The Suburb of the Future, Almost Here

Sustainable suburbs can offer an advantage by expanding landscapes that can absorb water.

Alan M. Berger of The New York Times writes:

“Millennials want a different kind of suburban development that is smart, efficient and sustainable.

The suburbanization of America marches on. That movement includes millennials, who, as it turns out, are not a monolithic generation of suburb-hating city dwellers.

Most of that generation represents a powerful global trend. They may like the city, but they love the suburbs even more.

They are continuing to migrate to suburbs. According to the latest Census Bureau statistics, 25- to 29-year-olds are about a quarter more likely to move from the city to the suburbs as vice versa; older millennials are more than twice as likely.

Their future — and that of the planet — lies on the urban peripheries.

Planners need to view cities, suburbs and exurbs not as discrete units but as regions, with one integrated environmental and technological system.”

The most environmentally responsible approach is almost always reusing and reconfiguring what already exists, rather than discarding and creating something new.  It is critical to employ sprawl repair techniques to make our communities more socially and environmentally responsive, not just build new to suit the millennials. Read more from Galina Tachieva.

Nordstrom Tries On a New Look: Stores Without Merchandise

Retail of the future may be more about experience than consumption.  According to Suzanne Kapner of The Wall Street Journal, some stores will not even carry clothing:

Millennials Are Driving the Suburban Resurgence

Bloomberg View columnists Justin Fox, Conor Sen and Noah Smith discuss evidence that suburbs are experiencing a resurgence, in spite of talk of reinventing our cities. Poor economics and limited options may be the cause. 

“More young adults are moving to the land of white picket fences. Is it by choice, or necessity?”

Fox writes:

“The fact that millennials weren’t buying homes or cars a few years ago was more the product of economic hard times than an expression of changing tastes.

The supply of walkable, transit-friendly neighborhoods in the U.S. is limited, and it’s really hard for political reasons to add density to them or build more of them.

I can’t help but see this suburban resurgence as at least partly a policy failure wrought by not-in-my-backyard activists, messed-up zoning rules, freeway-besotted transportation officials and the like.”

Smith writes:

“I definitely think we see some new cities getting in on the “tech city” game… with strong pushes to attract more knowledge-based industries, using their universities as anchors…”

And something interesting about these smaller cities is that it’s not clear whether they’re urban or suburban. We think of “suburbs” as extensions of big metros, but a lot of these smaller, thriving places have a distinctly suburban feel — ranch houses, strip malls, etc., maybe with a few blocks of walkable restaurant/clothing shop areas. But they depend on the clustering of smart people for their productivity, and their populations keep growing. Is that kind of place a city, or a suburb?”

It will be important to grow these areas responsibly through initiatives like Sprawl Repair and Build a Better Burb.

How to Build Better Burbs to Ease the Housing Crunch

‘Missing middle’ forms of gentle density refer to the less-common housing types between the single-family house and the high-rise. Image by Opticos Design, Inc.

Christopher Cheung asks, 

“…does choosing the suburbs have to mean saying goodbye to the conveniences and lifestyle of the city?

Urbanists are saying no. “Sprawl repair” and “retrofitting suburbia” have become popular terms in the past two decades. Many municipalities that have embraced suburbia in the past are taking action to transform their sprawls into healthier, more convenient and more diverse communities.”

“The suburbs can change and get better without transforming every square foot of its built form,” said Brent Toderian, Vancouver’s former chief planner, now a global consultant on city building.

At the very least, “you need to make the suburbs walkable,” said Toderian. “At minimum, you need sidewalks and street trees.”

Toderian also recommends mixed-use suburban centres that have higher density and are pedestrian, bike and transit-friendly. This evolution doesn’t mean doing away with cars; it means offering more choices so driving isn’t your only option if you need to get to work or grab a carton of milk.

“The conversation needs to be about true costs and consequences, as well as opportunities to do density well with great design,” he said. “Because if not, politicians could just suggest to their constituency that they’re protecting their city from density and change. That’s a dangerous, false narrative.”

Learn more about the Sprawl Repair Manual by Galina Tachieva.

