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Disruption in Real Estate and Innovative Solutions

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Why grocery stores and why Phoenix?

So what does learning about Phoenix and the history of the grocery store have to do with real estate disruption?  During the economic downturn, the real estate nationwide was greatly affected.  In Phoenix, not only did it have a hard it on the residential market (graphs below), but also in the retail market.

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In the 2008 economic downturn, in Arizona’s retail market that was affected, the grocer market was hit the hardest.  In addition, many grocery chains had to also battle tough competition.  While sprawl in Phoenix still continues, many big box stores (like Walmart) continue to expand, providing a convenience to residents for the “one stop shop” appeal at a discounted rate.  This takes away customers from grocery stores and into these big box stores instead.

With these factors, many grocery chains were forced to shut down.  By January 2012, 4 major grocery chains (Fry’s, Safeway, Bashas’, and Albertson’s) had lost more than 10 stores each.[/vc_column_text][vc_gallery interval=”3″ images=”9532,9533″ img_size=”1200 × 674″][/vc_tta_section][vc_tta_section title=”Innovative Solutions: adaptive reuse and community development ” tab_id=”1523673719951-a5a16675-4fba”][vc_column_text]

How innovation helps to create solutions….

While abandoned retail centers and grocery stores may be eye sores to a community, real estate in Phoenix has taken an innovative appropriate to these sites.  With grocery stores, they provide the following appeals:

• Central location
  • This will help not continue the city’s problem of sprawl
  • Lack of undeveloped land as it can be reused and repurposed
• Already existing building/cut down on construction costs

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Innovative Solutions: adaptive reuse

By repurposing these once abandoned grocery stores, they have a large appeal in the variety of uses!  In the Phoenix area, this has ranged from community centers, family entertainment venues, theaters, etc.  Below are some projects within the Phoenix metro area:[/vc_column_text][vc_media_grid item=”mediaGrid_SlideOutCaption” grid_id=”vc_gid:1524169901727-25dfd606bcc3e2193c56383c84ea72c0-3″ include=”9529,9527,9528″][vc_column_text] 

 

Adaptive reuse focus: CREATING SCHOOLS

While the adaptive reuse projects explain above tend to involve private real estate investment, looking further beyond on how these sites can be utilized for a community benefit, we turn to schools. 

 

Why schools though?  What benefits do they bring?

As Phoenix continues to sprawl and population continues to grow, residential and commercial development continue with it.  However, other community necessities need to follow, which include schools.  Being funded by tax dollars, turning existing buildings into schools provides many positive attributes.  Development for these sites to be schools is also appealing because they provide:

• Higher ceilings
  • For a school, this can provide the structure and space if they want to construct a second floor.
• Large existing parking lots
  • Helps cut down on construction costs and can easily convert to recreational spaces, such as basketball courts.
• Surrounding commercial
  • Promotes economic development
    • Ex. Students going to a local coffee shop after school

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