First Quarter 2014 - CREW San Francisco

1st Quarter 2014
Hit Reset
for Retail!
inside
MID MARKET • TOD • FORMULA RETAIL
Be an Angel
I N SIDE T H IS ISSUE
Bringing Retail to TOD Housing
3
POV: Formula Retail SF Neighborhood Study
4
Market Street Place
5
Current Trends in Retail Across North America
6
Resaurant Report: Crystal Jade
8
Pioneer Retail in Emerging
Mid-Market Neighborhood
9
What is in a Brand?
10
Member News: Congratulations Tracy Everwine
12
CREW SF and the America’s Cup
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Understanding the New Laws Governing
California Condominiums and Common
Interest Developments
14
A Word from Our Sponsors
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This issue inaugurates an exciting new direction for CREW SF¹s
quarterly publication, the VIEW. Before opening the first page,
you might have noticed the new design for the cover emblematic of these changes. Each issue will have a topical focus, culling from the extensive range of expertise and knowledge available within the CREW San Francisco and Bay Area community.
As such, each issue will be spearheaded by a VIEW “angel”,
a CREW SF member who steps forward to assist the VIEW in
finding writers and relevant topics. As a leader in the field, our
“angel” shares her connections and insights to get the discussion started and the conversation flowing. For making introductions, brainstorming, and generally helping to structure the
publication, our angel is then gratefully acknowledged for her
contribution.
Gabrielle has been a terrific inaugural angel, helping me to formulate the concept both of the Hit Reset for Retail! issue, as
well as helping me through the organic process of discovering
just what an angel might be and the vital (but simple) role she
can play. Thank you Gabrielle!
Donna Schumacher
Editor, the VIEW
A NGE L P R O FI L E
THE CREW SF COMMUNICATIONS CALL
FOR 2014 VIEW ARTICLES
Please submit your idea for a future article to the VIEW on any CREW
related topics: law, real estate, leasing, architecture, gender equality and
beyond. If you have an idea, even a tiny gem of one, or maybe just the
intent to participate, please email our editor at [email protected] to get
the conversation started. We are here to help you launch your voice into
the San Francisco real estate community!
Upcoming publications of the 2014 VIEW will focus on the following topics:
2014 Quarter 2: Art and Real Estate
2014 Quarter 3: Medical Office Buildings
2014 Quarter 4: Transportation Facilities
2015 Quarter 1: Social Media and Real Estate
Contributers
HQ: Mill Valley
Founded: 2011
Background: MBA from University of Southern California,
Acting VP/Director Store Development, Greater China,
Starbucks Coffee International, Real Estate Representative,
McDonald’s Corporation
National CREW Foundation Trustee 2004 to 2007, Governance
Committee 2012, Foundation Champion 2013 to 2014.
Donna Schumacher
Winnifred Ward
Amy Teutemacher
Gabrielle Tierney
Jennifer Fink
Krystal Grubb
Carol Gilbert
Kim Edmonds Frentz
Michelle Jones
What it does: Retail Real Estate Advisory Services
CREW: Member 1996 to present, Board Member 2005 to 2007,
THE VIEW EDITORIAL STAFF
Editor
Editorial Review
GABRIELLE TIERNEY
President | Tierney Consulting Group
Charities: 10,000 Degrees, Girls Inc., The Center for
Reproductive Rights, MALT and Earth Justice
First Job: Hostess at Coco’s Restaurant
Extracirricular Passions: Travelling, Hiking, Biking,
Latin Jazz, Cooking
Tiffany Avila
Miriam Montesinos
Deborah McCarthy
Melissa Holmes
Faith Hope Consolo
Travel Tip: When traveling abroad especially to developing
countries, pack your suitcase partly full of gently used clothing
or school supplies. You will find a worthy place to donate
them abroad, I promise. And it leaves you space to fill with
travel treasures.
Recent Travel Highlight: Bagan, Myanmar
Top Pic SF Restaurants: Coqueta, Piperade, Mandalay,
Cover photograph: Gensler, MarKet Street Place
2014 CREW SF. All submissions are subject to editing for clarity and brevity, unless
otherwise noted.
©
2
Plant Organic Cafe, Fang
Birthplace: Misawa, Japan
Bringing Retail to TOD Housing
in Transitional Neighborhoods
© 2014 Kim Edmonds Frentz, Ventura Partners.
Developers of residential projects with ground floor storefronts know that their commercial space requires a different
set of development and marketing skills than their housing.
Nonprofit housing developers often face even more unique
challenges when their new mixed-use projects are pioneers
in neighborhoods that haven’t yet begun to attract the interest of mainstream retailers. These fledgling markets require
an approach that is free from preconceived limitations and
includes a unique complement of resources in order to be
successful.
An example of such a project is the new mixed-use Transit Oriented Development (TOD) constructed by MidPen Housing
in Union City. The Station Center project is directly across the
street from the Union City BART station and includes 157 affordable housing units above retail. The Urban Land Institute
has honored it as one of only 15 projects worldwide to win its
2013 ULI Global Award for Excellence. TODs are the wave of
the future—clustering housing and commercial development
at critical transit nodes. They epitomize a great idea resulting
from thoughtful urban planning.