Suburbanism reversed in a generation?

According to Laurie Volk and Todd Zimmerman, “Since the turn of century, the demographic convergence of the two largest generations in the nation’s history, Baby Boomers and Millennials, both at life stages favoring community-oriented neighborhoods has formed the foundation for a nationwide urban resurgence.

The impact has been felt in neighborhoods at every scale, from the nation’s greatest cities to small, walkable 19th century downtowns that have become the de facto urban centers for surrounding auto-oriented subdivisions.”

However, there are other distinctions among households that can be more meaningful than age cohort, including preferences for urban scale and taste for new versus old.

In addition, Millennials’ life stage, financial circumstances and attitude toward ownership housing threatens to clog the whole system of ownership housing.

Millennial families’ continued embrace of walkable urbanism will depend on the success and quality of re-urbanization, particularly in smaller-scale urban centers, and whether a range of housing types can be developed, redeveloped, restored or maintained within these walkable neighborhoods. And, perhaps more importantly, it will depend on whether these dwellings, whether for-rent or for-sale, will be affordable to a wide spectrum of households.

Generation Us: Graying of the suburbs presents challenges for the community

David McNair wrote for The Daily Progress and the Jefferson Area Board for Aging:

While the suburbs evolved as places where people could escape to raise their families in peace and privacy, our communities now may need to reach out to those aging homeowners in suburban locations and provide them with the support and services they will need to age in place.

Peter Thompson, executive director of the Senior Center and chair of the newly created Charlottesville Area Alliance, a collective of regional partners whose objective is to lead the advancement of an age-friendly community, says one of the missions of the alliance is to work with area localities, business and nonprofits to study these needs and develop strategies to address the common and divergent needs our urban, suburban and rural areas  — from benches with backs on them to improved pedestrian and public transportation for people who do not or choose not to drive.

Through sprawl repair, it is possible to amenitize the suburbs and support the concept of aging in place. Learn more at Aging in Place on a Cul-de-Sac by Galina Tachieva, which discusses the use of the Supportive Living Module to create opportunities for senior living within a single-family subdivision. 

Six highlights of a walkable center

King of Prussia Town Center Source: Build a Better Burb

“King of Prussia, Pennsylvania, a major suburban “edge city” outside of Philadelphia, is building a walkable town center. Until recently, King of Prussia included nothing but massive parking lots and car-oriented shopping centers—including the second largest mall in the US—office buildings, and wide, busy thoroughfares.

King of Prussia still has all of that, but this suburban retrofit brings human-scale placemaking to the heart of this census-designated place in Upper Merion Township.

Key highlights of this suburban retrofit include: lots of outdoor dining; architecture that is eclectic and modern-looking—not traditional like many new town centers; a plaza with comfortable places to sit, programming such as live music and events, and a really fun fountain for the kids; and about 1,250 housing units will surround the shops and restaurants when the project is complete. Once fully occupied, this housing could bump up Upper Merion Township’s population 10 to 15 percent.

The project utilizes diverse sprawl repair techniques to create a livable community offering live, work and play options that broaden the tax base, and increase viability for the surrounding businesses.

Six reasons for the resurgence of car-free shopping streets

It’s all about the experience.
Source: Bethesda Magazine. Bethesda Lane. Bethesda, MD

Lee Sobel writes that car-free shopping streets are witnessing a resurgence with the return to traditional neighborhood design.

“Walkable places have become more desirable and people are looking for additional retail options in the places where they already live, work, and play. Car-free shopping streets offer just that.”

Sprawl repair techniques offer flexibility of design, scale and ownership options, allowing a range of stakeholders to partake in the success of car-free shopping streets.

 

 

The Geography of Innovation

Richard Florida writes:

recent study by economists Enrico Berkes of Northwestern University and Ruben Gaetani of the University of Toronto Rotman School cracks the proverbial code on the geography of innovation. They find that while there is actually a greater amount of innovation (as measured by patents) in suburbs, cities produce far more “unconventional innovations,” which require a greater diversity of contributors and have a more disruptive economic impact.

