Sound Transit Retail Integration Memo - 2021

INTEGRATING
RETAIL INTO THE

SOUND TRANSIT
EXPERIENCE
Technical Memo
Sound Transit
Integrating Retail into the Sound Transit Experience
April 2021
Project Team:
Contact:
Rachel Bramwell
Assistant Director, Urban Solutions
rachel.bramwell@hatch.com
+1 323 854 0554
Contents

Abbreviations v

Executive Summary 2
01 Value Proposition 5
02 Retail Types 11
03 Sound Transit Challenges 27

04 Recommendations: Addressing the Challenges 37
05 Applying the Findings: Retail in Practice 45
06 Conclusions and Next Steps 69
Endnotes75
Appendix A: Best Practice Findings 77

Appendix B: Preliminary Ridership Threshold Calculations 83
Appendix C: Focus Group Findings 87
Appendix D: External Interview Notes 93
Appendix E: Additional Westlake Design Concepts 101
CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

INTEGRATING RETAIL INTO THE SOUND TRANSIT EXPERIENCE v
Abbreviations
AHJ Authority Having Jurisdiction RFP Request for Proposals
ATM Automatic Teller Machine RTD Regional Transportation District
BART Bay Area Rapid Transit SEDM Station Experience Design Manual
BNSF Burlington North Santa Fe SF Square feet or square foot
CID Chinatown-International District SFO San Francisco International Airport
COVID SARS-CoV-2 SFMTA San Francisco Municipal
DECM Design, Engineering, and Construction Transportation Agency
Management SODO South of Downtown
DMU Downtown Mixed-Use TDLE Tacoma Dome Link Extension
DRC Downtown Retail Core TfL Transport for London
EIS Environmental Impact Statement TI Tenant Improvements
FAR Floor Area Ratio TJPA Transbay Joint Powers
FTA Federal Transit Administration Authority (San Francisco)
HCT High-Capacity Transit TOD Transit-Oriented Development
HVAC Heating, Ventilation, and Air Conditioning WMATA Washington Metropolitan Area
Transit Authority
IDM International District Mixed
LA Los Angeles
MARTA Metropolitan Atlanta Rapid
Transit Authority
MEP Mechanical, Electrical, and Plumbing
MTA Metropolitan Transportation
Authority (New York)
MTR Mass Transit Railway (Hong Kong)
MOU Memorandum of Understanding
NFPA National Fire Protection Association
NW Northwest
NYC New York City
OPCD Office of Planning and Community
Development (City of Seattle)
PEPD Planning, Environment, and Project
Development

Helping shape the Sound Transit
passenger experience
Integrating retail
to enhance the
experience of
stations, to build
community,
and to improve
operations

INTEGRATING RETAIL INTO THE SOUND TRANSIT EXPERIENCE 2
Executive Summary
Context and Purpose

Sound Transit’s recently completed five-year Strategic The goals of this memo are to:
Plan lays out an ambitious program of priorities and
goals, including those that center the experience of 1. Plan ahead and understand how to be strategic
the passenger in design and operations. Strategic in integrating retail and services into the Sound
Goal 1.2 calls for an Agency-wide initiative to Transit experience;
create station design guidelines to help further this
2. Develop a business case and value proposition
passenger-focused vision. At the time of writing,
for Sound Transit’s potential investment in retail
this effort is now under way, and a component of it
and services;
is investigating the opportunities and challenges of
retail and service uses in and around Sound Transit’s
3. Understand the challenges and opportunities
stations.
associated with providing retail and services in a
transit context;
Sound Transit does not currently have a coordinated
retail program or strategy across its system, or
4. Coordinate and integrate with the station
for individual stations. As a first step in helping to
guidelines work for station features and design;
realize the Strategic Plan goals and to understand
and
the feasibility of integrating retail and services in and
around Sound Transit’s stations, this memo explores 5. Outline where and how Sound Transit might be
the challenges and opportunities associated with able to implement retail across their system.
providing retail, and makes recommendations for
Sound Transit to consider.
As outlined in the recommendations, Sound

Transit must pursue further work around Agency
goals, policies, and procedures to determine the
appropriateness and priority of different types of retail
to provide in the future.

3 INTEGRATING RETAIL INTO THE SOUND TRANSIT EXPERIENCE
Value Proposition
The value proposition for a Sound Transit retail offering
has three essential components: Improving the passenger
experience, contributing to the community, and improving
Agency operations. This was developed based on
Sound Transit’s policies and commitments, as well as
observation of peer systems that have successfully
implemented retail offerings. These values will be key to
further defining the policy, goals, and scope of Sound
Transit’s future retail offering.
IMPROVE THE PASSENGER CONTRIBUTE INTEGRATE RETAIL WITH

EXPERIENCE TO THE COMMUNITY STATION OPERATIONS
Retail provides comfort and Retail creates space for Staffed retail provides a
convenience to riders commercial opportunities, human presence which leads
including for small and local to safer stations and station
Convenience retail can reduce businesses environments
the number of trips required to
meet passengers’ daily needs Retail in the station can Retail may take on some
for goods and services enhance a sense of place station maintenance
and can integrate with responsibilities and reduce
Retail can activate spaces by retail outside the station the Agency cost of station
creating additional footfall, for a connection to the maintenance
lingering activities, and neighborhood
meeting places Retail can support several
Retail can realize value for financial objectives for the
Retail can enliven a daily the community by providing Agency
commute by providing variety social benefits, becoming a
and change with the seasons neighborhood center, event
venue, and/or offering daily
needs goods and services
Retail services can support

economic development goals

Key Findings
Based on the research and analysis presented in this memo, the following are the key findings and
conclusions critical to creating and implementing a successful retail offering:
Agency policy should provide a clear vision and

Benefits increase with scale
goals for a systemwide retail strategy
Setting out a clear vision for retail implementation at an Financial returns, along with passenger and community
early stage is fundamental to retail success. Determining benefits, increase with the scale of retail opportunities and
and clarifying Agency policy goals and priorities is crucial broader joint development, which typically includes retail.
as an upfront step, as this will then be used in guiding a As the retail footprint grows, so does revenue generation,
systemwide retail strategy for where and what types of and with this comes associated cost savings through
retail should be implemented. Sound Transit may need to economies of scale. These economies of scale accrue
develop an expanded retail and concessions policy to through efficiencies in management and operations costs,
achieve these goals and vision. leasing, and staff effort.
For more information, refer to: For more information, refer to:
• Challenges: Planning and Policy (pages 29-30) • Challenges: Business Strategy/Model (pages 31-32)
• Recommendations: Planning and Policy (page 39) • Recommendations: Business Strategy/Model (page 40)
Understanding of context should guide specific

Design and infrastructure are key to success
offerings
Understanding and tailoring retail offerings to specific Design requirements and thresholds (e.g. line of sight,
contexts increases the chances of success. Context footfall, signage/wayfinding) need to be taken into account
includes but is not limited to local demand, footfall, early to ensure success of a retail offering. Additionally,
and ridership, all of which contribute to revenue infrastructure requirements (e.g. restrooms, utilities
potential. Context also includes adjacent retail offerings, connections) need to be considered at an early phase of
neighborhood and community needs, and urban design the retail implementation process to avoid the need for
considerations, to name a few. A systemwide retail strategy costly and complicated retrofitting at a later stage.
can help to evaluate these contextual considerations to For more information, refer to:
inform the success of potential retail proposals. • Challenges: Design (pages 33-34)
For more information, refer to: • Recommendations: Design (page 41)
• Section 5: Applying the Findings: Retail in Practice
(pages 45-68)
Management structure shapes outcomes
Management options exist in two primary forms: the transit

agency as the retail manager, or a third-party manager.
Management responsibilities include but are not limited
to conducting tenant marketing and outreach, managing
leases, and coordinating maintenance and other tenant
concerns. Even if using a third-party manager, it is critical
that Sound Transit has an internal group who can manage
the relationship with the third-party and coordinate with
other parts of the Agency internally.
For more information, refer to:
• Challenges: Management (page 35)
• Recommendations: Management (page 43)

01 Value
Proposition

Defining the Value Proposition

A Sound Transit retail offering could provide value across the following three core pillars. These values,
or selected values, will be key to defining the shape and scope of Sound Transit’s retail offering.
Improve the passenger experience

• Retail provides comfort and convenience to riders
• Convenience retail can reduce the number of trips required to meet passengers’ daily
needs for goods and services
• Retail can activate spaces by creating additional footfall, lingering activities, and meeting
places
• Retail can enliven a daily commute by providing variety and change with the seasons
Contribute to the community

• Retail creates space for commercial opportunities, including for small and local businesses
• Retail in the station can enhance a sense of place and can integrate with retail outside the
station for a connection to the neighborhood
• Retail can realize value for the community by providing social benefits, becoming a
neighborhood center, event venue, and/or offering daily needs goods and services
• Retail services can support economic development goals
Integrate retail with station operations

• Staffed retail provides a human presence which leads to safer stations and station
environments
• Retail may take on some station maintenance responsibilities and reduce the Agency cost
of station maintenance
• Retail can support several financial objectives for the Agency
Creating Co-Benefits: Retail, Transit, and the

15-Minute City
The 15-minute city is an urban planning and design concept that aims to
bring daily essentials to local neighborhoods by providing a mix of uses
all within a 15-minute walk: retail mixes with housing, schools mix with
entertainment, and health centers with office buildings.
Sound Transit has an opportunity to facilitate the 15-minute city concept

by integrating retail and services across its system, creating convenience
for passengers and surrounding communities, both through transit and
amenities. Providing retail and services in addition to transit, Sound Transit can create value in addition and
on top of its core services. These offerings can make transit more convenient and attractive as an option,
creating co-benefits of transit, retail, and services all located in one place. This creates multi-use, 15-minute
city stations and neighborhoods, adding value for the community, passengers, and Sound Transit as an
agency through revenue generation. As these offerings expand and grow, there are also spillover effects for
the surrounding neighborhoods, such as increases to the value of nearby property.

Integrating Retail
with the Sound Transit
Passenger Experience
Retail integrated with Sound Transit stations can provide a range of benefits, both to the passenger
and user journey, and to surrounding communities. Retail offerings can range in size, type, and
location, from offering convenience goods and services, such as drugstores and green grocers,
to offering retail destinations, such as clothing stores and sit-down restaurants. Retail can be built
directly into transit stations or it can be part of larger joint developments, such as office or residential
buildings with ground floor retail built atop transit stations.
This report presents retail in five broad categories: includes but is not limited to restaurants, bars,
vending, staffed concessions, brick and mortar retail, coffee shops, small-format grocers, wine and
pop-ups and programming, and joint development. liquor stores, convenience stores, gift shops,
These cover a range of options that Sound Transit pharmacies, and apparel.
could consider, drawing on national and international
• Pop-Ups and Programming:
examples from other transit systems. Section 2 will
Temporary markets, events,
offer more detail. The categories are not listed in
and pop-ups, such as farmer’s
order of priority:
markets, holiday markets, craft
• Vending: Standalone vending fairs/artisan markets, and food
machines, which can include trucks.
food, drinks, clothing, and
• Joint Development: Integrated
convenience items.
development of transit and
• Staffed Concessions: Stands, non-transit development, which
kiosks, carts, and food trucks can include retail, commercial,
that are staffed by an employee, residential, and/or a mix of uses.
such as coffee carts, hot dog It can also refer to public and
stands, newsstands, and flower private investments that are coordinated between
vendors; typically non-permanent transit agencies and developers to improve land
installations. owned by a transit agency, including the delivery
of transit-specific infrastructure and facilities.
• Brick and Mortar Retail: Joint development can help to create and capture
Businesses that have permanent, value for both transit systems and surrounding
physical store(s), where communities.
customers browse and make
purchases in person. This

Retail can be integrated in three broad ways across the passenger journey:
standalone retail, transitional retail, and integrated retail within the station
environment. The diagram belows shows where these retail types fall along the
passenger’s journey as they move through the station and station environment.
STANDALONE RETAIL
Neighborhood
• Joint TRANSITIONAL RETAIL
development
Adjacent/integrated with
• Pop-ups and
street frontages INTEGRATED RETAIL
programming
• Pop-ups and Within the station
programming environment
• Staffed concessions • Vending
• Brick and mortar retail • Staffed concessions
• Joint development
Station Station Station Station Fare To

Area Access Context Entrance Validation Platform
Ticketing Train
TVM Platform
Train Platform Train
Train Platform
Train
Train Platform Train
Platform
Station Station Station Fare Exit

Station Exit
Area Access Context Validation Platform
STANDALONE RETAIL
TRANSITIONAL RETAIL
INTEGRATED RETAIL

RETAIL IN DIFFERENT STATION
ENVIRONMENTS
This technical memo has been written in conjunction with Sound Transit’s draft Station Experience
Design Manual (‘SEDM’). The SEDM outlines three station environment types, each of which offers
different opportunities for retail. Each type is described below, and is followed by a matrix that describes
which retail types are recommended for each type. This matrix is for the purposes of this memo only, and is
not included in the draft SEDM.
SINGLE USE EMERGENT URBAN ESTABLISHED URBAN
Urban scale block form

Large or irregular blocks Established urban scale
and street pattern already
and discontinuous street block form and street
established or can be
Areas grid; Predominantly pattern; Existing mixing
readily encouraged;
characterized suburban residential, of uses establishing
Some mixing of uses
by commercial or industrial walkable environment;
with a walkable scale but
land uses; Low Higher development
characterized by lower
development densities. densities.
development densities.
Vending could be located within the station envelope and has an extremely small footprint,
Vending so could be included across all station environments. However, it adds no value in terms of
activation through design or safety/security in the form of “eyes on the station”.
Across all types, staffed concessions could be located at stations with footfall/ridership
Staffed to support small staffed kiosks/carts/stands. Minimal space and restrooms required. In
Concessions Established Urban contexts, more intensive retail uses (such as brick and mortar) should
take priority.
In Single Use environments,

brick and mortar retail could Across both Established and Emergent Urban
Brick and serve commuters at the contexts, permanent and physical stores could be
Mortar beginning and ends of their located at major stations with sufficient foot traffic
Retail commutes during AM and to support retail. Large spaces, utilities connections
PM peaks, e.g. coffee shops, and restrooms are required.
newsstands, or pharmacies.
Across both urban environment types, smaller scale

Larger programmatic
pop-ups could be located within stations with high foot
events such as farmer’s
Pop-ups and traffic, such as pop-ups in the World Trade Center
markets on plazas
Programming Station in NYC. These could be located inside the
or parking lots could
station footprint, such as in an atrium or entrance hall
be held in Single Use
(outside the fare gates), or outside the station footprint,
station environments.
such as on a plaza or parking lot.
Joint development may In Established Urban

In Emergent Urban
make sense in some contexts, new commercial
environments, joint
instances in Single Use developments can be built
Retail development can be
environments if adequate directly above or below the
within Joint implemented in the form
density can be provided station with retail integrated
Development of lower to mid-density
to achieve financial at the ground-floor/street-
mixed-use development
feasibility and generate level to activate urban
with a retail element.
revenue. environments.

Sound Transit’s Draft SEDM Retail Guidance

The draft SEDM identifies several ways that retail can be integrated into stations and station environments.
These ways of integrating, locating, and designing retail spaces differ from the five retail types detailed
throughout this document, as the retail guidance in the draft SEDM specifically addresses the physical and
spatial design considerations for stations and station environments.
Concourses between Platforms Food and Beverage Uses near Adjacent, Street-Level
at Regional Transfer Hubs: Event Venues and Stadiums: Convenience Retail in
Where there are longer dwell To help delay the surge of people Neighborhoods: Where people
times and foot traffic throughout leaving event venues and prevent can combine daily shopping
the day at transfer stations. overcrowding of the stations. needs with their commutes and
Environment: Established Urban Environment: Any there is a constant flow of foot
Example: Westlake Station Example: Tacoma Dome Station traffic throughout the day.
Environment: Established Urban
Example: Chinatown International
District Station
Food Halls in Significant Temporary Markets in Public

Architectural Spaces: Plazas: Easily programmable
Comfortable, grand, sometimes open space
historic spaces where people Environment: Any
might want to linger. Example: Downtown Redmond
Environment: Any Station
Example: Union Station

02 Retail
Types
The relationship between available
physical space, ridership, and other
planning and design considerations is
integral to identifying an appropriate retail
type for specific station environments or
a specific station. As introduced earlier in
this document and detailed in this section,
retail opportunity is characterized using
five broad categories: vending, staffed
concessions, brick and mortar retail,
pop-ups and programming, and joint
development. This analysis shows the
range of options that Sound Transit could
consider based on what is present in
other systems, rather than a prescriptive
recommendation or strategy at this stage.

Situating Retail Types

in Context
This section describes the five retail types in more detail, and uses the following
considerations to characterize each type, with the exception of joint development. Joint
development is much broader in scale and can be implemented in wide-ranging ways. The
considerations listed below are key to determining which types of retail are implementable
in a given location or station environment. This section also offers precedents that illustrate
how other transit agencies have implemented each retail type.
Passenger Journey Stage Design and Infrastructure Requirements

References where relevant content for Requirements that need to be fulfilled
each retail type can be found in the to implement a certain retail type. Also
SEDM’s passenger journey stage. includes retrofit considerations for retail
implementation at existing stations.
Relevant Station Environment Types
Consistent with types outlined in the draft Applicable Sound Transit Policy
SEDM Guidance, Station Environment Relevant Agency policies and guidance
Types applicable to a certain retail type. from Sound Transit’s Design Criteria
Manual and Sound Transit Board Motions.
Minimum Physical Space Required
Minimum square footage required for each Zoning, Building, and Health Department
retail type to operate. Codes
Requirements according to the National
Minimum Recommended Station Fire Protection Association-130 (NFPA-
Ridership 130) and local codes.
The minimum ridership required to support
each retail type.
Potential Revenue Generation from Retail

Rent
The approximate revenue that Sound
Transit can expect to collect from retailers
from rent payments.

Vending
Vending refers to standalone vending machines that Challenges
can include food, drinks, clothing, and convenience • Electrical outlets are required, and it can be
items. This type of retail generally requires low difficult and/or costly to retrofit a space for this
maintenance but can be prone to vandalism and type of electrical infrastructure and wiring
doesn’t contribute to community value. Standalone • Higher potential for theft and vandalism as
vending and concessions programs require minimal there are no staff present to monitor vending
resources and can be implemented at most stations. machines as there are with, for example, staffed
At stations with a small amount of space and/or concessions
relatively limited ridership, appropriate options may
include standalone snack and beverage vending Opportunities
machines, ATMs, and package lockers. • No associated labor costs for operation which
leads to operational costs reduction (vending
machines are typically managed by third party
companies)
• Minimal maintenance required, i.e. few
unforeseen operation and maintenance risks that
can result in additional costs
PRECEDENTS
MARTA offers drinks via vending systemwide. The New York MTA has started a vending
Initial concerns about litter have been proven machine pilot program to offer things typically
unfounded. The agency uses vending sales sold by newsstands, such as earplugs,
to market stations’ sales potential to in-person packaged snacks, and over the counter drugs.
retailers. The program was recently expanded to include
Personal Protective Equipment.

