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Business News

16-Bit Bar+Arcade to Open Largest-Ever Location in OTR at Mercer Commons

Troy Allen announced through our friends up north at Columbus Underground that the wildly popular 16-Bit Bar+Arcade will open a Cincinnati location in 2015.

The Columbus-based business opened its first “barcade” to overflowing crowds late last summer and added a Cleveland-area bar in Lakewood earlier this year.

It’s the kind of place that is perfect for those that want to cherish their memories of the late 1980s. Not only do the arcade games date back to that time, but the cocktails served at 16-Bit Bar+Arcade also take their names from the icons of that era.

While there is no food provided, Allen says that customers are always able to bring food in from neighboring restaurants. That means that you can hang out, eat and drink inside while playing throwback arcade games and enjoying music and television from the ‘80s and ‘90s.

“It’s a throwback concept; when you step inside, you’re really immersing yourself in the ’80s and early ’90s,” Allen explained. “It’s next to impossible not to smile about something.”

The barcade would have opened in Over-the-Rhine even sooner had 3CDC had its way, but the owners were not quite ready for expansion a year ago. Allen did say, however, that they have been looking at spaces in Over-the-Rhine for the past year; and that he’s happy to finally have the paperwork signed.

Occupying 4,300 square feet at Mercer Commons, the Cincinnati location will be the largest 16-Bit to-date. Allen says that it will have almost the same style as their locations in Columbus and Cleveland; and that they will have the same amount of arcade games, but with a bit more room to move around. Located at the corner of Walnut and Mercer Streets, the location will also have garage doors that open up along Mercer.

“We are dedicated to giving everyone that walks through our door a killer experience while exceeding their expectations,” Allen said. “We truly appreciate the feedback and input, we will continue to evolve and refine the business to meet as many expectations as possible.”

Once open, 16-Bit Bar+Arcade will be open Monday through Friday from 4pm to 2:30am, and Saturday to Sunday from 12pm to 2:30am. The owners are aiming to open up sometime in the first quarter of 2015.

EDITORIAL NOTE: All five photos were taken by Flickr user Sam Howzit in July 2014.

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Business News

Federal Reserve Data Reveals Cincinnati Economy is Out-Performing Regionally, Lagging Nationally

New data from the Federal Reserve Bank of Cleveland, which covers Ohio, western Pennsylvania, the West Virginia panhandle, and the eastern half of Kentucky, provides a glimpse into the recovery and transition of the region’s economy.

According to the newly released data, spanning from 2001 to 2012, this Federal Reserve region has weathered an incredibly tumultuous 11 years.

“Historically, much of the region has specialized in manufacturing, a sector that has been particularly hard hit over the past few decades,” noted Federal Reserve Bank of Cleveland research analyst Matthew Klesta in his data brief. “Since the end of the Great Recession in 2009, however, the decline in manufacturing employment has slowed. In some places, employment has even grown.”

Since the first year of recorded information in this data set, all 17 Metropolitan Statistical Areas (MSA) in the region, with the exception of Wheeling, WV, saw losses in manufacturing employment – the region’s historical economic stalwart. MSAs like Dayton and Steubenville posted losses of almost 50%. Cincinnati, meanwhile, saw its manufacturing sector decline by nearly 25% – a mark that is low by regional standards.

International trends in trade in the early 2000s, like China’s entry into the WTO and the increase of offshoring from developed to developing nations, combined with the Great Recession, dealt a critical blow to the area’s manufacturing sector. Excluding education and health services, every other industry in the region saw significant jumps in the annual percentage of jobs being lost during the Great Recession.

For example, between 2001 and 2007 the average loss per annum for the manufacturing sector was a little less than 3%; but from 2008-2009 it jumped to nearly 7%. Since the Great Recession, however, many MSAs in the area have posted modest gains in manufacturing employment, while still falling well below baseline levels in 2001.

While the manufacturing sector has declined throughout this Federal Reserve region, health and education sectors have grown. Despite a nationwide average of 1.2 health and education service jobs gained per 1 manufacturing job lost, only four MSAs in the region (Cincinnati, Columbus, Huntington, Pittsburgh) can boast an overall replacement of lost manufacturing jobs with health and education employment.

