Alba Project Management’s Post

We've been part of mall improvements over the last decade. This part of the project was an exercise to help fill in the gap left by Macy's departure. From a Landscape Architecture perspective, it was an exercise of matching the design aesthetic of previous improvements. This is where the timeless design of earlier expansion is appreciated most (eg: Plaza designs, paving patterns, furnishings, etc). Good design allows for a seamless and consistent feel between stages. It helps that the same team worked on this for over a decade (including the township review staff). Read more in the article linked below. #landscapearchitecture #civilengineering #planning #landdevelopment

An approved three-tower mixed-use development in downtown Victoria’s north end could see a significant portion of its 41,000 square feet of planned office space switched over to rental apartments, Citified has learned, reported Citified.ca   "Chard Development Ltd. is seeking a post-approval variance for its Douglas Street and Caledonia Avenue project (at the former location of a White Spot restaurant and the City Centre Hotel) to do away with three floors of offices in the podium of a 21-storey condominium tower, and instead replace it with four floors of residential use to provision 64 rental homes, while creating nearly 10,000 square feet of co-working space in an adjacent purpose-built rental tower."   "The office-to-residential change is proposed for Tower B, a 21-storey condominium fronting Caledonia Avenue that as part of the variance would increase to 22 storeys, while converting approximately 39,000 square feet of office floorplate into 75 rentals. In turn, Tower C, a 20-storey rental apartment with a mixed-use podium on Douglas Street at Discovery Street, will see the addition of co-working spaces to its fourth floor and ground level (totalling some 10,000 square feet), in lieu of rental suites on the fourth floor, while an additional floor of homes will be added, pushing the height to 21 storeys. Tower A, a BC Housing-backed affordable rental block, will remain unchanged aside from a 1 meter upwards height adjustment for structural considerations." https://lnkd.in/dPCacYm3 #victoria #mixeduse #development #residential

Sounds like a good plan if they offer affordable rent.

One big thing that seems absent from these stories is how the value of the real estate is highly dependent on its future primary use. In one scenario, Macy's remains the tenant over the long-term in the vast majority of the properties with relatively small investment to sustain the retail business and can support market rents. With small operating margins and the business headed south, to say this is a stretch is an understatement. Another scenario is the assumption that a significant percentage of the space could readily be reclaimed for alternate retail use with minimal investment. That seems next to impossible. Another scenario has a good chunk of the space repurposed to alternate uses (office space--who wants it? residential--sure, but hugely expensive to convert. Alternate retail: maybe, but also very expensive). All of this to say my sense of the value of the real estate is very much on the low end.

The evolving commercial landscape presents challenges and opportunities for the retail sector. Reduced foot traffic and changing office dynamics have impacted retail, leading to a decline in tenant move-ins within office buildings. However, amidst these challenges, there is a growing trend of office landlords investing in partnerships with local retailers. This new Colliers report explores this concept more, it can be accessed here: https://bit.ly/3PbkHIC. 

Downtown Manhattan is leading the charge in retail leasing activity, comprising a staggering 38.4% of all first-quarter transactions in 2024. Within Downtown Manhattan, the momentum is particularly strong in the iconic neighborhood of Soho, that continues to shine, accounting for 30.3% of completed retail deals, while the Financial District follows closely behind, capturing 24.2% of leasing transactions. This surge in leasing activity underscores the resilience and vibrancy of Downtown Manhattan's retail landscape. From trendy boutiques in Soho to bustling storefronts in the Financial District, opportunities abound for retailers looking to make their mark in this dynamic urban hub. #DowntownManhattan #RetailRevival #Soho #FinancialDistrict #CommercialRealEstate

CBRE presents eight ground-floor retail units at the heart of Singapore’s CBD, as recently featured by EdgeProp Singapore. These units at PLUS, 20 Cecil Street, offer unparalleled street visibility and a steady flow of foot traffic, thanks to their strategic location at a busy Raffles Place junction. Clemence Lee shares that despite recent cooling measures, commercial properties have renewed interest. With estimated gross yields of 3% to 3.5%, these units are more than an investment; they’re a statement of confidence in the market’s potential for wealth preservation. The trend is clear: prime freehold and 999-year shophouses in the CBD are fetching impressive figures, reflecting the market’s depth and investor confidence. Interested? Connect with us now or check out the feature here: https://cbre.co/3V5Aps9 #realestate #propertyinvestment

Brookfield Property Partners spent billions in 2018 to assume full ownership of mall-owner GGP when malls were out of favor on Wall Street. Executives at the firm defended this contrarian bet in part by saying that they would turn most of the company’s 125 malls into minicities with residences, offices or hotels as well as stores. Six years later, only two malls, in Atlanta and near Seattle, have been redeveloped in this way, with another two—in North Carolina and Denver—in the pipeline. The slow pace of its redevelopment efforts shows how difficult, expensive and time consuming it is to revamp enclosed malls. https://lnkd.in/gfdqqC5d #ccim #ccimwa #malls #retail #minicities #office #hotel #Seattle

Retail real estate is changing. Office is next