Sustainable Design Delivers Real Returns in Retail Construction

By Terry Dalton



Is it really less expensive to incorporate sustainable design into retail projects? Absolutely! Let's explore the value of sustainable design and the practices that will allow you to realize that value over time.

Retail and green building

During the past decade, the green building movement has become more influential in public, institutional and private construction design. However, retailers and retail developers are just starting to engage major sustainability initiatives. This is significant because the retail sector comprises the second largest commercial building sector, only slightly behind office buildings. And as such, it has a tremendous impact on the environment.

Green building practices can reduce the environmental impact of retail construction. But some developers are reluctant to fully embrace sustainable design because they fear that it will result in additional construction costs.

One must look at long-term benefits over the lifecycle of the project, from design to construction to ownership and operation to realize the true economic value of sustainable design. The fact is that good sustainable design reduces operating and maintenance costs, reduces water and energy consumption, enhances building marketability and increases productivity. Furthermore, sustainable design adds value to retail branding by communicating an environmental responsibility message.

Sustainable design practices that deliver great returns

How can you achieve the benefits of sustainable design in a retail project and receive the greatest returns? The following practices are just some of ways you can accomplish this:

Site - Select sites in urban areas with easy access to public transportation. Careful site selection will maximize land use efficiency, minimize traffic and related air quality issues, and reduce the negative impact of construction on undeveloped areas.

Water – Optimize water use with highly efficient plumbing fixtures and irrigation systems. In addition to being environmentally responsible, this design practice will save a bundle in operating costs.

Energy – Design so that mechanical systems will effectively meet all functional requirements at the minimum energy consumption level. This includes allowing for monitoring HVAC and refrigeration systems continually to ensure optimal calibration. The amount saved with this design practice is impressive.

Materials – Good sustainable design takes into account construction materials and the process for using those materials. Salvaged and recycled materials play an important role in green construction, as do regionally produced materials. In addition to reducing the environmental impact of the project, this design practice reduces overall material costs. Facilitating the recycling of construction waste is another key component of this design practice, protecting natural resources from continuous depletion and preventing construction waste contamination.

Building – The building envelope provides the thermal barrier between the indoor and outdoor environment. Designing for highly effective building envelope thermal insulation is a key determinant of a building's energy use. Proper building envelope thermal insulation will lower the initial cost of equipment and also reduce excessive use of mechanical systems due to thermal leaks. Another sustainable design consideration is daylighting, which is the controlled admission of natural light to reduce or eliminate electric lighting. Daylighting creates a more productive work environment while significantly reducing lighting costs.

As more data is being gathered, there is significant financial evidence that sustainable design is a smart business choice. Understanding sustainable design practices and how you can benefit from them will help your company succeed.

Terry Dalton is founder, CEO and executive principal of Charlotte, N.C.-based DMR Architecture. He can be reached at 704-372-0116 or visit www.dmra.biz.

Maximizing the value of aging retail through mall repositioning

An article titled "A Little TLC" by Steve McLinden in the August 2010 edition of "Shopping Centers Today" pp 37 - 41 extols the value to equity holders in aging malls and other retail properties of repositioning to refresh the look of their properties.

Repositioning makes good sense. In today's economic climate, everyone wants to maximize return on their long-term investments while minimizing risk. Even municipalities are more willing to accommodate redevelopment plans because they realize the potential to increase tax revenue as a site is made more productive.

There are challenges, however. Cost containment remains a major issue. Plus some older centers with intermingled residential components can't simply be torn down and rebuilt. It takes significant creativity and expertise to make the redesign work.

Take the 109,000 square feet of mixed use retail and office known as Parktowne Village in Charlotte, N.C. for example. Built on the site of a performance challenged grocery store, Parktowne Village now enjoys vibrant activity, strong tenancy and traffic. The turnaround is the result of DMR Architecture's extraordinary ability to find creative solutions to site challenges.

The difficulties with the previous design were centered on a significant granite monolith next to the main traffic bearing street adjacent to the site. The old grocery store was located at the rear of the site and was not visible because of the granite along the street. DMR Architecture took a unique approach and incorporated the granite monolith as a component of the new design flipping the previous concept and allowing the development to occur directly along the main thoroughfare. Visibility was increased dramatically, driving higher lease rates, strong tenancy and an attractive environment.