IMPLEMENTATION CRITERIA VENDING
Draft SEDM Guidance Referenced in Chapter 3 under “Third Party Amenities”
Relevant Station
All station environment types
Environment Types
Recommended Physical
20 square feet (5’ width by 4’ depth), with a height of roughly 8’
Space Requirements
1,200 weekday ridership

Minimum Recommended
Station Ridership* Sample of existing Sound Transit stations:
• All Link stations
~$200 per machine per month4
Monthly rent is contingent on forecasted versus actual ridership data,

and it can be structured in terms of flat monthly rents or profit sharing
with vending machine service provider
• Flat rent example: SFMTA will initially charge $200 per machine
Potential Revenue
Generation from Retail per month in their new central subway line stations, with plans to
Rent increase that as ridership projections can be confirmed
• Profit sharing example: SFO has an agreement with its vending

machine service provider giving the airport 15% of gross sales up
to roughly $1,000 per month per machine, and 20% of gross sales
over that threshold. This nets the airport an average of roughly
$250 per month per machine
• Electricity Access
Design and Infrastructure • Trash Receptacles
Requirements • Retrofit considerations: Electrical outlets will need to be provided
in any retrofitting that takes place
Sound Transit’s Design Criteria Manual states that “Standalone

Applicable Sound Transit vending machines are prohibited on platforms. Vending equipment
Policy and adjacent surge space shall not obstruct required site and station
circulation; vending machines shall have weather protection.”
Zoning, Building, and

Minimal
Health Department Codes
*See Ridership Threshold Table in Appendix B for more details on minimum ridership

Staffed Concessions
Staffed concessions are stands, kiosks, and carts Challenges
that are staffed by an employee, such as coffee carts, • Electrical outlets are required, and it can be
food stands, newsstands, and flower vendors, and difficult to retrofit a space for this type of electrical
are typically non-permanent installations. These can infrastructure and wiring; also, restrooms are
include mobile carts as well as larger prefabricated required if there is on-premises consumption of
units that typically stay put for a year or more. Staffed food/beverages
concessions could be used as a way of scaling up or
testing a retail strategy, for example, using coffee and • Moderate maintenance required as garbage is a
bagel carts in plaza spaces to see what demand will byproduct of concessions
be. • Various permits/agreements are required (e.g.
mobile food service permit/use of restroom
A staffed concessions program requires additional agreement)
resources such as restrooms (for vendor employees
at least) and includes on-site vendor employees. Opportunities
Stations with medium to high ridership and with ample
• Standalone vending and concessions can also be
space and restrooms can support more multifaceted
included to supplement the program without any
vending and concessions programs. These stations
operation and maintenance cost risks
have enough foot traffic to support coffee and/or food
kiosks or brick-and-mortar shops and retail, in addition • Can generate small amounts of non-fare revenue
to any of the standalone vending options. for Sound Transit
• Temporary outdoor staffed vending and
concessions opportunities are particularly
appropriate during summer months
PRECEDENTS
New York MTA at Grand Central Station The SFMTA plans to use strategically-placed
rents out small (32 square feet) kiosks to small, kiosks rented to major name-brand retailers to
independent retailers that cannot afford the attract consumers into its new retail cluster on
high rents on the station’s brick and mortar the Central Subway line.5 These small kiosk
retail spaces. These kiosks are so popular that spaces are sufficient for operating outposts of
major brands (such as Starbucks or Illy) and
MTA uses a lottery system to determine which
activating name recognition.
businesses get the coveted leases, and the
lease terms are only 3 months, to allow more
businesses the opportunity to get space.

IMPLEMENTATION CRITERIA STAFFED CONCESSIONS
• Adjacent, street-level convenience retail in neighborhoods

Draft SEDM Guidance • Concourses between platforms at regional transfer hubs
• Food and beverage uses near event venues and stadiums
Relevant Station Any station with the necessary ridership (see Minimum Ridership
Environment Type section below).
Food carts: 32-40 square feet (7-8’ width by 4-5’ depth)

Prefab units, such as full-service coffee bars or the Blinq stores that
Space Requirement
briefly operated in BART stations6: 90-150 square feet (13-17’ width by
7-9’ depth), with a height of roughly 8’
2,400-4,800** weekday ridership
Sample of existing Sound Transit stations:

Minimum Recommended • Newsstands (min. weekday ridership 2,400): SODO, Mt. Baker
Station Ridership* • Coffee carts (min. weekday ridership 2,800): Angle Lake, Beacon
Hill, Columbia City, Othello
• Hot food stands (min. weekday ridership 4,800): University Street,
Chinatown-International District (CID)
Potential Revenue
Generation from Retail ~$550-$900 per kiosk per month7
Rent
• Depending on where staffed concessions are located full

mechanical, electrical, and plumbing (MEP) and sprinklers may be
necessary
• Restroom access required
Design and Infrastructure
• Retrofit considerations: A minimal amount of space is required
Requirements
for staffed concessions. Electrical outlets and restrooms will
need to be provided in any retrofitting that takes place, as well as
potentially sprinklers, water, a grease trap, and drainage for semi-
permanent food service kiosks
Sound Transit Board Motions ST M98-64, M98-65, and M98-66

Applicable Sound Transit
state “Consider carts by way of electricity, access to water, and square
Policy
footage at multi-modal stations.”
• Local zoning codes will influence retail opportunities

Zoning, Building, and • NFPA-130 and local codes may require sprinklering, depending on
Health Department Codes exact location
• AHJ health departments will regulate kitchens to fruit carts
*See Ridership Threshold Table in Appendix B for more details on minimum ridership.
**Different types of staffed concessions require different amounts of revenue, which leads to different ridership thresholds.
Additional detail is included in the Ridership Threshold Table in Appendix B.

Brick and Mortar Retail

Brick and mortar type refers to retail businesses Challenges
that have a permanent, physical store(s), where • Permanent utilities infrastructure for electricity,
customers browse and make purchases in person. water, sewer, and possibly gas required
Brick and mortar retail could be used to activate • Require staff restrooms at a minimum, and
concourses, historic buildings, and street-level depending on the type of business, public
spaces, for commuters, residents, workers, restrooms may also be required
and tourists. This includes but is not limited to • Space needs to be flexible enough to
restaurants, bars, coffee shops, small-format accommodate a variety of uses, so as not to limit
grocers, wine and liquor stores, convenience stores, prospective tenants
gift shops, pharmacies, and apparel. • Higher capital costs due to infrastructure costs
A built-in retail program requires additional resources Opportunities

such as permanent utilities of electricity, water, • Can create destinations through targeted retail
sewer, and possibly gas will be required. Similar to offerings and clusters
the stations suitable for staffed concessions, stations • Can help to activate spaces and generate foot
with high ridership, located at a major transfer point traffic, which increases public perceptions of
or the terminus of a transit line, and with a larger safety, as more people circulate nearby
space and restrooms, can support built-in retail • Can provide a range of offerings and services,
programs. These stations likely have enough foot creating convenience for passengers
traffic to support brick and mortar retail, in addition • Has the potential to generate significant non-fare
to other types of concessions such as vending and revenue for Sound Transit
kiosks.
PRECEDENTS
Turnstyle Market is a 27,000 SF retail cluster in Denver’s Union Station has brick and mortar
the busy Columbus Circle station in New York. It retail space integrated into the historic building
is 85% food service businesses, most of which (the retail was added during a renovation in
are “grab and go” style shops. The market is run 2012), both inside the station and facing outward
by a private operator, who put capital investment into the plaza. The retail is run by a private
into the space before finding individual retailer entity, which holds a 99-year ground lease on
tenants. It generates at least $1.25 million the retail components. RTD receives a portion of
annually for MTA. the profit.

IMPLEMENTATION CRITERIA BRICK AND MORTAR RETAIL
• Concourses between platforms at regional transfer hubs

• Adjacent, street-level convenience retail in neighborhoods
Draft SEDM Guidance
• Food halls in significant architectural spaces
• Food and beverage uses near event venues and stadiums
Relevant Station Any station with the necessary ridership, most likely in Established Urban
Environment Type environments.
Smaller stores, such as grab & go (prepared offsite) or convenience retail:

150 square feet (10’ depth by 15’ storefront), with a height of at least 12’
Space Requirements Larger stores, such as restaurants: roughly 2,000 square feet (20’ minimum
storefront, with 40-50’ more desireable, and up to 100’ maximum depth), with
a height of at least 12’ 8
2,900-10,000** weekday ridership depending on the specific retail offering.

Sample of existing Sound Transit stations:
• Grab & Go Café (min. weekday ridership 2,900): Beacon Hill, Pioneer
Minimum Recommended Square
Station Ridership* • Durable Goods, Convenience Grocery (min. weekday ridership 6,000):
University Street, CID
• Restaurant (min. weekday ridership 10,000): University of Washington,
Westlake
~$2.00 / SF / month (average across metro area)9. Retail rents vary

Potential Revenue considerably by neighborhood. The Tacoma Dome area, for example, can
Generation from Retail expect lower retail rents relative to the metro area (roughly $1.50 per SF per
Rent month), while the Westlake area, for example, can expect higher retail rents
(roughly $3.75 per SF per month)10
• Mechanical, electrical, plumbing and sprinkler provision

• Restroom access in underground locations, exhaust, and fresh air supply
for mechanical systems will be more challenging than at- or above-grade
locations. Additionally, separate service elevators in addition to the
required passenger elevators may be desirable at below- or above-grade
Requirements locations.
• Retrofit considerations: A large space is required for built-in retail.
Permanent utilities of electricity, water, sewer, and possibly gas provision,
staff and public restrooms will need to be provided in case of retrofitting
Sound Transit board motions ST M98-64, M98-65, and M98-66 state

Applicable Sound Transit “Consider built-in retail at stations where utilities are already provided.
Policy Provide built-in retail at stations where restrooms are recommended. The
utmost flexibility in facilities is required.”
Local zoning codes will influence retail opportunities. NFPA-130 and local
codes may require sprinkler system, depending on exact location. AHJ health
Health Department Codes departments will regulate kitchens to fruit carts.
*See Ridership Threshold Table in Appendix B for more details on minimum ridership.
**Different types of staffed concessions require different amounts of revenue, which leads to different ridership thresholds.
Additional detail is included in the Ridership Threshold Table in Appendix B.
Pop-Ups and Programming

Pop-ups and programming include temporary • Business licenses and permits required (e.g.,
markets, events, and pop-ups, such as farmer’s temporary food establishment permits, street use
markets, holiday markets, craft fairs/artisan markets, permit, etc.)
and food trucks. This type of retail could be used
on under-utilized properties to activate space, for Opportunities
example through local carts and food trucks. Stations • A quick and affordable way to ‘test-market’
with parking lots, large plazas, and other extra an area or concept that is innovative (or non-
spaces or high ridership at specific time periods may traditional/unproven)
be suitable for temporary and pop-up activities such
as farmer’s markets, food trucks, and other events. • Immediate activation of retail space and foot
Standalone or staffed vending and concessions may traffic increase, for example, through local
or may not also be feasible at these stations. farmer’s markets, food trucks, and other events
• Rental revenue increases during major events

Challenges
when the ridership numbers reach a peak
• Proximity to restrooms preferred but usually
not required, but guidelines of certain local • Strategic partnership with an online platform to
jurisdictions can specify otherwise source the pop-up tenants
• Tenants are usually charged at a below market

rent and limited landlord investment required
• Contingent on the ridership peaks driven by

travel patterns and/or periodic events
PRECEDENTS
BART leases the surface parking lot The San Francisco Transbay The New York MTA holds an annual
at its Ashby Station to a weekly flea Joint Powers Authority has six-week holiday market at Grand
market every weekend. In addition encouraged food trucks and other Central Station, charging each of
to generating some revenue for the pop-up retailers to locate outside the 40 vendors $15,000 for the
agency ($2,600 per month), it also the new Salesforce Transit Center. duration for the market period. The
activates the space and provides a Notably, upscale establishments fair is such a popular and profitable
neighborhood amenity. have taken them up on this offer, event for retailers that more vendors
including a French bakery food truck consistently apply for space than the
by Michelin-starred chef Dominique fair can accommodate. Each booth
Crenn.11 is 60 square feet, and the market
attracts millions of visitors each year.

IMPLEMENTATION CRITERIA STAFFED CONCESSIONS
Draft SEDM Guidance Temporary markets in public plazas
Any station environment types with sufficient space, including:

Relevant Station
• Established urban
Environment Type
• Emergent urban
Varies
• Food truck pop-ups at the Salesforce Transit Center take place on a
plaza of about 5,000 square feet
• The San Francisco ferry building Farmer’s Market takes place on
Space Requirements
about 10,000 square feet of ferry building land
• The Ashby Flea Market uses over 50,000 square feet of parking lot
space
Station ridership is not directly applicable, though footfall from the

surrounding neighborhood should be considered. For example, some
pop-ups may benefit from more urban environments with higher footfall
(e.g. food trucks, local markets), while others may serve as destinations on
their own and bring people to the neighborhood (e.g. flea markets). Sound
Transit stations that may be good candidates for pop-ups (based on space
availability):
• The large space underneath the elevated Mt. Baker station could
Minimum Recommended
potentially host pop-up events, but the space would need restrooms
Station Ridership*
and utility connections.
• Downtown Redmond will have 400 feet of elevated tail tracks
adjacent to the station and over the Redmond Central Connector, a
linear park with connections to a regional bike system. The space
below the tail tracks could be programmed in a number of different
ways including pop-ups, art installations accompanied by markets, or
even a bicycle repair shop. Restrooms and basic utility hook-ups are
planned for the ending tail track sculptural piece.
Potential Revenue Rents typically used to break even on program administration costs.12
Generation from Retail Generally, temporary/pop-up events only cover the cost of administering
Rent the permitting program, and do not generate profit for the agency.
• Restroom access required for tenants (and beneficial for patrons)

• Provision of power connections adds flexibility
• Retrofit considerations: A large space is required for temporary/pop-up
activation. Pop-up stalls require minimal construction.
Requirements
• Coordination with local AHJ fire marshal and regulations may be
necessary. All new planning for spaces should confirm the possible
need for standpipes or sprinklers
Applicable Sound Transit Not applicable – pop-ups and programming are not included or referenced
Policy in Sound Transit policy

AHJ health departments may regulate food vendors including fruit carts.
Health Department Codes
*See Ridership Threshold Table in Appendix B for more details on minimum ridership
Broader Opportunities:
Joint Development
Joint development refers to the integrated development of transit infrastructure with other
development, which can include retail, commercial, residential, and/or a mix of uses. It can also refer
to public and private investments that are coordinated between transit agencies and developers to
improve land owned by a transit agency. Joint development is a form of value capture, as a transit
agency captures some of the economic value created by new development and uses the funds to help
finance system expenses.13
Overall, joint development can offer potential for

greater scale and additional retail opportunities
beyond the station box and headhouse. For example,
Sound Transit could partner with a developer to lease
property owned by the transit agency near a transit
station to build new office space or residential units,
thereby raising revenue for the transit system as a
result of increased passenger flow, and improving
the passenger experience by utilizing retail as station
amenities. Alternatively, the transit agency could
define and take a condominium or other property right
interest in a vertically integrated development owned
and delivered by a private party.
As Sound Transit develops a retail strategy for

its stations (in particular, Westlake Station), joint
development prospects should be further studied,
and retail integration opportunities identified as part
of these development opportunities. Three main Martin Place Metro Station, Sydney, Australia
areas should be considered in determining feasibility
of a joint development project:
The following case study examples illustrate the
• Building design and infrastructure (e.g. utilities, range of possibilities joint development has to offer.
construction, and phasing)
• Urban context (e.g. density, development type,
and scale)
• Market context and development considerations
(e.g. cost efficiencies, security, delivery models,
and funding sources)

TRANSPORT FOR LONDON - CANARY WHARF THEMES &

Design and delivery
KEY TAKEAWAYS
• Leveraging private
The Canary Wharf Crossrail
funds to help pay for
Station was partially funded by
station construction
a private real estate group in
exchange for influence over the • Designing retail above
station design and improved the station to have
rail service to the surrounding strong connections
properties. Since station into the station itself
construction, development and serve as a
in the area has boomed. neighborhood hub
Complementing the station’s
role as a transportation hub, a retail mall sits above the train
tracks, serving as a central neighborhood gathering spot. The retail
offerings integrate seamlessly with the neighborhood (including a
public park) and the rail station, bringing convenience to people in
the neighborhood and riders alike.
LA METRO - JOINT DEVELOPMENT PROGRAM THEMES &

Affordable housing and retail
KEY TAKEAWAYS
• Leveraging private
LA Metro’s joint development
funds to pay for build-
program is focused on increasing
out of retail space
ridership through transit-
oriented development (‘TOD’). • Incentivizing and
The program also has strong facilitating private joint
goals for creating affordable development to include
housing and meeting community affordable housing
needs, including activating the
streetscape through ground-floor • Working with local
retail. The agency utilizes private jurisdictions to facilitate
investment to create transit-oriented retail, for example at Wilshire larger joint development
& Western, where a private developer built ground-floor retail on projects
Metro-owned land adjacent to the station entrance. The developer
owns a 99-year ground lease on the transit-oriented property and
fully manages it, while paying annual rent payments to Metro.
LA Metro also coordinates with local agencies (such as the LA
Department of Transportation in this example) to acquire more land
and increase the size of its TOD projects.

SYDNEY METRO - MARTIN PLACE STATION THEMES &

Private sector-led development
KEY TAKEAWAYS
• Retail integrated into
Sydney Metro’s new Martin Place
underground concourse
station is being built entirely
connecting stations
by a private developer who is
simultaneously constructing a • Leveraging private
new commercial development funds to pay for almost
directly above the station. the entirety of station
Sydney Metro will retain construction (90%)
ownership of the underground
station once complete and has
sold the air rights above the
station to the developer. The revenue from the air rights sale has
covered roughly 90 percent of the station construction costs. The
new development will seamlessly integrate with the station and
surrounding neighborhood by providing public realm improvements
and pedestrian tunnels to connect to the surrounding area.
WMATA - JOINT DEVELOPMENT PROGRAM THEMES &

Systemwide approach
KEY TAKEAWAYS
• Creating rider
WMATA has an extensive joint
convenience by building
development program focused
direct connections from
on building transit-oriented
stations to adjacent
development primarily at their
developments, and
more suburban stations. These
adding retail
tend to be large projects that
increase ridership, create station- • Creating medium-
adjacent retail convenience for density town-center
riders, and generate ongoing type developments in
revenue for WMATA through suburban areas
ground leases (WMATA’s policy is to use ground leases instead of
land sales whenever possible). These projects can also serve as • Systemwide joint
mixed-use town centers in the more suburban areas that do not have development strategy
other mixed-use development. that has led to a
large amount of joint
development, especially
in suburban areas

HONG KONG MTR - DEVELOPMENT POLICY THEMES &

Revenue generation
KEY TAKEAWAYS
• Retail integration
Hong Kong MTR takes advantage
into underground
of the value created through rail
concourses across
transit by jointly developing its
the system, as well
stations with retail, residential,
as integrating large
and other commercial use, either
developments (including
directly above or directly adjacent
retail developments)
to the stations. Unlike other
above and directly
joint development examples,
adjacent to stations
MTR typically builds, owns, and
with easy and direct
operates these developments
pedestrian connections
itself. Through this strategy, MTR generates significant revenue,
enough that it does not rely on government funding to operate • Significant revenue
and expand its rail system. This approach also provides rider generation through
convenience by placing a wide selection of retail opportunities in the retail rents and value
station area, and by directly connecting these large developments capture of development
with the stations. opportunities

The Future
of Retail and
Implications
for Transit
Drivers and Trends
Even before the COVID-19 (COVID)
pandemic, the nature of retail was
changing, from consumers demanding
more experiential shopping experiences
to the rise of e-commerce. Some of
these trends will likely be changed
or accelerated by COVID, such as
e-commerce, and the effects of COVID
may result in lasting, longer term changes
to retail behaviors, patterns, and offerings.
The retail trends outlook beyond 2020 might
seem uncertain, but there is predictability
that passenger convenience will remain
an important piece of the equation.
Convenience is part of an overall positive
passenger experience, enhancing the
journey while providing daily services and
essentials.
This section highlights three key broader

retail trends, which are relevant to transit
retail integration and should be considered
when planning for the specific types of retail Sound Transit might implement
at its stations.

Pop-up Partnerships
Companies are becoming increasingly keen on Implications for transit: The New York
using pop-ups to generate excitement and activity MTA signed a deal with a large pop-up
around their brand. For more established brands, retail provider (Storefront) in February
pop-ups can break up the “business as usual” 2020 to run ten pop-up retail locations throughout
pace of their typical advertising campaigns, while their subway system. Vendors can rent these
for start-ups, pop-ups can be a low-cost way to spaces out for periods ranging from a single day to
increase brand recognition. Pop-ups are also a a month. TfL also has an extensive pop-up program
way for primarily online retailers to connect with where TfL has converted small disused spaces
existing customers and attract new ones through an in high-footfall station locations to provide unique
offline channel. The small-format pop-up, requiring retail spaces for start-ups and small businesses.14
minimal square footage, can fit well into transit
stations with limited space availability.
Click and Collect (E-Commerce)

As e-commerce grows, demand for convenient lockers can be coupled other convenience retail
locations to pick up goods ordered online is options, such as green grocers and convenience
growing. Using pick up points instead of home stores.
delivery is a more attractive option to many
consumers due to lower shipping costs and Implications for transit: In 2018, the
reduced risk of package theft. Amazon has been University of Washington Urban Freight
expanding their offerings of Amazon Lockers and Lab did a study of Link Light Rail stations
has discussed putting lockers in transit stations so that could serve as strong locations for a common
that consumers can more easily pick up their goods carrier locker system pilot program. The study found
on their way home, which would provide additional that University of Washington Station, Capitol Hill
convenience for passengers. Click and collect Station, and Westlake Station would all make good
candidates.16
Smaller Store Formats

Even pre-COVID, retailers have been moving away noted that the average visitor to Nordstrom Local
from traditional malls and big flagship stores and stores spends 2.5 times as much as the average
investing more in small-format stores. This is part visitor to traditional stores.18 Amazon is also
of a larger strategy where retailers are increasingly adopting this approach, opening a range of small-
looking to couple digital presence with traditional format stores that target specific consumer needs,
brick and mortar retailing through omni-channel such as Amazon Books, Amazon 4-Star, Amazon
technology that allows customers to interact Go (groceries), and Amazon Pop Up.19
seamless with both aspects of the retailer. Small-
format stores can provide publicity for a larger Implications for transit: In 2011, Apple
brand in addition to generating direct sales; store opened a new location inside New York
openings are linked to a 37% spike in retailers’ MTA’s Grand Central Station. Apple has
web traffic on average.17 Target and Nordstrom, stated that giving consumers the chance to try out
two brands generally known for their large big- their products through high-profile stores like this
box and department-style stores, respectively, location has been key to their sales success.20
are both focusing their expansion on small-format
neighborhood stores. Nordstrom in particular has

03 Sound Transit
Challenges
To develop a successful retail offering,
Sound Transit first needs to understand
the challenges the agency faces, from
policy to implementation to management,
and approaches to overcome these
obstacles. This chapter outlines these
challenges, and how other agencies have
overcome similar barriers to ensure the
success of their retail offerings.