The Master Plan for the area calls for the BART station to be
revamped to include Dumbarton Rail, ACE, and Capital Corridor, upgrading it to an Intermodal Transit Oriented Hub and
promising a mass transit bonanza. The neighborhood surrounding the project is slated for construction of more than
a thousand residential units and over a million square feet
of commercial space. Pedestrian access from this newly built
environment to the transit station will funnel through a beautifully landscaped promenade and plaza directly adjacent to
MidPen’s project.
Despite the promise of a golden future, the project faces several short-term obstacles. A chain link fence stands between
the beautiful plaza and the transit station across the street.
Until the fence is removed and the new access constructed,
the only way to reach the station is by walking approximately
½ mile around the long block. At the time we started marketing the space, the removal of the fence was almost three years
away, although now it is expected within the year.
Additionally, this project is the first out of the ground, and is
an island among empty lots waiting for future development.
Some adjacent and nearby parcels are just fenced dirt and
others are used for parking. The river of commuters walking
by will not be realized for a while, and the first trickle is expected when the 350 residential units approved next door are
completed in about 18 months. Gradually, additional development will proceed in the wake of the station upgrade. This
timeframe could seem like an eternity for businesses that rely
on the anticipated concentration of humanity for their survival.
This pioneer project calls for a multi-level approach to finding
the right mix.
Sometime down the road, this location will be attractive to top
flight national retailers. Signage and merchandising requirements were implemented to prepare the project for this future
scenario. The standards established at the outset would influence the tone for the neighborhood.
(continues on page 6)
3
POINT OF
VIEW
Formula Retail Neighborhood Study
© 2014 Carol Gilbert, CGI
Since 2004, San Francisco has imposed restrictions on formula retail locations, requiring chain stores to obtain additional approvals for building permits in the city. These
ordinances and regulations have been amended 16 times and there are 7 more awaiting consideration, reflecting the heated debate surrounding the topic. A consortium
of real estate brokers have come together to conduct a study of formula retail and the
effects it has on neighborhood retail in San Francisco. Carol Gilbert of CGI has spearheaded this study and shares her findings and opinions in this issue’s Point of VIEW.
In 2004, San Francisco passed anti-Formula Retail legislation. The legislation has beenamended 16 times and seven new restriction refinements are currently under consideration by the Board of Supervisors. The stated goal of these anti-chain ordinances is
to preserve the existing character and one-of-a-kind style that is San Francisco.
A group of real estate brokers who specialize in leasing retail space share the goals
of the anti-Formula Retail legislation along
with a commitment to maintaining and
promoting retail productivity in the City. A
chain is currently defined as a retailer with
11 or more stores in the United States. To
take some of the guess work out of determining the appropriateness of additional
legislation, an informal study inclusive of a
series of retail maps was created by walking, driving, and researching existing retail
businesses in San Francisco.
Nearly 4,500 retail locations were surveyed
in more than 28 neighborhoods. Comparing the total number of retail spaces to existing vacancies yields a 4.8% vacancy factor in neighborhood commercial districts.
There are 586 chain stores representing
just over 13% of retail stores of which 36%
were founded and/or based in San Francisco and/or the Greater Bay Area. Approximately 34.3% of retail space is devoted to
food service (restaurants, specialty food
shops other than grocery stores, beverage
bars/stores). Just under 3% (130 branches)
of retail space is occupied by banks, almost all of which are Formula Retail under
San Francisco’s definition.
Retail is a complicated business with many
variables, however, successful retail includes the following characteristics:
Massing: Two stores on a residential street
offer limited potential while two blocks of
shops is a potential popular shopping destination;
4
Tenant Mix: The healthiest and most viable retail environments offer a mix of retailers who are big and small, conventional
and cutting edge, established and new
age;
Co-tenancy: Neighbors have a strong
impact on shopper demographics and determine, to a large extent, the viability of
cross shopping;
Visibility: Whether a particular store is on
a corner, on the sunny side of the street, is
visually blocked by trees, bus shelters, etc.
impact whether shoppers will visit;
Perceived Value: The point where cost,
quality, and service intersect must fit the
consumer; and
Intangibles: All of the aspects of a retail
establishment that determine whether
customers return include cleanliness,
friendliness, ambiance, and a host of other
items that impact the shopping experience. Attempts to legislate what people
can buy and where such purchases can be
made is challenging for the simple reason
that legislation assumes a more or less
static world. In fact, the world we live in
keeps changing, evolving, and otherwise
providing surprises. By way of example,
when horses were the primary mode of
local transportation, parking cars was not
an issue; when most women stayed home
to clean house, care for children, and cook
dinner, the restaurant industry was tangential to most people’s lives; and it is an
understatement to say that our needs and
preferences have been impacted by per-
sonal computers, the internet, and FedEx.
Statistics and existing studies about retail
are primarily applicable to shopping centers, rural and suburban neighborhoods
where change is measurable, and circumstances that are very different from San
Francisco to be applicable. In other words,
the experience of a suburban neighborhood in the Midwest doesn’t apply to
the second most densely populated city
in America. The fate of regional malls in
towns with a single Main Street shopping
area doesn’t relate to San Francisco which
boasts the most vibrant downtown in America with more than 30 identifiable neighborhood commercial districts. Rents in small
towns, vacancy rates in regional malls, and
the experience of retailers who follow rather than lead their respective industries are
not especially helpful in mapping programs
which are likely to benefit San Francisco.
