beyond the big box. repurposing distressed commercial assets part 1
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2010 ULI Fall Meeting PresentationOctober 14, 20103:15 pm to 4:30 pmTRANSCRIPT
Beyond the Big Box:Re-purposing
Distressed
Commercial Assets
Thursday October 14
3:15 p.m. – 4:30 p.m.
ULI Fall Meeting, Washington, D.C.
Beyond The Big Box:Re-Purposing Distressed Commercial Assets
Re-Purposing Distressed Commercial Assets
David P. Waite, Moderator - Partner, Jeffer Mangels Butler & Mitchell LLC
Richard C. Reisman - www.homepartnerslp.com
Roger Sherman - Roger Sherman Architecture + Urban Design
Ellen Dunham-Jones - Professor, Georgia Institute ofTechnology
Harrison B. Rue, Principal, ICF International
The Spaces In BetweenOlder Development Patterns
Illustrations: Home Partners
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Transition: Settlement Patterns
The Spaces In BetweenFuture Development Patterns
Illustrations: Home Partners
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Transition: Settlement Patterns
The Spaces In Between
Illustrations: Home Partners
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Transition: Settlement Patterns
Commercial Centers
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Champs Elysees, Paris, France
7
Mr. Right?
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Former Circuit City store, San Mateo, California
Retail: Oh, You shouldn’t have.
1Beyond The Big Box: Re-Purposing Distressed Commercial Assets
No More Mistakes
Retail: Oh, You shouldn’t have.
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Not Enough Customers
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Retail: Oh, You shouldn’t have.
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Retail: Oh, You shouldn’t have.
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Retail: Oh, You shouldn’t haveNot Enough Customers
2Change is permanent.
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Retail: Oh, You shouldn’t haveNot Enough Customers
The New World Order
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
The InternetTHE GAME CHANGER:
OTHER FACTORS - Pricing shifts - Public Subsidies
- Mobile Devices - Social Media - Different Buying Methods
Newsweek, January 25, 2010
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Huge Change
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
165
2010
Huge Change
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Retail Development165
2010
Clicks Impact Bricks Online sales: $165 Billion
Impacts > 366,666,666 sf.(at $450 gross sales/sq. ft.)
+/- 2.89 of 12.6 Billion s.f. Retail Space
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Non-retail “Things”
Category Differences
Reduction & Elimination
19Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Where Is Retail Now?
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
RetailAn age of adaptation. Space > demand = failure.Different future store environments.Customers in mixed-use.
Only the Retailer’s criteria are relevant.
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
RetailAn age of adaptation. Space > demand = failure.Different future store environments.Customers in mixed-use.
Only the Retailer’s criteria are relevant.
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Different future store environments.
Future Retail Trends
PricesProducts
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
What People Will Buy What People Will Pay
Shopper Trends
PricesProducts
How?
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
What People Will Buy What People Will Pay
How People Will Buy
The One that Matters:
How Will Bricks/Stores CompeteWITH ONLINE SHOPPING?
Bricks Problem vs. Online: Land, Buildings & Inventory
Future: The Hybrid Store Better technology & software + in-‐store advantages -‐ IN MUCH LESS SPACE
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Research’s done, Now what?
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
3So, what to do about it?
Research’s done, Now what?
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Attract People
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Property Solutions
The Past
The Future
Higher Site Utilization
30
Graphic: Home Partners
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
31
Graphic: Home Partners
Bad View
Good View
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Higher Site Utilization
32
Graphic: Home Partners
Good View
Good View
Good View
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Higher Site Utilization
33
Graphic: Home Partners
Adap?veReuse
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
Higher Site Utilization
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
$Project Review
Vibrancy
Architecture
Parking
Traffic
Context
Shadows
$
Summary
Beyond The Big Box: Re-Purposing Distressed Commercial Assets
No More MistakesAccept The New
World OrderIdentify & Select From Options
A ProActive PublicEnhancement Policy
Vibrancy a PublicReview Criteria
Thank You
Development and Mixed-Use Consulting
ULI Fall Meeting, Washington, D.C.
Beyond The Big Box:Re-Purposing Distressed Commercial Assets
Re-Purposing Distressed Commercial Assets