In the New Mexico TraditionThe Impacts of MainStreet – 1986-2013

New Mexico Main Street Communities

Currently Active Previously Active

Albuquerque - Barelas Las CrucesAlbuquerque - United South Broadway Hobbs

Albuquerque - DAT Las Vegas AztecLos Ranchos de Albuquerque

Albuquerque - Nob Hill Los Alamos Town of Bernalillo Ruidoso

Artesia Lovington Chama Salt MissionBelen Portales Cuba Santa Rosa

Carlsbad Raton Espanola Socorro

Clovis Roswell

Clayton Silver City

CorralesSouth Valley (Bernalillo County)

Deming Taos

Farmington Truth or ConsequencesGallup TucumcariGrants Zuni

Harding County

Survey of Current Main Street Executive Directors

New Mexico Main Street Annual Reports 1986 – 2013

Local Main Street programs’ quarterly reports to New Mexico Main Street

Community Economic Assessments prepared by University of New Mexico Bureau of Business and Economic Research

Data from US Department of Commerce and US Department of Labor

Economic Multipliers from IMPLAN

Additional interviews and assorted publications

Sources of Report Data

Caveats on the DataData from 1985 through 1995 was available on

aggregated basis only

Data on a town by town basis not available on all years between 1995 and 2000

Some data categories have been added in recent years

Local numbers provided by executive directors of active Main Street programs (semi-annually, quarterly)

Very robust, quarterly data since 2003

The Big Numbers

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$272,376,367

$283,733,345

$415,031,993

$66,327,451

$1 Billion Invested in NM MainStreet Districts

Private Rehab New ConstructionPublic Projects Public/Private Projects

19861988

19901992

19941996

19982000

20022004

20062008

20102012

0

2000

4000

6000

8000

10000

12000

Cumulative Number of Net New Jobs inNew Mexico MainStreet Districts

19861988

19901992

19941996

19982000

20022004

20062008

20102012

0

500

1000

1500

2000

2500

3000

3500

Cumulative Net New Businesses inNew Mexico MainStreet Districts

19861988

19901992

19941996

19982000

20022004

20062008

20102012

0

500

1000

1500

2000

2500

3000

3500

4000

Cumulative Number of New MexicoMainStreet Building Rehabs

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

2012$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

Cumulative Investment in New Mexico MainStreet Buildings

Rehabilitation New Construction

19861988

19901992

19941996

19982000

20022004

20062008

20102012

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

New Mexico MainStreet Program Budget

Behind the Numbers

2007 2008 2009 2010 20110.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Ratio of Business Openings to Business Closings

New Mexico Main Street DistrictsUnited States

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20112012

-400

-200

0

200

400

600

800

1000

1200

Year to Year Change in JobsNew Mexico Statewide vs MainStreet Programs

Change in Jobs NM (x100) Net New Jobs NM MainStreet Districts

19861988

19901992

19941996

19982000

20022004

20062008

20102012

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

State Budget to Net New Jobs in New Mexico MainStreet Districts

Average over Life of Program$1,048.68

19861988

19901992

19941996

19982000

20022004

20062008

20102012

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

State Budget to Net New Businesses inNew Mexico MainStreet Districts

Average over Life of Program$3,364.10

19861988

19901992

19941996

19982000

20022004

20062008

20102012

0

50

100

150

200

250

Private Investment to NMMS Program Budget

Average over Life of Program44.5 to 1

Real Estate

19861988

19901992

19941996

19982000

20022004

20062008

20102012

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

Cumulative Private Investment – RehabilitationNM MainStreet Districts

19861988

19901992

19941996

19982000

20022004

20062008

20102012

0

100

200

300

400

500

600

700

Jobs from MainStreet District Building Rehabilitations

Direct Jobs Indirect/Induced Jobs

19861988

19901992

19941996

19982000

20022004

20062008

20102012

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Income from Building Rehabilitation Projects

Direct Income Indirect/Induced Income

19861988

19901992

19941996

19982000

20022004

20062008

20102012

0

500

1000

1500

2000

2500

Building Construction Jobs in NM MainStreet Districts

Average 430 jobs/yearFor the life of the program

19861988

19901992

19941996

19982000

20022004

20062008

20102012

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Building Construction Income – NM MainStreet Districts

Average $11,493,987/yearFor the life of the program

< $100,000 $100-199,999

$200-499,999

$500-999,999

$1,000,000 +

0%

5%

10%

15%

20%

25%

30%

35%

Building Purchase Prices in NM MainStreet Districts2008-2012

~150 Buildings Purchased over last 5 years

Is MainStreet a Job Creating Program?

