Great Place | a sexy parking garage where design is the brand

Part of “a great place” – a series of engaging spaces for consideration…and perhaps inspiration for the people who build places everyday. 

“How much design is too much design?” – the on-going challenge in building any product, including places. At the end of the day, development is a business and a major economic driver with employees, suppliers, contractors and yes – a profit requirement.

Bottom-line- New places need to “pencil” and the art is finding the balance of aesthetic design to financial feasibility. On one side- the “finance guys” don’t like risk & cheaper feels so-less-risky. On the other side- the “marketers” like to sell a product that people will actually find interesting & well…boring or ugly is so-less-sell-able.

That said, at times going beyond the known in design creates a powerful brand that people find engaging and value (think Apple). The Result: premium pricing, faster sales and lower promotion costs.

consider 1111 lincoln road

This much-lauded Miami project by Robert Wennett  brings together high-end architecture by Herzog & de Meuron with the lowly parking garage for a mere $65 million (NY times 1/11).

This complete re-imagining of a parking use responds brilliantly to the context of the property. Parking rates here are almost 400% the area average ($4 hour per car) and $12,000 -$15,000 (per event).(NY times 1/11).

design

First a brief recap of the land and the context when acquired in 2005. 

• The developer’s property (59,889 S.F.) outlined in red 
• Existing building with Brutalist architecture to remain.
• South Beach climate is warm, tropical (with storms) and outdoor living oriented.
• Famed pedestrian Lincoln Road outdoor mall almost adjacent to land.
• “Quirky zoning regulations in the city made it profitable to build a large garage.” – (NY Times 1-23-11) 

The model to the right is of an initial possibility. This less costly – concept may have appeared a great, safe answer to a “finance guy” – which would have been a shame.

Enter Herzog & de Meuron. The architects saw an opportunity. They set out to redefine the parking garage experience into more of a “car salon” with shops, bars, event and housing components.

The massing of the garage was increased to match the existing building. The garage is airy and open responding to the climate and in contrast to the existing building, which brings a certain balance to the overall project. While garage height and cost to build increased significantly, the 255 parking spaces allowed did not. The multi-use programming of the project provides additional revenue streams.

Luckily for the developer, the City redeveloped the block of Lincoln Road adjacent to the property into an extension of the Lincoln Road outdoor mall. That obviously added incredible value & facilitated prime retail into the  ground level of both buildings.

brand

Once the decision was made to create a mix-use architectural statement of this caliber and incorporate it into the famed South Beach Lincoln Road lifestyle a brand began to develop of an uber-cool, high-profile international icon capable of attracting high-end leases, selling million+ condos and renting “parking space” for $12-$15K per event. The brand of 1111 Lincoln Road began at the design stage of development.

Promotion. 1111 Lincoln Road garnered international editorial press both online and offline. However the amount of user-generated content online is a huge component of the marketing mix and always focused on design – building the brand of an “uber-cool” design icon. For the truly interesting, social media is powerful.

The developer marketing by TCBC /NY stayed consistent with the brand by visually mimicking the architecture as much as possible and conveying “Modern. Fast. Adaptable. and Sensual.”  Intentionally they built brand equity in 11 11 Lincoln Road that supported all uses -“retail, residential, dining and parking experiences”. 

On the events. While most of the weddings, wine tastings, private parties and corporate events take place on the 7th floor of the garage, Ferrari used the 5th, 6th & 7th beautifully. Note: the 11 11 brand of high design, modern, fast, and sensual is in the same brand personality space as Ferrari – a strong synergy.

Worth a visit: 1111 lincoln road developer website  & HM-2 Pinterest board for more 

So do you love it..or not so much? Weigh in below or catch me on twitter at @HollyHM2. [If you would like an invite to Pinterest let me know below or on twitter – always happy to help ;) ] Coming soon…more on Pinterest – 10 million strong & growing.

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Interested in marketing innovation…  

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consumer confidence trending up…right now

On December 27, 2011, the Conference Board released their latest on Consumer Confidence. The trend over time is what is most telling. How volatile confidence is today is startling.  

2011 started off strong – only to peak in February and then decline through October.  As we head into 2012,  to have any good news on this front is – surprising and we’ll see.  Today, the Index is momentarily climbing.

