The Project Renovation Paradox

When times are good, property owners don't want to impact revenues by embarking on a renovation project; causing site disruptions which impact tenants, visitors and shoppers. Paradoxically, today, poorly performing properties in need of a facelift lack the necessary revenue to do anything about it.

Alas, a Catch-22: If your property is making money, you don't feel the need to renovate. But when sales and rents are down and you feel the need, you don't have the money to renovate.
So, when is a good time to renovate?

John F. Kennedy once said, "The time to fix the roof is when the sun is shining." In terms of the economic climate, these are cloudy times at best (even stormy, in many locations). So, what can a property owner do today who is strapped for cash?

Find some money. Invest in capital expenditures and make decisions with an eye on ROI.

The most obvious advantage of renovating in this environment is cost savings. Now is the first time in the 30 years that construction costs have actually come down. Historically, they have gone up steadily, if not sharply. Today, in many parts of the world, costs are down by over 10% from just six months ago. According to statistics compiled by Rider Levett Buchnall (http://www.americas.rlb.com/documents/cost/reports/2009_q2_qcr.pdf), construction costs in cities like Denver and Seattle declined by as much as 8% in the first quarter of 2009 alone.

A second advantage: When business is slow and there are vacanies, there is less disruption to guests and less impact on cash flow from operations. On top of that, construction can proceed more quickly, and property owners and managers can get the word out that their property is newly renovated and open for business.

Properties that have been newly renovated will be in the best position to restore and/or raise rents and increase occupancies. Properties that defer needed maintenance and refurbishment and wait until times are better will miss being able to take full advantage of the inevitable upturn. When thinking about where to shop or go see a movie families most often go to the ones that are either new or newly renovated. Research data from a recent study conducted by STR shows that, over a five-year period, revenues for renovated properties increase at three-and-a-half times the rate of un-renovated properties.

Bottom line: Hard times are good times to prepare for better times.

Images courtesy of: Global Graphica, Mission Viejo Life

Some Text Courtesy of: WATG

The Phenomenon of Dying Malls

American malls have been around for less than a century, but their influence on our culture has been amazing. However, even in prosperous times, distressed malls have been a persistent problem, as well as a point of intrigue in the suburban landscape. The current economic slump has magnified the problems that ailing malls have been battling for years, or even decades.

The rapid development of North American suburbs resulted in a rush to build malls. Most developers assumed that if their mall was newer and larger than the competition then they would make money, and for the most part they did. But what many developers failed to consider or neglected to care about was what happens to their project when the next mall is built. The blight that is left behind when one fails is a weight on the community. Lost tax revenue and jobs, increased vandalism and crime and lower property values are just a few of the problems a dead mall creates.

While dying malls are not a new phenomenon, their sustainability is something developers should consider. The dominance of the fashion, food-court and family-focused mall is ending. The good news is that no new enclosed malls have opened in the U.S. since 2006.

Vacant malls, strip center shopping centers and big box stores have already been redeveloped into more sustainable, less auto-dependent places more in sync with today’s demographics. Depending on the specifics of each site, we can expect to see future failed malls re-inhabited, re-greened, or retrofitted. Essentially malls can be repositioned into what a community needs. When a mall dies, many options are on the table. Redevelopment into a more sustainable mixed use center is often a good solution if the real estate is valuable. They have the advantages of an already existing infrastructure and usually are located on major transportation routes. They should be regarded as a potential asset, much as you would look at well-located unimproved land, or a deserted warehouse or office district in a city center.

This kind of recycling will be particularly useful in suburbs, as they develop more “urban’ amenities” — like interesting restaurants, live music and local festivals. By redoing the mall, this can be accomplished without urban “densification” and retain low-density environments of single-family homes preferred by the vast majority of Americans. Sometimes dead malls find new life as colleges, government buildings, branch libraries, spaces for nonprofit arts groups, places of worship, car dealerships and community centers that can host a variety of events. Most times, if the building is cheaply constructed, and neglected for years, the only viable option is demolition. In some of the more dense communities, this will provide an opportunity to repair the regional landscape by turning them back to open space

What should never be an option is to allow the building to sit neglected for years. Although it may be sad to see a place with so many memories bulldozed, there isn’t much future for an abandoned generic suburban shopping mall. The current crop of dying malls are by no means the end of the shopping mall. Retail and shopping are too integral a part of American life.

