What do the terms “community” and “neighborhood” shopping areas really mean?

When determining the size of retail stores and retail shopping centers for the Town of New Scotland, the terms “community” and “neighborhood” centers are used to justify building big boxes here. 

 

Unfortunately, the terms “community” and “neighborhood” are used differently in the development world than in ordinary English usage.


We think of a  “community” as a limited number of people who share bonds.   Voorheesville is a community. A “neighborhood” is smaller than a community - a few blocks of homes near each other.
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Yet, in the real estate world, “community” and “neighborhood” mean a much larger area.  In New Scotland, when developers talk about building a “community” shopping center here, they mean a mall which would draw customers from as far as Rensselaer County.

So, why are these terms used? Words like “community” are warm and fuzzy.  They mean your friends, next-door-neighbors, and your local school and team. 

To determine what’s best for our Town, let’s forget the real estate lingo and talk in regular English.

Commercial developers use a formula to gauge whether their project will be a success at the site they are considering locating: 

Drive-by traffic + Population = Retail Success Outcome

When comparing a regional shopping to a community or neighborhood one, it looks like this:

 

 Type of center Drive-by trafficPopulation Retail Success Outcome 
 Regional  40,000

100,000 to 250,000 

Success for big boxes
 New Scotland (Rte. 85)9,000 30,000 (within 10 min. drive) Unsustainable for a big box 

Conclusion:  Data show that the Town of New Scotland and its neighbors cannot by themselves support a Wal-Mart or Target type store that totals more than 25,000 sq. ft. 

Our Comprehensive Plan says that our Commercial District should not be a regionally-drawing attraction.

Conclusion:  Data show that the Town of New Scotland and its neighbors cannot by themselves support a retail shopping center that is larger than 100,000 sq. ft.  To support such a shopping center, customers would have to come from outside our region. 

Anything larger than 100,000 sq. ft. for a retail shopping center would contradict our Comprehensive Plan.

In the end, it doesn’t matter the name you give a retail store or a shopping center.  The residents of the Town of New Scotland have repeatedly expressed their desire that commercial development in our Town serve its residents, not those of the greater Capital District.

 
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