IRVINE, CA—Residential, creative-office, museum, civic and healthcare uses are just a few of the innovative ideas for creating a dynamic 24-7 mixed-use environment out of empty big-box space, Simon Perkowitz, a principal with KTGY Architecture + Planning, tells GlobeSt.com. Perkowitz recently participated as a roundtable facilitator at the International Council of Shopping Centers' CenterBuild Conference in Scottsdale, AZ, presenting “What Should I Do With My Vacant Big Box?” We spoke with him about this concern and the best uses for vacant big-box space.

GlobeSt.com: How big of a problem are vacant big boxes for retail owners?

Perkowitz: The problem of vacant big boxes is wide-spread and big-box retailers are continuing to announce additional store closures for 2018. However, these empty big box stores represent a big opportunity for owners to reimagine their property in ways that they may not have in the past. For each company closing stores, 2.7 companies are opening stores, according to a report published by IHL Group.

GlobeSt.com: What are the best uses for this space?

Perkowitz: What to do with an empty big box, especially a multi-story one, is a very complex decision. It is not a one size fits all type of answer. Each property is different, and every community has its own needs and wants. Many owners are transforming vacant big boxes into mixed-use destinations with multiple restaurant pads, smaller shop spaces and public plazas.

For example, in Provo, UT, a vacant 134,000-square-foot anchor retailer space inspired the repositioning of a 20-year-old enclosed shopping center. The big box is deconstructed and opened, creating a courtyard for the newly-designed creative-office spaces. New entrance-facing restaurant uses are also established. These restaurants open onto a new landscaped plaza, creating a connection to the center's main entrance rotunda that is redesigned to maximize the views from the entry and second-level food court to the mountains and sky. Another enclosed regional center that is losing one of its anchors is being reimagined by KTGY to transform that anchor space to include several separate pad and shop buildings, an entertainment retailer and a freestanding grocery store, while still maintaining a strong connection to the existing shopping center.

With the shortage of housing in many major metros, we're is adding multifamily residential to several existing shopping centers and designing the circulation for pedestrian comfort, creating walkable mixed-use districts. This work includes incorporating age-qualified luxury apartments for active adults (55-plus) and assisted-living and memory-care facilities with safe, convenient connectivity to the adjacent grocery-anchored shopping center. From Millennials to older adults, people of all ages like convenient access to shopping and services that are present at retail centers.

Adding residential and creative-office spaces can create a dynamic 24-7 mixed-use environment. The restaurants activate the sidewalks and build foot-traffic. The housing addresses housing shortage needs and galvanizes a morning-to-evening environment. Other possible uses include transforming a big box into a museum, civic or healthcare use, a church or school, or a fitness center along with other stores or shops. The benefit of incorporating a non-retail use such as education, office or medical use is that people will come to the center for daily needs and will be more likely to shop while they are there.

GlobeSt.com: How can retail owners make the necessary tenant improvements for this type of space in the most efficient way?

Perkowitz: You need to start with good due diligence to fully understand the existing conditions of the building, its structural limitations and permitting requirements. Assemble a team of experts including your architect, structural engineer, general contractor, MEP team and civil engineer in the analysis to avoid expensive surprises. Create a clear vision and make sure that everyone is working together to achieve that vision.

GlobeSt.com: What else would you like to add?

Perkowitz: The key is to integrate seamlessly the new component with the existing retail center. In some projects, KTGY has added a main street with sidewalks through a portion of the project to help create a more urban environment and encourage better pedestrian flow. Pedestrian walkways not only help link the existing shopping center with the new buildings but also enhances the pedestrian experience. Adding street furniture, plazas, artwork, fountains and other design elements that encourage people to linger creates a sense of place that makes retail work and attracts residents. It may seem like valuable real estate to devote to plazas and art, but open space and connecting with the outdoors are important to today's shoppers and residents. This dynamic environment also lends itself to incorporating specialty retailers, local chef-driven eateries and other non-traditional types of uses and will boost the center's function as a lifestyle destination and live-work-play environment.

Instant Insights /

Innovative Uses for Vacant Big Boxes

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