Milhaus - vertical mixed-use and urban infill residential environments

posts in "Retail"

Grocery parking ratios shrinking

Posted on June 27, 2011 by David Leazenby

More grocery stores are adapting their business for urban sites. In San Francisco a Whole Foods took on responsibility to abate any parking problems that might occur with their parking garage at their new Mission Dolores store. Read the full article here. The project by the Prado Group will also bring 82 apartments atop the store. At CityVista, according to this ULI article, "parking was reduced 40 percent versus a conventional suburban store, and the ratio is just 2.9 spaces per 1,000 square feet of store space." (You can see more about CityVista profiled here at ThinkMixedUse last fall)

This entry was posted in Design, Retail

Comments

Changing Definition of a Credit Tenant

Posted on October 29, 2010 by Tadd Miller

Steve McLinden stated in his 2006 Shopping Centers Today article, "Once landlords get past the roughly 35 percent of national retailers that ratings agencies dub investment grade, the pickings get slimmer and the credit decisions grow more crucial." If the picking got slim after only 35 percent of the national retail stage in 2006, today's definition of credit is surely an enigma. This is a troubling fact for the retail and mixed use development industry, as these credit tenants have been the anchors and building blocks allowing the industry to develop, borrow, build.

So what is a credit tenant today? Only time will tell! However, I encourage emphasis be placed on local/regional tenants as a potential "credit" alternative. Quality local/regional tenants are transparent, hand's on managers, with strong work ethic and a well thought out business plan. These tenants often provide products unique to the market, and have integrated networks and relationships not available to national retailers. Most importantly however are that personal guarantees (a term from history) are often attainable, providing a valuable collection/bargaining chip. When individuals face losing their home, amazing creatively ensues to produce cash or sales. The US was founded on the back of small business, and continues to be the driving force of the US market. If underwritten and managed appropriately, consideration should be given to the local/regional retailer as a replacement for if not the new "credit tenant."

This entry was posted in Retail

Comments

Micro Retail Cluster Vibrancy

Posted on October 01, 2010 by Tadd Miller

National developers often overlook the micro retailer, however, some of the most fantastic retail and mixed-use developments are anchored by or have significant participation by small scale retailers. It seems there is a fatal attraction by the retail industry with supposed "credit" or "national" retailers, specifically the big box and junior anchors, many of whom are closing and leaving the developers who depended so much upon them in a bind.

Do these boxes drive as much traffic as an appropriate grouping of micro retailers, and is there really the "credit" in a box compared to the success of those micro-retail clusters. While most larger retail projects and developers focus on the big/jr. anchor box to draw traffic, some of the most successful retail destinations and retail happens in very small square footage, or clusters thereof.

Consider one of the best examples, The Grove in LA, whereby without empirical data, but many personal visits, I would assume the micro retailer driven market must drive substantially more volume and traffic that any of the national credit tenants or big box tenants draw. And I would argue that the center would work even without the big boxes with which it has attracted. In light of the recent market, as well as the success of many of these micro retail clusters, it seems like there would be a much larger focus on trying to create these micro retail clusters to act as anchors and redevelop these big box anchors.

This entry was posted in Design, Retail

Comments

MidTown Miami

Posted on September 19, 2010 by Tadd Miller

I question whether or not big box should be a component of the urban core. However, it provides a necessary service and product that the residents of the urban core often demand. So if big box is going to come to the urban core, this project seems to be a good start at designing a dense enough solution. It is not the enviable 2 story Target and Marshalls, however, let's be realistic, the operating costs with 2 story targets is incredible, and if you want to get these things done, you have to be realistic about making the project work for all parties.

This is still just a box with rooftop parking, with the auxiliary entourage of Target and Marshalls followers. Although it didn't appear highly active, it was 10:00 am on a Tuesday morning when Milhaus visited, and there was already a decent amount of foot traffic as well as vehicles in the garage. These types of project that squeeze a lot of retail activity in a small section of space seem to be a good alternative if you are going to have big box retail in your core. It would have been nice to have more residential abutted right up near the project, however, I would assume that part of that is just time, and the fact that there was enough residential going on, and likely some of the plans for adjoining retail may have been intended, but just never got complete based on market place.

This entry was posted in Design, Retail, Transportation

Comments

Greyfields: A Mixed Use Dream?

Posted on August 12, 2010 by Milhaus Development

Guest Post by Greg McHenry, Development Assistant and Intern with Milhaus Development

Starting in the mid 1990’s, many enclosed malls began losing tenants because of low sales, causing many to completely shut down. The main reason for this was that Americans were finding other ways to shop besides driving miles to the nearest mall. These empty shells and expansive parking lots became known as “Greyfields“. These vacant malls are becoming a burden on their adjacent economies and communities (e.g. Cloverleaf Mall in Richmond, VA; Hawthorn Mall in Hawthorn, CA; or Lafayette Square Mall in Indianapolis). The website www.deadmalls.com emotionally documents the horror stories behind many dead malls.

A successful redevelopment of a community-plaguing Greyfield can become a mixed-use developer’s dream. Not only do are these areas low-priced (a true Greyfield will sell at the price of land minus expected demolition costs) but they have the ability to restore a community’s identity if developed right.

Greyfield redevelopments also make New Urbanists and Sustainable Developers happy. For one, these projects help reduce urban sprawl by promoting a more compact lifestyle instead of the commuter culture supported by malls. Also, these projects are shining examples of infill projects; reusing land that has outlived its original purpose. A large community of mixed-use is also a great chance for progressive planners to create active walkable communities. And since these malls are typically located near transportation channels, these communities can be very easily compatible with low-emissions transit. These Greyfields represent an ending of one American paradigm and the beginning of another. It is up to developers to bring this new built-world to life!

