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From YouTube: Bruce Leonard on The Changing Face of Retail
Description
As part of Arlington County's Roundabouts speaker series, Bruce Leonard discusses the future of retail and how Millennials are changing our assumptions about the new economy. Mr. Leonard is a principal of Streetsense. The Roundabouts Speaker Series is presented by the Planning Division of the Arlington County Dept. of Community Housing, Planning and Development.
A
Well,
thank
you
Chris,
it's
great
to
be
here.
You
know,
making
great
places
is
the
business
that
the
county
board
is
in
and
making
sure
that
our
community
has
a
lot
of
great
places
for
all
the
folks
who
live
here.
It's
something
that
I
think
all
five
of
us
think
about,
or
four
of
us
for
the
next
two
months
think
about
every
single
day.
So
it's
it's
my
great
pleasure
to
introduce
Bruce
this
evening.
A
Bruce
has
over
20
years
of
experience,
designing
and
executing
mixed-use
projects
throughout
the
United
States
and
in
Europe.
Well,
he
was
directing
design
for
Cooper
Kerry's
Main
Street
office
in
Alexandria
Virginia.
He
played
a
key
role
in
many
important
projects,
among
them
our
Mizner
Park,
Bethesda,
Row,
Santana,
Row
and
Crocker
Park,
currently,
as
a
street
sense
partner,
Bruce
is
master
planning
and
creating
development
strategies
for
a
versus
several
large
mixed-use
projects
that
combined
total
more
than
200
million
square
feet
of
development
prior
to
joining
Street.
A
Since
Bruce
was
a
vice
president
of
at
Starwood
urban
investments,
where
he
was
responsible
for
managing
and
directing
the
evaluation
strategy
and
design
of
all
new
project
projects,
he
actively
writes
and
speaks
about
issues
that
are
related
to
urban
development.
He
has
served
on
the
faculty
of
the
University
of
shopping,
centers,
I
didn't
know
there
was
such
a
thing
as
the
University
of
shopping
centers
at
the
Wharton
School
of
Business,
and
he
has
co-authored
multiple
publications
for
the
Urban
Land
Institute.
So
Bruce
welcome
to
Arlington
we're
delighted.
C
B
Great
I'm
gonna
use
this
mic
rather
than
the
other
ones
so
can
well.
Thank
you
very
much
I'm
glad
to
be
here.
I.
Think
you're
gonna
find
this
a
really
interesting
presentation.
Hopefully
I
know
I,
find
the
subject
of
retail
really
fascinating.
I've
been
involved
in
retail
for
almost
30
years
now,
John
I
hate
to
admit,
we've
been
around
for
a
long
time.
B
Street
Sense
a
little
bit
I'm
a
managing
partner
at
Street
sense.
Street
sense
is
a
real
estate
company
really
focused
on
retail
and
mixed-use.
We
really
touch
retail
from
all
facets
from
you
know:
brokerage
we
represent
about
60
national
retailers
over
a
hundred,
local
and
regional,
we're
involved
in
store
concept.
Development
operations
were
involved
in
store,
design,
strategic
planning
and
rollout
strategies.
All
the
way
to
you
know
coming
up
with
you
know,
base
building
analysis,
so
we
really
touch
retail
really
at
a
lot
of
levels
from
the
finest
of
grains
to
the
macro
I.
B
Think
today,
really
the
changes
that
we're
seeing
in
retail
can't
be
overstated.
I
think
they're,
really
profound,
probably
I,
would
argue,
probably
the
most
profound.
In
the
last
hundred
years,
I
mean
they're,
really
some
radical
transformations
happening
and
I
want
you
to
remember
2008,
because
I
think
for
me.
That's
the
real
pivotal,
a
point
where
these
a
lot
of
coinciding
factors
started
to
converge.
Some
of
them
were
caused
by
the
subprime,
which
happened
to
eight,
but
some
were
just
coincidental,
but
it's
a
real
pivotal
period
for
me
in
retail.
B
Let's
talk
about
some
of
the
the
macro
issues
that
are
really
facing
retail.
The
first
was
you
know
from
2001
208
Wall
Street
was
driving
a
lot
of
retail
expansion
and
in
order
to
show
growth
to
the
investors,
they
I
think
a
lot
of
retailers
in
hindsight
threw
out
some
sound.
We,
you
know
roll
out
or
real
estate
strategies
and
really
just
was
growth
for
growth's
sake
and
I.
B
Think
when
the
subprime
happened,
it
gave
a
lot
of
the
committee's
and
executives
for
a
lot
of
the
merchants
time
to
sort
of
sit
back
and
pause
and
reflect
on
where
they
were
and
I
think
a
lot
of
them
look
back
and
said
they
probably
have
way
too
many
units
in
the
market.
Some
think
and
feel
that
they
have
as
many
as
50%
too
many
units
right
now
in
the
domestic
market.
That's
a
pretty
significant
amount
of
oversupply.
B
So
what
you're,
seeing
now
and
you're,
seeing
this
reflecting
a
lot
of
B
and
C
malls
is,
as
leases
are
coming
due
a
lot
of
these
merchants
that
we
all
know
and
love
they're
pulling
back
and
that's
what
you're
seeing
a
lot
of
vacancy
occurring.