CHALLENGES: PLANNING AND POLICY
Planning and policy challenges refer to the issues occurring at an early phase of the retail
implementation process while developing criteria for strategy and site selection for retail.
Challenge 1: Working across and partnering with multiple jurisdictions with different priorities and policies
Working across various jurisdictions can present challenges in aligning with local priorities and policies, and
navigating different local permitting processes, zoning, and ordinances. Sound Transit needs to navigate
through the planning challenges while working with local jurisdictions, who have their own safety, fire code,
and setback requirements. Sound Transit will also need to plan for these requirements early in the design
and planning process by coordinating with local jurisdictions. These issues are likely to be different for each
jurisdiction and are also expanded upon in the Design challenges section below.
How other agencies have addressed similar At BART’s West Oakland station, BART worked
challenges with the City of Oakland in a joint process to create
When BART wanted to a development program that appealed to both the
build retail space in its City and the agency. Although BART’s development
Richmond station parking partner originally proposed an office-focused
structure, it found that local development with one million square feet of office
fire safety requirements space and 185 housing units, the City wanted to
were more stringent than see more affordable housing on the site, as well as
they typically built to. more public space. BART worked with the City to
City fire code required create a housing-focused development program with
sprinklers in the retail space, which would increase 762 residential units, 240 of which (31 percent) will
costs considerably. However, after working together, be affordable. The project still includes a sizeable
the City gave BART funding (in the form of a credit on (300,000 square foot) office component. The
permitting fees) to help finance the construction of the development also includes ground-floor retail use,
space. This was in large part because the City viewed which will be focused on a plaza space underneath
the project, dubbed the Richmond Business Hub, to the elevated train tracks. The MOU with the City
be an important economic development project for the allows BART to maintain control of the open space,
neighborhood. It houses a co-working space, as well and permit and program the space.
as several small locally owned retail businesses.21
Challenge 2: Clarifying Agency retail policy goals and guidelines

Ensure that Agency policy provides for provisions that allow the Agency to select the best fit for the space,
such as allowing below-market rents to achieve other Agency goals. Promoting small, locally-owned, and/
or independent businesses may be difficult if Agency policy requirements, such as market-rate rent or an
onerous contracting process, do not allow flexibility.
How other agencies have addressed BART had a clear basis to

similar challenges terminate the relationship
BART’s 2011 retail policy set out three goals: revenue based on the stated, pre-
generation, protection of core transit functions, defined goal of protecting
and rider convenience. When the master tenant core transit functions.
they worked with could not adequately account for
pedestrian traffic flow and line-of-sight considerations,

New York MTA found that their retail policy did not SFMTA’s new Chinatown Station on the upcoming
allow for rent flexibility Central Subway will be subject to the City of San
during the current Francisco’s prohibition of
pandemic-related formula (chain) retail in
economic downturn, certain neighborhoods
and found that rent (which include Chinatown).
requirements were placing To comply with this policy
an undue burden on small and take advantage of the
businesses. To support existing retail tapestry,
these businesses, the SFMTA plans to reach
agency passed a new policy drastically reducing rents out to local retailers in
and clearly defining future increases as based on the station area to explore ways that the station’s
gross sales or ridership.22 retail spaces can not only be occupied by local
retailers, but can fit in with the neighborhood’s cultural
environment.23
Challenge 3: Balancing revenue generation with ensuring small, local businesses have access to retail
opportunities
It can be difficult for transit agencies to provide space for small and local businesses if they aren’t allowed
to offer market-rate rent discounts due to their policy, or if they are unable to subsidize small business
tenants due to financial constraints. Higher revenue spaces can be used to cross-subsidize less profitable
businesses, small and/or local businesses, and to advance other potential Sound Transit goals, for example
providing community space. This concept is detailed further in the recommendations chapter.
How other agencies have addressed New York MTA maintains a 50-50 split between
similar challenges big brands and small businesses at Grand Central
MARTA’s iVillage does not generate revenue for Station. Part of the way it does this is by providing
the agency, and rents small kiosk options for businesses that cannot afford
only cover the cost of larger brick and mortar spaces. MTA also uses a
operations. However, the lottery system to determine which retailers may get
project activates previously the kiosk spaces, as there are consistently more
unused space while applicants than spots.
creating convenience for
riders and neighborhood
residents, provide a low-
cost opportunity for local
low-income aspiring business owners to get started,
and generally help the neighborhood economy.

CHALLENGES: BUSINESS STRATEGY/MODEL
Business Strategy/Model challenges refer to issues related to creating a coherent business strategy
and structure for retail.
Challenge 1: Selecting market appropriate tenants

The local context, market, and demand should be considered in selecting appropriate tenants and tenant mix.
Competing with or duplicating adjacent or nearby TOD retail should also be taken into account.
How other agencies have addressed MARTA used shipping

similar challenges crates to build low-cost,
BART used kiosks with low-rent retail spaces in a
low capital costs to provide neighborhood that could
retail while TOD was under not support market-rate
construction, and once rents.
the TOD was completed,
moved the kiosks to a
different location to avoid
competition.
Challenge 2: Ensuring that retail does not operate at a loss:

Retail spaces underground command lower rents than at street level, and they can be costly to build. Ensure
that the system’s retail offerings meet the necessary revenue targets, and cross-subsidize low-rent tenants
by pursuing high-rent tenants if necessary. Furthermore, consider ways to approach retail provision that
minimize financial risk to the Agency.
How other agencies have addressed LA Metro, rather than

similar challenges building in-station
New York MTA built a retail and risking losing
large retail cluster with money in the process,
over 35 tenants (Turnstyle chose to engage in
Market) in one of their joint development at its
busiest stations, Columbus Wilshire/Western station,
Circle. Although MTA and have the private
discounts rents relative to entity build and operate retail at street level above
street-level retail spaces, the market still generates a the station (adjacent to the station entrance). This
revenue of over $1.25 million annually for the agency. removed financial risk from the agency and put it on
The MTA explicitly tries to encourage independent, to the private sector. However, the retail rent revenue
local businesses to rent its retail spaces, and local goes to the private party rather than LA Metro (except
businesses appreciate the lower rents they can get for relatively small payments for the ground lease),
from in-station retail as opposed to street-facing retail. and the agency has no influence over the retail
However, the MTA does not further discount rents establishments that locate there (in other words, it
for local businesses. To the contrary, they seek out cannot prioritize locally-owned or community-serving
higher-end retailers, such as a sushi restaurant, which businesses).
makes $130,000 per month in revenue.24

WMATA and MTR both both in terms of direct real estate revenue and
frequently use large joint ridership generation. For example, WMATA’s joint
development projects (of development policy states that they typically work with
over 100 dwelling units local jurisdictions to identify economic development
in size) at their stations goals, and states general support for affordable
to generate significant housing creation. However, the policy offers no
revenue and increase requirements or specific tools to promote economic
ridership. Although both development or affordable housing. Revenue is the
agencies consider community need when designing primary consideration.25
projects, their first consideration is agency revenue,
Challenge 3:Defining flexible lease terms

It can be difficult for transit agencies to provide space for small and local businesses if they aren’t allowed to
offer market-rate rent discounts due to their policy, or if they are unable to subsidize small business tenants
due to financial constraints.
How other agencies have addressed SFMTA uses leases which have built-in options to
similar challenges extend based on performance, which allows the
SFMTA and MTA Turnstyle agency to find new tenants if current tenants are
Market have both found not meeting the agency’s needs but offers tenants
that shorter leases offer some stability. Turnstyle Market has found that
flexibility to both the small businesses tend to prefer shorter leases, and
agency (whose priorities structures its leases to use profit sharing rather
are transit and community than flat rents, which means that retailers are less
benefits) and tenants concerned about rent increases at the end of each
(who are able to test out lease term.
their business in a space
without being locked into a long-term lease). Some
retailers, especially new or small businesses, may
prefer a short lease because they are unsure of how
much revenue they will get, and do not want to be
locked into a lease that is not profitable for them.

CHALLENGES: DESIGN
Design challenges are complexities associated with provisions for retail spaces into station
architectural and site designs during the planning phase of project development.
Challenge 1: Complying with and designing for fire/life safety and other health and safety regulations
Understanding and incorporating various requirements, regulations, and codes such as safety and security,
FTA regulations, fire codes and life safety can be a challenge, especially when retrofitting, and other technical
requirements (e.g. parking, setbacks, open space, facades, etc.). As noted in the Planning and Policy section
above, Sound Transit will also need to plan for these requirements at the early phase of design and planning
process by coordinating the work with local jurisdictions.
How other agencies have addressed specifically with the retail space on the ground floor of
similar challenges the parking garage, where
Hong Kong MTR designs the local fire department
its retail areas with a wanted more sprinklers
dropdown fire shutter to than BART would typically
prevent a fire that started include. The inclusion of
in one area from spreading these sprinklers increased
to another (e.g. from retail costs considerably for
to transit areas). The BART. After working
shells themselves are also together, the City gave BART a maintenance credit
built like hardened pods to to help fund the construction of the space. This was
prevent fire spreading. in large part because the City viewed the project,
dubbed the Richmond Business Hub, to be an
BART built its Richmond parking structure to a important economic development project for the
higher safety standard than the rest of its system by neighborhood. It houses a coworking space, as well
request of the local fire department. The issue arose as several small locally owned retail businesses.
Challenge 2: Providing for sufficient infrastructure provision upfront to preclude the need for retrofitting
Retrofitting stations for retail space can be complex regarding physical space, design, regulations (as
described above), and also, in some cases, impossible due to physical, budget and time constraints. Ideally,
the retrofitting should be avoided at all costs at the new stations by planning and designing for the required
infrastructure provisions at an early phase of the design.
How other agencies have addressed retail location in downtown San Francisco, and the
similar challenges street-facing retail spaces would generate significant
SFMTA recently undertook an evaluation of rent revenue for the agency if filled. The provision of
chronically vacant retail spaces in an agency-owned restrooms and utility connections could have been
parking structure and significantly cheaper if identified at the initial build-out
concluded that significant phase.
capital investment was
necessary to attract
tenants. This parking
structure is in a prime

TransLink has found that, over time, demand has a newsstand, but require
shifted away from small newsstands (especially utility connections such as
as tobacco sales on public property are banned), water and wastewater that
and they are retrofitting many of their spaces to newsstands do not.
accommodate other types of businesses such as
coffee kiosks, which use a similar amount of space to
Challenge 3: Selecting appropriate locations for retail within stations

Locating retail in areas that are on the way of the passenger journey, accessible and visible to the public,
consider line-of-sight requirements, and consider core transit functions (such as pedestrian traffic flow) and
operations can be a challenge. The design requirements such as line of sight, footfall, signage/wayfinding will
also need to be considered from the retailer’s perspective.
How other agencies have addressed Denver RTD has an

similar challenges internal Urban Design
BART found that private group which leads the
retail master lessee they station design process,
worked with failed to including assessing
consider lines of sight the retail location and
aspects and proposed identifying potential sight
locating retail in places line conflicts.
that could negatively affect
traffic flow and transit operations.

CHALLENGES: MANAGEMENT
Management challenges start arising at a later stage of the implementation process when assessing
and selecting appropriate delivery and management models that support the retail vision for station
environment types leading up to the procurement, and followed by the operation and maintenance
phase.
Challenge 1: Procuring of tenants

Procurement methods and strategy for tenant selection can be a challenge and can also create restrictions
for Sound Transit since the typical requirements of a public procurement process result in less flexibility in
terms compared to a standard commercial lease. Procuring the appropriate mix of tenants that meet market
demand, carry out Sound Transit policy, and generate revenue can be a challenge.
How other agencies have addressed retail companies for longer
similar challenges terms, because these
BART uses a formal RFP process to find its retail retailers can handle the
tenants. Because of this lengthier process, they significant administrative
tend to lease out space to larger, more established burden.
Challenge 2: Determining the appropriate management model

Sound Transit will need to consider which management model is appropriate to the scale of retail being
provided (i.e., internal versus external management). As and when the scale of retail provision changes,
Sound Transit will need to review the management model being used.
How other agencies have addressed a large amount of retail leasing, a 5.4-acre public
similar challenges rooftop park with public programming, and in-station
The Bay Area TJPA contracted with a private team to advertising opportunities.
run the new Salesforce Transit Center, which includes
Challenge 3: Organizing and building capacity as an Agency

Sound Transit does not currently have a real estate or real property group to take ownership over the delivery
and management of retail, as other agencies that provide retail do.
How other agencies have addressed retail directly within the agency
similar challenges (see above in the Design section).
SFMTA and BART both have approximately 1.5-
2 FTEs total managing all aspects of their retail Denver RTD has a devoted Real
offerings, including tenant management, marketing, Property Division that manages
and leasing. BART briefly tried a master lease leasing, pop-up use, and capital
structure, but found that it was preferable to manage improvements to the retail shells.
Challenge 4: Ensuring safety and security

Low-traffic station areas can create safety and security risks, especially at low ridership times.
How other agencies have addressed SFMTA is planning on using one of its retail shells in
similar challenges Union Square for a police station office to ensure the
Denver RTD noted that brick and mortar retail presence of security in the station.
increases public perceptions of safety, as more
people circulate nearby.

LEARNING FROM SOUND
TRANSIT RETAIL CHALLENGES:
Angle Lake and Mt. Baker Stations
Angle Lake Station

On an elevated plaza disconnected from the street or
any existing retail, a semi-built-out retail space was
developed at the current southern terminus of light rail
line, in the Angle Lake station parking garage based
on permit requirements. Angle Lake is in an emergent
urban station area with ~4,000 riders per weekday,
located in SeaTac. The retail space does not offer the
necessary provisions, e.g. no restrooms except for the
garage restrooms. The retail shell construction was
funded by FTA, but the project budget had no room for
tenant improvements and other funding sources were
unavailable. The retail shell has not been occupied
since the station opened. This retail implementation
experience was deemed to be a cautionary tale for
Angle Lake Station, SeaTac, WA
Sound Transit. Poor design, which disconnected the
retail space from the street and placed a significant
financial burden on potential tenants in the form of
necessary tenant improvements, has made the space
nearly unmarketable.
Mt. Baker Station

On an elevated, side-platform light rail station with plaza
area underneath, the retail space was implemented for
potential use for pop-up activities, small-scale retail
such as kiosks. Mt. Baker station is in an emergent
urban station area, with an average weekday ridership of
~2,600 people, located just south of Seattle downtown,
and has no dedicated parking. The station area has
art spaces and lofts with artwork that is futuristic,
urban, and energetic. This could have been utilized for
marketing purposes to attract vendors or market the
space for temporary events, however, the marketing
strategy was not established to capitalize on the
existing conditions of the station. Design oversights
include an absence of restrooms and incomplete utility
Mt. Baker Station, Seattle, WA connections. Proactive planning and design measures
could have been taken to ensure the seamless and
successful operation of retail.

04 Recommendations:
Addressing the Challenges
The challenges outlined in the previous

chapter can be addressed and managed
through the recommendations described
in this chapter. These recommendations
are organized in the following decision
chain:
• Planning and Policy: developing the

guiding framework for retail within
Sound Transit,
• Business Strategy/Model: structuring

the commercial components of retail
provision,
• Design: integrating retail spaces into

stations, and
• Management: approaches for delivery

over the retail lifecycle.
These recommendations form the basis

for potential approaches to three key
stations described in the next chapter.

Recommendations to Support the

Value Proposition
The retail vision creates value in three key areas: Improving the passenger experience, contributing
to the community, and improving operations. The recommendations detailed in this section support
these value propositions, as indicated by the icons and color-coded dot notations.
Improve the passenger experience

• Retail provides comfort and convenience to riders
• Convenience retail can reduce the number of trips required to meet
passengers’ daily needs for goods and services
• Retail can activate spaces by creating additional footfall, lingering activities,
and meeting places
• Retail can enliven a daily commute by providing variety and change with the
seasons
Contribute to the community

• Retail creates space for commercial opportunities, including for small and local
businesses
• Retail in the station can enhance a sense of place and can integrate with retail
outside the station for a connection to the neighborhood
• Retail can realize value for the community by providing social benefits,
becoming a neighborhood center, event venue, and/or offering daily needs
goods and services
• Retail services can support economic development goals
Integrate retail with station operations

• Staffed retail provides a human presence which leads to safer stations and
station environments
• Retail may take on some station maintenance responsibilities and reduce the
Agency cost of station maintenance
• Retail can support several financial objectives for the Agency

RECOMMENDATIONS: PLANNING AND POLICY
Definition of the overarching principles and approaches guiding retail provision and implementation
across Sound Transit
Create an expanded Agency retail policy. This will and create ongoing activity in stations during wait
clarify and define Sound Transit’s goals and priorities and transfer periods. These benefits should also
for retail across its properties. The retail policy be considered given their ability to decrease costs,
should provide guidance on financial considerations improve station safety and deliver community
including revenue generation; capital and operating benefits. 
cost assignment; management structure including
procurement and day-to-day retail management Engage early with local jurisdictions and
options; and siting considerations including communities. This will help to ensure that local
balancing retail and station needs, business mix, and permitting processes, policy goals, land use priorities,
infrastructure provision. and local ordinances are understood in the context
of retail potential. In some cases, partnerships and
Provide retail across a range of station beneficial agreements may result from these strong
environment types. Retail options should be relationships and early engagement. Engaging
matched to appropriate station environment types with the community will ensure that their needs,
to ensure a complementary mix of offerings and wants, and gaps are understood regarding retail and
sufficient demand. For example, retail types that services in their neighborhoods and communities. 
require higher footfall and revenue to operate should
be placed in higher footfall, higher density areas. Create a systemwide retail strategy. This will
Retail needs may change over time, so the Agency operationalize the expanded Sound Transit retail
should also develop an approach for monitoring and policy in the context of current and planned stations.
assessing the appropriate retail offerings over time. A systemwide retail strategy would identify the
A matrix outlining which retail types are best potential for various retail types in the context of
matched to which station environments is included specific stations using considerations such as local
in Chapter 1.  demand, ridership, revenue potential, and costs for
retail implementation and management. Opportunity
Consider the broader benefits of retail provision. sites for joint development should also be considered.
Retail offerings, in particular at larger scales, create 
jobs, additional opportunities for local businesses,
 Improve the passenger experience  Improve operations  Contribute to the community

How other agencies have found solutions to similar challenges
CASE STUDY: BART
BART puts a lot of time and energy into ensuring that retail space at its stations
both meets community needs and fits with what local jurisdictions want to see.
At their Richmond station, they worked with the City to create the Richmond
Business Hub in the ground floor of the parking structure (which includes a food
hall), although that was not BART’s original plan. The 10,000 SF facility serves as
a business hub in a neighborhood that does not have any other developments like
that. At their West Oakland station, BART worked with the City to approve a large
mixed-use joint development that includes 240 affordable housing units (31% of the project’s total housing),
office and retail space, and new public space to help connect the station to the community, as called for in the
West Oakland Specific Plan. The project, approved in 2020, has been led by a community advisory committee
which has been convening since 2016.

