Market Analysis: MARTA System Platform Retail
Prime Contractor: AECOM
Client: Metropolitan Atlanta Rapid Transit Authority (MARTA)
Date: March 2014
Location: Atlanta, GA
The Metropolitan Atlanta Rapid Transit Authority (MARTA) is
considering adding concourse- and platform-level retail amenities to improve passenger experience and diversify revenue streams. Dr. Charles Warren and the Toyon Group participated in an AECOM-led team, including Bleakly Advisory Group, Cushman & Wakefield, Global Concessions, Contente Consulting and Gude Management to evaluate the potential for retail concessions at major stations identified in a previous preliminary study.
Understand the best locations for retail within each station and the appropriates types (kiosks, newsstands, booths, etc) for each space.
Estimate the cost of building out retail space and compare to potential rental revenues from vendors.
A basic vendor revenue model was constructed, using weekday and weekend ridership counts, household spending estimates, and conservative customer capture/conversion rates. Potential rents for platform- and concourse-level retail were estimated by using a survey of local retail rents in the submarkets immediately around the stations, rental rates on comparable transit systems.
The team toured stations to develop site-specific estimates of construction costs including electrical and plumbing infrastructure and core-and-shell materials and labor.
The team provided updated forecast revenue and expenses (both to vendors and to MARTA) for the stations selected, recommending an easily implementable and scalable pilot program.