So
not
only
are
our
top
national
merchants,
not
in
a
period
of
expansion
right
now,
they're,
actually
in
a
period
of
contraction
and
in
real
estate
terms.
That's
really
significant.
The
other
interesting
thing
that
I
think
is
happening
is
you
can
see
in
the
statistic
to
me,
which
is
really
revealing.
B
Is
the
US
has
twice
as
much
retail
per
capita
as
the
UK,
which
has
twice
as
much
retail
per
capita
SCANA
de
which
which
in
turn
has
twice
as
much
retail
per
capita
as
Australia?
So
with
retail
contracting?
You
look
at
this
table
and
wonder
you
know,
and
nobody
knows
how
much
contraction
is
is
relevant
to
our
nation,
but
one
could
argue
that
50%
of
the
retail
might
be
have
to
be
repurposed
in
the
next
10
to
15
years.
B
The
other
interesting
thing
that
happened
and
it
was
somewhat
related
to
the
subprime,
but
probably
something
that
was
inevitably
gonna
happen
was
there
was
a
transition
between
the
boomers,
which
were
probably
the
quintessential
shopping
generation
for
the
last
20
years
to
the
X
and
Y
and
Millennials,
and
it
happened
for
two
reasons:
one
it
was
just
destined
to
happen
and
the
other
was
basically
the
boomers
lost.
You
know,
wait,
you
know
half
their
net
worth
temporarily
overnight
and
that
was
a
kind
of
psychic
shop
to
their
spending
habits.
B
So
you
know
now
that
they've
recovered
their
net
worth
they're
still
not
spending
like
they
used
to,
and
what
happened
is
the
X
and
Y's,
and
the
Millennials
are
now
kind
of
stepping
forth
and
becoming
the
predominant
shopping
generation.
Well,
that
generation
shops
much
differently
than
the
boomers
do
they're
much
more
fragmented,
they're,
very
brand
aware,
but
more
brand
indifferent.
The
boomers
are
very
much
focused
brand
and
and
we're
much
more
monolithic.
So
what
that
means
is
the
retailer
is,
apart
from
dealing
with
this
contraction.
B
They're
also
now
adapting
to
a
new
series
of
shopping
patterns
that
the
Millennials
and
exes
are
driving.
So
these
are
significant
changes,
so
we're
in
this
really
strong
adaptive
period
among
many
of
the
merchants
in
the
country.
The
other
interesting
thing
about
the
Millennials
too
is
there.
While
the
boomers
were
much
more
focused
on
owning
things
and
staff,
the
the
Millennials
right
now
at
least
the
current
trends
is
they're
much
more
interested
in
renting
and
using
a
lot
more
innovative
things
like
Zipcar,
so
fewer
them
own
cars.
B
You
know
which
also
drives
a
lot
of
industry,
so
you're,
seeing
these
sort
of
macro
trends
really
starting
to
reflect
itself
dramatically
in
retail.
The
other
thing
which
everybody's
been
talking
about
for
years
was
the
internet.
Now,
in
you
know,
wait
up
208
the
internet
shopping
really
wasn't
competing
dramatically.
It
was
a
lot
of
hype
and
an
overstatement,
but
it
wasn't
really
having
a
dramatic
impact
on
bricks
and
mortar
retail.
Today
it
is
significantly
having
an
impact,
but
not
what
you
may
think.
You
know
somebody
think.
B
Well,
it's
gonna
replace
retail,
it's
not
really
replacing
retail
its
competing
with
retail
at
certain
levels,
but
what
it's
really
doing
is
changing
the
way
the
merchants
are
doing
business.
So
you
take
somebody
like
rere,
cratenbarrel
or
Best
Buy,
basically
they're
using
online
to
supplement
their
sales.
Much
like
catalogs
word.
You
know
to
a
lot
of
these
merchants,
so
they're,
not
necessarily
in
competition,
but
what
it
is
is
it's
really
affecting
their
store
size
and
how
they
merchandise,
because
people
will
use
stores
to
purchase
certain
items
and
they'll
use
the
internet
to
purchase
certain
items.
B
So
what
stores
are
trying
to
figure
out?
Now
is
what
is
the
Crichton
it's
of
merchandising
and
how
big
do
they
need
to
be
the
obvious
statement?
Is
they
don't
need
to
be
as
big
as
they
used
to
be
so
at
merchants,
like
Best
Buy
was
used
to
be
50,000
square
feet.
Most
of
the
merchandise
was
kept
on
site
now,
they're
having
online
distribution,
centers
people
are
going
and
looking
at
the
TV
doesn't
fit
in
their
car
anyways
and
they're
going
home
online
and
having
it
delivered
so
you're.
B
Seeing
you
know,
merchants
like
that,
might
only
need
to
be
25,000
square
feet
moving
forward.
So
when
you
have
this
massive
surplus
of
retail,
you
have
this
period
of
contraction
happening,
and
then
you
have
the
merchants
really
not
need
to
be
as
big.
Today.
All
these
factors
are
really
dramatically
impacting
how
much
retail
we
really
need
having
our
markets.
B
The
interesting
thing,
then,
is
over.
Where
is
retail
going
well,
what
we
see
a
lot
of
is
retail
is
going
what
we
sort
sort
of
say
it's
more
experiential
or
immersive.
So
a
lot
of
the
commodity
shopping
is
online.