Unconventional patents are more likely to come from smaller companies, university labs, or independent inventors than large, publicly-traded companies. And they are often the harbingers of revolutionary new technologies.

In other words, density plays a much bigger and more important role in the type of innovation than in the rate of innovation.

Large cities not only have deep pools of talent and a critical mass of specialists, they also have the density to forge connections between people and firms with diverse bases of knowledge.

Ultimately, the better way to think about the geography of innovation is not city versus suburb but city and suburb. If cities are the centers for more cutting-edge innovation, the suburbs remain home to the big established companies that require large campuses to house their activities and people, and which tend to engage in a lot of patenting.

It will be interesting to track these trends in the coming years, as big companies seek to urbanize their suburban campuses.

Mall owners take a pay cut amid brick-and-mortar struggles

 discusses a Wall Street Journal article by Peter Grant on declining compensation for mall owners due to a correction to the over-built retail environment and a result of the shift to e-commerce.

The Great Recession helped accelerate a natural correction, experts say. Last year, retail analyst Jan Kniffen, CEO of J. Rogers Kniffen Worldwide Enterprises, said that while America at the time had about 1,100 enclosed malls, that number should be around 700 — meaning that roughly a third are destined to close.

Those remaining will likely be robust, according to Nick Egelanian, president of retail development consultants SiteWorks International. “In a strange twist, however, the smaller number of malls that remain operating when the dust settles will become virtually indestructible by offering only best-in-class higher end merchandise in exclusive collections.  We already know who the winners will be, and the vast majority are owned and operated by four REITs: Simon, Westfield, Macerich and GGP.”

Incremental mall retrofits and sprawl repair can be the key to which malls succed.

Jarvis: Mostly vacant Windsor plazas seen as an opportunity for ‘sprawl repair’

According to Anne Jarvis of the Windsor Star in Windsor, Ontario,

“Strip malls like Dorwin and Dougall plazas litter North America. They were built for cars, not people. They’re not inviting, and that’s why they’re dying. One of the biggest challenges for cities is how to fix them. It’s called “sprawl repair,” and it’s about retrofitting half-empty malls, strip malls and office parks.”

“I see opportunity for places like Dorwin,” said Shane Mitchell, a project manager at Glos Associates architectural and engineering consultants in Windsor.

“It’s about converting these monstrosities into neighbourhood hubs with a mix of uses. Monolithic buildings are carved into smaller buildings. Small streets and public squares are added. Parking is reduced. It’s creating a traditional city centre and main street. All of a sudden you … end up with an interesting place,” said Mitchell.

The first thing municipalities, including Windsor, have to do is change regulations that require buildings to be too far from the street and have too much parking. Cities can also stop offering tax rebates for some vacant properties, as Windsor is considering. But they also need to offer incentives for developers to do these types of developments, like Windsor already provides for other types of development.

According to Dorian Moore, a partner in Archive Design Studio in Detroit, “they have to encourage developers to “see the value in doing that kind of development. Show them what can be done,” he said, citing Mashpee Commons in Massachusetts, a 1960s strip mall with a huge parking lot converted into a renowned and award-winning mixed use town centre.

“You have to encourage the type of development you want to see,” said Mitchell.

Learn more about DPZ CoDesign’s Urbanism Code for Mashpee Commons here.

Grocery Stores Move In On Suburban Locations

The interior of Natick Mall, MA, the upcoming location of a new Wegmans store

Laura Hillen writes that grocery retailers are finding new homes as mall anchors in suburbia.

Due to declining foot traffic, many retailers are now preparing to close a large number of their stores. These closures are leaving empty mall spaces in their wake.

Food retail is one thing helping struggling malls survive,” June Williamson, an architecture professor at the City College of New York, and Co-Author of Retrofitting Suburbia.

Williamson also stated that losing an anchor store and its lease payment can make it difficult for a mall’s survival. However, malls are starting to focus on answering consumer needs apart from just clothing. As the consumer shopping experience continues to change, malls could prove a successful financial hub by offering food-related business.

