PART 3: MARKET DEMAND This section assesses demographics of the local trade area, which we measure using two similar sources: Beverly Hills Census Tract 7010, and data available from Esri (Appendices 3.7A through K) within a one-half mile ring around the project site. Census Tract 7010 is situated in the southwestern tip of the City of Beverly Hills. It includes upscale multi-family housing, some single-family units, and a range of retail options that makes it representative of the market we hope to capture in the immediate vicinity of our project site. We consider socio-demographic indicators as well as employment and economic conditions of those working in and visiting the area to determine retail demand for our proposed project.
Socioeconomic Conditions Census Tract 7010 is comprised of a total population of 5,431 individuals, which accounts for about 16 percent of the total population for the City of Beverly Hills. The population density is 9,883 persons per square mile, which is considerably higher than the rest of the City (with a population density of 5,975 persons per square mile). Additionally, the median age for the project area is just over 44, which is almost ten years older than the L.A. County average. In fact, 18.7 percent of the census tract population is 65 or above compared to 10.8 percent for the County. Over 80 percent of the tract population identifies as “White alone,” compared to around half the L.A. County population.
attainment usually has strong correlation to income levels, and Beverly Hills is no exception. The median income for the project area is estimated at $86,609 (Esri reports $85,500), which contrasts considerably to the County’s median income estimate of $56,241. Around 45 percent of the local population has a household income $100,000 or more.
Employment Classifications According to the Esri Business Summary for the one half mile radius around the project site, there are just over 28,000 daytime employees that work at 3,662 businesses in the area. The largest segment of workers, more than one quarter (25.3 percent), works in “Professional, Scientific & Tech Services.”1 The next two largest sectors make up 10.5 and 10.4 percent of the workforce, respectively: “Administrative & Support & Waste Management & Remediation Services,” and “Finance and Insurance.” “Accommodation & Food Services,” and “Retail Trade” are also important local job providers, with 8.6 and 8.4 percent of the employees, respectively. “Real Estate, Rental & Leasing” employees are 5.2 percent of the workforce, and the “Information” sector makes up 5 percent of the area jobs. Based on this summary area jobs, we infer that almost half (45.9 percent) are high wage earning jobs that would contribute to demand for higher end goods offered in the amenity-rich and beautifully landscaped Beverly Square. (See Map 9, Chapter 7)
Educational attainment levels in the project Consumer Segment Classifications area are much higher than County averages. According to ACS estimates for 2008-2012, In order to gain a comprehensive around 70 percent of the population in the project understanding of the consumer population area has a higher education degree. Educational living within the trade area of the project site we 3. MARKET CONDITIONS
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