A
lot
of
the
commodity
shopping
is
done.
You
know
sort
of
periodically
less
frequently
than
it
used
to,
but
people
are
using
retail
much
more
for
immersive
or
recreative
experiences.
People
are
eating
out
a
lot
more
another
interesting
thing
about
the
ex-wives
and
the
Millennials.
Is
they
they
eat
out
a
lot
more
than
the
boomers.
B
B
Most
people
don't
know
what
they're
gonna
have
to
dinner
till
about
4:30
in
the
afternoon
and
what
you're
seeing
is
a
lot
more
frequent
trips
to
the
grocery
store,
a
lot
more
spontaneity
and
a
lot
more
eating
out
so
you're,
seeing
this
massive
growth
and
what
we
call
cue
SR,
which
is
quick
service,
retail
or
restaurants.
So
there's
a
lot
more
selection.
B
You
know
quick
service,
retail
used
to
be
Wendy's,
the
McDonald's
and
maybe
chick-fil-a,
and
now
you
have
this
incredible
breadth
of
organic
and
focused
fast,
casual
dining
that
you
know
offers
particularly
in
urban
environments,
and
that's
really,
you
know,
retail
is
not
a
leading
use.
It
released
response
to
demand
so
you're,
seeing
these
kind
of
trends
affecting
the
growth
of
retail.
The
other
interesting
thing
is.
The
retail
right
now
is,
is
really
being
focused
in
urban
markets,
not
necessarily
in
downtown.
B
Oh,
that
we're
seeing
that
I'd,
say
75%
of
our
leasing
now
is
inside
the
beltway,
where
prio
aged
75
percent
of
our
leasing
was
outside
the
beltway,
but
you're,
seeing
in
markets
like
the
Boston
Court,
which
is
you
know,
somewhat
urban.
That's
really,
you
know
in
the
last
15
years,
become
a
really
urban
market
you're,
seeing
a
lot
of
focus
from
the
merchants
in
these
corridors
as
well
and
again
much
more
focus
on
food
and
entertainment
as
much
specialty
retail.
B
B
Used
to
see
a
lot
of
speculative
retail,
so
you
see
people
building
centers,
putting
a
few
signs
in
the
window
and
leasing
them
up.
You
don't
see
that
there
they're
incredibly
hard
to
underwrite
today,
so
you
need
leases,
or
at
least
a
low
is
really
to
get
the
investors
interested
in
in
the
project.
B
And
really
you
know
when
you
combine
the
other
trends
I'm
saying,
is
you
really
have
to
be
targeted
in
and
you're
rolling
out
of
retail,
because
if
you
don't
understand
the
market,
if
you
don't
understand
the
competition,
that's
around
you,
you're
gonna
have
a
lot
of
vacancy
and
you
know.
Certainly
you
can
see
that
somewhat
in
our
markets,
where
the
sub
standard,
retail
largely
is
vacant,
and
that's
the
other
critical
thing
to
really
remember
about
retail,
among
all
the
uses
from
residential
to
office,
to
hospitality
or
hotel.
B
Retail
really
is
the
most
binary.
So
why
that
is
it's
usually
either
works
or
it
fails
miserably,
and
you
really
have
to
be
sensitive
to
that
when
you're
talking
about
retail,
if
you
missed
the
design
of
the
market,
you
have
too
many
too
bit,
and
you
know
for
apartments.
You
have
too
many
two
bedrooms,
maybe
your
one
business
aren't
big
enough
or
maybe
you
have
a
galley
kitchen
and
you
should
add
an
area
for
dining.
B
B
Now,
when
you
look
at
the
different
prototypes,
you
know,
I
gave
a
I
was
on
a
show.
Last
week
on,
you
know
it
was
a
European
show
which
is
interesting,
because
a
lot
of
the
trends
were
seeing
in
our
nation
aren't
necessarily
characteristic
of
what's
happening
in
the
to
the
world,
but
we're
talking
about
the
death
of
malls-
and
you
know
you
have
to
be
really
careful
because,
basically,
today
the
a
malls
like
take
in
our
market
Tyson's
corners,
you
know
considered
in
a
mall,
that's
doing
the
same
great
numbers.
B
It's
always
done,
it's
an
incredibly
viable.
You
know
mall
and
I
think
long
term.
It's
going
to
be
very
sustained,
but
we
are
seeing
in
our
market
a
number
of
other
malls
that
aren't
doing
so
well
in
B
and
C
locations,
Lake
Forest,
small
in
Gaithersburg
you're,
seeing
landmark
mall
you're,
seeing
Springfield
happening
to
be
reinvented
so
you're.
B
Seeing
a
lot
of
these
other
locations
having
you
know,
are
really
struggling,
and
when
you
go
nationally,
you
see
a
lot
of
second
and
third
tier
cities
with
malls
that
have
lost
all
their
first
tier
national
tenants
and
they're,
trying
to
desperately
backfill
with
with
other
uses
or
other
you
know
a
probably
less
quality
retail,
but
that's
not
to
say
that
malls
aren't
relevant.
It's
just
that.
We're
gonna
need
fewer
of
them.
B
When
you
look
at
power
centers,
that's
the
same
thing
can
apply
that
there's
a
lot
of
stress
power
centers
in
the
nation,
but
there
are
still
a
few
that
are
doing
quite
well.