Another example is Westfield Brandon Shopping Mall in Brandon, Florida. Located eight miles east of downtown Tampa in one of the fastest growing suburban communities on Florida’s Gulf Coast, DMR Architecture led the center’s transformation that would include 128,000 square feet of new leasable lifestyle, shopping, dining and gathering spaces. The center sits at the convergence of three major highways and is the leading retail destination for eastern Hillsborough County. With a discerning eye toward respecting the essence of the existing center and honoring the Westfield brand, DMR’s retail architecture professionals led the successful expansion and updating of Westfield Brandon.

At DMR Architecture, we feel that over the next few years, the focus will remain on repositioning existing properties to enhance productivity and breathe new life into aging properties.

A new image

Terry Dalton, CEO of DMR Architecture was featured in the July issue of SouthPark Magazine in this fabulous story on pp 64-67 titled "A new image" written by Allen Norwood with photography by Diedra Laird. Enjoy!

DMR's Dalton Shares Big Ideas

Terry Dalton, founder and chief executive of DMR Architecture was featured in the March 19, 2010 issue of the Charlotte Business Journal. Terry shared the following thoughts in the article titled "DMR draws a new plan for expansion."

When asked how business is different today, Terry says, "We've always run our business lean so that we can provide the best value to our clients without having to charge for extraneous costs … The downturn has reminded us of the importance of diversification."

On the topic of uncovering new business opportunities, Terry says, "We have doubled our business development staff in an effort to expand our reach. And while we continue to nurture our relationships with clients who have been with us for many years, we are actively developing new relationships in markets where we have been successful in the past. We also are more actively pursuing projects outside the Piedmont area."

Terry shared that DMR has "seen an uptick in the desire for sustainability, in particular LEED certification in new projects. DMR Architecture is very fortunate to have a staff of LEED-certified professionals."

The article concluded with Terry's thoughts on lessons learned as an entrepreneur. "In good times, it's important to focus on marketing and business development. And in tough times, it's even more important."

Community growth: Is there really such a thing as successful public private collaboration?

People fear change, especially when it comes to their communities. But as the U.S. population continues to grow, communities will grow and change too, regardless of whether it is desired by residents and their government leaders or not. The challenge is to make smart decisions based on facts, goals and data rather than on emotions like fear.

Unfortunately, some local governments approach these challenges in a manner that allows one party (the governing body or developer) to exercise control of the process in a way that creates win-lose outcomes. This is a “moat mentality” where one party tries to control the entire process by constructing obstacles. Local government officials may allow endless public meetings and require continual adjustments to submittal without a specific end date for agreement. Developers may misrepresent market conditions and be less than forthcoming about financial information or other conditions required to make the project commercially successful. This dynamic can, and often does, result in chaos, taking countless hours of government time and taxpayer dollars and resulting in costly delays for the developer.

How about a “bridge mentality” that links the interests of all parties? Is it possible to include and represent all appropriate voices, and leave the community and government leadership with a roadmap for the future development of the land in question?

The folks in Botetourt County, Virginia think so. County leaders had a clear vision for a planned community and wisely modified their zoning ordinance to include a Traditional Neighborhood Development zoning to accommodate neighborhood mixed-uses. They carefully prepared a set of guidelines for growth, which would provide a basis for Daleville Town Center – a 200-acre residential and commercial development project. The county understood the importance of partnering with the right developer. And the developer knew that success would depend on maintaining the fidelity of the historic feel of the area. DMR Architecture was engaged to assist with the Master Plan Development Guidelines and Controls and Architectural Design Guidelines for historically based residential housing types for Daleville Town Center because of our experience in mixed-use developments and our expertise in building collaborative relationships.

Daleville Town Center would be located among the expansive farms and rolling hills in the scenic Roanoke Valley of Virginia, an area with a strong sense of history and little commercial development. DMR began by gathering information about the vision for the community. Numerous neighborhood and community meetings were held. Goals, strategies, concerns, and needs were discussed.

Emphasis remained on working as a team to resolve differing goals of residents, government and developers to produce feasible solutions for Daleville Town Center. The result was more than a Master Plan and Guideline submittal that was approved by the community and County; the County and the community came away with a higher standard for all future County development – a win-win for all parties.