The replacement of manufacturing jobs with health and education employment does not bode well for the region’s workers. According to the data, the health and education sectors pay, on average ($44,000 in 2012), significantly less than manufacturing ($55,000 in 2012).

But while this changing economic landscape has meant a smaller presence for manufacturing in the region, this Federal Reserve Bank region continues to be highly specialized in that economic sector. Perhaps as a result, population loss continues to plague many MSAs within the region.

From 2001-2011, while the national population grew by 10% the regional population posted an average gain of only 1.6%. In fact, only five (Cincinnati, Huntington, Akron, Columbus, Lexington) of the 17 MSAs in the region saw their population rise over that time period. Of those five metropolitan areas, only two (Lexington and Columbus) posted gains in both population and private-sector employment.

Pittsburgh and Wheeling, meanwhile, managed to post positive gains in private-sector employment while still shedding population. The remaining 10 MSAs all posted losses in private-sector employment and population.

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Business News

REPORT: Cincinnati Region Failing at Developing Walkable Urban Places

U.S. Metropolitan Land Use OptionsA recently released report conducted by The George Washington University’s Center for Real Estate & Urban Analysis in conjunction with LOCUS: Responsible Real Estate Developers and Investors, a coalition of Smart Growth America gave the Cincinnati region low marks for its walkability and growth patterns overall.

The report, entitled Foot Traffic Ahead, attempts to quantify the seemingly surging movement of people back into cities with a desire for walkable places.

The idea is that developers, investors, government regulators and financiers understood the model that successfully built America’s suburbs during the second half of the 20th century, but that a new model is needed with that era now behind us.

“Over the next generation, walkable urban development will spur even greater economic growth as demand for walkable urban development is met. The future growth of walkable urban places could provide the same economic base in the 21st century that drivable sub-urbanism did in the mid- to late-20th century. However, this growth will not be realized without appropriate infrastructure, zoning, and financing mechanisms at the federal, state, and local levels.”

Therefore, the authors of the report, in coordination with a Brookings Institution methodology developed in 2012, defined two primary forms of land use: drivable sub-urban and walkable urban. They also defined the two primary economic functions of those forms as being either regionally significant or local-serving.

Of the four potential combinations of these forms and functions, Foot Traffic Ahead focused on the regionally significant walkable urban places (WalkUPs) in each of the nation’s 30 largest metropolitan regions. When considering all of this, the authors of the report identified 558 WalkUPs nationwide, with 66 of those located in the New York City metropolitan area alone.

Out of the 30 regions studied, Cincinnati was ranked 20th with seven total WalkUPs in the region. Those seven WalkUPs, the report found, contained 33,234,000 square feet of office and retail space, or approximately 15% of the region’s total.

When compared with other regions, an astonishing 100% of the office and retail space located within WalkUPs were within the central city. What this means is that while Cincinnati’s urban core is extremely walkable, virtually nothing outside of it is. As a result, Cincinnati fell at the low end of the six regions classified as ‘Tentative Walkable Urbanism’.

“Four of these six metros – Houston, Columbus, Kansas City and Cincinnati – have 93% or more of their walkable urban office and retail space in the central city; virtually no walkable urbanism exists in their suburbs,” the report noted. “These four metros continued the expansion of drivable sub-urban development patterns.”

It is worth repeating that the methodology of this analysis places a priority on regionally significant places that contain at least 1.4 million square feet of office space, 340,000 square feet of retail space and a Walk Score value of at least 70 points throughout 100% of its area.

Such requirements penalize smaller and mid-size metropolitan regions that have less of this space overall. Perhaps illustrating this is the fact that while Cincinnati ranks 20th overall in this ranking, it comes in at 15th overall in terms of its number of WalkUPs per capita. Had the threshold for defining WalkUPs been lower, then perhaps more areas could have been considered into the overall WalkUP calculations for the region, and thus included smaller hubs outside of the central city.

When compared with the other regions, the future looks even grimmer for Cincinnati. In that ranking, Cincinnati falls five spots and into the category of ‘Low Potential for Future Walkable Urbanism’.