The
other
thing
that's
the
sort
of
chart
always
thinks
it's
interesting.
Is
this
cyclic
nature
of
retail
and
how
patterns
tend
to
repeat?
But
you
know
back
in
the
turn
of
the
century,
you
know
leading
up
into
the
50s
anyways.
B
So
you
see
how
these
competing
trends
and
now,
ironically,
we're
coming
back
to
a
more
urban
and
downtown
focused
retail.
So
for
the
Boston
Rosalind
corridor.
That's
really
a
good
thing,
because
corridor
is
essentially
urban.
It's
essentially
relevant
to
the
consumer.
It
has
the
ability
to
provide
an
immersive
and
engaging
environment
for
the
retail
and
the
consumer,
which
is
what
they're
looking
for
in
their
offering.
So
there's
a
lot
of
trends
now
that
working
back
to
urban
areas
like
the
Boston
Rosslyn
corridor
that
are
really
favorable.
But
having
said
that.
B
All
each
one
of
these
prototypes
is
sensitive
to
density,
so
we
really
have
to
be
careful
about
today.
What
is
the
right
amount
of
retail
density,
because
often
what
we
find
in
projects
is
when
you
get
too
much
retail
density,
you
end
up
what
we
call
filling
slots
and
that
usually
affects
things
like
Co,
tenancy,
Co
Tennessee.
What
does
Co
tenancy
Co
tenancy
is
in
retail
it's
about
matching
the
quality
and
nature
of
dirt
and
tennis,
because
there's
synergy
in
retail.
B
So
when
you
start
having
a
good
collection
of
tenants,
but
then
you
have
a
lot
of
vacancy
you
have
to
put
in
substandard
tenants.
It
devalues
the
the
quality
of
the
existing
tenants
and
that
can
actually
create
a
negative
trend
where
they
start
pulling
out
of
the
project.
So
you
really
have
to
be
careful
with
those
types
of
issues.
B
B
People
really
like
to
use
their
retail
offerings
to
you
know
basically
to
create
an
experience
for
themselves
and
also
that
tends
to
be
the
where
that
a
lot
of
the
retail
energy
is
focused
and
a
lot
of
the
use
downtown.
So
what
does
that
really
mean?
You
know
I
think
it
means
basically
that
we're
seeing
a
lot
more
lot,
less
specialty,
retail
and
a
lot
less
kind
of.
B
Growth
in
that
these
sort
of
areas,
the
other
interesting
thing
is
basically
308.
You
know
when
we
were
in
the
leasing
discussion.
There
used
to
be
really
two
aspects
that
were
asked
by
the
merchants.
One
was:
is
this
a
good
location
for
me
and
two
is
what's
my
co
tendency,
in
other
words,
who
else
is
in
that
market
and
what
are
their
numbers
and
how
are
they
performing
so
the
real
strong
correlation
between?
Is
this
a
good
location?
B
The
interesting
thing
is
now
that
the
trends
are
moving
towards
these
sort
of
immersive
markets
and
immersive
experiences.
Design
is
starting
to
play
a
really
important
role
in
the
performance
of
retail,
and
you
know
planners
have
been
talking
about
it
for
a
while.
We
in
the
design
field
or
John
in
the
development
field.
B
So
if
we
go
downtown
Washington's,
dtc,
centers
city
center,
it's
a
new
project.
You
know
in
the
old
convention
center
site,
everybody
would
agree.
That's
a
tremendous
piece
of
real
estate,
a
centrally
located
a
tremendous
opportunity
for
retail.
What's
interesting
is
the
architect
and
the
development
team.
You
know
which
was
partly
driven
by
the
city,
but
there's
a
really
hardcore
modern
aesthetic
to
this
project
and
what's
interesting
from
our
food
and
dining
tenants
is
basically
there's
a
lot
of
pushback
from
them
when
they
show
up
and
out
of
the
site.
B
They
look
at
a
lot
of
plate
glass,
a
lot
of
sort
of
sterile
environment
and
and
the
alleys
being
so
tight
that
they're
not
understanding
the
project.
And
if
you
look
at
what
a
retailer
is
looking
for
salmon
restaurant
concept
in
order
for
me
to
be
successful,
I
really,
if
I'm,
11,
e's
concept,
for
instance,
I
need
to
kind
of
get
you
an
11,
e's
frame
of
mind
really
before
you
get
in
the
store.
So
if
I,
if
I'm
going
out
to
dine
and
I,
show
up
at
a
lot
of
plate
glass,
you
know
I'm.
B
Frame
of
mind
you
know
so
the
design
and
execution
of
the
storefront
becomes
really
critical
for
getting
the
merchants.
I
mean
the
consumer
to
kind
of
really
feel
that
this
is
a
romantic
and
desirable
place,
and
modern
architecture
has
a
lot
of
advantages.
Romantic
is
not
a
term
you'd
ever
apply
to
them,
okay,
so
what
you're
seeing
here
is
they're
really
having
a
hard
time.
I'm
not
saying
this
project
won't
be
successful
from
a
retail
perspective,
but
they're
having
a
really
hard
time.
B
C
B
So,
what's
interesting
is
there's
no
numbers
on
this,
but
if
you
go
to
two
blocks
away,
okay,
two
F
Street
this
this
street
does
well
over
$1,000
a
foot
and
in
retail
terms
that's
that's
a
pretty
good
number.