RECOMMENDATIONS: BUSINESS STRATEGY/MODEL
Commercial considerations and approaches for ensuring retail benefits communities and Sound
Transit
Use market assessment and analysis to daycare. Retail resulting from joint development can
determine final use. Once the potential for result in high revenue generation, which can subsidize
a particular retail type has been established, other retail and service offerings and to contribute to
assessment of the local market context should assist other Agency operations or priorities. 
in the selection of a specific type of business for key
retail spaces. For example, in some stations it may Consider joint development opportunities.
make sense to provide childcare, while in others it Explore joint development in conjunction with
may be more appropriate to provide a restaurant or stations, especially those located in Established
bar, and the prioritization of one or another will require Urban contexts. Joint development can provide
additional information to ensure retail policy goals are opportunities for additional retail square footage
met.  and offerings beyond the walls of the station itself,
and the opportunity for Sound Transit to generate
Use high revenue spaces to subsidize retail revenue for transit and other uses through real estate
activity in areas where it advances other Sound development. Additional discussion on the benefits on
Transit goals. Some sites in the retail portfolio are joint development is provided in Chapter 2. 
likely to generate larger-scale revenue for Sound
Transit, such as prime downtown or other prestige
locations and larger-format retail, while others in less
central locations may not break even. Revenue from
the most profitable sites can be used to subsidize
lower revenue potential sites, which would allow
Sound Transit to advance retail provision on sites
that could be significant contributors to communities,
such as through opportunities for entrepreneurship
or provision of community-serving uses, such as

CASE STUDY: SALESFORCE TRANSIT CENTER
San Francisco’s Salesforce Transit Center was designed to be a retail
center from the beginning, avoiding the need for a costly retrofit to introduce
retail space later. The ground floor is built like a shopping mall, outside the
paid fare zone, with office space above and a very large public park on the
roof, which has some direct connections to adjacent high-rise buildings
and has some retail located within it as well. To leverage the maximum
revenue from these retail offerings, the Transbay Joint Powers Authority
(TJPA) contracted with a private-sector team to run the transit center, which
includes retail leasing, park programming, maintenance, and ad revenue
from displays located throughout the center (the contract guarantees the
TJPA at least $1.25 million per year from the ad revenue alone). The TJPA
keeps retail rent revenue, but leasing commissions and fees are calculated
as a percentage of the revenue, meaning the private party has an incentive
to maximize retail rent revenue.

RECOMMENDATIONS: DESIGN
Physical considerations for the development of retail in Sound Transit stations
Preserve core transit functions. Retail design Locate retail within the station environment
should take into account Sound Transit’s operational in areas with the highest passenger flow
needs for safety, security and efficiency. Lines of and footfall. Within the headhouse or station
sight, ventilation, and fire/life safety requirements environment, retail and services should be located
must be understood and incorporated early into the in areas where passengers are most likely to travel.
design for retail and spaces shared by retail and Areas where passengers may spend time waiting or
operational activities. transferring will often be considered prime locations
for retail.
Plan for infrastructure to support retail upfront.
Retail offerings often require power, water, Design and enhance spaces for retail and
ventilation and other supporting infrastructure, such services to be inviting and attractive. High-quality,
as restrooms. For example, food and beverage inviting design can also help to activate retail inside
offerings and any retail operations with employees and outside the fare paid zone. Design integration
must provide restrooms. Additional infrastructure with, and connection to, the surrounding public realm
that should be considered and planned for as early and streetscape should also be considered where
as possible in the station design includes MEP and possible. 
sprinklers, service elevators, storefront glass, places
for signage/wayfinding, column spacing, and head
heights. The evolution of retail offerings should also
be considered to ensure that adequate capacity can
be provided over the lifetime of the station. 


CASE STUDIES
London’s Canary Wharf Crossrail Station was designed to

be a major transportation hub, as high-quality transit is key to
the neighborhood’s success. To further the station’s design as
a neighborhood hub, a retail mall sits above the train tracks,
serving as a central neighborhood gathering spot in its own right.
The retail offerings integrate seamlessly with the neighborhood
(including a public park) and the rail station, bringing convenience
to people in the neighborhood and riders alike. The street-level
retail and rooftop park have already begun attracting neighborhood
pedestrians into the center even before Crossrail service has
commenced. When service does commence, there will be multiple
entry points to the station platform, both long direct escalators from
street level and connections from the center of the shopping mall.
Denver RTD recently renovated their central train station, Union

Station, preserving the building’s historical character while adding
retail space to the ground floor and a hotel to the upper levels. The
historical restoration, which primarily preserved the façade and the
main hall, was done in conjunction with new construction adjacent
to the historical building, which added new rail lines to the station.
Most of the retail spaces face out towards the plaza, activating
the area and encouraging passersby to engage with the station.
The plaza regularly hosts public events, and pedestrians feel safer
walking in the area now, due to the increased number of “eyes on
the street” associated with the retail spaces.
Sydney Metro’s new Martin Place Station is being built entirely

by a private developer who is simultaneously constructing a
new commercial development directly above the station. As the
developer has a strong incentive to maximize the value-add
associated with the transit-oriented nature of the development,
it will seamlessly integrate with the station and surrounding
neighborhood by providing public realm improvements and
pedestrian tunnels to connect to the surrounding area. The
pedestrian tunnels will include public art displays, enticing
pedestrians in to both the station and the retail center. Riders will
walk past the retail offerings on their way into the station, which
will likely encourage purchases and raise retail revenue and rents
in addition to providing rider convenience.

RECOMMENDATIONS: MANAGEMENT
Approaches for delivery of over the retail lifecycle
A dedicated group within the Agency responsible around maintenance for infrastructure that each
for retail management is key to success. A tenant will be using, such as plumbing, should be
dedicated real estate group or dedicated business outlined clearly in leases. The exact responsibilities
unit for retail management within the Agency is key and considerations will vary based on the tenant,
to the success of retail. Staff members dedicated station and specific retail location, and the associated
to managing retail properties, who do not have infrastructure in each context. This will clearly
other priorities taking attention away from retail distinguish between the Agency’s role in station
management, is an important component of this. If not facilities maintenance and the leasees’ responsibilities
using a master lease agreement, this group should 
for retail facilities.
have capabilities to conduct tenant recruitment and
outreach, manage leases, and be responsible for Ensure there is a simple procurement process in
coordinating maintenance and other tenant concerns. place for small business retail opportunities. The
If a master lease agreement is used, the internal administrative burden of working with a public agency
group will oversee the third-party manager, who will can be particularly difficult for small businesses
take on the aforementioned responsibilities.  who may not have dedicated administrative staff
or experience with complex procurement and
Flexible leases for certain tenants should be management processes. To ensure a mix of tenants
considered. To attract smaller and local businesses, and support tenants that may provide additional
Sound Transit should consider lease terms that community benefits, Sound Transit should identify
allow flexibility, particular regarding lease duration. specific spaces to be tenanted with small and local
This flexibility can allow smaller businesses to test businesses. This may also be done at the station
the market and can provide Sound Transit with the level, or for specific types of retail offerings (e.g.
flexibility to change tenants if needed. Such leases coffee carts). Sound Transit should consider either
could include clauses for duration extension.  creating a simplified procurement process or using a
master lease agreement to minimize administrative
Leases should also include defined operation burdens for small businesses in the context of these
and maintenance responsibilities. Responsibilities spaces. 
CASE STUDY: NEW YORK MTA
The New York MTA employs multiple retail management strategies across its transit system. Large retail hubs,
such as Grand Central Terminal and Turnstyle Market in Columbus Circle Station, are managed by private
companies. However, smaller retail offerings, such as the small kiosks in Grand Central Terminal or the annual
holiday market, are managed by the MTA directly. For large retail hubs, the strategy has been successful:
Turnstyle Market is thriving so well (pre-COVID) that it managed to attract a high-value sushi restaurant to its
underground food hall, which brings roughly $130,000 per month in gross revenue. MTA’s revenue sharing
model allows the agency to benefit from high-revenue businesses like this without raising rents to the point
of other businesses being unfeasible. Grand Central, meanwhile, has managed to attract an Apple store to
its offerings. The MTA enjoys the revenue these large hubs bring in, capitalizing on their high value and high
ridership locations, without needing to expend MTA staff hours on managing them. Meanwhile, the small retail
offerings are also successful. The small Grand Central kiosks offer a popular lower-cost alternative to the high
rents on brick-and-mortar-style retail spaces in Grand Central, and both those and the holiday market booths
are so popular that the MTA chooses tenants based on a lottery system. Both exclusively rent to small, locally
owned businesses. The MTA also rotates tenants in the small kiosks every three months in order to keep the
opportunity available to other businesses.
Passengers walk through Turnstyle Market on their way to the

Columbus Circle subway platform in New York City

05 Applying the Findings:
Retail in Practice
Sound Transit has an opportunity to
integrate retail early in the design process
at three key stations to be delivered
through ST3: Tacoma Dome, Chinatown-
International District, and Westlake.
This chapter presents an early stage
analysis for retail at each of these three
stations, and flags potential issues that
Sound Transit should be aware of as
more detailed designs are developed.
The recommendations from the prior
chapter form the basis for this analysis.
The assessment presented is not a
prescriptive implementation strategy and
will need to be refined as Sound Transit
moves closer to implementation.

Tacoma Dome Station

Placemaking through retail and piloting Sound Transit retail management
Key Takeaways
Sound Transit’s Tacoma Dome Link Extension will Design: Storefronts, adequate sidewalk width and
extend Link regional light rail to the Tacoma Dome amenities (bike racks, benches, weather protection),
area, with service planned to start in 2030. While the signage, building infrastructure (sprinkler, mechanical,
Agency continues to study multiple station locations, electrical, plumbing), service access, restroom
one alternative—currently called ‘Close to Sounder’— access, clear column spacing and 12’ clear ceilings.
represents an early retail opportunity for Sound
Transit to pilot a retail and/or services project in a Management: Leverage this opportunity for Sound
defined space within the station. Transit to organize and define internal roles and
responsibilities to successfully deliver and manage
Policy, Planning, and Business: In the short to retail and/or service offerings.
medium term (approximately aligned with the opening
of the future station in 2030), position retail and/or
service offerings by drawing on the transitional and
post-industrial neighborhood landscape to create an
events-driven destination (i.e. Tacoma Dome), serving
transit riders and event attendees. Retail offerings
such as a restaurant/bar or urban distillery/brewery/
winery and/or tasting room are recommended to
capture this passenger base at the beginning and
ends of trips.
Station Environment Types Retail Rents and Revenue

Current market-rate retail rents in the
Emerging Urban
Tacoma Dome neighborhood are roughly
$16-$17/SF annually, triple net as of 2019.
This means Sound Transit could expect
roughly $9,000/month for the smaller
space and $13,500/month for the larger
space.
Retail Square Footage
Total: 15,900 SF
Smaller space: 6,300 SF
Larger space: 9,600 SF

Neighborhood Context
Tacoma Dome Station is in the City of Tacoma’s
Dome District and a 10 to 15 minute walk from the
Brewery District. The Dome District is made up of
primarily light industrial and formerly light industrial
uses and is characterized by the eponymous Tacoma
Dome and surrounding surface parking lots. This area
is less dense than other parts of Downtown Tacoma.
The area is transitional in nature, with various types of
new development occurring in the short, medium, and
long terms, and with this, footfall to drive retail.
Within a 0.5-mile radius of Tacoma Dome Station,

there are a handful retail establishments, including Freighthouse Square, Tacoma, WA
the adjacent Freighthouse Square (which would be
largely removed for the Close to Sounder station pedestrian barriers (particularly I-5 and the BNSF
alternative), a few restaurants, bars, and cafes, and railyards) further limit access to these areas. Within
breweries primarily located to the west of I-705. The the next five to ten years, a handful of new residential
Tacoma Dome is included within the 0.5-mile radius developments are expected to be completed close
of the station. As of 2017, there were approximately to Tacoma Dome Station. These include Trax, a
4,500 people employed within a 0.5-mile radius of the 115-unit residential project with 55 parking spaces
station.26 As the area develops, additional people in and a 17,000 SF farmer’s market space; Mount Bay
the workforce will provide higher levels of footfall for Apartments, a 7-story mixed-use multifamily project
retail offerings. with 229 units (63 of which will be microunits), ground
floor commercial, and 85 underground parking stalls;
There is limited existing residential development and Koz at the Dome, a recently completed 6-story,
with a 0.5 mile radius of the station and major 152-unit (furnished microunits, with 20% affordable)
Lease Comps 1705 E Dock St: Thea’s Landing Waterfront

Recent lease comparables, or comps, can Apartments charge $20-25/square foot, triple
provide a picture of the retail real estate market net, for street-facing retail space. Most recent
in a given area. Selected recent lease comps in lease signed in 2018.29 Current tenants include
the Tacoma Dome area are as follows: BobaLust Café, The Social Bar and Grill, and
NW Yachtnet. Located 0.7 miles from Tacoma
401 E 25th St: MANdustrial Salon’s current Dome Station, directly adjacent to the Dock
lease charges $15/square foot, triple net. Street Marina.
Lease signed in 2012.27 Located across the
street from Tacoma Dome Station. 1120 Broadway: Steel Creek American
Whiskey Co. distillery and restaurant has a
1821 E Dock St: The Albers Mill Lofts charge lease for $12/square foot, triple net. Lease
$18/square foot, triple net, for street-facing signed in 2013.30 Located 1.4 miles from
retail space. Lease signed in 2018. The space Tacoma Dome station, and one block away
was previously occupied by an art gallery.28 from Commerce Street Station.
Located 0.6 miles from Tacoma Dome Station,
directly adjacent to the Dock Street Marina.

development with 4,800 square feet of ground floor (approximately aligned with the opening of the future
retail and no parking. station in 2030), programmatic retail uses (that is,
the type of tenants) and the scale of retail provided
As designated by the City of Tacoma, Tacoma Dome should be carefully considered and appropriate
Station is located in a Downtown Mixed-Use District to the limited footfall from Tacoma Dome events,
(DMU). The DMU District is intended to contain transit ridership, and density of the surrounding
a high concentration of educational, cultural, and neighborhood. One potential retail program for
governmental services together with commercial Tacoma Dome is a food hall, which offers small food
services, office and residential. Retail is allowed, as and beverage vendors an opportunity to colocate at a
well as industrial located entirely within a building. larger destination. The existing Freighthouse square
Automobile-related uses, including servicing stations at Tacoma Dome is home to a food hall. The feature
and gas stations, are not allowed. on page 50 provides additional detail on specific
challenges around providing a food hall space. It is
Retail Strategy anticipated that as the neighborhood develops with
the opening of the future TDLE station in 2030, the
Policy, Planning, and Business Model Strategy market context will change, potentially allowing for a
Challenges wider range and scale of retail offerings. Additional
The market context of the neighborhood information on the Opportunities are detailed below.
surrounding Tacoma Dome station could present
a challenge. Market context refers to the prevailing Opportunities
real estate conditions in a given area, including In the short to medium term (approximately aligned
rents, sales prices, footfall, and vacancy rates, for with the opening of the future station in 2030), Sound
example. Particularly in the short to medium term Transit has the opportunity to create an events-
PRECEDENTS FOR RECOMMENDED USES AND DESIGN
Bluxome Street Winery, San Spirit of York Distillery, Pike Place MarketFront,
Francisco: An urban winery Toronto: Located in Toronto’s Seattle: An expansion of Pike
and tasting room located in San Distillery Historic District, a Place Market, MarketFront
Francisco’s SoMa neighborhood, redeveloped industrial complex includes 12,000 square feet of
a formerly industrial close to the waterfront and commercial and retail space
neighborhood near Oracle adjacent to the Gardiner for artisan purveyors in a new
Park baseball stadium and the Expressway. A light rail spur “Producers Hall”. There is also
transfer station at 4th and King for line connects the Distillery an adjacent outdoor public open
CalTrain and Muni Metro. Historic District to one of the space/plaza, connecting to and
main light rail lines along King expanding this indoor space
Street connecting to the Central outside.
Business District.

driven retail destination (i.e. Tacoma Dome events) using transit to get to and from Tacoma Dome for
that serves a transitional need for transit riders as the events on nights and weekends. Once TDLE service
area transforms into a transit and community hub. begins, there are likely to be 10,000-15,000 transit
Retail offerings such as a restaurant/bar or urban riders in the station area on an average weekday.
distillery/brewery/winery and/or tasting room are Additionally, the Tacoma Dome has capacity for
recommended in the short to medium terms. These 23,000 people, and a surge of people beyond the
draw on and leverage the post-industrial nature in the capacity of the station could be partially mitigated by
area, while also providing amenity to transit riders restaurants, bars, and other retail. Because Tacoma
and Tacoma Dome attendees. A makerspace and/or Dome station is a major intermodal connection point,
market showcase space could also be explored, tying there are riders beginning and ending trips, as well as
into businesses already located in the area. Based connecting between transit modes. This means that
on all these uses, the potential for programmatic estimating a retail capture rate is difficult, because it is
partnerships with surrounding businesses should be unclear how many transferring riders will be inclined
explored, such as partnering with a local brewery to to patronize retail. Thus, a retail offering that is a
provide a tasting/tap room. destination unto itself may have a greater chance of
success.
While the market context could be a challenge,
this also presents an opportunity. Current market In the longer term (20+ years), if development in
rents are cheaper than in many other urbanized the area continues to accelerate, there is greater
areas of the greater Seattle region, including nearby opportunity for underutilized lots and public and
Downtown Tacoma and the Museum District. These private surface parking lots to transition to other
lower rents could provide flexibility in the types higher density, mixed uses as the City improves
of tenants who might be able to afford the market sidewalk infrastructure and access to parks, more
rents, and who may be priced out of locating in other commuters use Tacoma Dome Station, and the area
higher-rent areas. The Retail Rents and Lease Comps transitions from being a primarily events-driven retail
call-out box provides more information on the current market to a true mixed-use district with more people
prevailing market rents and lease comps. living and working nearby. As new development
is completed in the longer-term, there will be an
Retail revenue will be driven by the footfall from even larger customer base and higher footfall to
Sound Transit and Amtrak riders boarding and support retail located in or adjacent to Tacoma Dome
disembarking at the station, coupled with people Station.
MORE THAN JUST SHOPS

Different kinds of active ground floor
Workshop: Ground floors Showroom/Gallery Space:

can be used as workshop Ground floors can find life as
and studio spaces for showrooms and exhibition
creating, making, and spaces. These might employ
repairing. These spaces relatively few people per
can allow artists, artisans, square foot, but can still
tradespeople, and craftspeople to be better activate quieter streets.
connected to the everyday life of their communities. Urban locations can make
The street location is useful not only for customers such spaces and activities more accessible to more
visiting, but also for deliveries to and collections people.
from these premises.
(Source: Soft City by David Sim)

PROGRAMMING THE SPACE AS A FOOD HALL:

Challenges will Limit Viability
Freighthouse Square currently exists where the future TDLE Close to Sounder station
alternative would be located. The building currently houses a variety of small food and
beverages vendors in a food court-like space. The future station’s design could potentially
accommodate a similar space. However, a scan of existing food hall spaces revealed
that two keys to success are having high footfall, and/or having a large enough space to
create a destination undo itself. The smaller food halls surveyed are in highly urbanized
areas, with heavy footfall and high adjacent station ridership to support the retail uses they
provide. The Close to Sounder alternative offers a comparatively small space and the area
is not expected to have the footfall that others small food halls do. As a result, a food hall
is not recommended for the Close to Sounder station. Two representative food halls are
discussed below.
Zeppelin Station, Denver UrbanSpace Vanderbilt and Grand Central Food

At 23,000 SF, Zeppelin Station is located adjacent Hall, New York City
to the 38th and Blake RTD Station. While in a similar UrbanSpace Vanderbilt is a smaller food hall, at
urban and transit-adjacent context to Tacoma Dome 12,000 SF, while Grand Central Food Hall is much
Station, what makes Zeppelin Hall successful is not larger are 35,000 SF. Unlike Tacoma Dome’s
only its high-end retail offerings, but the fact that it is potential retail space, these food halls are located in
located within a 100,000 SF development with offices highly urbanized areas with incredibly high ridership
above and with a park-and-ride parking structure and footfall—Grand Central Food Hall is located
for the RTD station. This means people are drawn within Grand Central Station, and UrbanSpace
from the RTD station, surrounding area, and office Vanderbilt is located a few blocks away.
development.

