Chapter 18 Commercial and Industrial Development
Types of Commercial Property Shopping/Retail Centers Office Buildings Hotels/Motels (Hospitality) Restaurants
Types of Industrial Property Factories Warehouses Distribution Centers
Shopping Center Types Neighborhood shopping center Community shopping center Regional shopping center Superregional shopping center Other shopping centers Super Store Factory Outlet Center
Figure 18.1
Table 18.1
Evolution of the Shopping Center Old downtown/Main Street Suburban growth & the automobile
Shopping Center Development Market and Feasibility Analysis Primary and secondary trade areas Market size Competitive survey Site Location Tenant Selection
Cinderella City Mall/ Englewood City Center
1968 – 1.35M SF closed
Cinderella City Mall/ Englewood City Center
Today’s Shopping Center Development ULI suggestions for project success: Unified architecture / theme Many entrances/exits Sufficient on-site parking Quality site improvements
ULI: “Dollars & Cents of Shopping Centers” (1995)
Office Buildings Location Central business districts Secondary office nodes Office parks Corporate Campuses Cheap land Cheap parking Employee quality of life Office Condos
Owners own piece of a building (their space) - Mortgage on their space - Condo (maintenance) fees - Real estate taxes Benefits: - Value appreciation - Tax advantages interest & depreciation deduction - Fixed office space costs Except for increases in maintenance/taxes - Often cheaper than leasing Risks - Rising interest rates could reduce/eliminate appreciation gains - Need for more space - Long term commitment
Industrial and Distribution Facilities manufacturing warehousing distribution analysis technique determine existing and potential supply forecast demand estimate absorption rate compare competitiveness with other projects
Lodging Facilities Customers: Business Pleasure Conventions commercial hotels highway or airport hotels and motels resort hotels
End Chapter 18