Worcester Business Journal

6 Worcester Business Journal | April 1, 2024 | wbjournal.com Canal District Transformation Part 1 (published in the March 18 edition): Since the $160-million Polar Park baseball stadium opened in 2021, money has flowed into the Canal District, as property values have risen at nearly double the rate of Worcester overall and the number of property sales has spiked. Part 2 (in this edition): Despite a host of challenges, including rising prices, Canal District newcomers and longtime stakeholders see the neighborhood becoming a marquee destination in Central Massachusetts. Creating the next chapter Deeper-pocketed players are eyeing the trendy Canal District, as longtime stakeholders see a neighborhood on the verge of becoming a truly walkable and valuable destination PHOTO | MATT WRIGHT BY ERIC CASEY WBJ Staff Writer A t the northern edge of the Canal District neighborhood in Worcester sits iLAH Jewelry. Aer operating a design studio in Sudbury for 15 years, Owner Ilah Cibis opened her immersive and quirky store in an industrial building on Franklin Street in September, seeking a younger clientele who might be shopping for engagement rings or trendy handmade items. "It was very calculated," Cibis said of her decision to move to the Canal District. "Part of the calculation was finding a space where [the business] would make sense in the neighborhood, maybe not immediately to some people, but at some point." e Canal District has seen much transformation since 2010, evolving from a rundown and overlooked section of the city to a trendy neighborhood complete with quirky businesses operated by an eclectic mix of small-business entrepreneurs. Now, a flood of new residents, the construction of the Polar Park baseball stadium, and a wave of development have shone the next spotlight on the neighborhood, driving up real estate prices and permanently altering the district's landscape in the process. Developers and business owners expect that growth to continue, saying new businesses and even more residents will soon make the area home, creating the next chapter in the long history of the Canal District. "e press tends to focus on the downs, but what they don't think about are all the positives that have happened here," Amy Chase, who opened in 2012 the Canal District staple Crompton Collective, said in an email to WBJ. "Having worked in e Canal District for 20 years, I have witnessed numerous iterations of this neighborhood. e current version is undeniably the most vibrant, welcoming, and successful. I believe that we will further progress towards becoming a truly walkable and valuable destination for both visitors and residents." New interest, new residents Commercial sales volumes and tax assessment values have been on the rise in the neighborhood, according to a WBJ analysis of 204 properties in the 92.25-acre district studied for part one of this two-story Canal District Transportation series. e tax assessment value of Canal District properties – not counting the Polar Park parcel itself – rose from a combined $87.41 million in 2021 to $159.95 million in 2024, an 83% increase and more than double the citywide increase. e increase in tax assessment value has been mir- rored by an increase in property sales. In the 5.5 years since the 2018 announcement of the Pawtucket Red Sox's planned move into a Canal District baseball stadi- um, the neighborhood had 86 real estate sales, com- pared to 50 sales in the 5.5 years before the announce- ment, according to City property records. CANAL DISTRICT TRANSFORMATION Ilah Cibis opened iLah Jewelry in September, hoping to benefit from the rapid growth of the Ca- nal District and Worcester's population of young unmarried people, who should be on the hunt for items like custom engagement rings.

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