Generation Z May Not Want To Own Cars. Can Automakers Woo Them In Other Ways?

Citi Bike users pedal through the streets of Manhattan. Some members of Generation Z, the younger generation following the millennials, are less inclined to own cars and lean more toward bike-sharing and ride-sharing services.
John Moore/Getty Images

Generation Z, the born between 1995 and 2012, and raised entirely within the digital age, are likely to mix things up even more than the Millennials. Gen Z-ers in more urban settings are even forgoing a traditional rite of passage: getting a driver’s license and then the car. Natalie Bettendorf, a Gen Z-er just coming of age, describes why she has no intention of getting a car. The Big Three U.S. automakers have taken notice, and ride-sharing applications are busy tracking the way we move. While rural areas of the country can’t easily be served by ride-sharing, Gen Z may be even more influential in pushing transit-oriented development and averting sprawl than Millennials.

“Ford started its own bike-sharing service recently. It wants to sell to people like me who have no interest in buying a car.

The Big Three U.S. automakers — Ford, Fiat Chrysler and General Motors — say they are no longer just automakers. Every major car company is trying to make a move, whether it’s car-sharing, ride-hailing or self-driving.

GM has a new car-sharing app called Maven that it’s betting billions on. “We needed to create a new brand because this is really about access and not necessarily ownership,” says Peter Kosak, executive director of urban mobility for Maven.

Millennials are starting to buy cars in big numbers, The Associated Press reported last year. They just had a late start — mostly because of the Great Recession. Could the same thing happen for Gen Z?”

Lord & Taylor, WeWork and the Death of Leisure

Lord & Taylor’s flagship store on Fifth Avenue will become the headquarters of WeWork. Credit Benjamin Norman for The New York Times

In another example of retrofit to manage the new retail reality, Ginia Bellafante wrote that WeWork is paying $850 million for Lord & Taylor’s 676,000SF Italianate building in Midtown NY, which it has occupied since 1914.

“…it stood not merely as a monument to turn-of-the-century commerce but also as the grand testament to what the sociologist Thorstein Veblen called the rising culture of “conspicuous leisure.” Leisure, Veblen wrote, “does not connote indolence or quiescence.’’ What it conveys is the “nonproductive consumption of time… any time spent away from the activity of labor.”

“Lord & Taylor will rent a quarter of the building, maintaining a smaller version of itself. WeWork will take over the rest for its headquarters and the leasing of shared office space — and tutorials perhaps for what is supposed to count now as a good time.”

WeWork looks to, “build an entire social life around the WeWork experience.”

Now that Amazon’s a thing, malls have to get creative to survive

A Gold’s gym at a mall in West Covina, California. Source: Mashable

The malls that will survive into the future will be the ones that offer more than just retail. It will be crucial for mall operators to provide a variety of experiences and places that foster socialization. These malls, or lifestyle centers, can be achieved by reintegrating living, working, learning, playing – not only within the mall structures – but also through activation of the underutilized parking. Patrick Kulp of Mashable writes:

“Desperate to plug empty retail holes, mall owners are turning to less traditional businesses like gyms, grocery stores, and high-end restaurants to keep foot traffic flowing.

Some have even transformed parts of the buildings into office parks, medical facilities, or homes.

The new trend raises the question: What even is a mall anymore?

According to CBL & Associates, modern malls need to be “vibrant town centers,” replete with lifestyle and entertainment options beyond simple retail. The property group announced a rebrand of its own 113 spaces to this effect on Thursday.

The idea is to preserve the function that malls once served as a suburban social institution for a generation that may not even know what a “mall rat” is.”

Read more about reenergizing malls through Sprawl Repair. 

Singapore needs to reinvent retail scene

The retail meltdown due to online competition and an overabundance of physical stores is now being experience world-wide. Retailers intent on survival will need to be lean, flexible and creative to stay competitive. But it will require more than just department store chains to participate in finding solutions for failing malls.

“STB assistant chief executive Lynette Pang once said: “In today’s fast-changing tourism and consumer landscape, we cannot stay still.” It is therefore crucial for landlords, retailers and relevant government agencies to think “out of the box” to allow new brands and exciting concepts to flourish and take shape.

Increasingly, the experiential factor is key in making a difference to Singapore’s retail scene. Shopping malls can reinvent themselves with unique experiential retail spaces that set them apart from the mainstream. For example, the opening of Jewel Changi Airport in early 2019 will distinguish itself as home to Singapore’s largest indoor garden and the world’s largest indoor waterfall, featuring a light and sound show every night to enable visitors to shop, dine and play in one place. The new Funan DigitaLife Mall, set to open by end-2019, will be the first commercial building in Singapore to allow cycling through the building, and have rooftop farms that offer visitors a rest from the urban crowd.

With such unique and activity-based retail zones, landlords are better able to make their retail spaces break out of the homogeneity among retail malls.

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.

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.

Urbanism Summit Miami 2017

On February 21, 2017, a diverse collection of change-makers, influencers and forward thinkers gathered to discuss the future of cities, their makers and dwellers.  The purpose was to share actionable ideas across disciplines in new urbanism and place making, and spark a movement of collaboration among new urbanism practitioners, investors, startups, policy makers and community.

Tachieva of DPZ, Cooper Copetas, architectural designer and George Cuevas, founder of CollabMiami, teamed up for a panel discussion on how to create co-working space in the context of suburbia that can support small and independent businesses.

Learn more here:

Charrette: A Social Innovation Lab

When you think social innovation, you might think micro loans in developing countries, or hand-ups to help people in from the fringes here at home. Or a wide range of ways to build social capital or how charitable institutions backstop community with philanthropy. But for those of you who are working in the city planning trenches every day, using collaborative design workshops to engage the people, you’re really running a form of social innovation lab.