Design Strategy
Challenges
1 Two small divided spaces for retail available, as and doors, passengers could circulate between
opposed to one larger space; the divided layout the Amtrak facility, the retail spaces, and the
makes the provision of a food hall more difficult. light rail station. Or, if the walls between the
Food halls typically consist of a single open retail spaces are closed off from one another
hall, often with clerestory windows, with smaller for security and fire-safety purposes,
shops on either side. The new configuration of passengers could circulate on the sidewalks
retail space, separated into two footprints from the Amtrak facility to the light rail station.
interrupted by station program, make it tough to
achieve a single, central, open, and unifying 6 The space below the guideway measures
space such as a hall. around 40’ in height and the space below the
station mezzanine is around 25’. This offers
A food and beverage operation may be some flexibility and opportunities to consider
desirable, but also carries risk; the investments the roof design, lighting, and visual/spatial
should be made in such a way that the space connections with the passenger bridge over the
could be re-tenanted easily. Sounder/Amtrak tracks.
2 Lack of curb space for loading and unloading Ensure flexibility of the shell design to
could be a challenge. accommodate different retail uses as the area
transforms in the future.
3 Grade change toward the eastern end creates
a challenge for storefrontage. The following infrastructure should be planned
for:
4 The guideway and columns follow AASHTO • Sprinklers for spaces below the guideways;
regulations for movement tolerances whereas • Mechanical systems (heating and cooling)
the building columns and roof structure will including intakes
follow IBC regulations for movement • Adequate exhaust, grease traps, and power
tolerances. There will have to be an expansion if a commercial kitchen is being considered
joint between the two structures. • Specialized lighting
• Restrooms
Opportunities
The industrial history of the area could be recalled Station architect should consider and plan for
in distinct signage, materials, and/or branding the basics of tenant improvements including
used in the build-out, creating a sense of place for areas for storefront glass (minimum 8’ tall),
passengers. signage, direct street access for deliveries,
adequate clearance height (minimum 12’ from
5 Urban design interventions such as bike floor to bottom of slab/structure), and minimized
parking, trees and landscaping, and benches interior columns to accommodate a variety of
could be used to enliven and activate the street tenant layouts.
and sidewalk in front of the station along East
25th Street. These elements make the spaces
7 To activate the plaza in front of parking garage,
more comfortable and easy to access, consider working with the City of Tacoma to
encouraging people to meet, gather, and linger. program their space and leverage retail
Even minimal landscaping can create a buffer, opportunities between temporary markets and
dappled sunlight, and sense of place. Where the neighboring retail to create more of a center
there is a slope, consider stepping the slab up for this neighborhood.
or down inside to create level entries for each
retail space. With a series of internal ramps

2 5 3
1 4 1 4
6

Management Strategy
Challenges
Sound Transit currently does not have an with managing retail as an agency. These risks are
established internal group that has retail outlined as follows, and mitigation measures for these
management as a primary responsibility. The risks are described in the Opportunities section.
Agency’s Real Property group has many priorities,
and does not have capacity to provide the necessary • Tenanting and Leasing: Sound Transit would
focus on retail. Most transit agencies who provide need to ensure that retail spaces are optimally
retail and services have a dedicated group internally marketed, tenanted, and leased to avoid losing
to manage their retail (or manage a third-party revenue from empty retail spaces. Reviews
who in turn manages the Agency’s retail), typically of lease agreements would also need to be
within their Real Estate or Real Property group. undertaken by the Agency.
For example, BART’s Real Estate and Property • Staff Capacity and Expertise: Sound Transit
Development group manages retail internally, while would need to identify Agency staff that have the
SFMTA’s Real Estate group manages their retail. capacity for and expertise in the activities outlined
in the bullet point above.
Sound Transit could manage the retail offerings • Security and Safety: Sound Transit would need
at Tacoma Dome Station internally to pilot and to ensure that retail spaces are kept safe, secure,
prototype these retail spaces without investing and clean.
in a third-party management company, although
bringing in a nominal amount of outside expertise
for advisory services and to understand the cost
may be beneficial. However, as opposed to using a
third-party manager, there are some risks associated
Passengers board the Link train in Seattle, WA

Opportunities
The retail spaces at Tacoma Dome Station present includes identifying or hiring key staff for these
Sound Transit with the opportunity to internally roles.
prototype and pilot retail management in the
• Develop a standard lease agreement for Sound
short to medium term (approximately aligned with the
Transit to use as a starting point for negotiations
opening of the future station in 2030). The Tacoma
with prospective retail tenants.
Dome Station retail space affords this opportunity as
it is a discrete retail space that would be simpler to • Ensure mechanisms to keep retail spaces
manage, as the spaces are relatively self-contained safe and secure. This could range from physical
in relation to the station (as opposed to more retail interventions (such as roll down shutters) to
opportunities in stations with more complicated coordination with existing security staff on site.
layouts).
As Sound Transit increases the scale of its retail
Sound Transit should first determine the viability offerings across the system in the longer-term, the
of the Agency managing retail space by convening Agency should consider third-party management
an internal working group. To ensure that Agency to minimize the risks as described above, as multiple
management is viable and successful, Sound Transit retail offerings at a larger scale will be more difficult
should consider the following: to manage and ensure the quality of this delivery.
Alternatively, Sound Transit could use third-party
• Create a retail-focused team to take on the management in the short to medium term, which may
retail management role and responsibilities, make scaling the volume of retail offerings easier as it
including marketing, leasing, and tenanting. This develops.

Chinatown-International
District (CID) Station
Connecting a station to a neighborhood through retail, and
wider opportunities for development
Key Takeaways
Chinatown-International District (CID) Station, part Design: Support a highly transparent retail space,
of the planned Ballard Link Extension, presents allowing passengers to see from the station to the
an opportunity to create a welcoming retail space exterior and vice versa, helping them to feel secure
integrated with the new CID Station headhouse, and oriented in their surroundings. The signage,
providing retail amenities to transit riders and the materials, and façade design should respectfully
surrounding community. A wider opportunity also blend with the neighborhood’s historic context. The
exists to connect the new CID Station to Union connection to the alley off of King Street will ease
Station, where a much larger retail footprint could loading and unloading for back of house purposes.
be provided and contribute significantly to revenue
generation for Sound Transit. Management: Small, local tenants may require more
hands-on management than larger retail chains, both
Policy, Planning, and Business: Utilize this retail for operations/maintenance and lease negotiations.
opportunity to create eyes on the street, create Consider in advance which party will be managing
rider convenience, and position the space as a common space used for both transit passenger and
gateway to the larger Chinatown-International retail customer circulation, and ensure there will be no
District neighborhood. Work with the City of Seattle conflicts with Sound Transit’s core transit functions.
to explore possibilities for this retail space to align
with neighborhood economic development goals.
To further this goal, support the build-out of this
space to cater to the needs of small, locally-owned
neighborhood businesses.

Market-rate retail rents in the Chinatown-
Established Urban
International District neighborhood are
roughly $27-30/SF annually, triple net. This
means Sound Transit could expect roughly
$11,500 to $13,000 per month in revenue
from the headhouse retail space.
Retail Square Footage
Total: 5,140 SF

The King Street Station, Union Station, and CID promoting small retail and commercial businesses,
Station complex form the western edge of the and for new development to be comparable in scale
Chinatown-International District, home to the largest to existing buildings. The zoned height limit is 75 feet,
Asian-American community in the greater Seattle and most other buildings in the area range from 25
area. It is a destination unto itself with museums, to 65 feet in height. Auto-focused uses, including gas
shops, and restaurants reflective of a variety of stations and surface parking lots, as well as industrial
cultures including Chinese, Japanese, Vietnamese uses are prohibited.
and others. The landmarked district holds a number of
historic buildings, many of them built with unreinforced
masonry that require retrofitting. The Historic
Chinatown Gate spans King Street, just outside one
of the planned headhouses to the new CID station.
CID Station and surrounding area are located within

the International District Mixed (IDM) zone, which
calls for development that preserves and exemplifies
Asian culture through cultural, retail, and residential
use. The zoning encourages street-level retail,
housing above street level, and the rehabilitation
of existing buildings. Zoning guidelines also call for
Seattle’s Historic Chinatown Gate
Lease Comps
Recent lease comps can provide a picture of 614-624 S Jackson St: Mixed-use building
the retail real estate market in a given area. with ground floor retail that rents for $25/
Selected recent lease comps in CID are as square foot. Lease signed in 2017. Current
follows: tenants include Asia Travel and Star Tea
Shop.35 Located 0.2 miles away from CID
504 5th Ave S: Retail rents in this mixed-use Station.
building with ground floor retail go for $28-32/
square foot, triple net. Leases signed in 2018 913 S Jackson St: An apartment building
and 2019.33 Current tenants include Dough with ground-floor retail signed a lease for $25/
Zone, Evergreens, and Great State Burger. square foot, triple net, to Bobba Tea. Lease
Located adjacent to the new CID Station signed in 2019.36 Located 0.4 miles from CID
location. Station (involves crossing under a freeway).
625 5th Ave S: This mixed-use building with

ground floor retail leases its retail space for
$32/square foot, triple net. Lease signed in
2018.34 The space is occupied by Wells Fargo.
Located one block away from CID Station.

Retail Strategy
Planning, Policy, and Business Model Strategy will need to ensure the retail space is safe and secure
Challenges to prevent vandalism and other security issues. This
There is the opportunity to create a welcoming retail can be done through coordination on the hours of
space integrated within the planned headhouse of operation depending on the specific type of retail that
the new CID Station on the corner of King Street is provided, and design interventions (see Design
and 5th Avenue of the new station opposite the plaza Strategy section below).
above the existing CID Station. Regarding policy,
Sound Transit will want to ensure coordination with Opportunities
the City of Seattle and local community-based Retail in CID Station could provide amenities to transit
organizations on their policy priorities and riders, tourists, and the surrounding community at
economic development goals for the surrounding the formal gate entrance to the neighborhood. This
neighborhood. This could have implications for and offering will improve the passenger experience and
help to define the type of retail offering that could be provide eyes on the street and station through the
provided in order to best serve the community and activation of the headhouse space. The space would
align with City goals. be ideal for an active use, such as a café, coffee
shop, or restaurant. The space could be used for
Operation and maintenance in relation to one business or could be divided and used for two
infrastructure needs to be considered with smaller businesses. Sound Transit should lease the
restrooms, plumbing, and other infrastructure that space to a small, local business or businesses to
a retail space would require. Sound Transit will connect with the neighborhood.
need to clearly define operation and maintenance
responsibilities in the leasing agreement with the For additional challenges and opportunities in and
tenant. Similarly, hours of operation and security for around the new CID station, see the section on
the retail space will need to be considered as the Broader Development Opportunities.
space is directly adjacent to the station. Sound Transit
BROADER DEVELOPMENT OPPORTUNITIES
Union Station Connections: A larger development opportunity exists to connect the new CID Station to Union
Station. Creating this connection could unlock a strategic opportunity to leverage Union Station for additional retail
and service offerings and greater revenue potential. For example, the under-utilized Great Hall could be home to a
future food hall. Connecting to Union Station also provides an opportunity for improved transit connectivity; Union
Station could connect a variety of transit modes like Kings Cross-St Pancras Station in London, which serves as both
a transit hub and retail destination. Connections from the new CID station to the Great Hall in Union Station would vary
according to a 4th or 5th Avenue alternative. If along 5th Avenue, the connection could be made through the existing
plaza and existing front and rear doors to Union Station. If along 4th Avenue, it may make sense to add staircases from
the Great Hall directly into the below-grade passage from the existing to the new CID station.
Gare du Sud, Nice St. Pancras Station, London

Management Strategy
Challenges Opportunities
The management of the retail space could also be To address these management challenges, Sound
a challenge for Sound Transit. Managing tenants Transit, whether managing retail management
who are small, local businesses may require more and operations in house or using a third-party
hands-on management in terms of operations and management company, will need to ensure
maintenance considerations and lease development adequate resources and budget to work with
and negotiation, than would a national retail chain, for smaller businesses as tenants. One interview with
example. Interviews with several external agencies another transit agency mentioned that in areas with
noted that this is a major consideration in the high vandalism rates, they help smaller businesses
management of their retail spaces. with paying for replacement costs due to vandalism
damage. Sound Transit should account for these
Consider how management and operations needs types of costs and management considerations.
of retail and transit spaces differ. Although some
retail and Agency operational needs are aligned, such
as functional escalators and clean public spaces,
other issues may be at odds, such as signage and
lines of sight that lead riders to the platform versus to
retail. A clear distinction needs to be made between
the two interests, which can be addressed through
design and operations and maintenance agreements.
Joint Development Opportunities: With the new CID

Station headhouse, Sound Transit and the community
have the opportunity to capitalize on air rights above the
headhouse, as well as surplus properties created by the
construction staging areas, to unlock development potential.
Building above the headhouse and on Sound Transit surplus
properties may provide opportunities to create affordable
housing, to generate revenue through joint development, and
to activate currently under-utilized alleyways; opportunity 3
on page 59 presents how an alleyway could be utilized in
practice. Precedents for building over station headhouses
include Martin Place Metro Station in Sydney and Fulton
Center at Fulton Street Station in New York City. Hudson Yards and the Highline, New York City

Design Strategy
Possible Challenges
The ideal retail space would be highly transparent, allowing passengers to see through the space from the
station to the exterior and vice versa, helping them to feel secure and oriented in their surroundings. The
signage, materials, and façade design should respectfully blend with the historic context.
Opportunities
In addition to being next to the literal gateway for the Chinatown-International District, the station and retail
space is opposite the east plaza for Union Station and the closest stop for those journeying to Pioneer Square.
The retail space will enhance the public realm and passenger experience if integrated with a high degree of
transparency between inside and outside and using high quality design. Being visible to the corner of King
Street and 5th Avenue and having sufficient square footage may attract a variety of tenants, from a medium-
size retailer to smaller ones (restaurants, bars, cafes) that can share access to restrooms and other service
spaces. The connection to the alley to the east provides for ease of loading and unloading to the back-of-
house spaces within, while the King Street and station storefronts may each have their own entrances.
1 Frontage along the length of King Street would retail corner could be rich and interesting,
provide a strong retail presence and street/ providing glimpses of activity beyond.
sidewalk activation.
5 Over 5000sf is sufficient space to support a
2 The setback of the retail space allowing for the large-scale retailer or multiple retailers, e.g.
station space to pass in front of it along Fifth restaurant/bar or coffee shop.
Avenue provides visibility for the station while
enhancing the passenger experience. It
connects the public realm, to the passenger
zone, to retail.
3 A separate service entrance directly on to the

alley would make it easier for back-of-house
loading and unloading. This wall could also be
treated as an additional facade, creating an
activated alley.
4 If this wall and corner were glass, the visual

connection from the station plaza on the
opposite side of the street through to this new

4
2
PRECEDENTS FOR STATION ENTRANCE ADJACENT RETAIL
Union Station, Denver uses retail to bridge between retail space located adjacent to one of the Bond
the exterior station plaza and interior station. Cafes Street Station entrances at the corner of the building.
span the depth of the building, creating outdoor This opens onto a pedestrian street, South Molton
seating on the exterior plaza and entrances into the Lane.
station directly from cafes, restaurants, and bars.
Both of these examples show retail that takes
TfL Underground Stations, London are examples advantage of the increased foot traffic at a station
of TfL’s many instances of integrating transit stations entrance or exit. They provide passengers with
in high traffic retail contexts. Some of these stations amenities that can improve or enliven their journeys
include Oxford Circus Station and Baker Street by providing a place to sit, eat, drink, meet people,
Station. Similar to the new CID Station, there is a use a restroom, or shop for conveniences.

Westlake Station
An opportunity for activating the neighborhood, improved
station circulation, and revenue generation
Key Takeaways
Westlake Station, part of the planned Ballard Link Retail clusters tend to be more successful than
Extension, presents the opportunity for an extensive individual retail locations, a strategy which should be
retail offering. This includes retail in the station’s utilized to maximize retail revenue and placemaking.
headhouses, a new underground concourse with Consider independent, local retailers for the North
space for shops and food offerings, and the potential Concourse retail spaces to complement national
for joint development, including ground floor retail with chain stores at street-level.
additional development (such as housing or office)
above. Design: Current zoning emphasizes street-level
retail to enliven the public realm. Retail should be
Policy, Planning, and Business: To capture located at street level and along the transfer route to
the most value out of new construction, Sound maximize visibility, and especially along the path of
Transit should seek to have the parcels with new travel for people using light rail. There is the potential
development rezoned to allow for greater density. to develop retail opportunities near Westlake Park
Below-grade retail opportunities may provide rider and Pine and Pike, which would leverage desirable
convenience, but are unlikely to generate significant locations. Consider extending the platform level to
revenue for the Agency on par with street-level retail. better connect with the monorail and streetcar.

Market-rate retail rents in the Westlake
Established Urban neighborhood are roughly $44/SF
annually, triple net. This means Sound
Transit could expect roughly $73,000 per
month for the street-level retail spaces
(headhouse and joint development spaces
at street-level).
Retail Square Footage Retail on the concourse or platform level

would need to be discounted roughly 25
Total: 65,000 SF percent from the rents at street-level
Total Street-Level: 20,000 SF ($44/SF annually, triple net), which
Total Below-Level: 45,000 SF means Sound Transit could expect roughly
$123,000 per month from all of the
below-grade retail space (including the
North Concourse). On its own, the North
Concourse retail space would generate
$16,500 in revenue per month.

Westlake Station is centrally located in Seattle’s predominant in the dense urban core with a focus
Downtown Retail Core (DRC), which serves the city on street level retail and high-quality pedestrian
and region as a shopping district and destination. environments.
Retailers, such as Nordstrom, Westlake Center and The station sits at the nexus of critical streets and
Pacific Place, and major public spaces, such as transportation modes, including bus and rail transit,
Westlake Park and McGraw Square draw residents and active transportation. Pike and Pine Streets are
and visitors alike to the area surrounding Westlake the key east-west pedestrian and bicycle streets that
Station. connect the neighborhoods of Capitol Hill, Downtown,
Westlake Park within Westlake Center is the central and the Seattle Waterfront. 5th Avenue, a tree-lined
open space in Downtown Seattle, highlighted through street with special paving, is known for its retailers
its unique design and programming. Additionally, and pedestrian experience. The monorail station
within walking distance are major destinations, lands right along the intersection of Pine Street and
such as Pike Place Market and the Washington 5th Avenue, providing a connection to Seattle Center.
State Convention Center, and major employers, The streetcar station is located at McGraw Square,
such as Amazon. Office and commercial uses are connecting Downtown to South Lake Union.
Map showing land uses and 0.5-mile walkshed from Westlake Map showing employment densities and 0.5-mile walkshed
Station. Red indicates Commercial/Mixed-Use uses. from Westlake Station. Darker green indicates higher density
employment.
Lease Comps
Recent lease comps can provide a picture of 1506 6th Ave: Fidelity signed a lease in this
the retail real estate market in a given area. mixed-use building for $34/square foot, triple
Selected recent lease comps in Westlake are net. Lease signed in 2017. Located one block
as follows: away from Westlake Station.
600 Pine St: HaiDiLao Hot Pot signed a 3rd 1406-1410 4th Ave: Ground floor retail rents in
Floor lease in this building for $63/square foot, this mixed-use building go for $45-55/square
triple net. Lease signed in 2019. Located one foot, triple net. Optical Illusions just signed a
block away from Westlake Station. new lease in 2018. Located two blocks away
from Westlake Station.

Proposed station entrances/exits

Proposed retail space
Sidewalks
Existing retail frontages
1
3
Retail Strategy For retail to be successful inside of the future

In general (and pre-COVID), the area around Westlake Station complex, it should be located along
Westlake Station thrives as a retail destination, so it the path of travel for people using light rail, making
would make sense for this station in particular to have transfers or exiting to the streets above. The spaces
a retail component. Additionally, for many visitors should be well-proportioned and have access to
to the city, this will be their first stop outside of the natural light, where possible. Because people are
airport. The convention center, many hotels, and underground, it will be even more important to have
tourist attractions are served by this station and the well-designed ceilings, lighting, and signage.
conveniences travelers need could be provided for
The necessary infrastructure (restrooms; service
along a passenger’s route to and from the light rail
elevators; mechanical, electrical, plumbing, and
platform.
sprinkler systems) as well as the design of a typical
space should be thought out to accommodate a
variety of different retail types.
The overall mix of tenants should complement the

stores above at street-level or be tied directly to them.

