New York Avenue Corridor Strategy Adopted Report New York Avenue Corridor Strategy Adopted Report | Page 46

MARKET CONDITIONS
• Retail Product Opportunities
• Ethnic Retailing
• Central Cities
• Lifestyle Centers would translate into demand for 7,900 new rental
units and 12,200 new ownership units.
• Employment and Education Product
Opportunities
• Traditional Office Space – in smaller
increments
• Convertible Spaces
• Education Facilities
• Third Places Of the 11,900 total units of for-sale housing de-
mand by households earning over $15,000,
approximately 35% or 4,200 units could be at-
tached (condo, townhome, rowhouse, loft, etc.).
Assuming a reasonable 8% capture rate (market
share) of attached units, the Study Area could
absorb approximately 334 new attached units by
2022. Figure 3.16 summarizes demand for at-
tached ownership units.
MARKET DEMAND

An analysis of the current performance of real
estate products within an overall market, as well
as competitive projects within a trade area, pro-
vides an indication of whether a property or area
may be ready for new redevelopment. It also
helps to identify potential gaps in the market --
niches that new redevelopment could fill. In ad-
dition, in order to identify potential future market
opportunities given the Study Area’s competi-
tive position and prevailing market conditions,
market demand estimates were prepared for
residential, retail, and office land uses over the
next 10 years. The following information which
follows presents a summary of current demand
conditions for competitive land uses within the
New York Avenue Trade Area.
Attached Ownership
Rental
The New York Avenue Trade Area is expected
to support 5,900 total units of rental housing de-
mand by households earning over $15,000. At
an 8% capture rate, the Study Area could absorb
approximately 478 new rental units by 2022.
Figure 3.17 summarizes demand for rental units.
Retail/Restaurant/Service Demand
Future demand for retail/restaurant/service
space is determined by the potential level of re-
tail expenditures in a given trade area from two
sources: those dollars spent by trade area res-
idents outside the trade area, or “leakage”; and
those generated by new household growth. Fig-
Residential Demand
ure 3.18 summarize the calculations of both of
these sources of retail demand. For each major
Demand for Trade Area residential units is a retail category, current household retail expen-
function of newly formed households, whether ditures (demand) are compared to current retail
they arise through natural increase or net in-mi- sales (supply) in the Trade Area to determine if
gration. As shown in Figure 3.15, the New York there is a retail “surplus” (supply exceeds de-
Avenue Trade Area is expected to experience mand) or “leakage” (demand exceeds supply).
demand for approximately 20,124 new hous- Figure 3.18 shows that “leakage” exists in four
ing units by 2022. Assuming the ratio of rent- retail categories: electronics and appliances;
al to owner-occupied units remains at 40%, this food and beverage (grocery) stores; miscel-
ARLINGTON, TEXAS
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