Question of the Month: How do you increase the value of your asset? Become a risk taker when it comes to rethinking your property - by Shawn Bland

For most developers, increasing the value of their assets may include a paint job, some new signage, etc..., but is that really going to increase your ROI and the value of your property?

Developers hold or purchase tired or dead shopping centers because they see the potential of what the property could be. Phase Zero Design takes that same vision and challenges our clients to be risk takers. What if you reduced square footage? What if you don’t put new tenants back into the existing space or change the use? Our approach is a bit unorthodox, because we can analyze the property differently. We’ve been in the game for a long time, giving us the expertise to understand retailer’s needs and combine them with the developer’s goals.

We can increase the value of your asset by challenging the conventional approach to design. We practice design-thinking where we task everyone at our firm to design with vision, purpose and risk. We push our clients to think outside the “four walls and roof” that is retail. We want to understand the goals of the client and the property and then we design to fit that.

One great example is Norwichtown Mall. The original mall owner struggled to reinvent the enclosed mall to attract customers and tenants. Winstanley Enterprise was bold enough to purchase the property with a completely different leasing vision and perspective. We worked closely with development team to take a dead, enclosed mall and transform it into a vibrant and thriving grocery-anchored center by reducing the square footage from 240,000 s/f to 160,000 s/f.  The results drew in higher valued tenants, which dramatically increased the ROI. Developers should not be afraid to give up square footage to create a more productive use of space.

Of course, for most urban areas, the good sites are few and far between.  From a design perspective, these types of projects offer unique opportunities to be creative, integrate different types of technologies and create experiences unlike other developments. 

Quarry Walk located in Oxford, Conn. is a 32-acre active quarry and is currently under construction being transformed from an industrial site to a true lifestyle center.  The quarry was coming to the end of its life and being located in Connecticut’s fastest growing town, there was an opportunity to take advantage of the region’s demographics and centralized location.   

Kudos to Haynes Development for being risk takers. Tom Haynes had a vision to develop housing, retail, grocery and a main street into a sustainable site.  The goal was to create a cohesive design and incorporate the quarries essence throughout the project while not losing the sense of the site’s history

Some advice for developers who are looking to increase the value of their assets, you are a developer for a reason, which most likely means you are a risk taker already, so be a risk-taker when it comes to rethinking your property. Don’t be afraid to explore unconventional things that were once unheard of in the industry. Retail is evolving.  We know the trends and we can work with those clients looking to increase the value of their asset and produce creative, innovative destinations.

Shawn Bland is associate principal for Phase Zero Design, Hingham, Mass.