Rene Frojo in the San Francisco Business
Times (January 3 – 9, 2014)summarizes the
pending proposals as follows:
• To expand the definition of Formula
Retail to apply to businesses with
11 or more outlets worldwide.
• To expand the definition of Formula
Retail to apply to subsidiaries of those
considered chain stores.
• To require proposed Formula Retailers
to conduct a study on the economic
impact of other retailers.
• To create a Third Street Restricted Use
District, requiring chain stores to seek a
conditional use permit.
• To require the definition of chainowned food trucks in the public rightof-way to be widened to include “affiliates” of Formula Retail restaurants.
• To create a Fillmore and Divisadero
neighborhood commercial district that
would require chain stores to file for
conditional use permits.
• To expand controls to adult entertainment stores, tourist hotels and gas
stations.
About the Author
Carol Gilbert, President and CEO of CBI.
CGI is a full service real estate brokerage
specializing in the leasing and sale of restaurants, specialty food concepts and numerous retail categories.
Market Street Place
© 2014 Krystal Grubb, Gensler and Jennifer Fink, Gensler
San Francisco’s mid-market neighborhood is in the midst of an
unprecedented amount of redevelopment. New housing, entertainment venues and tech firms are springing up from Fifth
to Eleventh streets and are dramatically altering the landscape.
We’re already seeing the effects with the addition of companies like Twitter and Dolby Laboratories, and restaurants such
as Dottie’s True Blue Café and Pearl’s Deluxe Burgers. In the
fall of 2012 the American Conservatory Theater announced they
will be restoring the historic Strand Theatre on Market between
Seventh and Eighth streets, a building that is almost 100 years
old and has been blighted for years. With this type of mixed
use the neighborhood is becoming a vibrant area that will be
bustling day and night.
Another new addition will be Market Street Place, six story,
250,000 square foot vertical retail building to be located at
Fifth and Market Streets, in the heart of the mid-market neighborhood. Real estate firm Cypress Equities and Private Equity
firm Carlyle Group closed the deal to realize the Market Street
project in 2012, recognizing the area’s potential for success. Designed to house a variety of lifestyle tenants such as retailers
and restaurants, the building aims to be more than simply a mall
in the downtown shopping district, but a place that will further
energize and support mid-market businesses, the arts and residential communities.
Unlike a suburban mall which depends on internal common
areas to be the lifeblood, this urban vertical retail center will
become one with the street, and its all-glass façade will give
(continues on page 12)
5
(continued from page 3)
The search for inaugural tenants focused on finding entrepreneurs with
the creative chops to bring something
special to the project. The initial analysis concentrated on identifying businesses that could sustain themselves
with the customer base composed of
nearby residents, with the potential for
developing destination traffic before
the transit windfall kicks in. Personal
services and neighborhood retail fit
the bill. These businesses can provide
immediate benefits, and have the potential to adapt and transition with the
market as the neighborhood blossoms.
A broad search through commercial
marketing networks combined with
grassroots outreach to local businesses
uncovered a variety of candidates.
Infrastructure for a corner café was included as part of the cold shell buildout. This paved the way for attracting
a restaurant that could serve neighbors
and draw interest from the larger community. The café that ultimately leased
the space built clientele at its first restaurant through social media and word
of mouth. Eschewing signage, the
business experienced overwhelming
demand by customers who sought the
cool factor of finding a spot that was off
the grid to most of the public. The temporary isolation of Station Center suits
this business model perfectly, and the
restaurant will also benefit when pedestrian traffic increases.
Taking a hands-on approach to supporting these small businesses through
planning and then implementing their
vision is not for the faint of heart. It
takes specialized resources and commitment, and the ultimate reward is
successfully planting the seeds of a
new neighborhood.
About the Author
Kim Edmonds Frentz,
President and CEO
of Ventura Partners.
Ventura Partners provides
professional development
consulting and property management
services. offering comprehensive support to
property owners and tenants.
6
Current Trends in Retail Across
North America
© 2013 Faith Hope Consolo
Chairman, The Retail Group
Douglas Elliman Real Estate
NYCREW Network
AREW
The Chairman of the Retail Group of
Douglas Elliman Real Estate, Faith Hope
Consolo has achieved worldwide renown
as a dealmaker, consultant and re-maker
of retail districts, working with some of
the most famous names in retail and
fashion. She also is known as a longtime
supporter of women in real estate, working
with organizations including CREW,
NYCREW, AREW and YM/WREA, and as a
philanthropist through her Real Estate Has
a Heart Foundation.
Urbi et Orbi (The City and The World): The
phrase is not just the theme of an annual
speech from the Pope, but also summarizes
what’s taking place in retail across North
America: urbanization and globalization.
After decades of suburban malls and
neighborhood centers dominating retail
site selection, our city streets are once
again becoming favored locations. And
retailers looking at those sites come as
never before from around the world, in a
variety of rapidly expanding categories.
