Western Real Estate Business

MAY 2015

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/507474

Contents of this Issue


Page 57 of 64

www.REBusinessOnline.com Western Real Estate Business • May 2015 • 57 The above exercise certainly still con- tinues, especially in tertiary markets, albeit with a little more fnesse, sophis- tication and experience gained over the past fve years. For example, if remov- ing square footage along the front of the building to reduce depth and accom- modate retailers is a consideration, the frst thing to examine is how you can make up a percentage of the lost GLA by creating value-add pad opportuni- ties along the front of the site. With the increased parking ratio, due to lower overall GLA, these pads can absorb din- ing uses, further increasing their value. One very positive trend to emerge is the willingness of many anchor ten- ants to depart from their standard pro- totypes and absorb non-conventional footprints. This newfound fexibility on the part of retailers is most likely pro- pelled by the single-digit vacancies we fnd in desirable locations, thus increas- ing demand for these premium spots. Whatever the impetus, the result for the developer and architect is a much more efcient, fully utilized building. An ex- ample of this is the former 100,000-sqa- ure-foot Kmart in San Clemente, Calif., that is being repositioned into a Sprout's Farmers Market, Stein Mart and Sport Authority. It is not the lineup of uses that is a discernable shift, but the fact that all three of these tenants inhabited the entire depth of this former Kmart, resulting in three individual spaces of about 120 linear feet of store front and a depth of 260 linear feet. This is an ob- vious and aggressive departure from standard anchor tenant footprint ratios. Although these three tenants deviated from their typical prototypes to estab- lish a presence in a desirable location, Nadel provided each tenant an articu- lated and highly varied identity along the façade — a result that was embraced by all parties. The transformation of a single-use box into a multi-tenanted retail, dining and entertainment experience is a truly unique solution and essential element of the big box conversion evolution. This strategy provides both open-air and enclosed common spaces that can serve a variety of uses. A larger vacant box of, say, 100,000 square feet can ofer weekday, evening and weekend uses, thereby creating a destination. This is the strategy Nadel is conceptualizing for a former Home Base store in Ba- kersfeld, Calif. Located in an industrial zone on the cusp of becoming a locale for trendy pubs, clubs and eateries, this former big box will become an edgy collection of brands, sporting a micro- brewery, steakhouse, indoor airsports entertainment venue, and a collection of boutique retail and other culinary of- ferings. The exterior of the box will be transformed into multiple storefronts, creating a pedestrian scale. The vari- ous uses, meanwhile, will be seamlessly connected through a generous internal common area that links the various ex- THE CONTINUING EVOLUTION OF BIG BOX CONVERSIONS BIG BOX from page 1 The former Home Base box. terior, opposed facades of the building. This creates dynamic indoor and out- door space. It also provides an interior sky-lit space for kiosks and other incu- bator tenants. This big box conversion trend is likely to catch on in both urban infll and suburban markets as it ofers the opportunity to create a custom, lo- cally tailored and branded destination serving an unexploited demographic of a given market. While the jigsaw puzzle approach to big box repositioning is certainly still alive, we have seen this sector continue to evolve over the past year. This pro- gressive planning and design is supported by the forward-thinking vision of the development world in collaboration with the retailers' desire to explore this non-traditional format and their willingness to loosen their restrictive proto- types into a more fexible footprint. Greg Lyon, Principal and Retail Design Director, Nadel Architects NEXT UP Tesla Motor Sports showroom and service center (opening in 2015) Springhill Suites (opening in 2015) & Hilton Garden Inn (opening in 2016) IKEA Burbank is set to expand into its largest U.S. store (opening in 2016) Talaria at Burbank mixed-use residential with Whole Foods Market (2017) FOR ADDITIONAL INFORMATION, PLEASE CONTACT: M ARY HAMZOIAN, ECONOMIC DEVELOPMENT MANAGER PHONE 818-238-5180 ECONDEV@BURBANKCA.GOV WEBSITE ECONDEV.BURBANKCA.GOV RECENT LEASING ACTIVITY DOWNTOWN BURBANK - Gaucho Grill, Tender Greens, Gyu-Kaku, European Wax Center, Color Me Mine, Wood Ranch BBQ & Grill MAGNOLIA PARK - Luna Vine Wine Bar, Pizza Studio, Previously On, Northend Pizzeria of Magnolia, Pizza Alchemy THE MEDIA DISTRICT - Dog Haus, King's Deli, Simple Things Sandwich and Pie Shop, Simmzy's Pub Burbank's per capita sales tax is 50% higher than Los Angeles County Burbank destination " Over the last 10 years, Downtown Burbank has become one of the most sought-after retail destinations in Southern California, and one of the fastest growing districts in the San Fernando Valley." -Christine Deschaine, Senior Vice President, Kennedy Wilson Brokerage Group 5 10 10 210 710 101 60 2 DOWNTOWN LOS ANGELES PASADENA HOLLY WOOD BEVERLY HILLS 134 BURBANK Gaucho Grill, Downtown Burbank

Articles in this issue

Links on this page

Archives of this issue

view archives of Western Real Estate Business - MAY 2015