Retrofits of existing malls can capitalize on proximity to infrastructure, housing, parking and public transportation. Grocers and other non-traditional mall uses, such as offices and health care, can benefit the entire region without the need to build from the ground up.

New Jersey Has a Millennials Problem

According to a report by CBRE, New Jersey’s struggling office market is facing another big challenge: the exodus of millennials. This is in addition to numerous hurdles over the past decade, resulting from the recession and vacant corporate campuses left behind after company consolidations. The latest is an “alarming” outflow of young workers from the state.

A number of landlords have been investing heavily to renovate older buildings, adding lobbies with Wi-Fi, baristas and wine bars, lounge seating and cafeterias offering a variety of food options. Others are subsidizing beefed-up transportation to and from train stations and hip downtowns using vans or ride-sharing apps.

Many millennials are coming from a few years of living on college campuses with recreational areas, academic buildings and collaborative spaces. Savvy corporate complexes, like the Warren Corporate Center in Warren, N.J., are being redeveloped with amenities designed to attract millennials, such as a stand-alone amenity building in the center of the 820,000 square-foot complex, featuring an indoor basketball court, conference-room facilities, a food court with a coffee bar, fitness center and a green roof with event space.

Sprawl repair techniques can revitalize suburban campuses and communities to make it more attractive for the millennials, and all residents of the Garden State.

Brainard wants to transform office building parking lots along U.S. 31 into ‘little villages’

Chris Sikich discusses plans to insert mixed uses, including, residential and retail development similar to Carmel’s downtown, into the state’s second largest commercial hub along US 31.

When Carmel Mayor Jim Brainard looks at the 5-mile stretch of highway, he doesn’t just see multistory corporate headquarters and health care complexes that have been so instrumental in building the city’s financial base. He says there are hundreds of acres of underused land, not just the few tracts of green space on the market, but also the seas of parking lots that serve the buildings.

“It’s such a waste of space, these big suburban parking lots, which don’t look very nice,” Brainard said. “I anticipate some day there will be little villages around those office towers.”

The mayor is proposing to provide millions in taxpayer incentives for property owners and developers to build restaurants, shops, apartments and condos with parking garages along U.S. 31

As Carmel has developed its urban core, several high-profile corporations have fled the U.S. 31 corridor for the more walkable environment being created in the city’s downtown area.

“The market is changing,” Brainard said. “People don’t want to get in their cars to drive to lunch anymore. They want to walk someplace close to their office.”

He thinks the highest quality development comes from public-private partnerships. He wants to guide development as he has in Carmel’s urban core. He hopes to offer incentives to encourage the development of shops, restaurants, homes and public spaces. That most likely means using TIF districts to pay back city bonds for parking garages, which in the past have cost from $10 million to $20 million each.

Busting 4 Common Myths About the Suburbs

Rachel Quednau busts four common myths about suburban sprawl, and makes the case for hard choices that can lead to sensible sprawl repair. 

Myth #1: The suburbs exist because that’s the way people want to live.

Busted: The suburbs exist because that’s the style of development that has been regulated into existence and funded by governments across the nation.

Myth #2: Sprawl is the biggest problem with the suburbs.

Busted: The problem is a development pattern that is financially insolvent.

Myth #3: Suburban residents are paying for the cost of their lifestyle.

Busted: Across the country, we see that urban areas subsidize suburban living to the tune of hundreds of millions of dollars a year.

Myth #4: We can turn the suburbs into financially productive places if we just try our hardest.

Busted: No. There’s too much suburban development for this to ever happen.

 

With the painfully limited amount of resources we all have right now, we must make the hard choices about where to focus our efforts. We can take small steps to help older neighborhoods with a solid foundation to be more successful, or we can take herculean steps to push a few suburban neighborhoods in a slightly better direction, in spite of aggressive cultural opposition.

The Sprawl Repair Manual by Galina Tachieva offers numerous techniques to determine the most promising locations where targeted, incremental investment is likely to be successful.

