Planning for Growth: Retail Infrastructure and Zoning Considerations

Retail attraction isn’t just about incentives or demographics. Long before a brand signs a lease, they’re evaluating whether your city is ready—not just willing—for growth. Infrastructure capacity and zoning flexibility are often the silent deal-breakers in these decisions.

For municipalities aiming to attract and retain top-tier retail, proactive planning in these areas can make the difference between a passed-over proposal and a high-visibility ribbon cutting.

Infrastructure: The Foundation Retailers Count On

Retailers assess infrastructure as part of their site viability process, often long before a community realizes it’s on their radar. These assessments include:

• Traffic circulation and ingress/egress
• Water and sewer capacity
• Signal timing and intersection improvements
• Pedestrian and parking accessibility
• Broadband and telecommunications infrastructure

Even small improvements can have outsized impacts. For example, the U.S. Department of Transportation notes that signal coordination upgrades can reduce corridor travel time by 10 to 40%, directly impacting retail site desirability in high-traffic corridors (FHWA Source).

Broadband access has also become critical for retailers with omnichannel models or digital-first operations. In some cases, lack of fiber connectivity has been a non-starter for national brands evaluating smaller markets.

Smart Zoning Enables Smart Growth

Retailers value predictability. Zoning codes that are restrictive, outdated, or difficult to navigate can cause projects to stall—or shift to more development-friendly jurisdictions.

Cities that align zoning with economic development goals often:

• Introduce mixed-use overlays in key corridors
• Allow flexible use categories to support hybrid retail-service formats
• Streamline site plan review and conditional use processes
• Establish form-based codes that focus on form and function, not just use type

Targeted updates in high-potential corridors can go a long way in reducing project risk and attracting quality tenants.

Infrastructure Improvements That Matter to Retailers

While every site is unique, some infrastructure improvements consistently influence retailer decision-making:

• Traffic signal synchronization – Reduces congestion and improves site accessibility
• Expanded sidewalks and pedestrian crossings – Supports walkability and foot traffic
• Upgraded utility capacity (water, sewer, electric) – Future-proofs development and supports food/grocery anchors
• EV charging infrastructure – Attracts sustainability-focused tenants and shoppers
• Site-specific stormwater management – Eases permitting concerns for developers

Where possible, cities should connect these improvements to their capital improvement plans to signal long-term readiness.

Zoning and Infrastructure in Retail Proposals

When pitching your city to retailers or developers, listing available sites isn’t enough. To stand out, communicate retail readiness through:

• Maps that layer infrastructure and zoning overlays
• Summaries of zoning allowances, review timelines, and flexibility
• Highlights of recent or planned infrastructure investments near the site
• Documentation of any expedited permitting programs or overlay districts

Including this type of data in pitch decks and RFP responses makes your community’s value proposition far more compelling.

Addressing Common Concerns

As municipalities plan for growth, it’s natural to encounter differing perspectives—especially when infrastructure upgrades or zoning changes are involved. Here are a few common concerns, and how cities can thoughtfully respond:

“Won’t zoning changes lead to unwanted development?”
Zoning flexibility doesn’t mean giving up control. Tools like form-based codes and overlay districts allow cities to guide development while offering retailers what they need to move forward.

“What if we invest in infrastructure but the retailer never comes?”
The best infrastructure investments support both existing residents and future development—whether that’s retail, mixed-use, or service-based tenants. These upgrades rarely go unused.

“Is retail still worth investing in with the rise of e-commerce?”
Yes—but the model is evolving. The most active growth today is in service-oriented, hybrid, and experience-driven formats that require physical space. Retail isn’t vanishing—it’s shifting.

Final Thoughts: A Competitive Edge You Can Control

Many cities compete on factors they can’t quickly change—like population size or household income. But infrastructure planning and zoning policy? Those are within your control—and they’re often what make a retailer say yes.

By investing in the right systems and enabling policies now, you position your community not just as ready for retail—but ready for smart, sustainable growth.

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