CREJ - Journal

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Page 16 — Retail Properties Quarterly — May 2015
W e have seen an explosion of
restaurant and bar projects
throughout Colorado over
the last couple of years – in
2014, there were over 300
openings in the Denver metro area
alone. This flurry of activity is car-
rying over into 2015 with dozens of
openings each month. With so much
activity and competition, the food
service industry is
finding new ways
to attract custom-
ers. One way is to
find and create a
unique space to
match their imagi-
native menus.
Foodies are flock-
ing to Lower High-
lands and River
North Art District,
but other neighbor-
hoods with nontra-
ditional buildings
also are in demand
– the standard retail space doesn’t
always fit the bill for the trendy and
fresh concepts. Regardless of loca-
tion, these unique spaces come with
challenges, and the significant cost
of not properly anticipating these
obstacles can cripple or kill a proj-
ect. Our experience shows that no
amount of research and review is too
much, and the earlier in the project
challenges are found and resolved,
the better.
The most significant challenges
in the adaptive reuse or urban
renewal of older buildings are the
ramifications of a change of use
and a change of occupancy in the
zoning and building codes. In the
city of Denver, these changes trig-
ger a series of requirements that,
while standard for new site develop-
ment, must be incorporated into the
design. Questions must be asked and
answered – does the current zoning
allow the proposed use and what
neighborhood review and approval
might be necessary; does the change
create new parking requirements
and what exceptions or reductions
can be utilized; what barriers exist
that prevent compliance with acces-
sibility requirements; can the site
accommodate the ever-popular out-
door dining area, whether on the
ground or the roof?
In addition to the site, the building
itself must be adapted to accom-
modate new use and occupancy.
The evaluations of the superstruc-
ture and life-safety requirements
are just as critical as the space plan
and branding. In addition to hav-
ing a sound roof and walls, the floor
structure must be evaluated for load-
carrying capacity for restaurant use.
Often we find the need for additional
joists, beams and columns in crawl
spaces and basements. Masonry
walls require repair and tuck-point-
ing, as well as reinforcing due to age.
Roof structures often are significant-
ly underdesigned for proper snow-
loading requirements. Frequently, we
see the need to add fire sprinklers in
a building.
In a change-of-use situation, the
building code requires the instal-
lation of a fire suppression system
when the occupant load reaches 100
or more, or roughly 1,500 square feet
of dining area (even less for a bar
or tavern use). Additional exits with
minimum separation are required
for assembly occupancies. In the
case of a mixed-use building, one
must know the fire-rated separations
required in the walls, floors and ceil-
ings between dissimilar uses.
Beyond the site and the building,
the infrastructure must accommo-
date a specialty user. Heating, venti-
lating and air-conditioning systems
in older buildings or previously used
spaces likely will not conform to the
current mechanical code require-
ments for occupant counts, neces-
sary fresh air changes and newly
added kitchen exhaust hoods. Elec-
trical services to the building may
be undersized and require upgrade
or modernization. Utility company
installations of upgraded transform-
ers and service entrances recently
delayed project schedules and open-
ings.
Most food-service uses must
include a grease interceptor. While
some menus may allow for a vari-
ance, there are sanitation districts
along the Front Range that require
grease interceptors regardless of the
food that is prepared and served.
One of the most critical and difficult
challenges for a restaurant project
is the water service. Will there be
enough flow and pressure provided
by the utility? Will the water service
need to be upsized to meet the new
demand? Keep in mind that tap-and-
use fees can exceed six figures.
Many of the new restaurant and
bar concepts are owned and oper-
ated by families and chefs who are
new to the development and con-
struction of a restaurant space. They
know their culinary craft and they
know their business, but they may
not know what to expect when build-
ing out a new space. The family’s life
savings might be on the line. If a new
location is a second or third open-
ing, the owners still have to manage
their current business and may not
have the bandwidth to manage a
new project. There are many tasks to
undertake and vendors to coordinate
with, such as food and beverage sup-
pliers, furniture suppliers and equip-
ment installers, each with moving
parts that must be attended to. The
vendors, designers and consultants
must possess experience in the food
service industry to help clear a path
to successful project completion.
Proper project management, more so
in food service projects than in other
uses, is critical to bring the team
together.
The growth of restaurants and bars
likely will continue, as these tenants
provide a service and experience that
cannot be replicated or replaced by
the e-commerce marketplace. The
competition for customer attention
and retention continues to grow, forc-
ing food-service concepts to become
more unique and specialized, which
adds to the challenge of finding the
right space. As prime locations are
taken, remaining spaces will bring
another level of obstacles to over-
come. While restaurants often are
folded into the retail world, their
uses necessitate proper evaluation
and execution by the right team far
beyond that of a typical retail user.s
Restaurant Update
Dave Goode
President, David P.
Goode Architecture,
Castle Pines
Hurricane Grill & Wings is a beach-themed restaurant in Littleton.
Williams & Graham is a prohibition-era speakeasy in a corner bookstore in Denver.