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Originally Posted by JVC
that could be true but a developer has to be mindful of what "many people" think and believe
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Not really, at least not in the broad-based polling sense.
A developer needs to understand the potential market for their project, how much competition there might be in that market already, and how much more competition might be coming along soon. But their potential market doesn't have to be big in relation to something like a city or a region. It just has to be big enough, relative to the total anticipated competition in that market, to provide enough of a market opportunity for that specific project.
In that sense, many developments end up targeting what could be classified as a "niche" market once you are looking at things from a city-wide or region-wide scale. But a niche market as such can still have thousands or tens of thousands of people in it, which can be more than enough to make a project a success.
That's a large part of why lots of long-standing Pittsburgh observers keep getting it wrong when predicting the failure of higher-end projects in lower-end/transitional neighborhoods. They can't imagine anyone who can afford over $1000/month in rent wanting to live in Uptown, or East Liberty, or so on. And that may well be true of 70%, 80%, 90%, or more of higher-income people in the region. But those percentages per se don't matter, because all a developer needs is enough people who think differently.
Bringing it back to the topic at hand, there is clearly a significant segment of higher-income people who are more than willing to run out and buy bleach or batteries at a dollar store if that is a convenient option. Other higher-income people may not dream of it--but those are the higher-income people who probably wouldn't dream of renting an apartment in East Liberty either. So once you have applied that filter (higher-income AND willing to rent in East Liberty), I'll bet that you have already selected mostly for the same sort of higher-income people who also buy batteries in dollar stores.
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the hotel indigo is at least a few months away from opening so the success of that project is impossible to judge right now - same goes for the ace hotel
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Correct, but I was just making a point about market strategies. Lots of people visiting the region may not be willing to stay in a hotel any closer to an urban environment than Greentree. But the Ace Hotel and Hotel Indigo don't need to worry about those people. They just need to have enough of a market to fill their rooms, and again that can be a niche market from a city or regional perspective and still be plenty big enough for them.