eyes.
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viking
Chicago's Golden Mile a residential area is located about the same distance to the water front and also is separated by a highway. On Bflo's Niagara St. , one floor up the view is great from most of the buildings. Renovated, the rear of those buildings could become interesting. Being close to relatively free recreational activities has advantages also. Most progressive cities lucky to have a water front are capitalizing on the fact.
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L
Ok, we have venture funds for hitech and now life sciences/health care and what your really advocating is a venture fund for small businesses that are more centered on quality of life.
I put forward the idea of Chambers of Commerce similar to the South Bufalo Chamber of Commerce that would bring together residential community associations and business associations.
But here we have a to raise a question. Where are the schools and their small business incubators? Why isnt their a peer review panel for small businesses matching individuals and schools together with municipal funds. That would be an all encompassing approach.
Even better, why not ask the municipal small business funds (including all the IDA's) to match private donations into the venture fund instead of giving away all these tax breaks to companies that dont create any jobs.
Whats wrong with a peer review for small business plans with members of local colleges, neighborhood associations, business associations along with IDAs/municipal departments of small business.
If we can get them all working together, then their business plans would be solid...the risk level would be low and the public would be involved (free advertising) and supportive.
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martin
well "steel", it looks like i am not the only one interested in coffee shops, bistro's and cafes and....$$$$$...lol
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