CREJ - Building Dialogue - June 2017
Headlines on the continual upsurge of e-commerce are nothing new. Stories of failing large-format stores have become a tangible reality that continue to lead to the decline of big-box retail. In today’s digital environment, online sales make up 10.5 percent of all retail and the U.S. Census Bureau tells us growth is expected to accelerate even further. Alongside this increase in e-commerce is a shift in shopping patterns. Most consumer spending last year, nearly 70 percent in fact, went to experiences rather than products. (Bureau of Economic Analysis). While this story is no different in secondary markets, such as Northern Colorado, a compelling result of this shift has been the rise of community-based neighborhood centers. These smaller centers focus on experiential retail that blends into the existing fabric of the community. Tenants are inclusive of hands-on concepts such as restaurants, personal services, health and fitness facilities, and cinemas. Although consumers are now less likely to visit a brick-and-mortar store to purchase goods, they are increasingly looking for a physical sense of space that delivers services. As a mission-driven real estate development and investment company, we are focused on creating a retail product that meets the lifestyle needs of neighboring residents by creating meaningful places that speak to each community’s unique character. We are completing Harmony Commons, a neighborhood mixed-use center in southeast Fort Collins. The project’s tenant mix is representative of concepts such as Harbinger Coffee and DC Oakes Brewhouse and Eatery that are local to Northern Colorado, in addition to popular, yet unique, regional concepts such as MidiCi Pizza, Potbelly Sandwich Shop, Tokyo Joe’s and Famous Toastery. This blend works well in experiential centers as the tenants are all dedicated to providing a distinct experience specific to our market rather than a generic concept that is replicated from store-to-store. Like the shift that is occurring in other markets such as Denver and Boulder, our project is illustrative of the demand to deliver a more urban concept with highly desirable tenants in suburban areas and secondary regions. These areas showcase strong demographics to support such developments and patrons that are seeking an elevated offering of services that don’t water down the culture of the community. Harmony Commons has tenants opening from April through August. A Fairfield Inn & Suites by Marriott will make up a second phase of the project and will break ground in the third quarter. This will be followed by a third retail building and a medical office building. We’re seeing similar trends at The Exchange, one of our adaptive reuse developments in Old Town Fort Collins. The project is seeing an influx of interest from what would traditionally be considered urban amenities. The Exchange will redevelop existing buildings on the perimeter of the project to accommodate creative commerce including workspaces, retail and restaurants. The open-air central plaza will be lined with shipping containers turned into restaurants serving inspired cuisine and craft cocktails. The theme of the project and its targeted tenants centers on connecting the entrepreneurial spirit of Fort Collins to the community’s love of bikes, the outdoors and family friendly gathering areas. The outcome of these shifts in desired retail experiences will continue to impact the vibrancy of community retail. Retail tenants, local and franchise alike, will continue to elevate their game to provide experiences unique to the neighborhoods in which they live. kevin.brinkman@brinkmancolorado.com