Street-level retail within the two station headhouses:

1
Offers an opportunity for both revenue and
activating the street and station egresses/ingresses
The station’s location in a prime shopping district and

Seattle’s land use code (for DRC zoning) will require
retail to be restored at street-level where possible. In
particular, the space at the North Headhouse is at the
highly visible intersection of Pine Street, 5th Avenue,
and Westlake Square. In addition to street frontage,
the retail could also face inward, toward all of the
passengers entering and exiting the station.
Street-Level Headhouse Retail: 6,000 SF
Consider a northern extension of the existing

2
underground concourse
A retail concourse will provide convenience retail and

enhance the passenger journey for Sound Transit
passengers. Extending the north leg of the existing
Westlake Station all the way to McGraw Square
could provide a few opportunities. There could be
a series of narrow-format retailers that fit within the
space, new entrances directly into Nordstrom and/or
Westlake Center, and a portal leading directly to the
streetcar.
North Concourse Retail: 6,000 SF
A joint development opportunity between the

3
two headhouses could provide street-level retail,
activating the space along 5th Avenue
In addition to retail at grade, a new building could

tie into the existing station’s concourse and platform
levels, provide a below-grade connection between
the north and south headhouses, and capture
the attention of passengers ascending from and
descending to the new light rail station below.
Because the property has an approximate 27-foot
depth and a 27,000 SF floor plate, large format
retailers could consider the space.
Street-Level Joint Development Retail: 14,000 SF

Planning, Policy, and Business Model Strategy

Challenges
Current zoning for the Downtown Retail Core Station and an addition 20,000 residents. With the
emphasizes the success of street-facing retail to addition of the new Westlake Station, there are
enliven the public realm and has discouraged inward- estimated to be 73,000 daily boardings and alightings
facing malls. Any retail removed along 5th Avenue for at Westlake Station (up from 45,000 for the existing
construction would have the be restored with new station), adding to the footfall.
construction. Ultimately, to capture the most value out
of the new construction and acquired parcels, those Retail clusters (i.e. multiple stores located adjacent
parcels should be rezoned with greater allowable to one another) are more successful than individual
height, more FAR, and to allow some commercial retail locations. Clustering retail is more feasible
office. It is unclear how the City of Seattle and the at street level than underground given the physical
Downtown Seattle Association would view a below- space available at street level, and the location close
grade retail concourse. to existing retail uses. However, specific retail uses
should still be carefully considered and tailored to the
Below-grade/underground retail commands rents station, neighborhood, and market context.
about 25-30% lower than street-level retail
based on other transit agencies’ experiences. This, Street-level retail commands higher rents than
combined with the relatively small retail square below-grade retail, typically by 25-30%. Street-
footage footprint for the North Concourse, does not level retail can provide revenue to Sound Transit at
provide a huge amount of revenue potential for Sound approximately $44/SF annually, triple net, based on
Transit through this space (approximately $16,500 in precedent retail comps in the area. This revenue
revenue per month, or roughly $33 per square foot could be approximately $73,000 per month.
annually). However, the benefits of connecting to the
For joint development, any agreement with a
basements of adjacent properties and opening up the
developer to redevelop the buildings on 5th Avenue
potential for additional retail access may negate this
between Pike and Pine should include a requirement
somewhat.
that retail uses be included on the ground floor
Even before COVID, brick and mortar retail facing the street.
was experiencing challenges as an industry
For the North Concourse, consider independent,
due to shifts to e-commerce. This trend could be
local retailers to complement national chain stores at
exacerbated for underground retail if not properly
street-level. The exact location/placement of different
located within the station (i.e. located along
uses should also be considered, as ventilation is
passenger flows) and advertised adequately by
not optimal in underground spaces. For example,
signage and wayfinding. Retail type and tenant
Turnstyle Market found that placing a clothing vendor
selection will be key (see additional details in the
next to a food stand resulted in clothing smelling like
Opportunities section below).
the adjacent food. The extended concourse could
Opportunities also be used to connect into many of the buildings in
Footfall is a critical driver for the success of any the area, making transit more accessible and adding
retail offering. There is high footfall in this area as a value to individual buildings and developments.
prime downtown location, from passersbys, office
workers, and shoppers. There are about 90,000
employees within a 10-minute walk of Westlake

Passengers walking through Westlake Station platform

Design Strategy
Possible Challenges For the North Concourse, a concourse connecting
To capture the attention of and make use of the wait the existing Westlake Station to McGraw Square
time of passengers, the ideal location for retail will be would most likely require cut and cover construction
along the transfer route and close to street level. The along 5th Avenue which would disrupt businesses
current configuration of the vertical transportation and traffic for a number of months. Utilities may have
from the new station to the existing station is to be relocated under 5th Avenue to make space for
circuitous, disorienting, and creates discontinuous the concourse. The far end of a retail concourse
spaces that are not ideal for retail frontages. extending north under 5th Avenue to McGraw Square
under the right-of-way would require its own portal,
Below-grade spaces will not enjoy the natural light, service elevators, and exhaust ductwork at street
air, and views available to above-grade spaces level, necessitating additional property acquisition.
along the same corridor; thus, they will have to
offer something in return to make them desirable. Opportunities
Convenience and comfort for transit passengers, There is potential to develop retail opportunities near
especially those transferring between various modes, Westlake Park and Pine and Pike. Sound Transit
will be important to their success. could leverage the location adjacent to the park/plaza
to provide a restaurant/bar opening onto the park/
PRECEDENTS FOR HEADHOUSE AND UNDERGROUND RETAIL DESIGN AND USE
Turnstyle Underground Market, 59th St- Martin Place Station, Sydney: Sydney Metro’s
Columbus Circle Station, New York City: Turnstyle new Martin Place station is being built entirely by a
Underground Market, is a large underground retail private developer who is simultaneously constructing
cluster in New York City with over 35 tenants in one a new commercial development directly above the
of the MTA’s busiest stations (Columbus Circle). It station. Sydney Metro will retain ownership of the
is located outside of the faregates, to encourage underground station once complete and has sold
neighborhood residents and workers in addition to the air rights above the station to the developer. The
riders to visit the shops. Although MTA discounts revenue from the air rights sale has covered roughly
rents relative to street-level retail spaces, the market 90 percent of the station construction costs. The
still generates a revenue of over $1.25 million annually new development will seamlessly integrate with the
for the agency. station and surrounding neighborhood by providing
public realm improvements and pedestrian tunnels to
connect to the surrounding area.

plaza, and provide brick-and-mortar retail or a café to

complement the existing retail cluster and office uses
in the area.
Ground floor/street level retail can be used to create

an activated and enlivened streetscape. Providing
restaurants/cafes in the headhouse retail spaces
adjacent to Westlake Park could help to further
activate the park and sidewalk.
Consider extending the existing platform level to

form a new concourse connection to the monorail,
streetcar, and existing retail properties. Exhaust air,
service access, and relocation of existing utilities
must be thoughtfully accommodated.
Canary Wharf, London: The Canary Wharf Crossrail Hong Kong MTR: Hong Kong MTR develops a
Station was designed to be a major transportation significant amount of retail along its underground
hub. To further the design as a neighborhood hub, walkways. The retail selection includes stores
a retail mall sits above the train tracks, serving as a selling everyday items like groceries. This not only
central neighborhood gathering spot in its own right. provides revenue for the agency, but also creates
This was partially funded by a private real estate rider convenience by placing a wide selection of
group in exchange for influence over the station retail offerings directly along paths riders are already
design. The retail offerings integrate seamlessly with traversing. The walkways connect directly to adjacent
the neighborhood (including a public park) and the developments as well as the street.
rail station, bringing convenience to people in the
neighborhood and riders alike. There are multiple
entry points to the station platform, both via long
direct escalators from street level and connections
from the center of the shopping mall.

06 Conclusions and
Next Steps

Conclusions
In summary, the key findings and conclusions critical to creating and implementing a successful retail
and services offering are as follows:
Agency policy should provide a clear vision and Benefits increase with scale
goals for a systemwide retail strategy
Financial returns, along with passenger and community
Setting out a clear vision for retail implementation at an benefits, increase with the scale of retail opportunities
early stage is fundamental to retail success. Determining and broader joint development, which typically includes
and clarifying Agency policy goals and priorities is retail. As the retail footprint grows, so does revenue
crucial as an upfront step, as this will then be used in generation, and with this comes associated cost savings
guiding a systemwide retail strategy for where and what through economies of scale. These economies of scale
types of retail should be implemented. Sound Transit accrue through efficiencies in management and
may need to develop an expanded retail and operations costs, leasing, and staff effort.
concessions policy to achieve these goals and vision.
Understanding of context should guide specific Design and infrastructure are key to success
offerings
Design requirements and thresholds (e.g. line of sight,
Understanding and tailoring retail offerings to specific footfall, signage/wayfinding) need to be taken into
contexts increases the chances of success. Context account early to ensure success of a retail offering.
includes but is not limited to local demand, footfall, Additionally, infrastructure requirements (e.g. restrooms,
and ridership, all of which contribute to revenue utilities connections) need to be considered at an early
potential. Context also includes adjacent retail offerings, phase of the retail implementation process to avoid the
neighborhood and community needs, and urban need for costly and complicated retrofitting at a later
design considerations, to name a few. A systemwide stage.
retail strategy can help to evaluate these contextual
considerations to inform the success of potential retail
proposals.
Management structure shapes outcomes
Management options exist in two primary forms: the

transit agency as the retail manager, or a third-party
manager. Management responsibilities include but are
not limited to conducting tenant marketing and outreach,
managing leases, and coordinating maintenance and
other tenant concerns. Even if using a third-party
manager, it is critical that Sound Transit has an internal
group who can manage the relationship with the third-
party and coordinate with other parts of the Agency
internally.

Passengers walking through ALS Station subway platform

Next Steps
A Roadmap for Implementation
The roadmap on the pages that follow translates the key findings into key steps for Sound Transit
to develop and implement a successful retail and services offering. Specific recommendations to
advance retail at the case study stations presented in Chapter 5 are also outlined.
CASE STUDY STATION NEXT STEPS

Recommendations to ensure proactive planning for retail opportunities
Sound Transit has an opportunity to unlock the potential of CID Station Recommendations
retail integration at the existing three key stations—Tacoma • Plan for a high degree of transparency between the
Dome, Chinatown-International District, and Westlake— street, the retail space, and the station, thinking of
as outlined in Chapter 5. In addition to the actions in the retail tenancy that would be compatible with the goals
broader roadmap, the following recommendations should of providing passenger comfort, convenience, and
be considered in the short to medium term to help ensure capable of creating a neighborhood social space. If
that opportunities are not missed for a retail and services possible, plan back-of-house spaces away from the
offering at these three stations. prominent corner or below-grade.
• Retain a minimum of 12 feet floor to ceiling height

Tacoma Dome Station Recommendations
inside of the space.
• Ensure street frontage remains desirable and is not
perpetually blocked by buses. Include benches, • Keep exhausts and exhaust noise away from the
bicycle racks, street trees, good lighting and signage, storefronts.
transparent storefronts, and weather protection in the
design of the station. • Plan for electrical conduit, sprinklers, HVAC, kitchen
exhaust, grease traps, and access to restrooms in the
• If possible, make use of the tall ceiling height below space with service from the alley.
the guideway to create a more interesting and dynamic
space for retail. Westlake Station Recommendations
• Consider placing retail along the routes of passenger
• Plan for electrical conduit, sprinklers, HVAC, kitchen
flow between the existing and the new Westlake
exhaust, grease traps, and access to restrooms in the
Stations. Configure vertical and horizontal circulation
space.
to put retail storefronts “on the way” of transferring
• Provide guidelines for signage and storefront design to passengers.
tie into the emerging character of the neighborhood.
• Consider how to get natural light into the concourse
• Ensure Sound Transit has internal organizational level and even down to the platform level of the existing
structures and capacity in place to be able to manage station.
the retail offering at Tacoma Dome.

Near Next
Develop a defined and expanded
Agency retail policy Define Sound Transit Define
approach to retail management and overarching
determine the appropriate delivery and lease terms and
Create a systemwide retail strategy and identify management model conditions
dedicated retail staff with the Agency
Continue to work with AHJs and coordinate EIS and planned actions
Conduct early engagement and outreach with local jurisdictions and communities
Explore partnering with other government agencies, as well as community organizations,

to further economic development goals and realize value for the community.
Develop a defined and expanded Agency Define Sound Transit’s retail management
retail policy: approach and determine the appropriate delivery
• This will define Sound Transit’s goals and model, including internal organization, roles, and
priorities for retail and create a guiding framework responsibilities:
for a subsequent retail strategy. • Based on the retail strategy and scope of retail to be
provided, determine the retail management approach that
Create a systemwide retail strategy: Sound Transit will take: either direct Agency management or
• Evaluate current and future Sound Transit space using a third-party manager/master lease agreement.
available and/or suitable for retail across the • With either option, Sound Transit will need to ensure that
system; there is internal capacity for specialized management
• Conduct market analysis that considers elements of retail assets and/or contracts. Using a third-party will
such as ridership, built environment context, somewhat reduce the need for specialized internal staff
market demand, demographics, household capacity.
spending patterns, and commercial rents;
• Determine recommended tenant mix for each Define overarching lease terms, ensuring leases have
station/opportunity and associated marketing adequate flexibility:
strategy; • Explore flexible lease arrangements for certain tenants,
• Assess potential revenues and costs incurred by e.g. smaller and local businesses may prefer flexible lease
Sound Transit; and durations to minimize risk.
• Identify potential stations and sites for joint • If managing retail within the Agency, consider the utility,
development opportunities to maximize operation, and maintenance requirements and responsibilities
development, revenue, and retail potential. for each tenant individually and define these clearly within
Consider a focus on stations such as CID and lease agreements. If using a third-party master lease
Westlake. agreement, consider the operation and maintenance services
the master leaseholder should be responsible for providing.
Subsequent steps to developing a retail and services

offering will be dependent on defining the goals and The scale and types of retail identified as part of the
Process Drivers
policy to guide Sound Transit’s retail and services systemwide retail strategy will be key in determining the type
offering and strategy. For example, a Sound Transit- of management structure and delivery model. For example, if it
defined policy or goal might call for advancing equitable is decided that there are 12+ stations that are suitable for retail,
outcomes through retail. In this example, a next step Sound Transit will want to consider a master lease agreement
could be developing a specific program for small with a third-party management company to help manage this
businesses to access Sound Transit retail opportunities scale of retail.
as tenants.

Future
Identify and address design Implementation: Provide retail across a
and delivery constraints range of station environment types
Ongoing: Negotiate and provide individual leases
Identify and address design & delivery constraints:

• Ensure the appropriate infrastructure and utilities are integrated into station design and provided for the
various selected retail types. Consider retrofitting existing stations that do not meet this standard.
Retail in operation
• Determine the mechanical, electrical, plumbing, sprinkler, restroom access, any façade improvements,
and signage early.
• Ensure that the design of retail spaces integrates with public realm and station design.
• Incorporate relevant regulations and requirements into early-stage design as these can drive the
location and retail type selection.
• Bear in mind core transit functions, e.g. lines of sight, ventilation, and fire/life safety need to be
considered at the initial stages of any designs.
Provide retail across a range of station environment types:

• Implement pilot projects to test different types of retail and/or contexts.
• Consider using high revenue spaces to subsidize lower or negative revenue spaces.
• Locate retail within the station environment in areas with the highest passenger flow and footfall.
Ensuring flexibility of spaces, infrastructure, and design over time as stations develop will be key to
the ongoing success of retail provision, as macro- and micro- markets, surrounding neighborhoods, and
passenger numbers and demands change.

Endnotes
1 Sim, David. Soft City (2020)
2 Sim, David. Soft City (2020)
3 Vending Group. Vending Machine Size Guide. (https://www.vendinggroup.com/coca-cola-vending-machine-
size-guide)
4 Colliers International. The SFMTA Retail Leasing Strategies Report. January 2018 (https://www.sfmta.com/
sites/default/files/reports-and-documents/2018/02/colliers_-_sfmta_retail_leasing _strategies_report_-_
final.pdf)
final.pdf)
6 Based on kiosk sizes in New York Grand Central Station and San Francisco Union Square Station
(anticipated). Grand Central Terminal. Real Estate & Leasing. (https://www.grandcentralterminal.com/
realestate-leasing/). Colliers International. The SFMTA Retail Leasing Strategies Report. January 2018
(https://www.sfmta.com/sites/default/files/reports-and-documents/2018/02/colliers_-_sfmta_retail_leasing _
strategies_report_-_final.pdf)
7 Based on the Colliers SFMTA Retail Leasing Strategy, with prices adjusted from San Francisco Bay Area
market rents to Seattle Metro Area market rents through CoStar Analytics. Colliers International. The
SFMTA Retail Leasing Strategies Report. January 2018 (https://www.sfmta.com/sites/default/files/reports-
and-documents/2018/02/colliers_-_sfmta_retail_leasing _strategies_report_-_final.pdf)
final.pdf)
9 Rent information from CoStar Analytics. Average retail rent across Seattle Metro Area is $2.18 per SF per
month. Based on an interview with SFMTA staff, in-station rents tend be 25-30 percent lower than street
rents. The resulting number was rounded up to $2.00 per SF per month based on the fact that Sound Transit
stations tend to be in the denser, more urban parts of the Seattle Metro Area.
10 Rent information from CoStar Analytics.
11 Susana Guerrero, writing for SF Gate, Dec. 19, 2019. “Dominique Crenn debuts pop-up kitchen outside
Salesforce Tower.” https://www.sfgate.com/food/article/Dominique-Crenn-debuts-pop-up-kitchen-
SF-14919210.php.
12 Based on external interview with BART, as well as case study research such as the MARTA iVillage,
in which MARTA decided to pursue a partnership with the City that would not generate revenue for the
agency. coUrbanize. iVillage at H.E. Holmes Station. (https://courbanize.com/projects/he-holmes-ivillage/
information)
13 FTA, Funding, Joint Development. Overview. August 2020 (https://www.transit.dot.gov/JointDevelopment)
14 Transport for London. Pop ups, pitches and more. (https://tfl.gov.uk/info-for/business-and-commercial/
other-opportunities)
15 Geek Wire. Amazon envisions package pickups on public transit, using lockers on buses, trains and
subways, by Todd Bishop. August 2015. (https://www.geekwire.com/2015/amazon-envisions-package-
pickups-on-public-transit-using-lockers-on-buses-trains-and-subways/#:~:text=One%20scenario%20
described%20in%20 the,retrieve%20while%20 they’re%20riding.)
16 University of Washington. Evaluation of Sound Transit Train Stations and Transit Oriented Development
Areas for Common Carrier Locker Systems. (https://depts.washington.edu/sctlctr/sites/default/files/SCTL_
Urban_Freight_Lab_5.18.18.pdf)
17 CNBC. Retail stores get a bad rap, as closures pile up. But here’s how stores boost online sales, by Lauren
Thomas. (https://www.cnbc.com/2019/07/22/icsc-says-theres-a-halo-effect-by-retailers-having-physical-
stores.html)

18 Clarkston Consulting. 2020 Retail Trends. (https://clarkstonconsulting.com/wp-content/

uploads/2020/04/2020-Retail-Trends_compressed.pdf)
19 CNET. Amazon now operates seven different kinds of physical stores. Here’s why, by Ben Fox Rubin.
(https://www.cnet.com/news/amazon-now-operates-seven-different-kinds-of-physical-stores-heres-why/)
20 The Wall Street Journal. Apple Opens New York Grand Central Store, by Shara Tibken. (https://www.wsj.
com/articles/SB10001424052970203413304577088201456063374)
21 Based on an external interview with BART staff and news articles. The Richmond Standard. Richmond
Business Hub to be ‘transformative’ for downtown. July 2018. (https://richmondstandard.com/
richmond/2018/07/17/richmond-business-hub-to-be-transformative-for-downtown/)
22 The Real Deal. MTA cuts rent up to 90% for small businesses. October 2020. (https://therealdeal.
com/2020/10/28/mta-cuts-rent-up-to-90-for-small-businesses/)
final.pdf)
24 Based on an interview with Turnstyle Market staff in addition to desk research. The Wall Street Journal.
New York’s MTA Plans Retail Revamp of Highly trafficked Subway Stations, by Paul Berger. June
2019. (https://www.wsj.com/articles/new-yorks-mta-plans-retail-revamp-of-highly-trafficked-subway-
stations-11560682801)
25 Washington Metropolitan Area Transit Authority. Joint Development Program Guidelines. May 2020. (https://
www.wmata.com/business/real-estate/upload/Joint-Development-Program-Guidelines-1.pdf)
26 Longitudinal Employer-Household Dynamics, https://onthemap.ces.census.gov/, 2017. Includes all jobs
within 0.5-mile radius of Tacoma Dome Station (2501 E D St, Tacoma, WA 98421)
27 CoStar Analytics.
31 French Riviera Traveller. Gare du Sud. (https://www.frenchrivieratraveller.com/Nice/Sights/gare-du-sud.
html)
32 Chapman Taylor. St Pancras International. (https://www.chapmantaylor.com/projects/st-pancras-
international)

Appendix A
Best Practice Findings

Learning from Best Practice graph;
Best Practice Takeaways chart

Best Practice Research: Key Findings
PLANNING AND POLICY
Value Proposition is in Providing Retail Amenities for Riders and the

Community
MARTA’s iVillage does not generate revenue for the agency, and
rents only cover the cost of operations. But the project does activate
previously unused space while creating convenience for riders and
neighborhood residents, provide a low-cost opportunity for local low-
income aspiring business owners to get started, and generally help the
neighborhood economy. New York MTA and SFMTA also make a point
of renting to small locally owned businesses as much as possible.
Work and Partner with Local Jurisdictions

When BART wanted to build retail space in its Richmond station, it
found that local fire safety requirements were more stringent than they
typically built to. However, after working with the City, the City gave them
a credit to build retail in the bottom of the parking garage, the Richmond
Business Hub (pictured).
Consider Tenant Improvement and Fit-Out Costs

The SFMTA cannot engage in long-term leases by internal policy, and
as such, tenants that would require significant tenant improvements
are hesitant to move in. The agency is having to put significant new
capital investment into some of their older retail spaces (pictured) to
compensate.
Consult with the Community

Hong Kong MTR has begun thinking of their stations as community
hubs (pictured), not just transit stations with retail. This has led to
developments like creating urban agriculture opportunities on top of their
stations, as well as filling out retail spaces with businesses that serve
community needs (such as grocery stores).
Consider the Local Market Context

It is better to complement, instead of competing against, adjacent
retail uses. At MacArthur station in Oakland, CA, BART doesn’t want
to compete with new TOD retail being built adjacent to the station
(pictured). Instead, they are focusing on park-and-ride locations and
building retail into the ground floor of above-ground parking structures.

