Despite numerous obstacles that can block redevelopment of urban neighborhood retail projects, such areas can be successfully revived with careful planning and commitment from the public and private sector.

That's the message the Urban Land Institute (ULI) is trying to get across in its new booklet, "Ten Principles for Rebuilding Neighborhood Retail."

The 23-page booklet offers several ideas for filling the demand for retail development, especially poorer areas of older cities, which tend to be underserved for a variety of debatable reasons.

It is the latest in the organization's series on redeveloping different segments of the market.

The challenges of rebuilding persist not only in low-income neighborhoods, but in other urban locations where retailing never recovered from the shift of buying habits that led people to suburban shopping centers, the ULI believes.

Rebuilding neighborhood retail streets differs significantly from developing a suburban shopping center or re-establishing downtown shopping districts, so innovative strategies must be employed, according to the ULI.

Neighborhood retail streets have been "forgotten or purposely avoided" by retailers and developers because they believe that people who live in these areas don't have the money to buy what is needed to keep retail stores in the black.

Developers also believe that more-affluent areas are better bets for profitable retail. What's more, they consider low-income areas unsafe and expect to spend a considerable amount more to prevent shoplifting and theft than in wealthier areas of the city or the suburbs.

However, the ULI believes the timing is right to rebuild neighborhood retail streets, based on its reading of current demographic and economic trends that are redirecting growth to existing communities, including:

The growing popularity of urban lifestyles among young professionals and empty nesters.

The draw of immigrants seeking to open small businesses.

The saturation of retail in suburban locations.

The increasing appeal of pedestrian-friendly, street-front retail among consumers.

A decline in inner-city crime.

The increased use of public incentives to encourage market-based real estate investment in urban settings.

The booklet is the result of a ULI study in June 2003 of three neighborhood shopping streets in the Washington, D.C., metropolitan area.

The evaluations were conducted by three teams of commercial developers, public planners, nonprofit developers, architects, economic consultants and property advisors.

The 10 principles were developed as a guide to communities, developers, retailers and residents in rebuilding their neighborhoods:

Published: January 22, 2004

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Al Heavens writes about real estate and home repair and improvement. He is the author of What No One Ever Tells You About Renovating Your Home: Real-Life Advice For Hassle-free, Cost-Effective Remodeling.