The biggest long-term challenge to malls isn’t economic. It’s environmental. Right now, consumers can’t afford all the stuff we used to buy. But in the long run, the planet can’t afford all the stuff we do buy. So finding a business model that’s economically viable and environmentally sensitive shold be a goal for all new (and repurposing) mall developers.

So going forward, developers and mall operators need to recognize that the shopping mall of the future can’t simply be a nucleus of stores surrounded by a sea of asphalt with a ring of highway around it. They need to hire talented suburban planners, architects, and landscape architects whom will encourage developing and/or transforming shopping centers into dynamic destinations that are woven into the fabric of the community. Developers should also strive to create malls that offer a place for people to socialize, not simply to buy. While no one likes to see businesses fail, dead malls provide great opportunities for communities to redevelop in healthy ways. Now is the time for them to remove the regulatory obstacles to retrofitting.

Here are some examples fo successful re-use.

Belmar in Lakewood, Colo.

Mizner Park in Boca Raton, Fla.

Bella Terra in Huntington Beach, Calif.

Photos courtesy of:

Chris Pixel

Xmelinda

ThePiratesDilemma.com

Trekearth.com

Huntingtonbeachevents.com

Epa.gov

Some text courtesy of:

DeadMall.com

How to create a culture of walking...

"Communities have a right to up-to-date, good quality, accessible information on where they can walk and the quality of the experience. People should be given opportunities to celebrate and enjoy walking as part of their everyday social, cultural and political life".

The trails in Mission Viejo are great for leisure and recreation, but not everyone lives like this 'Super Mom', out blazing the Oso Creek Trail for a little exercise. For the rest of us, we need to be coaxed into exercise to the point that we don't even know we are exercising. By creating enhanced walking experiences from desirable place to desirable place, can be that coaxing element.

Currently, when walking around Mission Viejo, we are offered the streets as our main connection element. The 5' wide curb adjacent sidewalk, next to a tiny and poorly maintained landscape setback, adjacent to a sea of asphalt at our underwhelming retail centers is not exactly a enhanced walking experience. Nor is it comfortable to traverse across the bridges in this city where you constantly feel like your going to be run over by a car.

So, what actions can be taken?
What we (the City staff and council, current property owners and incoming developers, and residents) need to do is:

• Actively encourage all members of the community to walk whenever and wherever they can as a part of their daily lives by developing regular creative, targeted information, in a way that responds to their personal needs and engages personal support.
  
• Create a positive image of walking by celebrating walking as part of cultural heritage and as a cultural event, for example, in architecture, art-exhibitions, theatres, literature readings, photography and street animation.


• Provide coherent and consistent information and signage systems to support exploration and discovery on foot including links to public transport.


• Financially reward people who walk more, through local businesses, workplaces and government incentives.


• Looking at future improvements by hitting the drawing boards with quality design consultants and with an open and flexible mind to providing creative solutions to real problems which exist in community today.
  

Now is not the time to sit on our heels and relic in the aging 'Masterplan' of the community and think that maintaining the quality of our community is by doing nothing. We are already seen our houses and retail centers deteriorate, many people have already invested in the long term of their properties by making sound improvements; most have not. If we want our community to continue to be the city where people come to shop and raise their families, we must invest in it.

It's not too late to re-think the 'Masterplan'!

'Super Mom' was featured in a past article in the OC Register. All other photos taken by author. Some content courtesy of Walk21.

Top 10 People Space Planning Trends

Want to know what makes a good people space? Here is what the pros are seeing as the most important elements to make a public space great. In trying to compare these the public spaces of Mission Viejo, they just don't compare; that's probably since the last people place developed was the Kaleidoscope Center which many would say is a complete flop.

