FEATURE ARTICLE, APRIL 2008

URBAN RETAIL AND EFFECTIVE DESIGN
Effective design concepts area crucial thread for urban projects.
Navid Maqami, AIA

One of the exciting challenges of being an architect is that we must wear many hats and juggle the sometimes competing interests of developers, community groups and governmental bodies when plotting out a mixed-use project in an urban area.  The key to keeping the developers happy is to establish a thorough plan and design from the outset. An intricate plan showing that all the parties have paid keen attention to the many details will pay off dividends, have a more attractive leasing potential and a higher return on investment (ROI).

Urban retail design is a “hot” development strategy. Architects must work within various constraints to give the developers a working plan that will benefit many factions including the neighborhood, tenants and, of course, the developer. Any project without proper planning and quality assurance will not be successful over time.

Due to its experience, a skilled architectural firm can help developers understand what strategies have worked in other neighborhoods. Because of the firm’s accumulated experience in dealing with a variety of development scenarios, the architect can take on a new role: advocate.  The firm can wind its way through the governmental zoning approvals process and work with neighborhood boards to educate the community about the project.  This step can greatly alleviate any concerns right from the start.

Developers need to understand that the unique demands of an urban design might necessitate that the initial cost outlay be higher.  In the long run, the investment should pay off as the tenants find increasing success in their new home. It is important to have a thorough planning process that covers issues such as the potential costs of different mixes and the leasing potential of any office, retail and residential space.  If you have proper planning of a mixed-use site, the makeup will continually provide a steady income.

Urban settings are tough because, oftentimes, the only space available is vertical. Stacking is becoming the primary way to construct new projects. Because of the technicalities involved, developers need to partner with retail architects and design specialists to position the greatest amount of retail space in a limited land parcel.  Ultimately, if done correctly, developers will get more out of the available land.

In order to create an effective mixed-use project, developers need to be flexible and pay attention to factors such as accessibility, parking and the long-term use of the space.  By doing so, they can contain the cost structure and maximize the leasing potential and ROI.

Developers need to have foresight to see 10 to 15 years in the future. While retail might seem like the way to go now due to the current neighborhood mix, it is a very cyclical sector.  When incorporating a residential mix, attention to even the minutest detail is crucial. It is easy to turn off a potential buyer if parking is a nuisance through the retail component, especially if errant shopping carts are a problem. There must be a distinction between the retail and the residential to have a harmonious project.

Lenders are more open to developments that have a healthy blend of offerings.  From a lender’s point of view, it’s best to spread the wealth — and the risk — around. Having a detailed objective for a mixed-use project is key to its eventual success. 

Though it sounds like putting the cart before the horse, a leasing plan strategy needs to be put in effect at the time of the initial design for it to become effective. For example, developers often want to attract and keep smaller tenants. To do so, it’s important to place them in high traffic areas where shoppers have to walk past them to get to the larger stores.  From a leasing perspective, this strategy makes the property much more attractive to smaller tenants. The flow of an urban center is crucial. If shoppers cannot easily navigate through the area, they might never return.  The same goes if the parking layout is problematic or hard to understand.

GreenbergFarrow’s Collective Design Intelligence system encompasses all aspects of a project by integrating the separate disciplines of architecture, site development, planning and engineering into a focused approach. Using the services of a team of experts, the system identifies and prioritizes the aspects of the project. 

In the Rego Park section of Queens, NY, GreenbergFarrow has worked with developer Vornado Realty Trust to design a mixed-use effort that integrates a residential tower with a retail base. The retail component will include some national big-box retailers.  While the project’s vertical stacking design is a necessity due to the lack of available land in the area, it is the mix of retail and residential that is a selling point for lenders as the combination to provide a steady income stream over the years.

In the Bronx, GreenbergFarrow worked with Kingsbridge Associates LLC on River Plaza, a 235,000-square-foot retail center anchored by a Target. Because of the lots irregular shape, the firm devised a plan for rooftop parking and partially submerged building.  The planning process required a unique skill set as well as the flexibility to imagine what could be accomplished.   Now the Target is among the most successful earners in the city for the national retailer.

In light of heightened awareness of urban sprawl, as well as anti-growth regulations, retail architects and developers are becoming more and more imaginative in order to achieve high urban retail density.  Recognizing the need for new design formulas, traditional development schematics have been tossed out, paving the way for firms like GreenbergFarrow to create innovative and unique ways of maximizing retail density in mixed-use developments.

Navid Maqami, AIA, is a LEED principal and director of Architecture at GreenbergFarrow

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