Colorado’s Front Range, known for its stunning mountain views, vibrant culture, and growing economy, has become a hotspot for real estate development over the last number of years, particularly in mixed-use development with restaurant and retail space on the ground floor.
Blue West Capital’s landlord leasing and advisory team has been working with clients in this space for well over a decade, curating the right tenant mix and successfully executing project objectives. While we’ve experienced challenges, we’ve become experts in both the art of placemaking and the science of space optimization.
This blend is crucial to getting the retail component just right so that it becomes a significant benefit that maximizes the value on the floors above.
The Art of Placemaking
Whether you have 2,000 square feet of retail space or six city blocks of ground-floor retail to absorb into a master-planned development, placemaking is critical when crafting an effective marketing strategy that will attract sought-after concepts. Here are the key components.
Brand Messaging
- BIG, BOLD future renderings of the building and retail storefronts
- Panoramic, drone aerial videos
- Integration of pedestrian traffic engaging with the project
Merchandising Roadmap
- A Clear Objective–Entertainment district, heavy F&B concentration, essential everyday services and amenities, etc.
- A Targeted Approach—Tenants active in the market along with concepts that would be new and welcome entrances into the area or state. At Blue West Capital, we can tap into valuable relationships with both brokers and corporate contacts nationwide to advise on an approach based on who’s real and how we can transact successfully.
- Tenant Representation–In addition to the landlord leasing and advisory team, we also have a tenant representation team that works with several clients in key retail categories both locally and nationally, including fitness, health and wellness, food and beverage, entertainment, pet care, and medical.
- Optimal Utilization
- Is there open space for customers or residents to meet up or socialize?
- Is there ample parking for car traffic? Is it easily accessible?
- In the immediate area or designated space nearby, are there events planned such as live music, festivals, or farmers' markets?
These factors and more need to be considered as new developments enter the pre-construction phase. If you can execute a sound retail placemaking strategy, you will reap the rewards in other areas of your project.
Again, getting the retail component right maximizes the value on the floors above. Employers and residents want an optimal mix of shops, eateries, and services that encourage social interaction and foster a sense of community. If everything they need is conveniently within reach, retention increases, vacancies decrease, and rental numbers improve across the board.
The Science of Space Optimization
Getting the prospective tenants interested is half the battle. Working through the logistics of the actual space and delivery conditions is the other half. While there are developers with experience in ground-floor retail, it can be a project first for other groups, often those from out of state.
As a result, more and more of our clients are engaging us in the design stage of the construction process instead of waiting until the project is nearing completion. This enables us to ask critical questions that save our clients money and time.
- Are the depths viable?
- Do we need to work on column spacing?
- We only have 400 square feet of patio for the restaurant endcap. Should we recess the exterior storefront to gain more space?
- How much electrical and HVAC is needed for specific tenants?
- Do we need shafts only on the endcaps for grease ducting?
- Is a scrubber viable?
While building first-generation retail space in the mixed-use arena is costly, these questions lead to informed decisions that streamline everything from getting permits to opening for business. Engaging tenants is also quicker and negotiations easier because delivery conditions are aligned with what they’re expecting in the market which in turn, helps to rein in TI allowances.
In addition, we help clients understand the appropriate amount of overall retail space needed, given the trade area and other macro factors. Cherry Creek? Get as much square footage as you can. Suburban market with limited visibility and off a major thoroughfare? Keep it to a minimum.
There have even been cases where municipalities want significantly more retail to be delivered, and we’ve helped clients negotiate less square footage based on what the market can bear. We know that nobody wants to see vacant storefronts or have rapid turnover.
Driving through the Denver MSA, I love counting the cranes that are in the air. I’m excited for the future of Denver and the Front Range as we continue to grow, modernize, and create new urban spaces with amazing placemaking and exceptional retail concepts. If you have any questions or would like to learn more about our leasing and advisory services in the mixed-use retail space, feel free to reach out, or visit our website to contact one of our team members. Cheers!
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As featured in Colorado Real Estate Journal.
David Dobek
Director
David@BlueWestCapital.com
720.764.3371
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