That
means
they
can
support
rents.
You
know
$70
John,
$80,
a
foot
and
why?
Why
are
they
doing
that?
Why
the
retailer's
so
successful?
Well,
one
of
the
obvious
thing
is:
it
has
historic
context
right.
So
it's
got
a
lot
of
you
know
we
call
urban
fabric,
but
with
that
urban
fabric
comes
interesting,
storefronts
and
sidewalks.
B
So
it's
diverse
right.
The
other
thing
is
on
the
new
projects
they've
built
across
the
way.
It's
what
I
call
a
retail
friendly
architecture,
so
they've
got
they've
allowed
the
base
of
the
building
to
sort
of
be
customized
by
the
by
the
merchants,
and
they
have
a
lot
of
character
and
definition.
So
you
know
we
use
terms
like
it's
modulated.
You
know
it's
very,
but
essentially
the
third
component
that
has
to
is.
C
B
Was
in
the
over
expansion
of
retail
brands,
it
was
two
things
when
there
was
store.
Cannibalization
other
words.
You
know
you
take
a
national
fashion
retailer
when
they
became
in
every
mall.
They
started
to
cannibalize
themselves,
and
since
that
you
know
you
had
your
choice
between
going
to
say
landmark
to
Springfield
to
Tyson's
was
the
same
store.
So
there
was
some
cannibalization
but
I
think
the
more
important
thing
that
happened
is
when
you
go
from
having
few
units
to
you're.
B
Everywhere
you
become
a
commodity,
so
you
become
kind
of
a
little
ho-hum
in
the
idea
of
the
consumer
and
they
want
to
get
their
exclusivity
back.
You
know
so
I
think
the
the
the
ex-wives
and
even
the
boomers
now
are
a
little
more
indifferent,
they're
sort
of
brand
aware
to
the
national
brands,
but
they're
more
indifferent
to
brand,
but
whether
really
focused
in
is
urban
context
and
contextual
use.
B
So
a
lot
of
our
restaurants
that
are
regional
and
local
do
much
better
numbers
now
than
the
national
retailer
at
last
national
restaurants,
because
they're
much
more
in
demand
by
the
consumer,
they're
much
more
interesting,
they're,
more
unique,
and
so,
when
you
see
this
sort
of
merchandising
mix
that
mixes
great
national
tenants
with
local
and
regional,
it
really
resonates
with
the
consumer
and
that's
reflected
in
the
sales
per
square
foot,
because
in
retail
people
vote
with
their
wallet.
So
that's
kind
of
an
interesting
example.
I'll.
Take
it
an
even
more
extreme
example.
B
So
this
is
a
project.
Probably
many
of
you
know
and
that's
the
Shops
at
Wisconsin
place
it's
right
in
the
heart
of
Friendship
Heights.
It's
you
know
to
me:
it's
a
really
handsome
Lee
design
project,
there's
a
first-tier
developer
and
are
really
well
known
and
design
firm,
excellent
design
firm
and
they
have
some
of
the
top
national
retailers
in
the
country.
You
know
Sephora,
anthropology's,
they're,
all
right
west,
you
know
they've
got
a
whole
collection
of
what
we
call
first,
your
retailers,
the
issue
here
you
know,
but
this
barely
does
five
hundred
dollars
a
foot.
B
Okay,
it's
in
a
market
with
an
average
household
income
of
two
hundred
and
sixty
thousand
dollars.
So
the
trade
area
for
this
is
just
it's
one
of
the
highest
demographics
they've
ever
seen,
and
it's
barely
performing
and
in
fact,
if
the
merchants
weren't
national,
all
these
would
be
out
of
business
right
now.
Okay!
So
what?
Why
is
that?
Well,
there's
there's
a
varieties
ins,
one!
It
doesn't
have
a
mixture
of
local
and
regional,
complementing
the
national.
It's
all
national,
as
I.
B
The
consumer
today
is
a
little
ho-hum
about
the
national
retailers,
so
you
know
having
this
mix
is
really
important.
The
second
thing
is
environment.
So,
even
though
it's
a
handsomely
designed
project,
in
my
opinion,
this
project
could
be
in
Los
Angeles.
It
could
be
in
Atlanta
and
it
could
be
in
st.
Louis.
B
So
there's
really
no
contextual
reference
for
the
project
and
it's
a
little
vanilla
and
then
there's
an
absent
of
you
know
straight
trees
and
other
shading
devices,
and
when
you're
talking
about
an
immersive
experience
right,
you
like
to
spend
some
time
and
hang
out
well
in
the
summer,
you're
baking
to
death.
And
if
you
look
at
these
photos,
they're
not
staged.
This
is
kind
of
like
the
way
it
looks.
So
you
never
see
anybody
with
a
shopping
bag
and
it's
pretty
sterile
so
anyway,
right.
C
B
You
know
this
is
not
to
really
bust
on
the
developer,
but
to
really
just
say
that
or
a
highlight
that
this
retail
is
an
incredibly
complex
thing
to
execute
and
you
have
to
get
today
a
lot
of
variables
right.
So
you
can't
in
the
old
days
you
could
get
the
merchandising
through
to
Rock
and
you're
pretty
good.
Today,
that's
not
the
case.