The urbanization of North American retail is
due in no small part to the near-cessation of
new shopping center development during
the most recent downturn. With credit at a
standstill, developers in the United States
were unable to refinance projects that
were already up and operating, let alone
obtain funds for new projects. This may
not necessarily have been a bad thing –
according to the International Council of
Shopping Centers, the United States has
23.1 square feet of retail space per capita,
some 7 billion square feet of shopping!
The lack of new construction left existing
space ready for new retailers to take
quickly. In Canada, urbanization has always
been a trend, particularly as so much of the
population is clustered along the border
with the United States.
In addition, the U.S. economy left many
customers unwilling or unable to shop
beyond necessities. Supermarkets and drug
stores continued to expand, and do well
throughout the period. Meanwhile, luxury
shoppers returned to the stores rapidly –
the very affluent simply aren’t affected as
badly during any recessionary period. So
it wasn’t surprising that as the recovery
began, the sectors that bounced back first
were the discount stores (particularly the
dollar stores) and the luxury market.
This is a major factor in expansion patterns
around the country, encouraging growth in
and near cities.
Dollar stores and discounters rely on
volume, and urban areas have the density
of population needed for them to succeed.
(In addition, many had already saturated
the most convenient suburban locations.)
On the other side of the spectrum, luxury
retailers by nature tend to locate in urban
locations first, particularly if they are coming
from abroad, where they generally operate
on High Streets. Thus, we saw an influx of
new stores coming to Madison Avenue,
Michigan Avenue, Rodeo Drive and more,
all taking advantage of a temporary drop
in asking rents to secure prime locations.
But this trend was, and is, not just limited
to luxury stores. Fifth Avenue in New York
City, one of the most famous and expensive
retail streets in the world, has been seeing
an influx of more moderately priced
chains seeking to establish themselves as
international brands. It is indeed a street
where Armani is across the street from
Hollister, where Cartier and Uniqlo coexist, where H&M can meet H. Stern.
But there is another major reason why
retailers are seeking urban locations:
According to the most recent census, just
over 80 percent of Americans live in or
near urban areas. Retailers are returning to
the cities because that’s where the people
are! This is in fact a global trend, so expect
Main Streets, High Streets and vertical
downtown malls (commonplace in other
parts of the world, less so in North America)
to remain most-favored-locations.
The downturn also boosted an already
existing trend toward globalization. Once
again, luxury led the way, as newcomers
sought to establish themselves as major
Yes, there are new shops for mom,
particularly in the beauty sector. M.A.C.
continues to expand in all locations,
including one of the most expensive leases
ever – a reported $3,000 per square foot
on Fifth Avenue! Aesop, mentioned earlier,
also is finding new locations, as is Bond No.
9, which offers fragrances inspired by New
York City neighborhoods. Also keep an eye
on Lush and L’Occitane en Provence.
players. We saw U.S. entrants from Europe
(Sandro, Maje, AllSaints, Topshop,
Ted Baker, Marimekko, de Grisogono)
India (Kimaya), South America (Nancy
Gonzalez), Australia (Aesop) – and from
neighboring Canada (Joe Fresh, lululemon
athletica and the expansion of Aritzia).
This is not just a phenomenon in the
largest major markets such as New York,
Los Angeles, and Chicago. Those cities
have always been very oriented around
High Street retail, and see retailers looking
to establish themselves as international
brands. Once they’ve done so, they then
open locations in top malls. A case in point
is Uniqlo, which opened a 90,000-squarefoot flagship in New York City to great
fanfare, taking the most expensive retail
lease in the city’s history -- $300 million
for 15 years! Since then, Uniqlo has
announced plans to open in Palisades
Mall in West Nyack, N.Y., and Ridge Hill
in Yonkers, N.Y., in addition to an existing
location in Paramus, N.J.
continued to increase its store count around
the United States. Today, we’re seeing new
and expanding haberdashers at all price
points, including luxury offerings from
Lanvin, Berluti and Dior, among others,
and moderate-priced retailers such as
Men’s Wearhouse. Hugo Boss is creating
a three-level flagship at the Time Warner
Center in New York City.
Children’s apparel continues to grow as a
specialty store sector, with entrants from
around the world, including MonnaLisa
from Italy, Caramel Baby & Child from the
United Kingdom, and My Little Sunshine
from the United States. MonnaLisa already
has begun expanding to other Main Street
locations around the United States, and
look for the others to do the same.
In addition, look for more Internet-based
retailers to test physical stores – it seems
bricks really are needed in addition to
clicks! Microsoft is growing its store count
around the country, and Gap is testing a
store for its Piperlime e-commerce site.
Other Internet-based shops have popped
up, and will continue to do so as they learn
the very different logistics of store-based
retail.
And several individual retailers also
continue to expand around the country.
Value remains important for many
shoppers, and Family Dollar, which plans
some 500 new stores this year, is certainly
working hard to accommodate them. Five
Below plans 100 stores this year.
The result: rents that now exceed pre2007 levels in major coastal cities and an
increasingly diverse retail. As the recovery
takes hold even in the most-affected
parts of the nation, expect both trends to
continue and expand around the country.
And, thus, from the city to the world!