PPS Top 10 Placemaking Trends
Project for Public Spaces (PPS), the leading resource for public placemaking, revealed their Top Ten Trends Shaping the Future of Our Communities, especially as it relates to public spaces.

1. Placemaking goes global. Everything else is, so why not? Spurred by the internet, creatives demand connections more than ever, no matter where they are, and as result cities around the world are experiencing a renewed enthusiasm for public spaces. The best part of the global movement is that the most pedestrian-oriented and pedestrian-only districts are setting the highest standards for others to follow.
2. Collaboration is key to change. The above also explains why crowdsourced placemaking is fast becoming the natural means of implementation.
3. Going green. For emerging creatives, being environmentally conscious is a foregone conclusion.
4. Placemaking is becoming more important to the travel industry. See civic tourism and how investing in vibrant downtowns to attract creatives, followed by the rest of the residents (as the trend goes), also builds a strong tourist economy.
5. Libraries emerge is new town squares. I can’t really buy into this one, especially since they don’t add much to a square’s nightlife, but there are precedents in the outlying neighborhoods such as the new library fronting the Rockville Town Square, one of the most elegant new public plazas in the U.S. Then again, maybe libraries could support nighttime activity…
6. Being active 12 months of the year. This applies mainly to cold weather cities which in the past have shut down for the winter, though ten years ago many city downtowns were pretty much shut down all year. The point is, cold weather cities have innovated amenities (ie skating rinks, heated lamps, temporary enclosures) that allow people to enjoy public spaces all year round.
7. ‘The Power of 10’. This is a PPS program, but applies to everyone, where a city commits itself to providing ten public destinations that provide something to do. At the top of the creatives’ list is a ‘piazza as stage‘ (such as for ‘movie staying’), where just about anything can happen.
8. Public markets. Another PPS specialty, it’s a great way to find a deal, socialize, get outside and find a reason for the city to establish a pedestrian-only district. See their October 2005 newsletter on public markets.
9. Transportation planning as placemaking. This is best exemplified by the New York City Department of Transportation, which PPS supported in their rise to possibly becoming the most innovative, even placemaking-oriented government agency in the U.S.
10. Collaboration on developing new destinations. It’s the tangible result that results when you combine many of the above factors and crowdsource an actual place. If this isn’t a trend, then most of the other factors aren’t as well. Fortunately, this is a growing trend.

Thanks to Braulio Agnese of Architect magazine for the reference.
Photo courtesy of Neil Takemoto.

Politics...

I have been trying to gather articles, blogs, etc. that help portray the perspective MYM.MV is coming from. This interview gives you a glimpse in the issue of how challenging it is for projects to meet the community's needs. Both the agencies and the developers get caught in the vicious circle of politics, which keep the the right type of people (the community and the professionals who focus on bringing the right type of projects to fruition) out of the equation...read on.

Exerted from an Interview with Laurie Olin, FASLA
01/30/2009 by asladirt

..."In order for the general public to better understand the deep relationship between sustainability and landscape architecture, Olin believes landscape architects need to become more political, more involved in planning decisions. “How can landscape architects get other people to understand that’s how we think? I think to do more work, show it, talk about it, and invite people to see it. A lot has happened in the last ten years. People now have a sense of it that they didn’t before. They know that we do that. We need to be at the table when people start planning. We need to be involved when people are doing site selection. We should be helping people say, “No, you shouldn’t build there. This would be a better site.” We have to get involved in a lot of the more troublesome planning decisions. We need to be involved in politics. Some of us have been political off and on, especially when we were young, but we got tired doing it. It’s wearing. Each generation needs its ten years in the barrel fighting the politics when they have so much energy and altruism. People don’t realize that landscape architecture is political. In a democracy it probably should be. We should debate about who suffers and gains, who gets what, what are the benefits, where are they, what’s the cost. Those are things you’d hope in a democracy people would debate publicly.”

Read the full article