Historic Sprawl: A Future for Post-War Suburbia

Solitary drive-through retail site is retrofitted with liner buildings to incrementally begin the transition to walkable, livable communities.
Image Credit: Sprawl Repair Manual by Galina Tachieva of DPZ CoDesign
Deficiency: Sprawl-type Solitary drive-through retail. Remedial Techniques: Step 1: liner building retrofit. Step 2: Dense redevelopment where viable. Image Credit: Sprawl Repair Manual by Galina Tachieva of DPZ CoDesign

Jonathan Hopkins of Urbanismo makes a compelling case that the NPS’s evaluation criteria for nominating properties to the National Register of Historic Places should be revised to address concerns that preservation funding will become increasingly available for use by sprawling Post-War suburban subdivisions like Levittown, New York as they reach their 50 year eligibility mark.

“It becomes necessary to make clear criteria-based distinctions between sprawl and other development patterns like neighborhoods and small towns in order to prevent the preservation of obesity, social dysfunction, and environmental degradation.”

“By taking a proactive approach sooner rather than later, the prevention of preserving sprawl in its current state can be realized. The preservation movement – in coordination with environmentalists, developers, medical physicians, and others – can encourage law-makers to pass legislation to amend the Secretary of the Interior’s standards to include suburban retrofitting guidelines that outline appropriate initiatives to be funded by tax credits and planning grants at both the State and Federal level. In coordination with land-use, zoning, tax, and development policy reforms that discourage new suburban sprawl developments, historic preservation funding sources can encourage the retrofitting of sprawl into a more sustainable, accessible, affordable, and attractive living arrangement.”

 

 

Millennials prefer revitalized historic areas not malls

Mission Brewery operates a 2,500 sq. ft. tasting room inside a 25,000 square foot brewing facility in downtown San Diego, breathing new life into the Historic Wonder Bread Building in the East Village. Image Credit: Mission Brewery.

Are millennials the key to preservation?

A new survey by  American Express, National Trust for Historic Preservation and Edge Research – Millennials and Historic Preservation: A Deep Dive Into Attitudes and Values – finds that millennials prefer to live, work and play in neighborhoods with historic buildings.

The survey finds millennials tend to value a mix of old and new buildings where they live, dine, shop and travel.

Stephanie Meeks, president and CEO of the National Trust for Historic Preservation states, “The revitalization of many urban communities is being driven in large part by the influx of young people seeking authentic experiences and places with character that are found in historic neighborhoods.”

By revitalizing cities and increasing the density of inner ring neighborhoods utilizing sprawl repair techniques, a great deal of detrimental sprawl can be averted. Learn more about Sprawl Repair on Galina Tachieva’s website.

Why the Death of Malls Is About More Than Shopping

Josh Sanburn offers an historic perspective on American malls, and a glimpse into the future for malls and communities willing to invest in sprawl repair and place-making. Learn more about Sprawl Repair Manual by Galina Tachieva.

Local jobs are a major casualty of what analysts are calling, with only a hint of hyperbole, the retail apocalypse. By 2022, analysts estimate that 1 out of every 4 malls in the U.S. could be out of business, victims of changing tastes, a widening wealth gap and the embrace of online shopping for everything from socks to swing sets.

Local jobs are a major casualty of what analysts are calling, with only a hint of hyperbole, the retail apocalypse.

In the 61 years since the first enclosed one opened in suburban Minneapolis, the shopping mall has been where a huge swath of middle-class America went for far more than shopping. But for better or worse, the mall has been America’s public square for the last 60 years.

Some of the great mall die-off is what economists refer to as a market correction. “We are over-retailed,” says Ronald Friedman, a partner at Marcum LLP, which researches consumer trends. There is an estimated 26 sq. ft. of retail for every person in the U.S., compared with about 2.5 sq. ft. per capita in Europe. Roughly 60% of Macy’s stores slated to close are within 10 miles of another Macy’s.

Some ailing malls have already moved on to a second life. Austin Community College in Texas purchased Highland Mall in 2012 and converted part of it into a tech-driven learning lab and library. In Nashville, Vanderbilt University Medical Center moved into the second floor of the 100 Oaks Mall a few miles from downtown. The Southland Christian Church in Lexington, Ky., bought their nearby mall and transformed part of it into an auditorium.