Another truism is that retail tends to expand
in packs, with certain categories seeming
to explode at once. Fitness and healthrelated chains certainly are continuing to
grow – in addition to the yoga-inspired
lululemon, The Gap has launched Athleta,
which sells fitness apparel at a slightly
lower price point. Both of these retailers
are locating in both better malls and in
urban locations.
Whether it’s because of the popularity of
“Mad Men,” or a historical tendency to
dress more conservatively in a cautious
economy, but menswear retailers are
expanding everywhere! Even during the
depth of the downturn, Jos. A. Bank
7
RESTAURANT
REPORT
Crystal Jade
© 2014 Miriam Montesinos,
Pelosi Law Group
It used to be that going to dinner in the
Financial District was something you did
only if you worked late. More recently,
though, downtown has become a “dinner destination” due to the growing
trend of top-notch restaurants opening
in the neighborhood. In Spring 2014, the
options for exceptional food will get even
better due to the opening of internationally acclaimed Crystal Jade at the Embarcadero Center.
Crystal Jade is an award-winning, upscale Singapore-based restaurant brand
that provides authentic Cantonese and
Shanghai cuisine. The San Francisco location will be the company’s first restaurant
outside of Asia. Well-known local restaurateur Gus Murad (Medjool) has partnered with the company in its foray into
the U.S. market.
According to Crystal Jade Culinary Concept Holdings Chairman and CEO Yiutung Ip, the company selected San Francisco because it is a vibrant city accepting
of different cultures. They decided to locate in the Embarcadero Center specifically because of its accessibility and the
spectacular views.
The space, located at the second level of
4 Embarcadero Center, will feature a sophisticated-level dining concept serving
Jiang Nan and Cantonese cuisine, and
Singapore specialties at a to-go counter,
unlike other Crystal Jade locations.
Although located on the second level,
the restaurant will have an entrance at
the street level. A grand stairway will lead
to the upstairs restaurant, which will have
16,000 square feet of interior space and a
4,000-square-foot outdoor area shielded
by a transparent, removable roof. Approximately 30% of the interior floor space will be
dedicated to the kitchen, which will be air
conditioned and partially visible to customers. The motivation behind such a large, air
conditioned kitchen is Mr. Ip’s dedication to
ensuring that his employees are comfortable while working and food remains fresh,
8
as well as to providing ample room for the
different functions: interior dining (main
area and private space), bar, outdoor seating, catering, and “to go” counter.
the Bay Area. Once the Embarcadero
Center location is operating, Crystal Jade
hopes to work with local brokers to find
locations for its casual dining concepts.
Recognizing San Francisco’s commitment
to healthy eating, the restaurant will feature natural, fresh produce, meats and
seafood, many of which will be sourced
from local farms.
About the Author
The Embarcadero Center location is the
first phase of what promises to be a long
relationship between Crystal Jade and
Miriam Montesinos is
Of Counsel at the Pelosi
Law Group, a boutique law
practice with a focus on
land use and real estate.
Pioneer Retail in Emerging
Mid-Market Neighborhood
© 2014 Tiffany Avila, BNBuilders
Mid-Market has experienced an exciting burgeoning over the
past year, with real estate development, office construction,
jobs, and residential housing – making it a new 24/7 neighborhood in San Francisco. The development of Mid-Market also
includes pioneering local retailers who see an opportunity to be
part of a transitional time for the city.
1355 Market Street, also known as the Twitter building, is a prime
destination for new retail in San Francisco. Market Square has
approximately 62,000 square feet of street-level retail, and all
the space is currently leased except for one location in the commons area. The retail tenants include The Market, Bon Marche,
First Republic Bank, Walgreens, and Cadillac Bar and Grill.
The Market will be a 22,000 square foot food emporium, ten
times the size of its sister grocery store Small Foods in SoMa.
Similar to Whole Foods, The Market will offer destinations
within the destination, including a local coffee roastery, bakery,
salad bar, sushi bar, wine bar and pizza bar, catering to the local
Tweeps, tourists and residents. It is scheduled for completion in
the fall of 2014.
BNBuilders repurposed. The retail space also features another
iconic element-exposed massive concrete columns.
The team behind the visionary new locale at Market Square
is: Shorenstein Realty Services, the developer; BNBuilders,
the local general contractor; BCV Architects, the designer for
the interior build-outs; and RMW, as core and shell architects.
BNBuilders completed the historic renovation and seismic upgrades, and most recently the retail shell build-out, including
the lobby renovation.
Restoring 1355 Market Street preserved the iconic architecture,
while integrating modernizations and technical advancements
to create a progressive new space. The showpiece of the project will be the addition of the invigorating retailers and the conversion of Stevenson Street into a vibrant, beautiful promenade
lined with retail shops, restaurants, and gathering places. The
landscaped plaza will enhance the connection to both Market
Square buildings and create a cohesive urban campus for its
tenants and a new destination for its local community.
The renovation transformed the existing dark space into a
ground floor, light-filled, open community. Used throughout the
interior is reclaimed wood, from the roof of the building, which
About the Author
Tiffany Avila, Director of Marketing at BNBuilders, a local general contractor that specializes in highly technical construction projects.
9
What is in
a Brand?