If “Job Creating” means subsidizing employers to hire new workers, then no.

If “Job Creating” means helping to create an economic environment where businesses hire new workers themselves, than absolutely YES.

1996199719981999200020012002200320042005200620072008200920102011201220130

1

2

3

4

5

6

7

8

9

10

Average Jobs/Business – NM MainStreet Districts

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Jobs/MainStreet Community

Capital Outlay Projects

Year Towns State Expenditure

2000 7

2005 4 $93,000

2006 6 $1,142,500

2007 10 $2,000,000

2008 13 $1,500,000

2009 9 $1,000,000

2010 10 $1,000,000

2012 11 $1,000,000

2013 4 $500,000

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

What Happened as a Result of Capital Outlay Fund?

Increased rents Buildings soldMore pedestrian traffic Business expansionsReduced vacancy More event attendanceIndividual building improvements New businesses opening

What the data showed

Two years back

Capital Outlay Project

Three years forward

Net New Businesses

23.3% higher

Two years back

Capital Outlay Project

Three years forward

54% of communities had increase in

number of building improvements

New Mexico MainStreet Today

$2-$6

$6-$10

$10-14

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Rent Levels in NM MainStreet Districts($/sq. ft./year)

Liquor stores, Wine shop,Office supply, Stationery stores

Drug stores and PharmaciesMovie theatersGrocery stores

Hardware stores, Paint storesCamera, Computer, Electronics

Sporting goods, Hobby, Game storesShoe stores

Bars, TavernsHousehold goods

Jewelry storesClothing stores

Financial Institutions Bookstores, Gift stores, Art dealers, Music stores

Personal Services firms Cafes, Restaurants, Coffee shops

Professional Services firms

0% 5% 10% 15% 20% 25% 30%

Who Does Business on NM MainStreet?

Restauran

t/Bar

Arts re

lated

Sports

/Recre

ation/H

ealth

Other r

etail

Restauran

t/Bar

Clothing/B

outique0%

5%

10%

15%

20%

25%

30%

Who is coming in? Who is going out?

Opened Closed0

2

4

6

8

10

12

14

16

Restaurants/Cafes/BarsOpened vs Closed

25%

18%

19%

19%

15%

5%

Who are the Customers?

Downtown Workers Nearby ResidentsOther City Residents Market Area ResidentsTourists Other

19%

13%

69%

Tourists as Percent of MainStreet Customers

30% or More 11% - 29% 10% or Less

Downtown Housing Opportunity?

• 50% of NM MainStreet communities report having downtown housing

• Average rents (excluding Albuquerque DAT) are ~$620/month

• That means downtown residential rents are 1.5 to 2 times storefront rents

• Big Impacts of Downtown Residents

Benefit to a New Mexico downtown economy from an upper floor housing unit rented to a couple for between $400 and $800/month

Food at home $1,472 - $2,405

Food & drink out $622 - $1,119

Alcohol and tobacco $301 - $499

Rent $4,800 - $9,600

Other housing costs $2,406 - $3,867

Furniture, equipment & electronics $266 - $444

Apparel & apparel services $361 - $581

Vehicular and transportation related $2,304 - $ 3,198

Health care related $1,048 - $1,713

Entertainment $801 - $1,369

Personal Services $208 - $347

Other $332 - $540

Total Annual Economic Impact of an Upper Floor Apartment in a New Mexico Downtown

$15,321 - $26,482

Towns Getting a Closer Look

Prepared for the National Main Street Center and New Mexico Main Street

PlaceEconomicsWashington, DCDecember, 2013