So
if
we
go
up
the
road
a
little
bit
to
put
those
two
row,
it's
one
of
John's
company's
projects.
B
Dollars
average
household
income,
which
is
know
by
national
standards,
very
very
healthy,
but
this
Center
performs
that
over
$1,500
a
foot
blended
that
over
three
times
the
sales
per
square
foot
which
from
John's
perspective,
reflects
and
very
high
and
lucrative
rents
and
a
lot
of
sales
tax.
You
know
for
for
the
county,
but
why
is
that?
Well?
B
The
other
interesting
thing
is:
it's
got
a
really
great
mix
of
local
and
regional
tenants,
along
with
some
great
nationals
like
Apple,
which,
by
the
way
in
this
location,
does
about
ten
thousand
dollars
a
foot
which
is
just
absolutely
stratospheric.
I
mean
it's
really
remarkable.
Some
of
the
numbers
and
the
other
interesting
thing
is:
it's
got
a
lot
of
engaging
ground
plane,
it's
got
great
Street
trees
and
shade.
It's
got.
B
Every
storefront
is
totally
different,
and
so
it's
got
a
lot
of
modulation
and
then
the
other
interesting
thing
with
materials
too
is
it's,
got
a
lot
of
variety
and
wood
and
steel
metal,
ceramic
stucco.
So
it's
got
a
lot
of
diversity
and
to
me
this,
these
two
examples
really
highlight
how
important
design
is
in
the
performance
of
immersive
retail.
Today
I
mean
it's
to
me,
not
a
matter
of
opinion,
I
think
it's
just
so
documented,
and
you
can
see
this
in
other
projects
to
do
good
around
the
country.
B
So
what
I
thought
would
be
fun
is
you've
heard
me
talk
a
lot
about
the
demographic
changes
and
I
think
these
are
really
significant
changes
that
are
affecting
retail
and
I
think
to
really
understand,
maybe
where
we
need
to
be
going
and
what
we
need
to
be
focused
on
I.
Think
it's
helpful
to
kind
of
look
at
the
Millennial
and
really
start
to
understand.
B
You
know
what
it
is
they're
looking
for,
because
essentially,
at
least
for
the
next,
you
know
probably
10
to
15
years
retail
is
going
to
be
heavily
focused
on
this
generation,
and
you
know,
retail
again
is
not
leading.
It
always
follows
demand.
So
it's
going
to
be
morphing
and
modifying
itself
to
really
complement
the
needs
of
wants
of
this
generation.
So
the
Millennials
are
really
pretty
a
pretty
significant
generation.
They're,
the
largest
generation
in
history,
there's
80
million
Millennials.
Those
are
people
born
after
1982.
B
They
represent
25%
of
the
population
and
I
can
see
a
lot
of
boomers
here,
but
you
can
see
that
they're
slower
to
get
married
and
much
more
dependent
on
their
parents
in
our
generation.
You
know
I
think
I
went
off
to
school
and
I
was
18,
I,
never
lived
at
home
again.
I.
Think
I
can't
tell
you
how
many
of
my
peers
have
you
know:
kids,
even
graduated,
still
living
at
home,
so
there
there
are
much
more
clingy
and
somewhat
dependent
Generation
than
the
previous
and
a
much
more
just
calling
the
way
it
is.
B
And
but
you
know
the
other
interesting
thing
I
thought
was
interesting-
is
the
Boomers.
We
were
such
a
monolithic
generation.
So
you
know
all
my
partners
are
boomers.
Every
one
of
us
has
an
iPhone
when
I
was
growing
up,
adidas
were
the
hot
shoe
every
one
of
us
wore
the
adidas.
You
know,
and
what
we
find
today
with
the
silver
saturation
of
brand
is
the
Millennials
are
really
their
brand
aware.
They
like
brand
but
their
brand
indifferent.
So
my
son,
for
instance,
he's
about
19
he'll,
wear
a
Reebok
or
he'll,
wear
Under,
Armour
or
Nike.
B
C
B
Know
and
which
one's
the
right
color,
you
know,
but
he's
not
really
making
a
decision
necessarily
on
brand,
although
he
does
like
to
wear
brands.
So
that's
a
really
kind
of
key
component
from
a
retail
perspective.
Now,
how
do
the
merchants
really
captivate
this
new
generation
and
inspire
them
to
buy
their
product
over
something
else?
This
is
something
really
important,
so
I'm
gonna
give
you
a
true
or
false
quiz
on
the
millenials
to
see
how
you
do.
A
B
B
So
one
of
the
interesting
thing
about
Millennials
is
you
know:
40%
of
them
are
heavily
focused
on
urban
markets
and
that's
not
an
instigated
amount
of
focus
right,
but
there's
also
a
lot
of,
and
that
seems
just
the
thing
about
this
generation.
It's
a
lot
more
fragmented
in
their
preferences,
where
we
were
so
monolithic,
there's
all
kinds
of
subsets
within
your
generation.
Some
are,
you
are
very
Boomer
like
and
summer.
You
are
more
bohemian
and
summer.
B
You
are
more
focused
on
the
environment,
so
there's
a
much
broader
breadth
and
that
affects
your
spending
and
living
desire,
so
you're,
seeing
here
a
fairly
equal.
This
distribution
of
you
know
suburban
versus
urban
versus
country,
which
I
think
is
really
kind
of
an
interesting
component
of
your
generation.
