A Brand Renew Day

How to Reposition a Building to Meet Changing Expectations

November 18, 2019

Senior Associate / Commercial Market Director, NBBJ

Editor’s Note: An extended version of this post, co-authored by David Yuan, Robert Mankin and Chris Beza, was first published in NAIOP’s Development magazine.

 

As buildings age, they often need to be renewed to remain competitive at attracting or retaining tenants, employees or residents. The scope of a renewal can vary widely from building to building, but keeping a few important factors in mind can position a building for continued success for years to come.

 

The building’s established brand
Every building has an existing position in the marketplace, and the most successful renewals build on that. A contemporary intervention in a classic midcentury building, for instance, might feel foreign to that building’s character. For instance, the renewal of 177 Huntington, an I. M. Pei-designed landmark in Boston, focused on activating the lobby with new furnishings, finishes and a cafe, rather than alterations to the building’s bold architectural character. Something radically different can work under the right circumstances, but it has to be intentional. (Photo: 177 Huntington Avenue, Boston, MA © Christian Phillips)

 

The building’s existing condition
In addition to structural or mechanical upgrades, renewing an older building may require the remediation of hazardous materials like asbestos, lead or PCBs. Sometimes the cost of renewing a building to meet the needs of the market exceeds the cost of demolition and new construction — in which case, it makes more sense to start over. At the same time, older buildings often have historic texture or cultural importance that many tenants value and is worth preserving. (Photo: Maritime Building, Seattle, WA © Sean Airhart/NBBJ)

 

Your company’s business model and brand
For core real estate investments whose goals are to provide a steady income stream, it would not make sense to invest in a major overhaul. Value-add or opportunistic investments, however, acquire a building for the express purpose of making a significant investment and increasing its value. Also, keep in mind your company’s brand vision for the look and feel of a renewal project — are your properties edgy and creative, or subtle and sophisticated? This also extends to corporate workplaces — how can a renewed building better connect employees to the company’s brand and mission? (Photo: 407 North Maple Drive, Beverly Hills, CA © Sean Airhart/NBBJ)

 

Your desired tenants
Although nearly every tenant expects more amenities, the exact mix and appearance of amenities that appeals to potential tenants may vary. For instance, the recent renewal of Two Union Square in Seattle created public spaces that perform many of the same functions as a tech workplace — with areas for serendipitous interaction and impromptu gathering — but with a more sophisticated look and feel that is true to the building’s brand and position in the market. As a result, the space appeals to a variety of tenants, from brokerage firms like JLL, to tech firms like Apple. (Photo: Two Union Square, Seattle, WA © Kevin Scott/@K7Scott)

 

Your existing tenants
It’s difficult to renovate a building while it’s occupied, so it’s essential to align tenants’ expectations regarding the extent and duration of any disruptions. Communication is key. Many owners will deliver presentations to tenants nearing the end of their leases to show why the renovation makes it worthwhile to stay. Some tenants at 1201 Third Avenue in Seattle, for instance, initially disapproved of the contemporary aesthetic of the renewed lobby, until they understood the benefits of a more open building with new amenities. (Photo: 1201 Third Avenue, Seattle, WA © Sean Airhart/NBBJ)

 

The urban context
The ground floor — and even some of the floors above — can function as a hub for the surrounding neighborhood. Is a property near a hotel, a convention center, an entertainment district, or other offices? Think about how it can contribute to the life of those surrounding uses, perhaps in its retail mix, food and beverage, coworking space or a public plaza where people can congregate. (Photo: 85 Broad Street, New York, NY © Sean Airhart/NBBJ)

 

Programming
Typically a renewal is considered in only three dimensions, but there’s a fourth dimension too: time. Some landlords are even beginning to hire coordinators who program amenity areas with events, whether for tenants only or the public at large. “Experience design” and environmental graphics — encompassing murals and public art, music, VR and augmented reality and more — can also attract tenants and visitors. Think about how a space can change throughout the day or month or year, and provide reasons for people to visit again and again with special events, popups or interactive spaces. (Photo: Confidential Biotech Company, Cambridge, MA © Peter Vanderwarker)

 

As architects, what excites us most about this shift is that physical space, increasingly, is considered not as overhead but as an asset. Physical space helps employees work smarter, more creatively and more healthily. It generates revenue and brand vision for retailers. It helps residents live fuller lives. And the most successful renewals will be those that enable people to meet these changing expectations for work and life.

Banner image courtesy Umanoide/Unsplash.

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