CREJ

February 2018 — Retail Properties Quarterly —

Page 21

www.crej.com

Denver:

4582 S. Ulster St., Ste. 1500 • Denver, CO 80237 • 303.228.2300

Colorado Springs:

2 N. Nevada Ave., Ste. 300 • Colorado Springs, CO 80903 • 719.453.0180

FORTUNE

M A G A Z I N E ’ S

WE ARE

ONE OF

COMPANIES

TO WORK FOR

Explor

e Kimley-Horn.com

for more information.

RETAIL SERVICES

Site condition assessment

Pedestrian access

Site renovation solutions

Retrofit site design

Peer review

Agency permitting/entitlements

Pavement management/evaluation

Utility design/coordination

Traffic

Roadway

Infrastructure

Build-to-Suit

Landscape Design

ENR RANKINGS

#21 of the Top 500 US Design Firms

#6 of the Top 100 Pure Design Firms

#2 for Retail

#2 for Multi-unit Residential

#7 for Airports

#8 for Highways

#8 for Solar Power

#9 for Transportation

#10 for General Building

#16 for Mass Transit and Rail

#16 for Water Treatment

and Desalination

#18 for Sanitary and

Storm Sewers

#29 for Water Supply

#43 for Sewer and Waste

RETAIL CLIENTS

IKEA

Bank of America

Darden

Target

CVS Pharmacy

Chick-fil-A

Starbucks

Kroger

LA Fitness

Macy’s

Kohl’s

Discount Tire

he one constant in retail is

change. Whether managing

through fluid financial mar-

ket cycles, the natural life

and death cycles of specific

retailers as shopping habits change,

or adapting and repositioning a

development project midconstruc-

tion to adjust to the market or ten-

ant realities, change management

always has been paramount in the

retail development world.

Reading the headlines today, one

could easily surmise that bricks-

and-mortar retail is rapidly on the

decline (see Retail Apocalypse!)

with the end not too far over the

horizon. Sales of commodities such

as electronics, office supplies and

books are migrating online. Class B

and C malls that primarily feature

“middle ground” retailers that are

neither luxury nor value oriented/

discount are under severe duress,

and many, if not most, will be repo-

sitioned over the next five to 10

years and beyond. The department

store model also is challenged with

retailers like Sears and J.C. Pen-

ney Co. on a severe downturn. This

could mean that a 1-million-square-

foot retail center might reposition

to have that leasable retail area

reduced and convert the balance to

a mix of amenities that bolster the

property and restore vibrancy to the

center.

While it is no secret that pres-

sures from e-commerce, and par-

ticularly Amazon, along with other

online shopping is impacting the

physical store dynamic, we are

strong believers that it will never

replace well-designed, properly

curated shopping

centers. What

e-commerce can-

not offer is the

human interaction

and experiences

that consumers

crave.

Our most suc-

cessful centers

here in Colorado

focus on develop-

ing public com-

munity spaces and

then activating

those with year-

round events.

While great archi-

tecture creates the framework for

these spaces, we focus on mature

landscaping, a variety of water

features and fountains, fireplaces

and comfortable seating that are all

accented by a comprehensive floral

program.

The real key is activation of the

space. Programs such as summer

concert series and farmers markets

in the shopping center’s parks and

plazas (with those spaces convert-

ing to ice rinks in the winter time)

serve to draw the community as

they embrace these events and

make them their own.

The goal here is experiential

retail, creating the opportunity for

the consumer to socialize, linger

and thrive, and, ultimately, spend

more time shopping. It is critical

for retailers to focus on creating

an experience that simply cannot

be duplicated online. Omnichannel

retail is a great example of retailers

rolling out innovative technologies

that add value to the in-store expe-

rience. Stores are deploying wire-

less beacons that send promotions

to nearby shopper’s smartphones,

along with augmented reality apps

that allow customers to visualize

clothing or how furniture might

look in their home. These new tools

add interactivity and fun to the

physical store.

To this end, as we look to our

development pipeline here in Colo-

rado, we are focused on creating

active, vibrant, mixed-use develop-

ment projects that incorporate 21st

century technology today’s consum-

er expects and requires. Combining

residential over the right mix of

retail and adding an office compo-

nent to help drive daytime demand

for our restaurants is key to suc-

cess. Retail uses that include gro-

cery, theater, fitness, entertainment

and food help to generate the traffic

and recurrence of visits that will

benefit the balance of the shopping

center and are fairly well insulated

from the e-commerce threat.

One of our challenges with two of

our existing centers here in Colo-

rado is addressing the demise of the

department store. Retailers, such

Space activation key to create successful centers

Retail Trends

Bryan

McFarland

Principal,

development,

Alberta

Development

Partners LLC,

Greenwood Village

Wonder Works Studio

Centers should focus on developing public community spaces and then activat-

ing those spaces with year-round events, such as this movie night at The Streets at

SouthGlenn.

Please see McFarland, Page 27