Increase in credit shopping (Ace photo)
The street rating published this week on the Globes website was built with a representation of all stakeholders: customers of commercial real estate, national retail chains and other tenants. And for example in Be’er Sheva, Modi’in and Ashdod there is no such street.
The mapping of the streets in the city centers is also done according to quantitative parameters, including monthly rents per square meter, rate of store occupancy, the extent of the areas actually counted in the streets themselves, their proportion of total commercial space in the city itself, number of businesses and mix, number of national chains and area occupied.
Customers come to the streets for errands, entertainment or shopping, and also just to walk around the city. In the good planning and management of a street, the high frequency of arrival can generate a chain of activities in business and in other and other activities that will be found in them.
How do the customers, who walk around these streets, define a successful street? In a survey conducted by the economic consulting firm Czemanski Ben Shahar & Co., the leading answers were the name of a specific street, shops, restaurants and shopping, positive descriptions, central location, money and success. The main factors that make a street successful are the existence of businesses and shops (39% chose this as the first factor, and another 28% as the second factor), accessibility and parking.
In light of the effects of the corona plague and the desire of the residents to be in open spaces, one could expect a “influx” back into the streets of tenants and people. In practice, this happens mainly in Tel Aviv. why? Among other things, because most mayors have not been able to understand the changes in consumer and tenant preferences when it comes to the urban economy, the location economy, and the possibility of making the change right now. Tamir Ben-Shahar, CEO of the economic-marketing consulting firm Czemanski Ben-Shahar & Co., says that if the “streets” had been managed by groups of well-organized shopping centers, they would have functioned at a much higher level.
He further says that chains choose to be located in places that generate high monthly revenue levels for them, as opposed to other parameters that allow the store to generate profits. For them, unlike a “local” player, there are many alternatives. And yet, there are streets with dozens of national chains, such as Dizengoff in Tel Aviv and Jaffa in Jerusalem. In some streets, the area occupied by the chains reaches more than 30% of the total commercial space. Most of the national chains operating on the streets are in the “non-food” market.
The leading streets in the ranking are Dizengoff in Tel Aviv, Jaffa in Jerusalem, Rothschild in Tel Aviv, Rothschild in Rishon Lezion and Bialik in Ramat Gan. Herzl Street in Haifa reached 8th place, surprising in relation to the fact that it is a street in a low position. In addition, Ahuza Street in Raanana did not enter the top ten, despite its quality and variety of commerce. The main difference observed between the components of the ranking is the decrease in the monthly rent levels in most streets.
More in-
Many cities in the country have neglected their centers and opened shopping centers everywhere, and about 20 years ago a process of upgrading and empowering city centers, ancient cities and markets began. A functioning urban center is important in several dimensions. In the business dimension, it symbolizes a strong economy in which asset values are maintained and rising, as a derivative of an increase in the level of economic functioning of the business and the revenue of the Authority. In the physical dimension, it produces positioning and space. In the personal dimension, it produces a focus for a socio-cultural being. And in the marketing dimension, it produces a brand identity for the city.
What is now also expected of Israeli cities is to take advantage of the Corona period and create significant changes in the city centers. For example, turning streets into sidewalks – as Tel Aviv created in 11 sections – removing vehicles from the center and turning roads into pedestrian and bicycle paths, expanding the supply of catering businesses and cafes, open spaces and creating pleasant places to stay.
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