Retail Is Key To Future Of Lower Manhattan - 11/18/2004 - Multifamily Landlord Tenant Commercial Buildings

Retail Is Key To Future Of Lower Manhattan
by Al Heavens

Since the tragic events of Sept. 11, 2001, Lower Manhattan has been slowly but surely getting back into step with the rest of the city, especially Brooklyn and other parts of Manhattan, where just about every building, no matter how dilapidated, seems to be headed for some new and better use.

A group of experts believes that Lower Manhattan can become one of the great retail market places of the world "given its scale, accessibility, and the incredible market that exists in the area."

The experts were invited to come up with recommendations by the Urban Land Institute, a nonprofit education and research institute in Washington, D.C., that is supported by its members. The group concluded that the revitalization of retail in Lower Manhattan, which suffered massive dislocation because of the events of Sept. 11, hinges in large part on the integration of stores and restaurants that meet the needs of a diverse market consisting of residents, workers, commuters and visitors.

The report was based on the premise that the memorial to those who died in the terrorist attack will be the focal point of the site, and that all retail on the commercial portions of the site would be developed with respect for the memorial as the highest priority.

However, given the tremendous existing demand for retail in Lower Manhattan, retail development could help restore a sense of community to the entire area, according to Smedes York, president of York Properties Inc., in Raleigh, N.C., who was chairman of the group of experts.

The retail components of the redevelopment plan need a developer to guide retail development to maximize its potential, and to draw an interesting, diverse mix of retailers that appeal to the different market segments, including workers, transit riders, residents and tourists, York said.

"Retailing can be part of the linkage of the site with surrounding areas," said another expert, Michael Beyard, ULI senior resident fellow for retail and urban entertainment. "Once those linkages are established, retail can become an important driver for other downtown elements."

Think of retail as reflective of the neighborhoods that border it, and how the character of those neighborhoods can spread to the site, Beyard said.

Said Vittorio Radice of London, another expert: "This should be the market of America, not the shopping mall of America. Consumers are looking for adventure. They don't need more clothes, but they do need new experiences."

Transit commuters will drive the retail market in its early phases. For residents, retail such as a full-service grocery and a department store will help create a sense of community.

Office workers also have a stake in the retail suited to their desires and needs, while tourists would be seeking unique, "only-in-New York" retail that commemorates their visit to the area.

Fulfilling the needs of each distinct market requires that more emphasis be placed on "getting the right retailers than on the square footage," said Jennifer Stanton, a retail-leasing consultant from Matthews, N.C. "You want retailers that communicate both reverence and vitality."

Key recommendations made by the team included:

 

• Establishing unified retail development and control.

   

• Developing and implementing the full, permanent retail program for the World Trade Center site immediately.

   

• Maximizing retail development at the site's grade level.

   

• Developing 600,000 to one million square feet of retail on the site to achieve the appropriate critical mass.

   

• Creating precincts of shopping to accommodate the needs of workers, residents, commuters and tourists.

   

• Developing Cortlandt Street as an enclosed pedestrian passage open to the east and west.

   

• Allowing Fulton Street, which is adjacent to Cortlandt Street, to evolve with new retail space as the WTC retail comes on line.

   

• Depressing West Street to allow connections to the World Financial Center and Battery Park City.

   

• Providing financing options, including incentives and public-private partnerships.

It is critical for the site's developers to consider themselves as "change agents for the way people think about buildings," said Jerry Speyer, president of Tishman Speyer Properties in New York City. "The end result is what the users will think. They will determine the success of the site.