It also turns out that not everyone wants to spend their leisure time inside. Many of the new, millennial-focused malls are indoor/outdoor complexes designed as one cog of a suburban town center that includes apartments and office space … a magnet for millennials who are leaving downtowns for the suburbs but still want to live in a dense, walkable community.

There are still about 1,100 malls in the U.S. today, but a quarter of them are at risk of closing over the next five years, according to estimates from Credit Suisse.

 

 

Wildfires are becoming more destructive. A new book says that’s not natural — and it’s not climate change

“Flame and Fortune in the American West,” a book by University of Colorado Denver professor Gregory Simon argues that increasing devastation by fire is a result of building homes and businesses in unwise places, rather than the easy scapegoat of ‘climate change’. An interview with the author discusses economics and development patterns that increase fire risk at the urban boundary:

“One objective of the book is to say, look, you can change land use planning in this way or that way, you can change the rules, you can change development to reduce fire risks and costs. But the other part of the book is concerned with how we talk about fire. I argue that when we suggest the problem is caused mainly by climate change and environmental factors we are actually exonerating — unfairly — the role of humans and city developers in creating these risks in the first place …  We keep spreading cities farther and farther out and I think that needs to be part of the discourse. Fires disasters aren’t natural, they’re very social.

I propose ways in which we can slow down this process of converting landscape, and adding risk to the landscapes and extracting profits from landscapes, by doing things like taking land out of availability through conservation easements or making development more costly, whether that means reducing fire protection services or reducing home ownership incentives.”

One Thing Silicon Valley Can’t Seem to Fix

The new Apple headquarters under construction in Cupertino, Calif.
JUSTIN SULLIVAN / GETTY IMAGES

Alison Arieff spent the last year researching the future of the corporate campus through the lens of urbanism.

“The project has explored how the Bay Area’s workplaces might become more socially, economically and sustainably efficient, but also how applying new ways of thinking about the design, form and location of these buildings could help create a sense of place.

Solving this isn’t rocket science; it’s common sense. Don’t design buildings that function only as pristine objects with no relationship to their surroundings. Don’t put workplaces in locations inaccessible to transit. Do consider the broader context.”

Learn more about Sprawl and Sprawl Repair from Galina Tachieva, and check out the Sprawl Repair Manual.

Check out Galina’s Blog on Apple’s new campus: Not This Time – Why the new Apple campus doesn’t work

MACY’S LOOKING TO MONETIZE UNUSED PARKING LOTS

The 11.4 acre Macy’s-owned portion of Landmark Mall. Howard Hughes Corporation acquired the Macy’s parcel and has begun to transform the enclosed mall and the Macy’s parcel into a vibrant open-air, mixed-use community with retail, residential and entertainment components designed to create a dynamic urban village. Image: Howard Hughes Corp

“Struggling retailer sees opportunities to improve shopping experience by activating empty parking lots.

As the images of empty parking lots during Black Friday have demonstrated, commercial real estate professionals are slowly warming to the idea that we have far too much parking than is needed- diminishing municipal tax bases and taking away the ability to lease space within struggling shopping centers. Big box retailer Macy’s has announced their intention to create new revenue streams by reimagining acres of unused parking lots- a strategy used by tactical urbanists in places like Nashville, Indianapolis and Miami.”

Sears to close 43 more stores to cut costs

A Sears department store is pictured in La Jolla, California, U.S., March 22, 2017.
REUTERS/MIKE BLAKE

“Sears Holdings Corp (SHLD.O) is closing eight of its namesake department stores and 35 Kmart locations to cut costs and square footage in an effort to return to profitability, Chief Executive Officer Eddie Lampert said on Friday. The store closings are in addition to 150 the company announced in January.

“This is part of a strategy both to address losses from unprofitable stores and to reduce the square footage of other stores because many of them are simply too big for our current needs.”

As anchor tenants like Sears retreat, smaller adjacent retailers will suffer from reduced foot traffic. Where possible, increasing density utilizing Sprawl Repair techniques can return jobs and tax revenue to communities.

What to do with dead malls?