As is true with the existing rankings, the future rankings place a high significance on high volumes of real estate development. With regional growth rates hovering around 0.4%, it offers little opportunity for a region like Cincinnati to make dramatic changes to its development footprint.

However, when compared with the other regions, Cincinnati also appears to be lagging in terms of developing a robust regional transit system with both bus and rail, and lacks regional coordination on developing walkable urban developments. The report did however note that Cincinnati’s streetcar system currently under-construction serves as a bright spot that alone may shift the region from the ‘Low’ to ‘Moderate Potential’ category.

“These 13 metropolitan areas continue to lose market share in office and retail locating in their WalkUPs, continuing the mid- to late-20th century trend toward drivable sub-urbanism,” the report concluded about the regions with low potential in their future rankings.

Walkable Urbanism and GDP Performance Walkable Urbanism and Educational Attainment Education and GDP Performance

“In addition, they do not have substantial office rental price premiums. With 5% to 13% of office and retail space in WalkUPs, these metro areas have a long way to go to fully develop walkable urbanism.”

The real interest in the report, however, comes with its overall findings and correlations, as that is where the dire future outcomes may lie for the Cincinnati region.

In the report it found that regions with more walkable urbanism also had higher GDP performance, and that those same regions tended to have higher educational attainment.

“Given the relationship between educational attainment and walkable urbanism, and the relationship between educational attainment and per capita GDP, it is not surprising that walkable urbanism and per capita GDP are also positively correlated.”

According to the report, the six highest-ranked regions have a per capita GDP approximately 38% higher than the 10 lowest-ranked regions.

Of course, these findings alone cannot indicate whether walkable urbanism causes highly educated persons to move or stay away from certain regions, or whether places become more walkable due to there being more highly educated people there. But the correlations are strong enough that it is something that should make regional business and political leaders rethink the way in which Cincinnati develops.

“Although more research needs to be done to understand why walkable urbanism is correlated with higher per capita GDPs and education levels, this evidence suggests that encouraging walkable urbanism is a potential strategy for regional economic development.”

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Business Development News

Cincinnati Posts Population Gain for Second Consecutive Year

Cincinnati has added about 1,000 new people since the decennial census in 2010, according to new estimates released by the U.S. Census Bureau.

The modest increase comes from two consecutive years of population gains that followed an immediate downward revision after the 2010 Census. The increase also means that just Cincinnati, Columbus and Dayton were the only big cities (more than 50,000 people) in Ohio to post gains.

Columbus and Cincinnati, meanwhile, were the only big cities to post population gains for the past two years.

The population estimates are derived using the 2010 Census as a baseline and then factoring in new permitted residential construction and mobile homes, and subtracting out the estimated number of homes lost each year. As a result, all of the annual estimates should come with a grain of salt.

Ohio Cities Comparison

With that said, Dayton’s population gains appear to be an anomaly, while the increases in Columbus and Cincinnati appear to be more rooted. In any case, the news for Ohio’s big cities is not good as the rest all lost population, especially those in the northeastern part of the state.

Columbus continues to stand out from the rest of Ohio’s big cities in terms of its population trends. In this latest estimate release, Columbus posted the fifteenth largest numeric population gain of any municipality in America; and it comes on the heels of equally impressive gains in prior years.

Some observers, however, would attribute some of the gains in Columbus to its unusually large municipal boundaries that include what would be far suburbs in other Ohio regions.

While Columbus has been growing by about 1.5% annually over the past several years, Cincinnati has been growing annually by about 0.25%.

When compared with other peer cities, Cincinnati’s gains look even more tepid.

Peer Cities Comparison

Of fifteen other cities competitive with Cincinnati, the city bested only five of them in terms of population growth, while being significantly outperformed by most all others. In this comparison, even Ohio’s best performer – Columbus –fares only reasonably well against the field.

For Cincinnati’s peer cities, national trends appear to hold true. Southern cities continue to grow at the fastest clip, but their growth rates are leveling off. In our comparison, Austin, Atlanta and Tampa have all experienced significant declines in annual population growth since the 2010 Census. Charlotte has also experienced a similar trend, but appears to be holding steady more so than its Sun Belt peers.

