CREJ - Journal

May 2015 — Retail Properties Quarterly —

Page 25

to the overall impact of the site. It is still the

same core and shell, but updated materials

create an inviting space that is a draw to

customers and tenants.

Landscaping.

While façade improvements

are important, it is only one component

of an aging property. Aged landscaping

may be dead and detract from the sites

aesthetics or, more significantly, may be

overgrown and reduce site visibility. Even

with great façade updates, a lack of visibil-

ity can be extremely detrimental to a retail

center. Communities are gaining a better

understanding of this and are more read-

ily working with development planners to

negotiate the replacement of overgrown

landscape to create visibility for the center.

Additionally, much like outdated façades,

landscaping that was installed in the 1970s

with elements such as railroad ties, large

hedges and water-thirsty plantings make

a retail center look old and tired. Updated

landscaping complements architectural

upgrades and helps attract the most desir-

able tenants.

Irrigation.

Proper irrigation can save an

owner thousands of dollars a month and

greatly enhance the aesthetics of a site.

And with an increased awareness of water

resources, thoughtful irrigation is part of

being a good community partner. Older sys-

tems lack water efficiency and may suffer

from broken components and poor design.

An irrigation audit identifies the correct

selection of equipment and proper location,

installation and long-term maintenance for

the system. Something as simple as replac-

ing outdated irrigation controllers and noz-

zles can reduce water consumption by 20 to

30 percent.

Lighting.

A well-lit site is a safer and more

attractive site, and updating to light-emiting

diode lighting is the most effective way to

achieve this. While the upfront cost of LED

lighting is greater than traditional lighting,

value is gained through electrical costs that

are reduced by 44 to 71 percent and pro-

vide an increased life cycle for the fixture.

Additionally, with demand for LED lights

increasing, costs are decreasing. Retrofit-

ting is one option, but it is generally a bet-

ter investment to replace the entire fixture,

which might be at the end of its life cycle

and not optimally spaced for LED lighting.

Pavement rehab.

An often overlooked but

significant component in a retail center’s

appearance is the parking lot. Nothing says

“old” more than a parking lot full of patches.

Milling and overlaying a parking lot riddled

with cracks, potholes and grading issues is

another effective way to revitalize a retail

center. Adding a new layer of asphalt allows

underlying issues to be corrected, ultimately

providing the property owner significant

savings in repeated repair costs.

Planning.

An opportunity for increasing

revenue by reallocating underutilized park-

ing is also an effective means of tapping the

potential of an older retail center. Today’s

reduced parking count requirements make

it feasible to carve out space in an under-

used parking area to create a new pad site.

The introduction of a new building and

new tenants can provide renewed interest

in the center and increased revenue gen-

eration, additional rent for the land owner,

and added income to fund further improve-

ments to the overall center.

Funding.

Many communities offer tax

incentives or matching grants for retail cen-

ter improvements. Communities have long

understood the need to encourage property

owners to make development improve-

ments. Municipalities recognize that what

is good for the property owner also can

be good for the community. An additional

opportunity for offsetting improvement

costs is through rebate programs. Most

water departments offer outdoor commer-

cial rebate programs for conversion to smart

controllers and water-efficient nozzles.

Energy rebates also can be obtained for

updating site lighting.

Class A tenants have plenty of opportuni-

ties to find retail space in which to locate.

It is up to the property owner to give them

a reason to desire the location. In order for

property owners to unlock their aged cen-

ter’s untapped potential, they must commit

to the upfront investment with the under-

standing that long-term financial gains will

be realized. A qualified firm can prepare a

comprehensive improvement program and

navigate the options, opportunities and pro-

cess so an aging retail center does not just

survive – it thrives.

Market Driver