This entry was posted in Redevelopment, Retail, Sustainability

Comments

Wal Mart v. Mixed Use. Debate continues…

Posted on July 16, 2010 by David Leazenby

There is a great summary of a presentation by Peter Katz over at Citiwire.net. In it he provides the amount of property tax revenue received to a community by a Wal-Mart, a regional mall, and a mixed use building. On a per acre basis, it makes a very good case for communities to seek more compact, mixed-use development. Not only are their long term sustainability benefits to residents, there are real short term fiscal solutions to city coffers. Think about it… how much tax does a parking spot pay? How many are out there?

This entry was posted in Retail, Sustainability and tagged urban planning, property taxes, wal mart

Comments

Holographics for Real Estate?

Posted on June 17, 2010 by Tadd Miller

mixed-use-hoload-334x198 Is there an App for this? Imagine that it’s Friday afternoon and you just rented a new pad in the city. Walking in the front door, you stare at the blank white walls wondering how to bring your place to life. It’s a good thing you paid the landlord the extra $4.99 for holographic imaging and you set up your virtual account on your mobile device with Linden Lab or Innovision. With the unit specific license your landlord gave you, and this holographic imaging option, you stand in the center of the room, choosing paint colors, picking out furniture, a piece of art, a television, and some funky colored shades to add that small eclectic touch. As you choose items, the products appear in holographic form within your apartment; you have to go stick your hand through the couch just to prove to yourself it’s not real. You place your order and 24 hours later the delivery guys have come and gone as the painters are finishing the final coat of paint in your kitchen.

You walk into a fully finished living room and you have to have to sit down lightly to ensure that this is the real thing and just not a holographic look-alike. Back in the kitchen and not sure which coffee pot to buy? Comparison shop on your device and try a few holographics in different areas of the counters. Place your order and it arrives at your door the next morning. Now to fill up the closet, you start typing in your favorite retailers, trying on holographic options for the different styles you desire. You’ll have clothes in time for the new job on Monday.

This is not that far-fetched, and very likely that we could see this type of technology in our business careers as we see highly functioning virtual worlds in games and military training. Holographic and 3-D imaging is rapidly evolving and retail is becoming more dependent on online interaction. You talk about impacting the retail trends and the retail environment; this will affect everyone.

This entry was posted in Lifestyle, Retail and tagged holo ad, holographs, innovision, linden lab, retail trends, second life

Comments

America's next real estate trend

Posted on June 15, 2010 by David Leazenby

mixed-use-mall-300x248 It’s no secret that there is an oversupply of retail space in America. Look around at the empty storefronts and vacant anchors at your nearest mall. Or, perhaps you didn’t notice since you may be one of the many that haven’t visited a mall recently. As reported in the most recent ULI issue of Urban Land, vacancies at super-regional malls in America stood at a record 8.8% at the end of 2009 according to Reis. The shopping trends in America are shifting dramatically as consumer spending is down, purchases made online are up, and people gravitate toward more recreational activities instead of visiting a mall. While there are some benefits to society in today’s changes (ie. higher savings rate, more informed consumers and more community involvement), there are also real negative consequences to our cities by having empty retail spaces. Some neighborhoods are losing their identity as long-time retailers have gone out of business, property tax revenue is falling and city services are being scaled back.

What does the mall of the future look like? Some people are planning for a seamless integration of the technology in your hand, the products you seek, and the stores nearby that have them. Also, there was Westfield’s announcement last week about a virtual mall in Australia. These are interesting ideas to consider for the user experience. But what about the actual physical mall itself? How do you think it will change?

This entry was posted in Retail and tagged real estate, retail trends, mall, virtual shopping

Comments

Downtown Indianapolis Retail – Expanding on a Tradition

Posted on May 20, 2010 by Tadd Miller

mixed-use-bank-one-300x240 Herb and Mel Simon of Simon Property Group and former Indianapolis Mayors Bill Hudnut and Steve Goldsmith, as well as a host of others should be applauded for their tenacity and vision in attracting or twisting arms to bring a significant retail presence to downtown Indianapolis with the development of the Circle Centre Mall. The three-block long, four-story urban, regional mall opened in 1995 with 785,000 SF/GLA anchored by Nordstrom and Parisian. Without strong leadership and significant investment by many of the downtown stakeholders, Circle Centre Mall would have never been developed. The mall continues to succeed as a regional destination and draws heavily from the tourist and convention business in downtown Indianapolis. How can we continue this tradition of great vision and convince a different category of retailers, ie. neighborhood services, to follow the wave of residents migrating to the urban core? Furthermore, like Circle Centre, how can we get these retailers to locate downtown without using their typical suburban development schemes of large parcels with an abundance of parking lots? The new residents that are flocking to downtown Indianapolis are ready, willing and able to buy the goods and services. This trend is partly the reason for the $2.7M upgrade to the City Market that was announced this week. Downtown residents need goods and services just like other neighborhoods. Milhaus is going to the International Council of Shopping Centers Global Retail Convention in Las Vegas this weekend. This topic will be at the forefront of our minds as we begin promoting the redevelopment of the Bank One Operations Center, the first true mixed use development in the Market District on the eastern edge of downtown. What is it going to take to entice more neighborhood service-type retailers and offices to locate their businesses downtown? Let us know your thoughts.