BUSINESS STRATEGY/MODEL
High Revenue Businesses/Spaces can be Used to Subsidize Small

Businesses, and Other Agency Operations/Priorities
MTA maintains a 50-50 split between big brands and small businesses
at Grand Central Station. Part of the way it does this is by providing
small kiosk options for businesses that cannot afford larger brick and
mortar spaces (pictured). MTA also uses a lottery system to determine
which retailers may get the kiosk spaces, as there are consistently more
applicants than spots.
Financial Returns Increase with Scale

New York MTA has turned Grand Central Station into a full-on shopping
destination, complete with food halls, seasonal attractions (such as the
holiday market), an event space which gets rented for private events
(Vanderbilt Hall), and a very lucrative anchor tenant: an Apple store
(pictured).
Know the market, and consider tenant selection and mix

Turnstyle Market in New York City (pictured) built out the retail shells
to create an attractive retail experience to customers and riders by
including a mix of grab and go, sit down, and big name vendors that
cater to the needs of the local neighborhood market in addition to riders.
MTA did the same thing at Grand Central station, and Hong Kong MTR
also carefully considers tenant mix and market demand at its stations.
Lease Flexibility is Critical

Station facility needs change over time, and flexibility from short term
leases is critical in meeting changing needs and avoiding undesirable
tenants. MTR has noted that new technology is reducing the need for
ticketing machines (pictured), and may use that space for retail instead.
New York MTA and SFMTA have also noted the benefits of short term
leases for addressing changing station needs.
Consider Joint Development Options

LA Metro used joint development at its Wilshire/Western station
(pictured) to generate revenue through a 99-year ground lease, provide
retail convenience to riders (constructed by the private developer at no
cost or financial risk to the agency), and increase ridership by allowing
the developer to build transit-oriented development on agency-owned
land. WMATA also uses joint development at many of its stations.

DESIGN
Bear in Mind Core Transit Functions

Ensure that retail uses do not impede passenger flows or operational
needs. For instance, BART found that their private concession, who
was to build out new retail in their stations, did not understand proper
transit flow considerations, and installed a kiosk in the middle of a major
pathway (pictured), disrupting rider foot traffic.
Retail Can Increase Safety

Denver RTD (pictured) has noted that staffed retail provides a
guaranteed human presence during low-ridership times, and can
increase perceived public safety.
Consider Joint Development Options During the Planning Process

When New York MTA needed to rebuild its Fulton Center station, they
engaged in joint development to build a large mall atop the station
(pictured), which was built in tandem with the station itself. MTR also
frequently organizes the construction of large residential and commercial
developments along with its new stations.
Plan Ahead: Retrofitting is Expensive

TransLink is in the process of adding more retail to their existing stations
(pictured), and is finding that it is expensive, as well as difficult to place
the new retail in optimal in-station locations. SFMTA is also finding that it
needs to retrofit some retail space, and it is presenting a significant cost
burden as well.

MANAGEMENT
Defined Internal Roles and Responsibilities is Key

Even if using a master lessee agreement, a devoted retail group within
the transit agency is key to success. SFMTA and BART each have 1.5-2
FTEs focused on retail and real estate. Hong Kong MTR (pictured) has a
large real estate division that almost acts as a separate agency. Sound
Transit’s Real Property group has many priorities, and a small devoted
retail team within it would be beneficial.
Management Model: Operating Agreement

The best management model will depend on the scale of retail and
station needs. The new Salesforce Transit Center (pictured) is managed
by a team of several private companies, who handle retail operations,
park programming, in-station advertising, and retail management.
Management Model: Master Lease Agreement

station needs. TransLink (pictured) uses a private party to do all of
its retail leasing, but the agency retains all station management and
operational duties.
Management Model: Direct Retail Management

station needs. Although New York MTA uses private firms to manage
some its retail offerings, it manages the annual holiday market (pictured)
itself, as it only occurs for 40 days per year. SFMTA also manages its
own retail offerings, as they are limited to a few smaller locations.
Joint Development Can Offload Retail Management Responsibility

With rare exception, WMATA opts to achieve retail through joint
development at its stations, rather than building retail shells in to the
station itself. Prince George’s Plaza (pictured) includes 259 residential
units, 300,000 square feet of office, and ground-level retail.

Appendix B
Preliminary Ridership
Threshold Calculations

For in-station retail to be viable, businesses located 3) Required Revenue from Transit Riders per
within stations must have access to a customer base Month: The amount of revenue a business
large enough for them to stay in business. This report needs from ridership in order to be viable. This
uses ridership by station to determine which stations is calculated as [Minimum Gross Revenue
have access to a customer base large enough for in- per Month] minus [Revenue from Household
station retail to be viable. The table below illustrates Spending per Month].
the methodology used to estimate the minimum
ridership, reported as weekday ridership, for specific 4) Ridership Capture Rate: The percentage of
types of retail (such as coffee stands, grab and go riders who are likely to make a purchase from the
cafés, and restaurants) to be viable. The steps are as business. These are Hatch estimates and were
follows: confirmed by outreach to transit agency staff.
1) Minimum Gross Revenue per Month: The 5) Assumed Average Purchase Amount: The
amount of revenue a business needs to generate average size of a purchase at the given retail
monthly to be able to stay in business. These type. This is based on average cost for typical
estimates are based on market research, and items (e.g. the $4 assumed average purchase
typically refer to low-end estimates of average amount for a coffee cart reflects the average price
revenue (e.g. based on a survey of average of a latte).
revenues for a specific business type, this figure
6) Minimum Weekday Ridership Needed to
represents the lowest average revenue among
Achieve Gross Revenue: The minimum
the businesses surveyed).
ridership needed to support each retail type, as
2) Revenue from Household Spending per described above. This is calculated by:
Month: The amount of revenue a business can
i) Calculating Minimum Monthly Ridership
expect monthly from neighborhood residents
(intermediate step): [Required Revenue
living in the station area. These estimates
from Transit Riders per Month] divided by
are based on the Bureau of Labor Statistics’
{[Ridership Capture Rate] times [Assumed
Consumer Expenditure Survey (data is specific
Average Purchase Amount]}
to the Seattle Metropolitan Area), and assumes
that in-station retail will capture approximately ii) Converting Monthly Ridership to Weekday
one percent of household spending in the relevant Ridership: This is done by assuming the
expenditure category (e.g. Convenience Grocery typical month has 30 days; 21 weekdays
household spending would be based on the and nine weekend days. Weekend ridership
“Food at home” expenditure category). is assumed to be half of weekday ridership,
based on the Sound Transit Q3 2019
Ridership Report. The result is then rounded.

Minimum
Required Weekday
Minimum Revenue Revenue Assumed Ridership
Gross from from Ridership Average Needed
Revenue Household Transit Capture Purchase to
per Spending Riders Rate Amount Achieve
Month per Month1 per ($) Gross
Month Revenue
2
The
Number of
amount of Gross The
Spending weekday
revenue revenue The share average
captured from riders
that a (column of riders transaction
households needed
business 1) minus likely to amount per
in the area to meet
needs to household make a purchase
surrounding the gross
generate to spending purchase by retail
the station revenue
be able to (column 2) type
per month
operate
Vending $3003 N/A $300 1% $1 1,200
Staffed Concessions
Newsstand $14,0004 $400 $13,600 3% $85 2,400
Coffee Cart $15,0006 $1,600 $13,900 5% $4 2,800
Hot Food $20,0007 $2,000 $18,000 3% $5 4,800

Stand
1 Will vary by station area density; assumes 3,000 households in each station area based on Seattle’s residential density (US Census
Bureau) and a half-mile radius station area. Assumes in-station retail will capture roughly 1% of area household spending in relevant
Consumer Expenditure Survey categories. Source: Bureau of Labor Statistics Consumer Expenditure Survey, Table 3033, 2018-2019
(Seattle Metropolitan Statistical Area).
2 Assumes weekend ridership is equal to roughly half of weekday ridership, based on Sound Transit Q3 2019 Ridership Report.
Assumes a typical month has 21 weekdays and nine weekend days.
3 Small Business Trends. Most Profitable Vending Machines, by Gabrielle Pickard-Whitehead. June 2019 (https://smallbiztrends.
com/2019/06/most-profitable-vending-machines.html)
4 B Plans. Newsagent – Newsstand Business Plan. (https://www.bplans.com/newsagent-newsstand-business-plan/strategy-and-
implementation-summary/)
5 One of the most common purchases at newsstands is cigarettes, which cost an average of $9.30 in Washington State. Fair
Reporters. Cigarette Prices By State. January 2020 (https://fairreporters.net/health/prices-of-cigarettes-by-state/)
6 JBC & Associates. Why Pop-Up Stores?. (https://jbcassociates.net/why-pop-up-stores/#:~:text=Pop%2Dup%20retail%20is%20
an,with%20customers%20in%20our%20centers.)
7 Estimate based on hot dog vendors in New York City. Slate. The Half-Million-Dollar Wiener, by Meredith Simons. August 2009
(https://slate.com/news-and-politics/2009/08/how-can-new-york-city-hot-dog-vendors-afford-to-pay-half-a-million-dollars-in-rent.html)

Minimum
Required Weekday
Minimum Revenue Revenue Assumed Ridership
Gross from from Ridership Average Needed
Revenue Household Transit Capture Purchase to
per Spending Riders Rate Amount Achieve
Month per Month1 per ($) Gross
Month Revenue
2
Brick and Mortar Retail
Grab & Go
$35,0008 $2,500 $32,500 5% $9 2,900
Café
Durable
$40,0009 $10,000 $30,000 1% $20 6,000
Goods
Convenience
$85,00010 $10,000 $75,000 5% $10 6,000
Grocery
Restaurant $110,00011 $10,000 $100,000 2% $20 10,000
8 QSR Magazine. Top 50 [Quick-Serve and Fast-Casual Brands] Sorted by Average Sales Per Unit, by Sam Oches. August 2011 (https://
www.qsrmagazine.com/reports/top-50-sorted-average-sales-unit)
9 Camoin Associates. Average Square Footage and Retail Sales per Square Foot Across Major Brands. August 2018 (https://www.
camoinassociates.com/average-square-footage-and-retail-sales-square-foot-across-major-brands). Prototype based on Claire’s.
10 Estimate based on a 2,000 SF convenience grocery store size minimum, with revenue calculated per square foot. The Houston
Chronicle. The Industry Standard for Gross Margin in Groceries, by Walter Johnson. (https://smallbusiness.chron.com/industry-standard-
gross-margin-groceries-38121.html)
11 On the Line. What is the Average Restaurant Revenue for a New Restaurant?, by Dahlia Snaiderman. (https://pos.toasttab.com/blog/
on-the-line/average-restaurant-revenue)

Appendix C
Internal Focus Group
Findings

Purpose:
• To start a conversation within the Agency about
how Sound Transit might intentionally approach
the subject of retail and services in Sound Transit
stations and facilities.
Rationale:
• Opportunity to consider alignment with Agency
strategic plan and initiatives
• Opportunity to inform upcoming decisions on

siting and design of major interchanges and
system expansion
• Delivering retail and services in stations is a

complex proposition affecting many departments
and functions.
Goals:
• Define and weigh potential measures of success
• Develop a cross-departmental and functional

view of opportunities, challenges, and risks
• Consider and assess prospective approaches to

implementation and management
Meeting Information:
• Date: July 17th, 2020
• Consultant team: Feliz Ventura (Hatch), Rachel

Bramwell (Hatch), Mera Kairatkyzy (Hatch), Heidi
Bullinga (ZGF)
• Sound Transit team: Sloan Dawson (PEPD), Tim

Bates (PEPD), Juan Calaf (PEPD), Stephen Mak
(PEPD), Tim Wong (DECM)

Agency Challenges
The following challenges were highlighted in the Sound while the findings from research and external interviews
Transit focus group through the Miro board exercise and provide a broader perspective of their own challenges given
the topic-specific breakout groups, and through best the successes and failures they have faced. These broader
practice research and interviews with transit agencies, retail issues should be considered as Sound Transit moves
providers, and developers. The Sound Transit challenges towards developing a retail offering of their own.
highlight practical implementation challenges that the
agency has faced in the past and may face in the future,
Policy Business Model
Sound • Balance the consumer versus • Retail implementation due to permit

Transit convenience uses requirements can be challenging
Challenges • Meet local retail demands • Tenanting can become very political,
• Maintain the image of Sound Transit both internally and externally
• Ensure cost neutrality to Sound • Decisions around ownership (Sound
Transit Transit to own versus sell/“condo-
ize” retail space)
• Leasing decisions (using a master
lease agreement versus directly
leasing to tenants)
Challenges • Working across multiple • Retail spaces underground

faced by jurisdictions, including local command lower rents than at street
other permitting, policies, and ordinances level, which can make it harder to
• Ensuring consideration of break even
agencies
community concerns and needs • Longer-term leases can be difficult
• Ensuring small, local, and/or both for the transit agency and
community businesses have access smaller businesses
to retail opportunities • Initial investments for retail space
fit-outs can be high, and retrofitting
costs can be even higher
• Understanding of the local market
context, supply, and demand, in
order to select the appropriate
tenant mix

Design & Delivery Management

• Physical conditions of stations might • Location selection
pose constraints for retail flexibility • Communication with vendor is
• Rationale behind and justification critical
for retail integration • Coordinating security procedures
• Design programming needed to and policies with retail businesses
protect for flexibility for uses • Operations and maintenance
• Understanding ridership targets coordination of waste management,
(also a business model/tenant vandalism/graffiti prevention, etc.
selection consideration)
• Proactively planning for utilities and
infrastructure, such as plumbing and
restrooms
• Understanding and incorporating • Procurement method for tenants

various requirements, regulations, can be challenging
and codes: Safety and security, FTA • Agency policy around offering lower
regulations, fire codes and life safety rents to selected tenants needs to be
• Retrofitting stations for retail space considered
can be very difficult regarding • Selecting the appropriate
physical space and design management model to use (i.e.
• Design and location needs to internal versus external
consider line-of-sight and core management of retail)
transit functions • If internal staff responsible for retail
• Decisions around the type of shell management, can be stretched too
provided for tenants and level of thin
initial fit-out • Using retail management strategies
• Safety and security, especially at to increase safety and security
hours when transit is not busy
• Planning early for specific retail
types
Sound Transit Focus Group:

Challenges
How might we define success? How might we structure the

deal/business model for retail?
Passenger Experience
ability to get happy transit Rider Retail Business Model & Legal Structuring
Sense of customer
riders (including No negative
an errand satisfaction satisfaction
those who no place to impact to ST Sell retail space as Pursue What FTA
done without with retail and with access to Partner with joint
longer have a 1- improve TCO a condo and let a opportunities regulations
adding seat ride) and vending services in development,
impact how a
experience separate for internal
options. station area another entity to
another stop tenants
company cross-subsidy deal is
share risk and structured?
own/manage the to fund TIs
reward.
space.
People twit Community greater less complaints
positively abou uses their integration of during service
t our stores at commute for the station delays b/c of Get up-front
Be clear whether we
option to shop blanket locally fund
into the city Master lease
our ST station more than just are doing master agreement for the capital
and wait for train agreement with lease to a
#STore commuting... (urban quality) third party to management firm or
incidental uses of
cost? can it be
all identified
1 1 if we are seeking broken out?
manage spaces. spaces from FTA
direct tenants
Retail Market Demands & Retail Management Strategy
Retail Market Demands

Retail space in Retail could be ST owns the spaces, huge demand
understand high passenger separate management for vendors to apply
used to If there's a market Understand
market for future traffic walkway company does the leasing, for a store in station market-based for retail can opportunities to
tenants/
reduce/buffer good mix of tenants is work with approach to ensure
with good that having a store retailers support local
marketing early tenant spaces meet
successful tenants peak volumes at sought including
at an ST station is design/build/own/ business - "market
visibility independently owned, on local economic
event stations. considered as a development goals operate their own rate" vs "below
Puget-Sound based business? market" uses that
businesses. status quo
support community
Retail spaces Small businesses Businesses self hours of Rotating Retailers
can afford to maintain/manage
operation availability of should not be
have thriving all costs would sell
lease and move ORCA match transit food truck responsible for
tenants associated with Providing a need
hours public
into the space space products spaces
bathrooms
Retail Financing
Financial Considerations Community Diversity & Inclusion
If marginal opportunity,
Transparency and
Budget tenant percentage rent +
$$$ Occupancy No/low no dead & empty
Opportunities for
Well designed Minority owned
business & Small
CAM/Taxes; tenant clarity about how base rent + % of
% vacancy attempted retail program to recruit improvements improvement the rent is sales go to ST
wealth-building business making
spaces, desperate and retain the local - property allowance. If great calculated and
for community- up large % of business opportunity, used
community in retail
for tenanting of based enterprises
operations. portfolio management base rent too.
Retail leasing as a any kind.
It should not
positive and not a 1
cost us more 1
burden - staff and have a business
to run than it
fund Meets community clear business structure in
brings in
appropriately or need especially If we provide a Defined goals for Value capture to goals. (vs.other place before
out Source positive cash for under tangible public small business support goals?) design of the
resourced benefit that
flow and diversity operations, space
communities. otherwise
Increased inclusion maintenance
wouldn't have
ridership been available
1
Diversity in
renters and
options

How might we manage the design How might we manage retail

process and risk? coexistence amid our normal transit
operations and facilities maintenance?
Retail Market Feasibility
Retail Area Delineation
Vet both viability for Run a few pilot

Market studies Ensure systems Clear delineation clear deliniation of space;
transit facilities & projects clear when space is shared
If inside the station,
to confirm retail space. Needs and infrastructure and security roll-down gates for
before is separate - clear separation between
(like seating), and focus on
closing. Signs still
need for retail to work for both,
executing full customer experience. Think
else just do the lines of retail areas and fare like an airport and efforts
illuminated at night for
at stations transit leases delineation paid zone areas to blur lines, but in those, security (and providing
there often is a master animation).
1 vendor coordinating.
Retail Planning & Design

retail off of design retail
mezz and layout within clear expectation setting RE
early engagement shared spaces - lesson Keep retail
platform areas station not to outside the fare
around retail Clear Operational Design flexible spaces Obtain actual block passenger learned from existing retail paid zone
outside the
(Outside of Fare where the tenant struggles station proper.
design integration / which could be used commercial real paid zone) flow
with the outdoor plaza
based on management exp for multiple functions estate consulting space
potential future ectations (retail, cafe, office, to confirm design
tenants is desirable
customer service, staff 1
support space, etc)
Plan early for

Retail Operations & Maintenance
utilities necessary
for bathrooms and clearly state seek info from Set expectations for
establish clear
Clear policy Design retail space other locations responsibilities for Encouraging the public to spend Define early which ST
kitchens if food & legal approach agreements extended amounts of time inside department will be
beverage is desired. boundaries to be flexible so we
(Skytrain
maintenance of any
around O&M with
regarding use don't get stuck with shared spaces
the station and providing them responsible for following
Too difficult after- regarding space that can't be Vancouver, NY future tenants with food/drink will undoubtedly up with tenants on meeting
of federal (plazas, concourses)
increase maintenance costs. ST their obligations around
the-fact. funds possible uses subdivided (if big) MTA, etc) Leadership would have to cleanliness, lease
understand this and increase requirements, etc.
OPS budgets accordingly.
Space for trash,
deliveries,
maintenance that
Retail Management is marketable and
not disruptive
Clarity on ST
expectation 1
as a property management with understanding between

manager. Who jurisdictions and lease requirements Retail Planning & Safety & Security Management
operational and security
manages once other
stakeholders requirements - that do not If in tunnel better security
constructed? early planning
conflict to undermine environment, make support/law
marketability
mindset to view around restroom
enforcement
access - station sure we are
commercial real coordination for
bathrooms and/or coordinating with issues in the station
enhance staff estate as an asset
Think beyond retail tenant local fire & Ops for area near retail
experience of and not a liability. facilities emergency
the norm for
other agencies. retail design purposes
(different than
Structure agreement 2 Related to
Be specific to with space manager to be intentional in
heavy civil btw) give them risk of non-
selecting external safety
PNW riders prop management
occupancy and include (cost, risk)
partners - and don't
performance standards have too many
for management of layers between ST
spaces. and tenants

