portland business journal | november11, 2011
BUSINESS NEWS FROM THE FOUR-COUNTY REGION
portland.bizjournals.com
Working together is a must
Working for
together
is a must development
for mixed-use development
mixed-use
PORTLAND, OREGON
November 11, 2011
COMMERCIAL REAL ESTATE
l •Try
Try not
not to
to create
create unrealunreal­istic expectations or the
istic expectations or the projproj­ect will never materialize. Stay flexible and be
ect will never materialize.
adaptable
problems
that arise. Recog­nize that
Stay
flexible to
and
be adaptable
willthat
change.
tothings
problems
arise. Recognize•that
things
change.
Listen
andwill
communicate
frequently with the
l Listen
communicate
public
andand
other
stakeholders. Show people why
frequently with the public
the development makes sense by using exam­ples
and other stakeholders. Show
guest
of comparable
success­ful projects. Host commupeople
why the development
column
nity planning
neighborhood
association workmakes
sense by or
using
examples
of and
comparable
successshops
information
forums.
Bryan
ful projects.
Host community
• Some projects
may re­quire elected officials and
Powell
planning or neighborhood
staff to take some criticism in order to bring about
association workshops and
a certain levelinformation
of change. forums.
• Location is critical.
it andmay
theyremay not come.
l SomeBuild
projects
quire
electedtenant
officials
and
to take some
• Examine
mix
in staff
the surround­
ing area before proceeding.
criticism
in order
bring
a certain
• Make sure
you to
have
the about
demograph­
ics to support your project.
level of change.
In other words, building high-end components because you like
l Location is critical. Build it and they
them
does
not guarantee a successful project.
may not
come.
•l Be
sure the
market
each component of what you
Examine
tenant
mixsupports
in the surrounding area
proceeding.
intend
tobefore
build (for
example, if entertainment doesn’t make sense,
l don’t
Makedo
sure
have
the demographthen
it). you
Retail
is often
the catalyst for a successful project
ics to support your project. In other words,
– make sure you get it right.
building high-end components because you
• Security
maynot
be guarantee
an issue and
can be expensive. Consider your
like
them does
a successful
options
project. carefully.
Be sure
the market
supports
•lDeal
with noise
issues up
front –each
the de­sign aspect must be
component
of example,
what you garbage
intend topick-up
build (for
proactive
(for
by noisy trucks is often a
example, if entertainment doesn’t make
problem
in projects with residences).
sense, then don’t do it). Retail is often the
• Find for
ways
to promote
development
patterns that support greatcatalyst
a successful
project
– make sure
er
use
you
getofittransit,
right. walking and biking, and which make good use of
l Security
be an issue and can be
streets
to avoidmay
congestion.
expensive.
Consider
your options
carefully.
• Environmental issues,
sustainable
con­struction and building
l Deal with noise issues up front – the deoperations can be challenging if not handled properly. Promote
sign aspect must be proactive (for example,
LEED
certification
the like,
if available.
garbage
pick-up byor
noisy
trucks
is often a
• Get support
fromwith
the residences).
media early on. By working with an ediproblem
in projects
l Find
promote
development
torial
boardways
or thetolocal
newspaper’s
real estate reporter, you can
patterns
that
support
greater
use
of transit,
educate them in advance and answer
any questions they may have
walking and biking, and which make good
about
your project.
use of streets to avoid congestion.
Mixed-use
development
is usually conmore complicated than a
l Environmental
issues, sustainable
single-use
project,
but given
the rightcan
vision,
struction and
building
operations
be resolve, patience and
challenging
if not such
handled
properly.
good
partnering,
projects
will Promote
thrive over the long term.
LEED certification or the like, if available.
l Get support from the media early on.
Bryan
e. Powell is chair of law firm Lane Powell’s real estate and land use
By working with an editorial board or the
practice
group, where real
he focuses
on mixed-use
local newspaper’s
estate reporter,
you development, private/public
redevelopment
seniorinhousing
projects.
can be reached at 503-778­-2189 or at
can educateand
them
advance
andHeanswer
any questions they may have about your
powellb@lanepowell.com.
l Partner with an experienced team – all project.
Mixed-use
development
more
involved
must
work
towardBusiness
the same
goal. ©2011,
Reprinted for web use with
permission
from
the Portland
Journal.
all rights reserved.
Reprintedis
byusually
Scoop ReprintSource
1-800-767-3263.
