Real Estate: Bringing New Retailers to Windham

By Larry Eliason

Back in August, I wrote a commercial real estate column on the North Windham Retail Sector and provided a brief overview of the some of the things Retailers are looking for in a Community and a Specific Location. I wanted to dive a little deeper some of the details to explain some of the information that is critical in the decision-making process for Retailers to commit to a new location.

But first, let’s talk about some significant vacancies in North Windham. Olympia Sports, a long-time retailer, and employer here in Windham has closed its doors. Although the Windham Store may have been a good performer, the company was owned by an out-of-state corporate entity, so decisions are made in board rooms far away. We also have a couple of large retail vacancies at the Shaw’s Plaza and more specifically on either side of Staples.

The good news is that the Windham Mall is full which is phenomenal, and the management and owners of the Windham Mall deserve a lot of credit for that achievement. The bad news is North Windham does have some large vacancies and lack of sewer infrastructure has played a role as one of the key reasons for those vacancies, some having been long-term.

The Town of Windham approved a public sewer system for the North Windham Business District earlier this year. The Town is working closely with the Portland Water District to design a system to not only serve some of the key existing businesses, but also allow for additional commercial growth within the Business District.

In several instances, a prospective tenant has identified a potential location in North Windham and then learns that that location has a 40-year-old private septic system that is only suitable for traditional retail use and not for use such as a Brewery, Distillery and/or Restaurant, Large Day Spa, Fitness Center, or Food Production Facility. Three years from now should be a different story but in the present, we need

to focus on what we have in our North Windham Toolbox today.

The North Windham Toolbox of today includes a strong Retail Trade Area, a geographical area from where the North Windham’s Retailers derive most of their business. If you wonder why there is so much traffic these days after Labor Day, I believe that you will find that North Windham is pulling from areas such as Gray and Standish and up Rt. 302 including Bridgton and some of those surrounding communities.

Many retailers these days are looking at Mobile Location Data Technology as a tool that captures and analyzes location and behavioral data collected from mobile devices. This information can assist to verify and validate retail site locations. Retail Trade Area Mapping can help delineate a boundary map of the Retail Trade Area.

Retailers look closely at Demographic Profiling as a key data set for identifying a new location. Demographic Profiles for the Retail Trade Area are an instrumental tool. Profiles include population and projected growth in population along with incomes, median age, and household growth.

A Daytime Labor Market Area is especially important to the Drive-Through and Fast-Food businesses that rely on the lunch crowd. Retailers rely on employment reports that determine the total number of Fast Food and Drive-Through establishments and employee counts within the targeted area.

Psychographic Profiling has developed into a very refined science as Psychographic Lifestyle Segmentation is an essential tool for Retailer’s Identifying and Validating a location. Consumer’s propensity to buy certain retail goods is monitored 24/7 on a wide variety of platforms. This information is very valuable to all retail segments.

With over 18,000 residents, a retail trade area of over 60,000-plus people, and with 500,000 annual visitors, Windham is a great location for growing retail and service businesses. Windham’s retail offerings range from locally owned boutiques to regional as well as national retail stores.

As Windham improves its sewer infrastructure, new businesses of many types will surely come to North Windham and help provide good paying jobs and a well-diversified commercial tax base.

The Windham Economic Development Corporation (WEDC), a subsidiary of the Town of Windham, offers guidance and assistance with tools such as specialty research and site location for retailers. WEDC works with Retail Market Analysis Consultants periodically to update essential market data for Retailers. <

Larry Eliason is a Commercial Broker with Butts Commercial Brokers in Raymond and serves as the President of the Windham Economic Development Corporation. You can reach him at 207-415-2112.