© 2014 Michelle Jones, RIM Architects
Image. Identity. Design. These are all key elements of a brand.
Commercial Real Estate Women San Francisco
Hundreds of professionals with a
limitless supply of talent, motivation,
and spirit ready to make it happen.
Are you ready?
A strong brand is based on delivering a message clearly and connecting to customers emotionally while creating credibility. The
need for a successful brand is invaluable as the competition for
customers intensifies every day.
A brand can be expressed in various aspects of a retail environment. Graphics, architectural treatment, packaging and product
design and customer service all contribute to a brand’s successful
message. These factors, when packaged together cohesively, will
sell a brand and create the impact retailers need to be successful
in today’s competitive environment.
Visit our website to view upcoming events.
JOIN
T O D AY
|
W W W. C R E W S F. O R G
Technology has changed the way we buy today. Online retailing
has evolved dramatically, making purchasing as easy as the click of
the button. Therefore, today’s physical retail environments need
to respond to this evolution by engaging the customers to keep
them returning to the store. Today’s retail store needs to sell the
experience, not the product.
Many formula retailers (formula retailers = national brands) will
focus simply on location, traffic, and visibility to determine viability of a successful location and space. Small business local
retailers, though, have the larger challenge and opportunity.
Many districts in San Francisco frown upon formula retailers,
Technology can’t sell a brand on its own . . . well, even Apple knows
understanding the need to create and support local busi-
this, right? Brick and mortar stores become showrooms and provide
nesses and show cultural diversity associated with this region.
the opportunity for customers to experience the products.
Creating opportunities for local retailers to establish their own
Branding and architecture need to “tell the story” as an integrated delivery. This “sets the stage” for the experience. Once the
stage is set, the products delivered with refined customer service
become “the Act” to complete the production. It is time for retail-
identity and brand will create an environment of innovation
that supports the vision of San Francisco planning. Therefore,
additional support to create a vision of “image, identity and
design” for potential retail space is necessary.
ers to create an engaging and memorable experience as a testa-
Visual tools assist with creating potential vision of selling spaces.
ment to their attention to detail and commitment to delivering
Depending on the client’s sophistication, three-dimensional im-
exceptional shopping experiences.
ages versus two-dimensional (floor plans) are great selling tools.
Spaces in San Francisco are optimal for creating the environments
The following is a case study of a new retail rollout that lies
to tell and sell “the story” and create a showroom for experienc-
between the concept of formula and local retailing. This is an
ing retail products. The influx of residents focused on lifestyle in
example of a new brand that will site-adapt to its locale, incor-
San Francisco further supports the need to create retail spaces
porating the region’s environment and lifestyle. The intent is to
that draw in the customers and give them an interactive space in
communicate the importance of branding, interior architecture
which to engage. That said, selling this concept of opportunity
and the final component of customer service, which is depen-
and vision associated with raw or existing commercial space is a
dent upon the operator. These elements combined cohesively
challenge we also face in the commercial real estate sector.
create the success of a retail brand.
10
CASE STUDY EAST GOURMET MARKET
This new rollout is based on a hypothetical space of approximately 10,000 square feet of main floor space and 4,000 square
feet of mezzanine area.
Description of the East Gourmet Market Concept
The East Gourmet Market is conceived to be an upscale Asian
gourmet market which is dramatically different from anything
currently in the U.S. market. East will provide top quality Asian
foods, supplies, and housewares from a variety of Asian countries. What sets EAST apart from the competition is:
• Rarity and variety of merchandise
• A fun and unique merchandise presentation
(a contemporary, state-of-the-art shopping experience)
• Cleanliness
• Exceptional service featuring personal chefs and/or shoppers
• Affordable price point
• Convenience
• Integrated marketing between prepared food,
package food, fresh produce, and service
• Provide an Asian fusion experience
Target Customers
Local foodies, working professionals, Asian affluent residents,
chefs, executive offices, tourists
Main Features of the East Concept
Creative aesthetics. This concept provides a store that is contemporary, stylish, and exotic. The overall store design presents contemporary clean lines and smart detailing. Overlaying the basic store design are exotic visions of Asia which are
provided by wood and stone carvings from various counties
along the high perimeter walls. The detailing of the column
wraps, the retail fixtures, merchandising, and the floor material selections all contribute to a sophisticated expression of
Asian esthetics.
When approaching the store, the customer immediately views
a Candi Bentar, which is a Balinese entrance carving. By passing through the entrance, the customer is transported into another world, making East a very unique shopping experience
The East Gourmet Market branding is an integrated program
designed to capture the attention of the public and create a
positive brand identity and customer loyalty. The East graphic
is clean and simple, depicting a distinct Asian influence. Store
signage, product labels, uniforms, shopping bags, and cookbooks will all be incorporated into a single brand identity.
As part of this branding approach, there are four main foods
that are common to all Asian cultures. They are spice, rice,
noodles, and tea. A private label, Elements, distinctly identifies each of these four groups and provides the customer with
instant recognition of the product. The Elements graphics are
clean and fresh and work with the overall branding concept of
East Gourmet Market.
