Downtown Huntsville

Downtown Huntsville. (Eric Schultz)

Downtown Huntsville could support an additional 275,000 to 325,000 square feet of new retail over the next five years, according to a study on retail market demand in the city center.

The report, prepared for Downtown Huntsville Inc. by Robert Charles Lesser & Co. Real Estate Advisors, found 215,000 to 265,000 square feet of new retail would be realized based on recapturing existing retail leakage, plus an additional 60,000 square feet of new demand from household and employment growth.

William Stroud, principal of Triad Properties Corporation and chairman of the DHI Development and Government Relations Committee, said the study is important because it provides empirical data to support retailers that are looking to expand downtown.

"Additional retail growth will continue to advance our desire to have a sustainable live, work and play downtown," he told AL.com. "A healthy and vibrant downtown reflects a community's quality of life, which is important for economic development and industry recruitment."

The retail report complements an existing residential study DHI commissioned and released last year that found downtown Huntsville needs an additional 500 to 600 apartments by 2020 or it may miss a critical opportunity to achieve the live/work/play environment it desires.

DHI President and CEO Chad Emerson said highlights of the retail study include the continued strong demand for new food and beverage choices, as well the unmet demand for an increased number of entertainment options. Even though there are several projects under construction, Emerson said they don't begin to scratch the surface for what growth opportunities are possible in downtown Huntsville.

"We get a lot of people asking us about downtown retail opportunities, some individually and some as part of a mixed-use project," he said. "It's feasible now because we have statistics and standard industry methodology to show that demand exists. It's no longer speculation."

The City of Huntsville is working with DHI and Pennsylvania-based Urban Design Associates to develop a new downtown master plan for the first time in 10 years. A progress update was held Thursday night at the Von Braun Center South Hall. The full plan should be complete by fall 2017.

As downtown retail demand grows, Emerson said parking will be a challenge.

"For downtown, public infrastructure is often public parking decks, unlike in the suburbs where public infrastructure is often wider streets or new overpasses," he said. "As you look at different types of infrastructure for different types of area, just like we've been very strategic throughout the city in planning the road network, in downtown we need to be very strategic in planning the parking network," he said.

Emerson said the study cost $10,000. Check it out below: