chapter 18 commercial and industrial development

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

Cinderella City Mall/ Englewood City Center

1968 – 1.35M SF 1997 - 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

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