Appendix D
External Interview
Notes

Bay Area Rapid Transit (BART): companies using stalls (falls under station retail
BART Staff: program). This all brings in approx. $200K annually,
• Paul Voix, Principle Development Officer, Real though this will go up with BART’s new retail at
Estate and Property Development Richmond and MacArthur stations.
• Gary Sue, Real Estate Officer/Property Manager, City Partnerships: More recently BART has been
Real Estate and Property Development partnering with various cities to deliver retail offerings:
Value Proposition: The real value add of retail • In Richmond, CA, BART and the City of
for BART is providing “eyes on the station” and Richmond consolidated surface parking into a
a customer amenity. The opportunity cost of not parking structure in Richmond with grants. The
providing retail should be considered: potential City built a parking structure in exchange for land
increased safety/security costs and a less pleasant and on the ground floor put in 10K SF cold-shell
experience for BART customers, for example. It is retail. BART put out an RFP for the space, and
not a cash cow; the real revenue comes from their ended up with responses for a discount store,
advertising contract with ClearChannel, which makes health club (would have been a great fit), and
$10-20M in revenue a year. ultimately ended up selecting a coworking space.
BART gave them a rent credit (fair market value is
Delivery Model with Master Lessee: BART
about $10K/month) for four years, and didn’t cover
released an RFP for a master lessee to handle retail
tenant improvements, but helped them pay in part
across the system, but the deal went sideways and
for these. BART signed a ten-year lease with two
BART had to cut ties with the vendor because of
five-year renewals with the coworking space; this
missed deadlines. Because of this, very skeptical
came to over $120K/year with CPI adjustments.
about having a master lessee manage retail across
Rent comes out to $100-150/SF for cold-shell
the entire system. As background:
retail.
• “BART contract with TransMart: TransMart was • BART did a similar project with Bridge Housing
hired to build and lease underground retail space at MacArthur station in Oakland. It used the
following a six year discussion with BART. The same structure/idea as in Richmond; The City of
intent was to enhance the ridership experience Oakland built the parking structure for BART on a
and allow a food and beverage experience surface parking lot and put in 5K SF of retail. The
outside of the ticketing area, accessible to RFP is currently in process for this space.
the public. TransMart was contracted to do all
foundation work for retail vendors in a single Local regulations and permitting considerations:
phase but could not secure the loans to build the
construction without a 70% lease commitment. In • The BART Act basically makes BART their own
2016, BART declined to renew the contract citing municipality in terms of permitting and codes.
unmet requirements.” (SFMTA Retail Report, Construction inside the station is permitted by
2018) BART. Once BART sells or issues a ground-lease
for 99 years, then permitting goes to the local
Current Retail Provision: Variety of vendors, jurisdiction and BART no longer has jurisdiction.
food carts, flea markets, UPS droboxes, car-share

• In Richmond, CA, the parking garage was under encumbered passenger flow when there were large
the jurisdiction of Richmond’s Fire Department, events with a lot of people transiting through the
so the parking structure needed to be reviewed station.
by the City. BART and the City created an MOU
to have the façade reviewed by Richmond’s Management within BART: 1.5 FTEs within the
Planning Commission and the Fire Department. Property Development and Real Estate group. This
In this case, the City required sprinklers within is basically “the equivalent of 1.5 FTEs managing
the parking structure, even though BART doesn’t a mall”. This includes but is not limited to managing
require this. In exchange, Richmond credited tenants’ insurance policies, tracking and collecting
BART $60-70K in a maintenance credit after the rent payments, dealing with maintenance issues, and
sprinkler systems within the parking structure issuing leases.
were implemented.
BART’s current rent charges for Station Retail
• At BART’s West Oakland station, BART worked vendors:
with the City of Oakland in a joint process to sign
an MOU for a plaza space in between a mixed- • Hot dog vendors with a cart: $500 per month per
use development and the station. The MOU cart location
allowed BART to maintain control of the open • Food kiosks: Approximately $2,500 per month for
space, and permit and program the space. a 400 SF space
• Flower shop kiosks: Approximately $450 per
Retail Location and Placement: Better to pre- month for 400 SF space
determine where retail should be located and placed. • Flea Markets on surface parking lots:
Initially, BART thought the private sector/a third-party Approximately $2,600 per month (operating on
would be best positioned to do this, but, in BART’s weekends only)
experience, the retail provided by third-party vendors • Package drop-off boxes: $100 per month per box.
encumbered passenger flow and lines-of-sight in
stations. For example, the Blinq pilot at Embarcadero
was positioned in the middle of the station, which

San Francisco Municipal Transportation code issues create challenges, and requirements
Agency (SFMTA): like restrooms, utility connections, plumbing,
SFMTA Staff: ADA considerations, etc. are very difficult and
• Jason Gallegos, Manager of Strategic Real expensive to retrofit. Need a bathroom for every
Estate, Facilities and Real Property Management 200 SF of retail space, so infrastructure costs go
way up.
• Pham Ngo, Principal Analyst, Strategic Real
Estate, Facilities and real Property Management Recommendations for Sound Transit: Think about
retail as not just operations and building, but really
Retrofitting stations for retail: SFMTA consider the holistic goal you want to achieve through
commissioned a retail and leasing strategy report in retail. It is key to have a plan that incorporates the
2018, detailing a retail strategy for the new Central possibility of retail – flexibility is key. Plan early and
Subway. The design happened decades ago, and no often. After Agency retail strategy development,
one thought about incorporating retail then. Now, they Sound Transit should consider hiring consultants to
are having to go back in to do tenant improvements work along the design and engineering team to advise
and redesigns to include retail. It would have been on successful integration of commercial plans into the
good to have the foresight and strategic planning to operational and design elements of stations for retail.
incorporate retail or flexible space decades ago when
the original designs were done. • What types of retail offer the best return on
investment?
• It is very expensive to retrofit these spaces for
infrastructure, it’s very difficult for the engineers, • Don’t know what will and will not work so need to

be flexible with leases, spaces, etc. Recommend who aren’t making any money pay for things like
using shorter-term leases, with options to extend this. Part of being a good landlord and providing
based on some sort of performance metric. the retail amenity to customers.
Underground spaces command lower rents:
• Need to have a baseline level of security, design
approximately 25-30% below typical retail rents in
spaces that are safe, and need to create “eyes on
the neighborhood.
the street”
• Internal admin, management, and organization:
Public Realm: Need to ensure the public realm is
SFMTA does its own marketing and finds the
conducive to your retail.
tenants themselves. Basically, SFMTA has 1.5
FTEs running a mall. Recommend that if Sound
Transit doesn’t currently have a Commercial Denver Regional Transportation District
Real Estate group, may want to create one. More (RTD):
complicated this way, but can be more cost effect RTD Staff:
than hiring a consulting firm to do the marketing. • Chessy Brady, Manager, Transit-Oriented
Development, Planning Department
Shells, fit-out, and TI: Typically tenants will pay for
improvements. SFMTA will typically provide a warm-
DUS – Denver Union Station: RTD owns the
shell for tenants. Recommend that Sound Transit
structure, does not manage the retail. RTD has a
should consider building retail spaces/shells upfront
99-year ground lease, participates in the upside but
and make move-in ready for tenants; this will make
doesn’t manage. The lease is structured in a way that
getting tenants in easier.
once they hit a minimum level of revenue, then RTD
gets a percentage – this happened within a few years.
Finding tenants and deciding tenant mix:
Recommend seeing what the community wants and
• Takeaway: Let other people manage retail,
what makes sense, e.g. Chinatown doesn’t have chain
because transit agencies are not good at it, but
retail, so it makes sense to have a local brand/small
participate in the upside.
business. Generally, SFMTA has a lot of mom-and-
pop shops in the subways; their goal is having more • Issues with providing retail at other RTD
unique retailers in those spaces. stations: Restrooms, security, physical space,
etc. Vendors are interested but RTD can’t figure
Lease structures: Thinking about restructuring some out how to do it.
of the leases to provide a percent of retail sales to
ST. Definitely a good way to go, and good way to • Philosophical/psychological issues with
get tenants in the door. Something like 7-10% over choosing vendors: A lot of concern around this.
gross revenue, then the tenant would share revenue Does this work on a first come first served basis?
with SFMTA. Want to structure the deal in a way that Do we have to put out an RFP?
breaks even with share market value. Airport and
• Plaza space: Part of it is part of the 99-year
Ports do it this way with their leases.
ground lease, part of it is managed by the BID,
Public safety and security: Decided to turn one Downtown Denver Partnership. They activate the
of the Central Subway retail spaces into a police space, they manage the permitting, and licensing
department office/sub-station. Haven’t gotten into the for the plaza space because RTD doesn’t want to
social services aspect. For security/safety, it’s the do it.
same as on trains, use the police. Civic Center Station: Built in the 1990s, replaced a
few years ago. A lot of the building was underground
• Had to replace a window 14 times. Typically, this
and had two retail areas with small, unsuccessful
would be the tenants responsibility, but SFMTA
businesses. In the revised designs, no space was
does it instead. SFMTA can’t really make tenants
left for retail – it wasn’t worth it to try to incorporate

a bodega-type space into the station. Key but there are many competing responsibilities and
considerations around providing retail space were: no policy that ensures this is managed in a particular
Mess, security, homeless, and RTD Real Property way. Want to make sure that it’s fair who the tenant
people didn’t want to deal with leases. is that they’re choosing, financially not beneficial to
RTD, etc. The attitude is: If it doesn’t make sense to
Downtown Littleton: Existing old stone station that us financially, why would we do it?
has a coffee shop. Community wanted this to happen
and RTD didn’t need the structure for transit uses so Rents: RTD policy is to get FMV, so not going to
converted to a coffee shop. Mid-level success rate. discount any rents for tenants (other agencies might
RTD Real Property people don’t like dealing with this do this). Should be doing this though, it’s not a
lease. financial proposition for the system.
Cautionary tale: University Station at University of FTA: Use FTA as guidance for retail extensively.
Denver: Currently have a vacant retail space (approx.
10,000 SF), not even a white box yet. It has been Value proposition: For retail to be successful, need
vacant since the station opened 15 years ago. Would to truly provide a passenger amenity.
cost $1M to get into a state where a retail business
Safety and security: DUS has huge problems: Pre-
could move in. No designated parking (only street
Covid were preventing homeless from sitting in their
metered parking). Came about as an afterthought
public spaces. The terms of the agreement allow DUS
in the design and the construction contract couldn’t
to make rules like this.
be changed – Recommendation: Be proactive about
design. An RFP was put out to fill the space in 2013
or so: the first RFP failed; second RFP got a few Turnstyle Underground Market (Columbus
responses. The only actual response was from the Circle Station, New York City):
U of Denver to use the space for storage, which is Turnstyle Staff:
not transit supportive. Now RTD might move security • Lloyd Morgan, Operations Manager
offices to this space. Would recommend doing joint
development for housing around the site, and then How did Turnstyle decide to locate and operate
could have a daycare or gym in the space this market? Answered an RFP. Saw an opportunity
because retail is going the way of the “convenient
• Takeaways: Figure design out beforehand. shopper”. Recommendation: Determine retail trends/
Need to think about uses and the market need drivers and meet market needs.
in the area before design and building so that
renovation/fit-out cost doesn’t become prohibitive. Who was responsible for fit out of the space?
Need to understand the market. MTA put out an RFP, and the structure/space was
existing. Turnstyle won the bid and fitted out the
• Park and rides: Mostly stations aren’t in places space and modified the space. Had 1,100 feet total
that make sense for retail, e.g. park-and-rides. and divided spaces to 500 feet per space. Tenants
At RTD, there is no concerted effort to promote thrive with less space.
retail. There are a few park and rides with farmers
markets, 5Ks, etc. Leases and rents: Basic structure of set-up:
Turnstyle owns the master lease, and then sub-leases
• 38th & Blake Station in RhiNo, there is joint to tenants. Don’t use a percentage of sales structure.
development; anticipating that the developers Recommendation: Stay away from getting stuck in
will include ground floor retail as part of their longer-term leases.
developments around the station.
Issues and challenges: Ventilation, climate
Internal management: RTD has one person in Real
controlling the space, electrical capacity, doing HVAC
Property who is responsible for retail management
upgrades. Airflow issues. Clothing gets smelly with

other vendors nearby. Need to think about placement of retail space located in a two block long corridor
of tenants if small/close spaces/stalls. located under Columbus Circle. The MTA spent five
years and $108M to renovate the station and install
• Overall goals: Be able to control the climate, new storefronts with in-take out-take ventilation to
keep it clean and safe. allow for food uses that employ “ventless” cooking
technology. The MTA signed a 30-year master
• Biggest feat: Sushi place makes $130K/month in
lessor development deal with Oases Real Estate.
revenue, people feeling comfortable eating sushi
Oases Real Estate worked with architects, design
in the subway!
and brand consultants as well as retail brokers to
Retailer needs and operations: Different types of tenant the space. Rents were quoted at about 1/3 of
retailers have different needs. Terms to be addressed the going rental rate above ground. The 92,000 daily
as part of lease agreements/negotiations. Have a commuters (two thirds higher than anticipated SFMTA
standard lease base but then have to change the ridership) and increased base building infrastructure
terms dependent upon the vendor. contribute to the ongoing success of the retailers
and are now the main determinant of rent prices,
Lessons learned: according to the Turnstyle leasing team.” (SFMTA
Retail Report, 2018)
• Niche/value proposition is helping small
businesses.
Hong Kong MTR:
• Foot traffic is very key/helpful. MTR Staff:
• Andrew Mead, Chief Architect (ARBUK), MTR
• Recommendation: Have retail before the turnstile.
Corporation Limited
• Easier to present a “white box structure” (i.e. cold-
For new transit projects, MTR is required to undertake
shell retail) to the tenants – Don’t want to assume
a funding gap analysis to understand the gap, and
too many things about their operations/needs. For
then have to fill this gap from farebox and retail/real
example, Turnstyle ended up being 85% food and
estate revenue to make the project viable.
couldn’t have anticipated that. Costs to retrofit:
plumbing, electrical (upwards of $60K to modify). How does MTR think about maximizing flexibility
• Go in with vendors and talk about electrical load in its stations?
and other needs (retail starts with 50-60 amps,
In terms of flexibility, the system had planned for over
food spaces start with 100 amps).
capacity in passenger numbers, so had extra room
MTA organization/management: MTA has a third- to accommodate shops where they weren’t planned
party to deal with leasing Greystone Management originally.
- Turnstyle interacts with them daily. Sub-tenants do
• Fire safety, risk averse rules/regulations (more on
not interact with MTA directly.
this above)
Does Turnstyle find tenants for the individual
• Technology is changing - Fintech is changing
spaces? Yes, they find the tenants and run all facets
payments, ticketing takes a lot of space in
of Turnstyle. Have an understanding of who’s looking.
stations, and this will disappear in the future.
They have two big corporate stores, but mainly their
Gates and queueing take up a lot space that
goal is to help small businesses. This is a good tenant
could free up more space for retail in the future.
mix. Turnstyle does use a leasing agent sometimes.
RFID technology or facial recognition technology
As background: “New York City MTA 59th Street will start to be used in some places.
Columbus Circle Subway Station - Turnstyle: • MTR had planned new stations with a small
Turnstyle has more than 30 retailers in 27,000 SF customer service pod to answer questions, etc.

These did not open, and instead put iPads on How is MTR thinking about community benefits
the outside and have the people who would have and retail/services in stations?
been staffed in them walking around the station
instead. • The Rail Development Strategy 2014 (RSD 2014)
specifies the new stations that will be designed
Fire/life safety: for Hong Kong.
• You need to ensure that there isn’t retail creep • Currently thinking about things like prefabrication
into the passenger area, as there is a dropdown and BIM to reimagine retail conceptually for these
fire shutter. This is part of the cabin concept. new stations. Have presented a pop-up market
Singapore was built with retail designed into it; during the weekends at a terminus station near
Hong Kong was not. For the first group of shops the seafront (in the New Territories). Also have
in Hong Kong, they were outside of the fare-paid proposed putting gardening/urban agriculture
zone. Fire safety strategy was very important allotments on the tops of elevated transit tunnels.
– the “cabin concept” (developed by Arup Fire)
• Have pitched the transit station as a community
enables shops to be essentially “pods”/hardened
building that enhances the community and
shells in the case of a fire. To this point, there is
provides additional social benefits to the
a restrictive list of businesses/trades that can’t be
community, that is, build places for people
located in the station (this list is public).
first! Frame this ass being about placemaking,
• Fire safety has become more conservative and transit hubs as a “community building with
for stations in general. Now, regulations for a transit facility in it”. MTR thinks of this as
purpose-built retail require that sprinklers are “visioneering”; that is, looking at the planning of
built throughout the station, whereas they use to the whole area, and inspiring them as to what
be only required in the shops area. This makes the area could be. This can add potential value
the business case for stations harder, as it is to adjacent sites and the whole community. This
more expensive to include sprinklers throughput thinking is starting to gain traction in Hong Kong.
the entire station. In Singapore, the fire services
• In another example, MTR demonstrated that there
department does performance evaluations
was excess capacity on one of the roads near
for fire safety, whereas Hong Kong is much
transit and could build a linear park along the side
more prescriptive. Will need to look at what fire
by taking out vehicle lanes.
regulations that Sound Transit has – this will be a
key driver in retail integration. • In Singapore, childcare and kindergartens have
been successful in stations.
How are goods delivered to the retail stores or
spaces? • Keep in mind that every station is unique, and that
cookie cutter principles can’t be applied to each.
• Delivery and storage on the premises (fire people
How many of these community and environmental
don’t like big store rooms on the premises) – Hard
principles can you apply to any one station varies
with bakeries and convenience stores like 7-11
(e.g. zero carbon, community benefits, etc.).
with high inventory turnover (e.g. 2-3 deliveries
a day for bakeries). Most delivery is only allowed
overnight or outside peak times. There is a
specific trolley size for baked goods, for example.
MTR is the landlord so can kick people out if not
complying with these regulations.

Appendix E
Additional Westlake Design
Concepts

Introduction:
The passenger circulation within the proposed
Fifth Avenue Westlake Station at street-level to the
platform level can be direct and uncomplicated while
passing through a retail concourse level that provides
a connection to the existing Westlake Station.
Passenger flow would be improved by having straight-
run escalators (without switchbacks) that could even
provide a direct view to the sky from 100+’ below-
grade through the North station entrance. To exit a
deep-tunnel station, passengers would step onto a
center-loaded platform and circulate up one level to
an intermediate concourse for fire-safety purposes.
From there, they could take either a straight-run
escalator, an elevator, or emergency egress stairs
to retail concourses connecting to the existing,
below-grade Westlake Station and adjacent retailers/
businesses or continue up to street level. Retailers
could benefit from the foot traffic of passengers
making transfers or shopping for conveniences on
their way to and from destinations in this high-density,
downtown shopping district.

Proposed Fifth Avenue Deep-Bore Tunnel Station with Integrated Retail Concourses: cutaway test view #1
Cutaway test view #2 with passenger circulation and street-level retail shown Cutaway test view #3

Cutaway test view #4 with passenger circulation and retail elevators shown

Proposed Fifth Avenue Deep-Bore Tunnel Station with Integrated Retail Concourses: section-perspective test view #1 looking north

Section-perspective test view #2 with daylight cone connecting to escalator route
Section-perspective test view #3 with daylight cone connecting to escalator route

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INTEGRATING

RETAIL INTO THE

03 Sound Transit Challenges 27

 05 Applying the Findings: Retail in Practice 45

06 Conclusions and Next Steps 69

Appendix A: Best Practice Findings 77

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

HCT High-Capacity Transit TOD Transit-Oriented Development

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

Context and Purpose

As outlined in the recommendations, Sound

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

IMPROVE THE PASSENGER CONTRIBUTE INTEGRATE RETAIL WITH

Retail services can support

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

Agency policy should provide a clear vision and

Understanding of context should guide specific

Management structure shapes outcomes

Management options exist in two primary forms: the transit

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

Defining the Value Proposition

Improve the passenger experience

Contribute to the community

Integrate retail with station operations

Creating Co-Benefits: Retail, Transit, and the

Sound Transit has an opportunity to facilitate the 15-minute city concept

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

Station Station Station Station Fare To

Train Platform Train

Station Station Station Fare Exit

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

SINGLE USE EMERGENT URBAN ESTABLISHED URBAN

Urban scale block form

In Single Use environments,

Across both urban environment types, smaller scale

Joint development may In Established Urban

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

Sound Transit’s Draft SEDM Retail Guidance

Food Halls in Significant Temporary Markets in Public

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

Situating Retail Types

Passenger Journey Stage Design and Infrastructure Requirements

Potential Revenue Generation from Retail

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

IMPLEMENTATION CRITERIA VENDING

Draft SEDM Guidance Referenced in Chapter 3 under “Third Party Amenities”

1,200 weekday ridership

~$200 per machine per month4

Monthly rent is contingent on forecasted versus actual ridership data,

• Profit sharing example: SFO has an agreement with its vending

Sound Transit’s Design Criteria Manual states that “Standalone

Zoning, Building, and

CONFIDENTIAL – FOR SOUND TRANSIT INTERNAL USE ONLY

03 Sound Transit Challenges 27

05 Applying the Findings: Retail in Practice 45

06 Conclusions and Next Steps 69

Appendix A: Best Practice Findings 77