Anson Burtch writes about the escalating “retail apocalypse”, and successful options for the failing model of enclosed retail space surrounded by acres of parking.

“From a land-use perspective, dead malls are full of possibility. They occupy large swaths of often valuable land at crossroads or central locations with access to public transit and highways. When they were originally built, the land was frequently at the growing edges of suburbia but has since grown considerably in value by virtue of surrounding development and transportation improvements. This makes even dead malls valuable “land banking” assets for their owners.  In addition, the considerable volume of unencumbered raw space that is found in a typical anchor store makes them quite flexible for adaptive reuse. The desire and attention to revitalizing these areas has become a top priority and focus for local governments.”

“Luckily there are many options for revitalizing these properties. Remodeling as mixed-use developments has proven successful in many instances, and even more so when tied into transit systems. Other times finding unique tenants such as local governments, hospital systems, or libraries makes profitable and efficient use of the space. With a little creativity and a lot of willpower, communities can turn a potential unproductive eyesore into opportunity.”

Find tools for mall retrofits and more, in the Sprawl Repair Manual.

Brick and Mortar Reborn – The Future of Retail in the Era of Urbanization

The trend toward urbanization is inspiring retailers to focus on the holistic customer
experience.

An August 2016 White Paper by Synchrony Financial in collaboration with Quartz creative services discusses Urbanization and the Consumer, as well as strategies for competing with growing E-commerce.

“EXPERIENCE-DRIVEN RETAIL: THE RISE OF FLAGSHIPS, CURATED SATELLITES, POP-UPS, AND CONCEPT SHOPS

Urban consumers strongly favor the in-store shopping experience—with an emphasis on the experience. Eighteen percent of urban millennials expect to shop more in stores in the coming year than they did the last. When they do, they expect more than just a transaction. They want a unique experience that differentiates their spending and are willing to pay, on average, 31.6% more for it.

From flagship stores to short-lived, curated experiences, the future of retail involves meeting shoppers on their own terms—in the physical spaces they prefer.

The spread of city culture and denser living means customers are willing to pay more for brands that sell experiences—that sell a lifestyle—as well as provide on-demand convenience.”

These same strategies can be aimed at all ages and populations, and should be applied to Mall Retrofits in suburban settings where the decline of aging malls continues to drive down surrounding property values.

Brick & mortar vs. Amazon: Mall stores getting Amazonned into deep doo-doo

Horton Plaza. Important retailers started deserting it not long after it opened. A huge part of it has been ripped down.

The need to retrofit failing malls is becoming ever more urgent:

“On May 31, the big bank Credit Suisse predicted that 25 percent of malls would be gone in the next five years. Earlier forecasts had also been dire, and results prove them to have been accurate. Malls used to be anchored by big department stores — Sears, JCPenney, Macy’s, and the like.

All are now in deep doo-doo and closing stores, upsetting the malls that relied upon them as consumer draws and sources of revenue. The smaller mall stores, which pay higher rent per square foot than the anchors, are having trouble, further biting into mall revenue and traffic.”

Southern California’s dead malls could be places to live

Carousel Mall Photo by Will Lester-SCNG-Inland Valley Daily Bulletin
The Carousel Mall, built in 1972, has very few tenants as seen Tuesday June 6, 2017 in San Bernardino.

Larry Wilson of the Pasadena Star News suggests converting malls to multifamily housing with commercial uses as a way to provide affordable housing and inject new life into failing malls.

“Merchants and shopping-center developers are wondering what to do with these huge pieces of real estate that seemingly have outlived their usefulness.

For once, there is an unusually easy answer: If you can’t shop in ’em, live in ’em.

“… the factor that most aggravates Southern California’s housing crisis is the lack of supply for the demand. Developers aren’t building nearly enough new multi-family to meet the need because of a combination of lack of open land and zoning codes and NIMBYism that make it hard to expand on existing sites.

Just as ground-floor retail, grocery stores, restaurants and bars still thrive in eastern cities more accustomed to density, there will still be room for some commercial in these repurposed places — especially when more people live right next door.

And, yes, that answer includes providing subsidized former-mall housing for those now living in cardboard-tent cities in our riverbeds and on our sidewalks.”