B
B
Forty
five
percent
have
an
annual
household
income
exceeding
fifty
thousand,
which
is
really
really
significant
and
you're,
seeing
these
trends
in
our
city
right,
because
if
you
look
at
I,
think
there's
something
like
John.
Twelve
thousand
units
coming
online
downtown
and
they're
really
focused
on
this
millennial
generation,
they're,
very
small,
heavily
amenitized
units.
So
you
know
you
look
at
the
old
apartment
buildings.
I
live
in
an
old
apartment
building,
so
I've
got
this
kind
of
rickety.
Health
Club
I
got
a
mail
room,
but
the
mail
room
only
handles
letters.
B
You
know
you
go
to
the
new
buildings
downtown,
but
my
units
really
big
you
go
to
the
unit's
downtown,
really
small.
Some
of
them
are
like
450
square
feet,
but
the
buildings
are
amenitized.
They
have
coolers
for
food
being
delivered
from
Peapod.
They
have
big
mailboxes
because
everybody
is
getting
all
their
goods
online.
You
know
and
they're
not
home,
so
they
have
the
mail
rooms
like
four
times
as
big
as
it
used
to
be.
They
have
deluxe
health
clubs
and
they
have
all
kinds
of
other.
B
You
know
click
cafes
and
all
these
kinds
of
things
to
serve
and
they're
much
more
focused
on
not
living
in
their
apartment
as
much
as
living
on
the
street
and
living
in
the
amenities.
The
other
interesting
thing
about
that
is
we're
seeing
a
lot
of
retail
becoming
used
to
be
an
economic
driver.
It's
becoming
an
amenity
use
to
for
a
lot
of
these
buildings,
take
true
or
false.
B
Nearly
50
million
Gen
wives
visit
a
big
box
center
once
a
month
false
to
true
who
says
true
who
says
false:
ok,
true,
so
50
50
million,
you
know,
which
is
50
million
of
the
80
million
significant
visit
a
box
center.
So
that's
what
I
was
saying
earlier
is
everybody
wants
to
say?
Oh,
you
know
power
centers
dead,
the
malls
that
certain
components
of
them
are
dead,
but
some
of
them
are
still
viable
and
heavily
used.
So
what
you're
seeing
is
a
much
more
diverse
array
of
retail
and
how
we're
using
it.
B
The
other
interesting
thing
is
what
you're
seeing
is
some
of
these
dependency
or
you
know
it's
not
dependency,
it's
really
just
the
relationship
of
children.
Other
boomers
parents
to
their
children
was
much
more
different
than
the
boomers
relationship
to
the
GI
generation,
where
the
parents
are
much
more
disconnected
you're,
seeing
a
lot
more
sort
of
integration
in
the
family
structure,
and
you
see
that
reflected
in
the
retail
offerings
as
well,
and
how
people
use
retail
so
you're,
seeing
a
lot
more
integration
that
way
all
right.
True,
false
40%
purchase
groceries
at
least
once
a
week.
B
B
The
65%
purchase
at
least
once
a
week
and
most
admit
that
they
go
more
than
once.
In
fact,
I
would
say.
The
average
trip
to
the
grocer
is
3
to
4
times
a
week
and
the
interesting
thing,
let's
talk
about
grocery
stores
for
a
minute
is
I,
gave
you
that
story
earlier
about
my
mom,
how
she
used
to
go
every
weekend
and
get
the
whole
week's
groceries
and
plan
all
the
meals
and
then
be
all
stored
in
the
fridge.
B
Seeing
that
an
extreme
example
of
how
even
in
the
grocery
world
in
particular,
is
people
are
rather
than
leaving
with
carts
they're
leaving
with
bags
and
they're
going
much
more
frequently
during
the
week.
So
it's
much
more
see
European
based
shopping
habits,
so
we're
adapting
a
finer
grain
so
when
you're
affecting
parking
demand
and
all
these
kind
of
components,
the
retail
demand,
the
parking
demand
is
not
there
and
you're.
B
C
C
C
B
That's
pretty
significant
when
you
think
about
it.
You
know
back
when
we
had
to
physically
shop.
You
know
it
was
much
more
selective
and
it
was
much
more
of
a
time
commitment
on
the
weekend
now
you're,
seeing
through
the
course
of
business
in
the
evening,
a
lot
of
focus
and
research
on
retail
and
demand,
and
this
reflects
back
to
the
merchants
now
we're
all
responding
to
this.
This
is
one
of
the
adaptive
phases
were
going
through.
B
It's
not
fully
realized
yet,
but
you're
seeing
a
lot
of
change
occurring
and
it's
this
trend
is
driving
that
true,
false
55,
50
%
combine
a
shopping
trip
with
a
meal
out.
True,
true,
okay,
you
guys
are
getting
in
the
groove,
so
yeah
55
50
%,
combined
with
a
meal
out-
and
you
know
the
dining
options
thought
these
are
interesting.
B
You
know
44%,
favored,
local
or
a
neighborhood
place,
and
that
remember
what
I
was
telling
you
about
how
a
lot
of
the
national
restaurants
aren't
doing
as
well
as
the
local
and
regional
is
that
your
generations
are
really
searching
out
more
interesting
and
contextually
based
offerings
and
a
much
more
diverse
range
of
food.