Overall Food Concept
The overall food concept is based on an integrated strategy
of providing prepared dishes of Asia that utilize the packaged
foods and spices which are sold in the store. In addition, East
will provide exemplary customer service and education to teach
the customer about the best recipes and techniques to achieve
outstanding results. Also offered are housewares (plates, placemats, pots, etc.), fresh produce, and flowers to allow the customer to achieve Asian cooking with spectacular results. All aspects of the concept work in harmony and give the customer a
coordinated and unequalled shopping experience.
RIM Architects is an Architectural and Interior Design firm
with offices in San Francisco, Hawaii, Alaska, and the Micronesian Islands. Additional retail highlights can be viewed at
www.rimarchitects.com.
About the Author
Michelle Jones, AIA, NCARB, LEED AP BD+C is the
Managing Principal of RIM Architects San Francisco,
California office.
Branding
11
(continued from page 4)
most tenants a storefront presence. The
atrium lobby is designed as a vertical extension of Market Street, with storefronts
open to the atrium at all levels. The
building’s unique geographical setting
gives long views down Mason Street, and
will be a welcoming, luminous presence
at night. Stevenson Street, the alley behind Market Street Place, will serve as the
primary access for customer parking and
service access, but will also have three
to four “micro” retail tenants as well as
landscaping and paving upgrades. The
size of the retail spaces along the alley
are similar in size to the stalls at the Ferry
Building, and are well suited to accommodate vendors such as a coffee or flower stand, bringing activity to the street.
The building’s central design goal is
flexibility. Nestled next to Union Square
and down the street from Twitter and
5M, the project has felt the shifts of San
Francisco’s booming technology and retail economies. The original design with
roots dating back to 2005 was based in
retail with potential housing. Now the
space is designed for maximum retail
flexibility. Market Street Place features
a vertical atrium within a space that can
hold an anchor tenant on the ground or
top floor, contain many smaller retailers,
while also accommodating restaurants,
and possibly a grocery store. The unique
design “takes the traditional retail mall
and turns it on its side,” says Geno Yun,
Design Director at Gensler in San Francisco. “Retailers want visibility, and with
this approach it’s all about the connection with the street. And with floor plates
that are as large as 42,000 square feet, it
is an uncommon offering in this part of
the city.”
It’s an exciting time for San Francisco. The
city is changing at a pace not seen since
after the 1906 earthquake, and the mid
market neighborhood, which has been
badly in need of an urban renaissance for
decades, is poised for reinvention and
revitalization. Market Street Place will be
one of many new projects designed to
delight locals and visitors alike.
About the Authors
MEMBER
NEWS
Congratulations
Tracy Everwine
Tracy Everwine, CREW San
Francisco member, has been
appointed the Executive Director of San Francisco’s
Central Market Community Benefit District
(CMCBD). The 98 acre CMCBD oversees strategic Central Market neighborhood initiatives
with the goals of: increasing pedestrian activity, strengthening existing small businesses
and cultural institutions, attracting new invest-
Krystal Grubb is a designer in the architecture studio at Gensler in San Francisco.
ment, and enhancing the public rights-of-way
for people of all incomes, ethnicities and ages,
including residents, businesses and property
owners, workers and visitors to the area.
Jennifer Fink is the Northwest Public Relations Manager for Gensler in San
Francisco.
Prior to joining CMCBD, Tracy soent eight
years with economic development non-profit
Urban Solutions. She has worked in the Central Market are since 2005, implementing
economic development programming for
the former San Francisco Redevelopment
Agency and Mayor’s Office of Economic and
Workforce Development with a focus on the
6th Street corridor and the Tenderloin.
Tracy served on the CREW San Francisco’s
Membership Committee 2008-2012 and
regularly participates in CREW Careers. In
2008 she and Urban Solutions were awarded a CREW National Impact Award for their
pioneering economic development work on
Sixth Street commercial retail.
Tracy is a certified Economic Development Finance Professional and a licensed real estate
broker. Tracy is an active member of SPUR, ULI
and CREW San Francisco.
12
1
2
3
CREW SF and
the America’s Cup
Spectacular Racing and Networking
CREW SF hosted an extraordinary afternoon for members, clients and sponsors, while viewing the “Holy Grail of Yachting”
on San Francisco Bay—The America’s Cup. From the appropriately-named BayView Room at McCormick and Kuleto’s, we
had expansive views of the race. A large screen enabled experienced sailor Jack Griffin of Cup Experience to enlighten us
with the history of the Cup, the technology of the yachts, the
tactics to watch, and the personalities of this America’s Cup.
The San Francisco waterfront was abuzz all summer and fall with
the America’s Cup races and its myriad of associated activities.
CREW SF was able to bring 90 participants front and center
with the Louis Vuitton Race, a semi-final race between Artemis
Racing (Sweden) and Luna Rossa Challenge (Italy), in comfort
and style. Luna Rossa won the race that day, eliminating Artemis Racing after four rounds. We were able to see these boats
hydrofoil and tack, while sailing to the Golden Gate Bridge and
back to the finish line. This event sold out a month in advance,
drawing many CREW SF members and clients, as well as East
Bay and Silicon Valley members, providing a spectacular afternoon of professional yacht racing and networking for all.
