chapter 18 commercial and industrial development
TRANSCRIPT
Chapter 18
Commercial and Industrial Development
Types of Commercial Property
Shopping/Retail Centers
Office Buildings
Hotels/Motels (Hospitality)
Restaurants
Types of Industrial Property
Factories
Warehouses
Distribution Centers
Shopping Center Types
Neighborhood shopping center
Community shopping center Regional shopping center Superregional shopping
center Other shopping centers
Super Store Factory Outlet Center
Figure 18.1
Table 18.1
Evolution of the Shopping Center Old downtown/Main Street Suburban growth & the
automobile
Shopping Center Development
Market and Feasibility Analysis Primary and secondary trade
areas Market size Competitive survey
Site Location Tenant Selection
Cinderella City Mall/ Englewood City Center
Cinderella City Mall/ Englewood City Center
1968 – 1.35M SF 1997 - closed
Cinderella City Mall/ Englewood City Center
Today’s Shopping Center Development
ULI suggestions for project success:
Unified architecture / theme
Many entrances/exits
Sufficient on-site parking
Quality site improvements
ULI:“Dollars & Cents of Shopping Centers” (1995)
Office Buildings
Location Central business districts
Secondary office nodes
Office parks
Corporate Campuses Cheap land Cheap parking Employee quality of life
Office Condos
Office Condos Owners own piece of a building
(their space) - Mortgage on their space - Condo (maintenance) fees - Real estate taxes
Benefits: - Value appreciation - Tax advantages
interest & depreciation deduction - Fixed office space costs
Except for increases in maintenance/taxes
- Often cheaper than leasing Risks
- Rising interest rates could reduce/eliminate appreciation gains
- Need for more space - Long term commitment
Industrial and Distribution Facilities
manufacturing warehousing distribution analysis technique
determine existing and potential supply
forecast demand estimate absorption rate compare competitiveness with
other projects
Lodging Facilities
Customers: Business Pleasure Conventions
commercial hotels highway or airport hotels and
motels resort hotels
End Chapter 18