Get principals together frequently to dis- complicated than a single-use project, but
cuss the project. Perseverance and good given the right vision, resolve, patience and
development
Mixed-use developmentMixed-use
projects have
proven to beprojects
not only have
ecoproven
to
be
not
only
economically
nomically viable, but also desirable to the residents who liveviable,
there,
but also desirable to the residents who live
the businesses that serve
the resi­
and visitors,
and the
there,
thedents
businesses
that serve
thecomresimunity at large.
dents and visitors, and the community at
large.to grow for places where people can
As the demand continues
As the
demand
continues
to rgrow
for
work, live and entertain within
a safe
and fun
urban envi­
onment,
places
where
people
can
work,
live
and
so will the variety of development projects that create the urban
entertain within a safe and fun urban envineighbor­hood.
ronment, so will the variety of development
A well-planned mixed-use
development
in the
an urban
recprojects
that create
urbansetting
neighborhood.
ognizes that many people
will not walk more than a few blocks
A well-planned
mixed-use
to get to their chosen destination.
Not sur­
prisingly,development
pedestrian
in an urban setting recognizes that many
friendly designs cou­pled with market-driven lifestyle program­
people will not walk more than a few blocks
ming, rather than demographics,
becomes
important.
It’s not
about
to get to their
chosen
destination.
Not
surselling products – it’s about
offering
a new lifestyle.
prisingly,
pedestrian
friendly designs coupled
with market-driven
programImplemented properly,
mixed-use
proj­ects notlifestyle
only fulfill
the
than–demographics,
becomes
planning objectives of ming,
publicrather
agencies
which can streamline
important. It’s not about selling products
approval processes for certain
pet projects – but also benefit own– it’s about offering a new lifestyle.
ers and investors, while satisfying
real market
demands.
Implemented
properly,
mixed-use projHowever, lofty goalsects
and
not­the
withstanding,
today’s
notbenefits
only fulfill
planning objectives
of public
agencies
– which
can streamline
economy makes it difficult
to get
any new
development
out of
approval
foring
certain
petWhat
projects
the ground, let alone one
with processes
many mov­
parts.
can–
but also benefit owners and investors, while
be done to overcome ob­stacles and minimize risks so that a
satisfying real market demands.
project will succeed? Here
are a few
forbenefits
developers
However,
loftythoughts
goals and
notto consider:
withstanding, today’s economy makes it
difficult tomarket
get any
new development
out of
• Analyze and fully understand
readiness
before proceedground,
let alone
one is
with
many
ing. Remember that thethe
market
is fickle.
What
your
proj­emovct’s
ing parts. What can be done to overcome obshelf life? Will it withstand
the test of time? Or is it a fad that will
stacles and minimize risks so that a project
fade down the road? will succeed? Here are a few thoughts for
• Obtaining committed
financial to
involve­
ment from all parties is
developers
consider:
l Analyze
and fully
understand
critical. During a time when
the economy
is weak,
the de­vmarket
eloper,
readiness
proceeding. have
Remember
investors, municipal partners
and before
other stakeholders
to be
that the market is fickle. What is your projwilling to be creative and
compromise. Gaps in financ­ing are not
ect’s shelf life? Will it withstand the test of
uncommon nowadays. time? Or is it a fad that will fade down the
• Delays can often killroad?
a project before it gets out of the ground,
Obtaining committed
financial
involveespecially in any kind of lpublic-private
partnership
deal where
a
ment
from allRe­
parties
critical.
During
lot of public involvement
is required.
memberisthat
the approval
a time when the economy is weak, the deprocess usually takes much
longer than expected.
veloper, investors, municipal partners and
• Partner with an experienced
team – all
involved
must work
other stakeholders
have
to be willing
to be
toward the same goal. Get
principals
frequently
cuss
creative
and together
compromise.
Gaps to
in dis­
financing and
are not
uncommon
nowadays.
the project. Perseverance
good
communication
among the
l Delays
canand
often
kill a project
before it
development team, lenders,
investors
government
personnel
gets out of the ground, especially in any kind
are critical to completing a suc­cessful project.
of public-private partnership deal where a
• Clearly articulate your
and prin­
ciples. Communicate
lot plan
of public
involvement
is required.your
Replan often to en­sure thatmember
both thethat
citythe
andapproval
developer
teamsusually
are all
process
takes much longer than expected.
on the same page.