Meanwhile, while many Midwestern cities continue to lose population, they are doing so at a slower rate or have stopped the losses entirely.

As we previously examined on UrbanCincy, the Cincinnati region continues to grow by about 0.4% annually. The City of Cincinnati’s 2013 gain represents approximately 12.5% of the total regional population growth, and half of Hamilton County’s increase last year.

In a nutshell, Cincinnati is over performing regionally, but under performing amongst its peers. If Cincinnati were growing as fast as Charlotte or Austin, the city would be adding around 9,000 new people every year.

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Business News Politics

What Does Cincinnati’s Nativity Rating Mean for Its Long-Term Migration Prospects?

Cincinnati has a migration problem that is two-fold. First, it lags behind most major metropolitan regions in North America when it comes to attracting international migrants. Second, and perhaps more significantly, is that the region has a stagnant domestic population.

This is not because domestic migrants are any more or less important than international migrants. But rather, it is because stagnancy is a major problem for cities.

As many demographers and social scientists have pointed out, focusing public policy on retaining existing talent is a bad approach. In fact, large movements of people out of one region can be a very positive thing. That is, of course, if it is balanced out by a large influx of people into that same region. This is the case for North America’s largest cities, and is also evidenced at a larger scale in California.

But beyond that, older Midwestern cities with a large cluster of high-quality universities also seem to export more people than they import. That, in and of itself, is not the problem.

“This notion of the university as a “factory” gets very close to the truth,” Aaron Renn, owner of The Urbanophile, wrote in 2010. “A friend of mine noted that if we treated steel mills like universities, Indiana would be obsessing over “steel drain” and spending hundreds of millions of dollars on programs to try to keep steel from leaving the state.”

Renn went on to say that the notion of doing such a thing would be ludicrous, and that it is important to understand the details of what is really going on when it comes to a region’s migration patterns.

“Migration does matter. Any city that thinks it can be blasé about this is fooling themselves,” wrote Renn in a separate piece. “On the other hand, surface numbers only tell us so much. We need to understand the dynamics going on underneath the hood.”

By most comparative measure, Cincinnati actually does very well compared to many places at retaining its population. The problem is that it does very poorly at bringing in new people from outside the region.

Based on five-year estimates from the American Community Survey, this stagnation can be clearly seen.

Perhaps not surprisingly, the areas of the Cincinnati Metropolitan Statistical Area (MSA) which have the highest percentage of people living there that were born in another state are near state borders. Since the Cincinnati MSA stretches across three states, you can see that movement of Ohio residents to southeastern Indiana and northern Kentucky has boosted numbers in those locales.

On average, approximately 68% of the 2.2 million person Cincinnati region was born in the state where they currently reside. Meanwhile, Uptown and Cincinnati’s northeast suburbs appear to be the only parts of the region that are actually attracting newcomers to the region.

Another key finding here is the utter lack of movement of people into or out of Cincinnati’s western suburbs, which have a native born population between 80-100%. This number is roughly comparable to most rural areas in Ohio, Kentucky and Indiana.

The Cincinnati region, however, is not alone when it comes to a stagnant population.

While Columbus was seen as a leader amongst big cities in terms of its domestic migration rate, it appears that Columbus is merely attracting new residents to its region from elsewhere in Ohio. Almost the entire Columbus MSA has a native born population between 60-80%.

The numbers are even worse for the Cleveland MSA, which, on average, has a percentage of native born population higher than the average for Ohio, Kentucky and Indiana. This is in spite of the Cleveland MSA attracting more international migrants than any other in the three-state region.

Even though Cincinnati continues to post modest annual population growth, it continues to be on the outside looking in when it comes to North America’s most economically successful cities. If Cincinnati wants to just focus on attracting existing Americans to the region, then it should look to Houston, Dallas or Atlanta, which are all hubs for domestic migration.

This scenario, however, seems unlikely since each of those regions is positioned uniquely in terms of their economy or their geographic location. So, if Cincinnati is to really ramp up its population growth, it better look at what other metropolitan regions are doing to make themselves more attractive to international migrants.

Perhaps Mayor John Cranley’s new, yet-to-be-unveiled initiative can help with this. But does he or his administration actually know what is going on underneath the hood?