Earlier this year, Salt Lake City enacted new policy called the Downtown Heights and Street Activation Ordinance. As the name suggests, the ordinance addresses building heights, allows for taller buildings in the city, and works to improve ground floor animation. This is among other things.
If you'd like to read through the ordinance (because why not),
Earlier this year, Salt Lake City enacted new policy called the Downtown Heights and Street Activation Ordinance. As the name suggests, the ordinance addresses building heights, allows for taller buildings in the city, and works to improve ground floor animation. This is among other things.
If you'd like to read through the ordinance (because why not),
We all recognize that blank walls (at street level) are suboptimal for urban vibrancy. But the thing about retail is that it doesn't work everywhere. Even if we really want it everywhere, that may not be possible, at least in the short-term. Retail is usually a lagging indicator. The demand typically needs to be already in place for it to do well.
That said, in really central areas, the correct decision could be to just mandate it everywhere. And that is what SLC has done in its central business district:
However, things get trickier in transitional or emerging areas where you're kind of just hoping that retail might someday work. From a development perspective, if we weren't convinced that the retail would work and if we were being forced to build it, we would underwrite it very conservatively. This might mean applying zero (or even negative) value to it. This way if we can't lease the space and it remains empty, at least it isn't fatal. But it does mean that the rest of the project needs to carry this loss.
Of course, now you still have a ground floor animation problem. You have empty storefronts. Though one argument might be that at least you've provisioned for a future where retail does eventually work. And if this does happen, then somebody was clairvoyant and you're happy that you built it. But if the area doesn't ever support good retail, well then you're stuck with an underperforming ground floor.
One alternative solution that can work on non-obvious retail streets is live/work. This way you build in some flexibility for the spaces to move toward retail (or other non-residential uses) if/when it becomes viable. But it's not a perfect solution. It's hard to make live/work suites entirely interchangeable. The ideal design parameters for retail are usually different than that of a home. Still, it can work reasonably well and provide needed flexibility.
It’s all very tricky. But at the end of the day, I think we can all agree that the objective is to limit blank and non-active faces on our principal urban streets. How we do that is the question. And sometimes it's more art than science.
https://twitter.com/donnelly_b/status/1435641373487685639?s=20
Since the summer, I have been using the lunch line at Jimmy the Greek (in First Canadian Place) as a crude measure for the reopening of the CBD in downtown Toronto. It is partially a joke. Those of you who know me will know I am a fan of Jimmy the Greek (and large filling lunches in general). But at the same time, it is a probably a fairly decent (but again crude) proxy for the utilization rate of the offices that sit above and around Jimmy. Pre-COVID the lunch lines were always long and there was usually nowhere to sit. In the spring of this year, I was often the only person there, single-handedly keeping Jimmy alive. But things picked up throughout the summer months and there was a significant spike this week, following Labor Day (see above tweet). This was the spike that many/most of us were predicting and it showed through in the Jimmy the Greek Reopening Index.
This is an interesting chart from the New York Times showing the breakdown of (real estate) uses across the largest downtowns/CBDs in the US. It was put together using satellite data and data from CoStar, including their boundary definitions for each downtown/CBD. The point of the chart is to show that some US downtowns are heavily dominated by office square footage. But if you look a bit closer, there are other interesting takeaways. Look at retail in Honolulu, hotels in Austin, and how much residential many US cities have in their CBDs.
We all recognize that blank walls (at street level) are suboptimal for urban vibrancy. But the thing about retail is that it doesn't work everywhere. Even if we really want it everywhere, that may not be possible, at least in the short-term. Retail is usually a lagging indicator. The demand typically needs to be already in place for it to do well.
That said, in really central areas, the correct decision could be to just mandate it everywhere. And that is what SLC has done in its central business district:
However, things get trickier in transitional or emerging areas where you're kind of just hoping that retail might someday work. From a development perspective, if we weren't convinced that the retail would work and if we were being forced to build it, we would underwrite it very conservatively. This might mean applying zero (or even negative) value to it. This way if we can't lease the space and it remains empty, at least it isn't fatal. But it does mean that the rest of the project needs to carry this loss.
Of course, now you still have a ground floor animation problem. You have empty storefronts. Though one argument might be that at least you've provisioned for a future where retail does eventually work. And if this does happen, then somebody was clairvoyant and you're happy that you built it. But if the area doesn't ever support good retail, well then you're stuck with an underperforming ground floor.
One alternative solution that can work on non-obvious retail streets is live/work. This way you build in some flexibility for the spaces to move toward retail (or other non-residential uses) if/when it becomes viable. But it's not a perfect solution. It's hard to make live/work suites entirely interchangeable. The ideal design parameters for retail are usually different than that of a home. Still, it can work reasonably well and provide needed flexibility.
It’s all very tricky. But at the end of the day, I think we can all agree that the objective is to limit blank and non-active faces on our principal urban streets. How we do that is the question. And sometimes it's more art than science.
https://twitter.com/donnelly_b/status/1435641373487685639?s=20
Since the summer, I have been using the lunch line at Jimmy the Greek (in First Canadian Place) as a crude measure for the reopening of the CBD in downtown Toronto. It is partially a joke. Those of you who know me will know I am a fan of Jimmy the Greek (and large filling lunches in general). But at the same time, it is a probably a fairly decent (but again crude) proxy for the utilization rate of the offices that sit above and around Jimmy. Pre-COVID the lunch lines were always long and there was usually nowhere to sit. In the spring of this year, I was often the only person there, single-handedly keeping Jimmy alive. But things picked up throughout the summer months and there was a significant spike this week, following Labor Day (see above tweet). This was the spike that many/most of us were predicting and it showed through in the Jimmy the Greek Reopening Index.
This is an interesting chart from the New York Times showing the breakdown of (real estate) uses across the largest downtowns/CBDs in the US. It was put together using satellite data and data from CoStar, including their boundary definitions for each downtown/CBD. The point of the chart is to show that some US downtowns are heavily dominated by office square footage. But if you look a bit closer, there are other interesting takeaways. Look at retail in Honolulu, hotels in Austin, and how much residential many US cities have in their CBDs.
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