About the Author
Melissa Holmes principal/ owner of Holmes &
Associates spearheads Real Estate Development
Project throughout California. Her firm coordinates
Development Strategies, Entitlement Processing,
Urban Design, and Community Outreach efforts.
1. Kimberly Huangfu at Buchalter Nemer
2. Stephanie Ashton of ABM Janitorial Services
3. Lisa Blossom of Gensler and Michelle Jones of RIM
Architects
4. Melissa Holmes of Holmes & Associates and Debra Leifer
of Page and Turnball
5. Helen Duong of Boston Properties and Gary Nichols of
Nichols Booth & Associates
6. View from the window at McCormick and Kuleto’s
4
5
6
13
Understanding the New Laws Governing California
Condominiums and Common Interest Developments
© 2014 Stacie Goeddel
On January 1, 2014, the long-awaited reorganization of the laws governing California condominiums and other common
interest developments went into effect.
The existing Davis-Stirling Common Interest Development Act, originally implemented in 1986 (the “Davis-Stirling Act”),
has been revised to clarify and simplify
certain provisions, and (ii) a new act governing only commercial developments
has been established as the Commercial
and Industrial Common Interest Development Act (the “Commercial Act”). The
changes to the Davis-Stirling Act and
the creation of the Commercial Act have
been made largely to reorganize the existing laws governing common interest
developments to make such laws easier
to understand and use. However, there
are a number of new provisions that developers, boards of directors and managers should consider in implementing and
operating residential, commercial and
mixed-use common interest developments.
Commercial vs. Residential. The Commercial Act has been established separate
from the Davis-Stirling Act to clarify the
law applicable to commercial common
interest developments. Prior to the Commercial Act, both commercial and residential common interest developments
were governed by the Davis-Stirling Act,
which was confusing for developers, associations, managers and owners. Over
time, new provisions were added to the
former Davis-Stirling Act with the intent
to protect individual homeowners, inadvertently subjecting commercial developments to unnecessarily complicated consumer protection laws.
Effect and Implementation of New
Laws. The revised Davis-Stirling Act and
the new Commercial Act each expressly
provide that any documents prepared or
actions taken prior to January 1, 2014 are
not invalidated by the new law. To update
existing governing documents, each act
authorizes the board of the association to
amend existing governing documents to
correct references to the applicable law
without member approval. Updated dec-
14
larations may be recorded in the public
records also without member approval.
Davis-Stirling Act: Residential Common
Interest Developments. The changes to
the Davis-Stirling Act have been made
largely to reorganize the existing laws to
group related provisions together or to
simplify certain provisions; however, certain changes add new requirements and
procedures.
Certain provisions have been changed to
add clarity to the Davis-Stirling Act, such
as including the procedures for amending a declaration all in one section, or to
modernize the act, such as allowing the
association to provide notices to members by “general notice”, which can include notice through email transmission,
newsletters or certain broadcast media.
Other changes to the Davis-Stirling Act
serve to expand association duties. The
provisions regarding association financial
disclosures have been reformulated to include distribution of two specific reports,
an Annual Budget Report, comprised of
the budget and other financial data for
the association, and an Annual Policy
Statement regarding specific association
matters, such as owner notices, assessment collection policies and lien enforcement procedures. In addition, the revisions to the act now expressly require that
owners are to receive notice for all board
meetings, even annual meetings held at
regular intervals.
The New Commercial Act: Commercial
Common Interest Developments. The
new Commercial Act defines commercial
common interest developments as those
developments limited to industrial or
commercial uses by law or by a recorded
declaration. Commercial common interest developments can include small retail
centers, office parks and large mixed-use
projects containing retail, industrial and
office developments.
Many of the provisions included within
the Commercial Act are identical to the
revised Davis-Stirling Act and the two
acts are similarly organized; however,
many provisions of the Davis-Stirling Act
intended to protect individual homeowners have not been included in the new
Commercial Act. As such, there are no
requirements regarding preparation or
distribution of an association budget or
other financial statements to members,
although those associations subject to
corporate law may still have disclosure
requirements, and there are no limits on
increases in assessments. Owners within
a commercial development do not need
to be notified of or have the opportunity
to attend association board meeting and
have fewer rights than residential owners
in lien enforcement and collection efforts.
In certain instances, the Commercial Act
has been drafted to expand laws applicable to commercial developments. There
are now specific procedures established to
amend a commercial development declaration and the required minimum coverage amount for liability insurance for commercial developments has been increased.
Conclusion. The creation of the Commercial Act clarifies that the Davis-Stirling
Act is intended to govern residential developments and protect the interests of
individual homeowners. By definition,
the Commercial Act applies only to those
common interest developments that are
limited to commercial and industrial use
and those laws governing such commercial developments have been clarified.
For any common interest development
that includes residential and commercial
use, the revised Davis-Stirling Act continues to apply to the residential portion of
the development, but it may be beneficial
to establish the commercial portion under
the Commercial Act; however, a good understanding of both the Davis-Stirling Act
and the Commercial Act is necessary in
order to effectively create such separate
ownership regimes.
About the Author
Stacie Goeddel is a
real estate partner at
Holland & Knight LLP and
concentrates in the areas of
development, hospitality and finance with a
specialty in urban in-fill and resort mixeduse developments.
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