January 31, 2017
By Dennis Kaiser
Cushman & Wakefield’s James Chung, who leads the brokerage firm’s West Region Retail group, is speaking at Connect Silicon Valley coming up on Feb 1. We asked Chung to share the big trends driving mixed-use retail in the region. His insights reveal how demographic shifts, geographic path of growth trends, consumer preferences, capital, and transportation options are playing out in the projects moving forward today. As a bonus, since C&W is handling the retail leasing assignment for the new Golden State Warriors new basketball arena site, we got an inside scoop on what’s planned.
Q: What are the overall trends that you see shaping and driving mixed-use retail properties in 2017?
A: More and more mixed-use continues to hit the development landscape, with rising land values and job growth in high barrier to entry markets. Developers are often focused on creating amenity-based merchandising mixes, but often can’t achieve vision as retailers look far beyond the captive audience living on-site at a property
Projects are often selling transportation and/or proximity to public transportation. Employees looking for shorter commute times. Large corporations often master leasing whole buildings. Most successful mixed use is typically where there is more critical mass, GLA, and good access from major arterials (full ingress/egress and signalized intersections)
Q: What are the types of features consumers prefer today,and how is that playing out in mixed-use properties? Any specific examples of properties that reflect those preferences?
A: Customers have still not mentally shifted away from prototypical store-front parking environments, outside of what is considered true urban or downtown metro suburban markets like San Francisco. While more prevalent now more than ever, high density residential developers are now more mindful of retailers’ needs from building depths, parking ratios, outdoor seating requirements, venting/power needs, to grease requirements.
Moreover, structurally they are now creating more retail-centric spaces with higher ceilings, exposed ducting, and less structural hurdles (i.e. K braces in the middle of spaces). Larger communities with horizontal mixed-use is becoming more prevalent, with good reception from retail community (grocery anchored most desirable)
Q: What are some of the cool retail plans at Chase Center, the new Golden State Warriors facility that recently broke ground?
A: Cushman & Wakefield’s Kazuko Morgan, Kelly Vinson, and Rhonda Diaz Caldeway are handling the assignment for 100,000 square feet of retail space at the 18,000-seat arena that’s slated to host 200 events per year. It features 3.2 acres of plaza and public spaces, including a 35,000-square-foot plaza surrounded by retail and dining options. The overall 11-acre sports and entertainment district will be anchored by two towers with 580,000 square feet of office and lab space that is expected to deliver in 2019.
For comments, questions or concerns, please contact Dennis Kaiser