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