So
I
mean
these
are
pretty
significant
trends
and
we,
you
know
we
find
within
our
portfolio
our
regional
tenants,
brilliant
performer
ever
national
restaurants,
that's
pretty
interesting.
C
B
Think
this
among
the
Millennials
and
the
exes
is,
is
morphing,
so
I
think
right
now,
there's
a
trend
towards
renting
and
not
only
renting
apartments
rather
than
owning,
but
renting
cars.
We
have
about
a
hundred
employees
in
our
company,
I'd
say:
60%
of
them
are
under
the
age
of
30
and
maybe
20%
of
them
own,
a
car
which
you
know
John
I,
don't
know
when
you
had
your
license.
B
I
had
my
license
when
it
was
16,
you
know
so
there
was
there's,
definitely
a
focus
from
sort
of
renting
a
kind
of
lifestyle
and
and
but
these
trends
I
think
in
our
opinion,
are
morphing.
So
you
have
to
be
a
little
careful
about
that,
but
certainly
you're,
seeing
a
lot
of
new
offerings
revolving
around
kind
of
this
kind
of
sort
of
temporary
ownership
concept
in
five
years,
you're
generating
the
Millennials
I,
don't
know
how
significant
that's
going
to
be.
B
B
B
There's
a
greater
correlation
today
between
the
internet
and
store
sales.
What
they're,
preferring
this
is
Omni
shopping
and
it's
what
I
was
describing
earlier.
For
instance,
they
take
a
merchant,
like
REI
people
will
shop
in
the
store,
but
they'll
also
wants
to
become
accustomed
to
a
certain
product
that
they
want
to
buy
again
they'll
shop
online,
and
then
they
fake
a
concept
like
Best
Buy,
they're,
really
working
with
what
merchandise
do
I
keep
in
the
store
and
what
merchandise
do
I
need.
You
know
so
that
it's
not
all
overlap,
they
don't
want
duplication.
B
Experiences
King
today,
I
think
really.
You
saw
an
example,
as
I
documented
that
the
performance
of
the
environment
has
to
be
really
focused
on
so
not
only
do
we
have
to
worry
about
the
depth
and
widths
and
configuration
of
the
stores,
but
what's
happening
on
the
streets.
Sidewalks
are
really
important.
The
ability
for
us
trusteth
outdoor
dining
areas
is
really
key
part
of
the
leasing
negotiations
now,
because
not
that
they're
trying
to
increase
their
seating
capacity,
but
on
a
good
spring
night,
people
will
decide
to
go
to
a
restaurant
because
there
are
chairs.
B
You
know.
The
extreme
example
of
this
is
Lincoln
Road.
If
they
ever
been
to
South
beaches,
there's
an
equal
amount
of
dining
inside
as
outside
and
within
the
summer
everybody's
inside,
where
the
air
conditioning,
because
it's
98
degrees
and
humid
and
in
this
seat
with
a
call
in
season
which
is
in
the
winter
nobody's
sitting
inside
everybody's
sitting
outside.
So
it's
not
like,
they
have
twice
the
seating
capacity.
It's
just
that
the
seating
is
used
differently
and
I
think
restaurants,
look!
B
Neighborhood
retail
is
still
probably
you
know,
is
king
as
well
and
very
relevant
I
mean
I,
think
we're
seeing
again
the
amount
of
you
know
as
it
goes
urban
base,
there's
a
lot
more
foot
traffic
now,
rather
than
vehicular
traffic
and
I
think
people
are
tending.
You
know
with
the
traffic
issues
and
everything
else
we
have
here.
B
You
can
find
that's
gonna
pay
me
the
highest
rent,
you
know,
and
that
would
be
from
a
mixed-use
developer.
What
you're
really
seeing
the
conversation
is
because
there's
so
much
competition
now
for
that
millennial,
renter
is
what
kind
of
retail
can
I
get
that
will
match
the
demands
and
aspirations
of
my
tenant,
so
that
number
one
I
can
be
more
competitive
in
my
lease
up
and
capture
over
another
building,
because
I've
got
a
great
yoga
studio,
a
great
kind
of
pet
store.
B
I've
got
a
great
wine
or
cheese
bar,
and
the
second
thing
that
that
does
is.
It
also
allows
on
retention,
because,
basically,
in
these
luxury
markets,
which
are
seeing
a
lot
of
you
know,
that's
rents
a
north
of
three
bucks.
The
turnover
in
these
buildings
is
up
to
seventy
percent
a
year,
so
it
costs
these
developers
a
lot
of
money
with
this
constant
turnover
of
so
that
they
can
get
the
right
mix
of
retail,
that's
amenitized
for
their
patron.
They
can
really
increase.
B
You
know
they
can
get
that
tenant
to
stay
another
year
because
they
really
like
that
dog
cafe
and
they
they
have
a
real
good
social
environment.
A
great
so
I
think
what
you're
seeing
now
is.
Co
tendency
is
going
both
horizontal
and
vertical,
and
that's
a
really
new
trend
and
its
really
becoming
prevalent
and
real
estate,
where
the
tenants
are
sort
of
aware
of
it
and
the
the
mixed-use
developers
are
so
you're.
Seeing
a
pretty
prominent
trend
that
way
and
I
think
that
to
me
is
one
of
the
most
key
things.