Intersection of Big Box and Small Site - Brian Suiter

Occasionally we invite other development professionals to give us their thoughts on challenges and opportunities related to mixed-use development. Today we are fortunate to have a guest post from Brian Suiter, Director of Leasing and General Manager at The Feil Organization in New Orleans.
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There is an interesting dynamic recently taking place in retail development that could have significant benefits for urban infill projects. For years retailers have been in a proverbial arms race to carry more SKU's and build bigger than their competition. As capital markets, consumer spending, and suburban development has slowed, retailers have begun a strategic focus to actually reduce square footage to lessen development costs, marry supply to consumer demand, and expand their potential site options in dense markets. If you can achieve the same sales psf in 20,000 sf less floor area, why carry the extra expense of larger stores? Walmart is employing 40k sf Neighborhood Markets, as well as 40k sf mass merchandise prototypes. Best Buy is employing Magnolia stores and Best Buy Mobile in urban markets. Department stores are subleasing their space to downsize their footprints. This is a new paradigm for “big boxes” and their inclusion in urban infill developments. The prohibitive cost of single use dirt in dense urban settings may open doors for the consideration of air rights sales/ leases or strategic partnerships with retailers to develop above them and around them, potentially reducing their costs and solving 1st story vacancies factors for residential developers. Will Walmart take the place of every neighborhood’s corner coffee shop, pizza joint, or cell phone store, situated below residential or office? Probably not, but the inclusion of “big box” users that are seriously considering urban infill locations may make some of the vertically integrated mixed use projects with dauntingly large footprints, a bit more palpable and financially feasible.

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At The Feil Organization, Brian is responsible for all facets of two new retail developments that encompass 35 acres and 350 thousand square feet of leasable area with budgets that exceed $75 million, in addition to leasing oversight for 400 thousand square feet of retail assets in the southeast. Brian's expertise spans financial and site feasibility analysis; entitlement, permitting and zoning; site design and engineering; and land and air-right sales and acquisitions. You may contact Brian here.

Photo of Tenleytown in Washington DC from Wikipedia