Commentary: The mall is dead — long live the mall

Jun 20, 2017:  Orlando Sentinel Editorial Board spoke to Joshua Harris, director of the Dr. P. Phillips Institute for Research and Education in Real Estate at the University of Central Florida, to ask about malls:

“Q: Did shopping malls ever serve a purpose in society, beyond retailing? What changed, if anything?

A: Shopping malls became the de facto “town square” during the suburban development boom of the ’70s and ’80s. They were the place to go, hang out and be seen. Thus, the urban resurgence that began in the late ’90s, and really intensified in the past 10 years, has taken the “town square” back to the more natural walkable, urban environment. Places like Winter Park, Winter Garden, Thornton Park and now even Baldwin Park (close to 95 percent leased after suffering massive problems during the recession) are all the “hot” places to go on a Friday or Saturday. In reality, history will show that the suburban mall was the aberration, driven by urban decay and rising crime. With urban renewal and major declines in crime, the mall does not fit as well as it did for those few decades. There will be life for existing malls, but likely after being repurposed and designed to feel more like town centers.”

 

Where logical transportation and community infrastructure already exists, sprawl repair techniques can be used to add residential, office, entertainment, and public open space to spur an entire region with new, walkable Town Centers.

 

The Mall of the Future Will Have No Stores

PHOTO: FORD LAND At Fairlane Town Center in Dearborn, Mich., Starwood Capital brought in Ford, which converted a former department store into a workspace for its engineering and purchasing staff.

Shopping-center landlords are rethinking the traditional mall model—and shops aren’t necessarily part of the equation.

As retailers close bricks-and-mortar stores at an accelerating pace, shopping-center landlords like Starwood Capital are facing a vexing question: What to do with all this empty space?

Some landlords plug empty spaces with churches, for-profit schools and random enterprises while they figure out a long-term plan. Others see a future in mixed-use real estate, converting malls into streetscapes with restaurants, offices and housing. And some are razing properties altogether and turning them into entertainment or industrial parks.

Many mall owners are trying to liven up the experience, bringing more dining and entertainment tenants and eschewing the traditional mix.

Can Australia avoid the death of local malls?

Abandoned Malls by Seph Lawless-Source-Supplied

As Amazon nears offering service to Australia, Economist Jason Murphy hopes Australian malls can avoid the current American syndrome of dying malls. He offers the following suggestions that can also offer hope for our American malls through Sprawl Repair and Retrofit:

“Number one is probably to reduce their reliance on risky “anchor tenants”. Coles, Woolies, Target and Big W are shopping centre stalwarts, but none of them is certain to still be succeeding in a decade’s time. One or all of them could find the going a lot tougher in a world where Amazon is trying to win over our wallets.

The next big idea for shopping centres is to offer experiences not just goods. Amazon sells stuff you can get delivered to your door. But experiences — haircuts, manicures and massages; meals, coffees and movies — are still things people want to meet in person for.”

By increasing density and diversifying uses, dying malls can become innovative employment and social hubs that enrich the surrounding neighborhoods.

Time to think about taxes for the Bristol Mall

Bristol Mall Image by Zack Irby:BHC

The Editorial Staff of the Bristol Herald in Bristol, VA is seeking to raise public pressure on local officials to find a solution to the dying Bristol Mall in their midst:

“We’ve previously discussed ideas and the need for action for our “skeletal mall.”

“This might all imply prevention of the mall’s slow death is a civic issue, but it’s not. All of us citizens who share a hope to see the mall, built in 1976, thrive for another 40 years also have an applicable duty. We should collaboratively raise awareness and a sense of urgency to move on this.

Let’s try an experiment: Let’s all call and write the city’s leaders within the next two weeks, asking what’s being done to fill the mall and to explore these kinds of options.

If each reader makes the effort to simply ask questions, the strength-in-numbers concept would make the topic too relevant for our local government to ignore.”

Read more about their investigations into retrofitting their mall, and the success Sen. Tim Kaine, D-Va., experienced in Richmond during his time as mayor there.