by Jodie Dello Stritto
As the Retail and Commercial Business Advocate for the Downtown Improvement District, Kendra Kielbasa is building relationships with key stakeholders to help revitalize the retail scene in Downtown State College, aimed predominantly at filling empty retail space in the newer student housing high-rises. Along the way, she’s dispelling common misconceptions and creating new opportunities for local small businesses.
Q: Can you share a little about your efforts and how things are progressing?
First and foremost, I’m focused on relationships. Building connections is foundational for our next steps to be successful. I’ve been meeting with downtown constituents and stakeholders, including businesses, organizations, property owners and borough officials.
I’m also deliberately reaching out beyond downtown to create channels for sharing information and establishing partnerships that can be mutually beneficial. This outreach includes commercial real estate brokers and agents, government officials and public entities like Centre Region Council of Governments, and economic development groups such as the CBICC, Happy Valley Adventure Bureau, the Penn State Small Business Development Center, Ben Franklin Technology Partners and the Happy Valley LaunchBox. All of these stakeholders are invested in the success of downtown State College and have a wealth of knowledge and resources to contribute to our efforts.
Q: What are you learning in these discussions?
We’ve made some key discoveries that are helping to reveal important facts and debunk myths and common misconceptions. For example, there’s been a widespread belief that landlords for vacant retail space in student housing high-rises were unwilling to work with prospective tenants on affordable rent and readying space. From our research, we know that landlords are interested and willing to provide Tenant Improvements (TI), a negotiated sum that a landlord will provide to a tenant to cover all or a portion of construction costs for build-outs to customize grey shell spaces.
From the landlord perspective, they consider multiple factors when applying TI, including the length of the lease, square footage and tenant financials, with financials being the most critical. The stronger the balance sheet, the greater the TI. And, as you’d expect, the landlord views both larger square footage and a longer lease term more favorably.
We also know that landlords are not idly allowing spaces to sit empty; they are actively engaged with prospective tenants. Landlords are looking for businesses that: 1) have a proven track record of success in other markets, 2) have strong financials and 3) will be able to thrive and survive for 7-10 years in the space.
Another issue that’s come to light is vacant second-floor office space. Plenty of space is available, particularly for larger offices with 20-50 employees. Notably, there are not enough parking spaces under these buildings to provide each office employee with a space. Our commercial real estate agents and brokers are finding their clients are interested in these prime office locations, but ultimately pivot to other locations with parking that will accommodate their workforce.
Q: Can you share some details about how you are supporting existing and prospective businesses and organizations?
I serve as the point of contact for hosting and facilitating meetings between existing and prospective businesses, property owners, brokers, the Downtown State College Improvement District (DSCID), and other regional entities. In this role, my goals are to remove barriers, provide resources and support, and provide and receive referrals and information that benefit our existing downtown businesses and prospective businesses.
I’m pleased that these efforts have been fruitful and have resulted in a business expansion, connecting existing businesses to consultants and funding opportunities, and connecting businesses and emerging opportunities to spaces and landlords.
On a related note, much of the networking I’ve been doing beyond downtown is to support downtown businesses. I am in regular contact with our commercial real estate agents and brokers, which gives me a deeper understanding of the challenges, opportunities and pending activity. Likewise, I collaborate with entrepreneurial and economic development organizations, so I am aware of the landscape of local startups and emerging businesses, and the broader economic goals for the region.
Another successful tactic I’m implementing is a business focus group that brings together business owners to brainstorm and find opportunities for collaboration. We’ll continue these sessions to help identify gaps and consider ways to address them.
All of these endeavors roll up to activating vacant spaces, through leased spaces of course, but also with pop-up shops. Pop-up shops are a cost-effective way for small businesses to build brand awareness, test the market or even new products, and engage with established and new clients. They also add to the vibrancy of our downtown, attracting foot traffic and fostering discovery and excitement amongst our shoppers and visitors. Pop-ups have been doing extremely well. They’ve been happening throughout the summer and will continue throughout the fall and beyond. I’m maintaining a list of interested vendors and it’s growing rapidly.
Visitors to downtown will also notice exterior activation projects, like window displays and beautification efforts.
Q: What else can visitors and residents look for this fall?
I can’t share details, but get ready for a surprise twist — a pop-up experience may spring up at an exciting new location. We’re also looking forward to some new business openings and expansions. We’re excited to welcome new businesses like Tropical Smoothie, Riko’s Pizza, Figo, Wreck-It and more to our community. We’re especially thrilled to celebrate expansions at The Makery and Chew Chew Bun, as well as the dynamic collaborations between The Nittany Lion Inn and Harpers State College, The Scholar Hotel and Big Spring Spirits, and Holla Spirits and McLanahan’s.
For business owners, we plan to kick off an expert-led three-part seminar on exit strategy because we know this is an area of interest for many of our long-time small business retailers. It will cover how businesses are valued and marketed, what a buyer needs to know, and how to prepare.
We are in the early planning stages of bringing art to some of our vacant spaces, too.
Q: Is there anything else you are excited about and want to share?
I’m amazed by the people, businesses and organizations in downtown State College. There is an energy and vibe that is so engaging and welcoming. We have a rich history to build on with exciting opportunities ahead.
“I’m amazed by the people, businesses and organizations in downtown State College. There is an energy and vibe that is so engaging and welcoming. We have a rich history to build on with exciting opportunities ahead.”
Come downtown! Visit our merchants, dine in our unique restaurants, explore our art walk, see a show, listen to live local music. There is so much to do. Downtown State College is the heart of Happy Valley. It’s truly a special place.
Follow the Downton State College Improvement District on Instagram, Facebook, or check the website to stay up-to-date on fall events.
Businesses can follow Kendra Kielbasa, on LinkedIn for business information and updates.
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