Urban Grocers

More and more, major grocers are finding ways to open stores in urban neighborhoods, but it isn’t easy. As noted during the “Developing Walkable Urban Groceries in Mixed-Use Environments” session at ULI’s 2011 Fall Meeting in Los Angeles last month, getting the design of a grocery store right while simultaneously accommodating residential units on the site is particularly daunting.

Major grocers are increasingly finding ways to open stores in urban neighborhoods (see the following article in the May 2011 issue of Urban Land: “Grocery Wars”), but it isn’t easy. As noted during the “Developing Walkable Urban Groceries in Mixed-Use Environments” session at the Urban Land Institute’s 2011 Fall Meeting in Los Angeles last month, getting the design of a grocery store right while accommodating residential units on the site at the same time is particularly daunting.

This session was moderated by Neal Payton, principal at Torti Gallas and Partners, which has significant experience designing mixed-use urban grocery projects. It featured John Given, principal of the CIM Group, a developer of mixed-use urban grocery projects, and Donald Wright, senior vice president of real estate and engineering for Safeway. The group brought considerable development, design, and practical advice for those considering developing an urban grocery store as part of a mixed-use project.

The following is a range of the highlights and takeaway lessons from the session.

1. Mixed-use expertise. Mixed-use developers typically are either residential developers who add retail or retail developers who add residential. They specialize in one, but the secondary use often suffers. With urban grocery stores in mixed-use buildings, this imbalance will not suffice. One must have a development team who is well versed in each.

Sam Newberg is an urbanist, real estate consultant, writer, and founder and president of Joe Urban, Inc., based in Minneapolis.
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