 After two months of considerable gains, the Consumer Confidence Index is now back to levels seen last spring (April 2011, 66.0). Consumers’ assessment of current business and labor market conditions improved again.

Looking ahead, consumers are more optimistic that business conditions, employment prospects, and their financial situations will continue to get better. While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes.” – Lynn Franco, Director of The Conference Board Consumer Research Center

10 years of consumer confidence

 The graph below provides a perspective using the  U.S. Consumer Confidence Index over the past tumultuous decade.

Some of the major events of the era are noted to illustrate their effects on how people feel.  For example,  when the US experiences a new war,  natural disaster, or other severe crisis, the index gauges the reaction and eventual recovery. What it doesn’t show is how this process changes people and how they process value.

Key Take-away: To early to tell if this is a meaningful trend. Stay tuned.    (click the graphic to enlarge)

 Worth Visiting: The Conference Board

Consumer Confidence – Where are we now?

On September 28, 2011, the Conference Board released their latest on Consumer Confidence. The trend over time is what is most telling. How volatile confidence is today is startling.  

In February  2011, the Consumer Confidence Index reached 72 – a level not seen since First Quarter 2008.  In Southern California, Builders & Developers started the year with feelings of  cautious optimism in terms of neighborhood openings, planning, and land acquisition / land sales.  Then, we started to lose ground quickly .  

To say that “in August Confidence fell off a cliff” would unfortunately

Why people choose their home

Location-Location-Location. Ok -sure, but let’s get more specific.  Recently, the National Building Museum concluded a survey to better understand how people interact with the built environment – your home, neighborhood, and city.

The initiative was called Intelligent Cities and delves into the subject of home choice.  They added a new spin with the opening questions: 

1.   “What were your top two reasons for choosing your current house or apartment?”    followed by  
2. “If you were choosing now, what would your top two reasons be?” 

What they in effect did was ask, during your home shopping experience what made you pick your home. Now that the “bloom is off the rose” and you’ve lived there – what should you have been paying attention to?

That first question speaks of the rational sizzle that home buyers report they fall in love with and what both Builders and Real Estate professionals promote. The second is more along the lines of great real advice for home shoppers to consider. 

 (click to enlarge the graph above)

the top reasons for choosing a home

 #1 Can walk or bike to stuff I like to do. 

June 2011 US Consumer Confidence – falls again…

Yes. In June 2011, the Consumer Confidence Index again gave up some of its previous gains of the past 12 months. Today, the Index is only 8% higher than this time last year. While the consumer malaise certainly continues, the sensationalist current plunge into despair hyped by some in the media, is not evident.

10 years of consumer confidence

As people need to feel confident before investing in large purchases, like new homes, consumer confidence is a topic worthy of discussion.  The graph below provides a perspective using the  U.S. Consumer Confidence Index over the past tumultuous decade. 

Some of the major events of the era are noted to illustrate their effects on how people feel.  For example,  when the US experiences a new war,  natural disaster, or other severe crisis, the index gauges the reaction and eventual recovery. What it doesn’t show is how this process changes people.

Key Take-away: Today, the larger picture shows consumer confidence is slowly, hesitantly trending up.   (click the graphic to enlarge)

We are moving into a recovery economy mind-set and while it is taking time at least the larger trend is  mildly positive.

Worth Visiting: The Conference Board

Great Place | High Line: Land Re-use at its Best

“a great place” – a series of engaging spaces for consideration…and perhaps inspiration for the people who build places everyday. 

hello high line park , nyc

What started in the 1930s as a rail freight line lifted 30 feet over New York’s Manhattan known as the High Line, became a public eyesore in the mid-1990’s.  A story that could have sadly ended in demolition has instead become an inspiring tale of land re-use, successful economic-development and a great elevated public park. 

After 20 years of disuse, construction on the former railway began in 2006. (click image for more pics.)

Today, the second segment of The High Line Park opened to the public , doubling the park’s length to 1 mile.

 An amazing natural and artistic urban journey amongst the buildings of the West Side, The High Line area now includes deluxe apartment buildings whose glass walls press up against the park and hundreds of art galleries, restaurants and boutiques which flourish around it.

Key Thought:  The High Line gives New Yorkers a respite to explore a “natural” path- literally above the turmoil of their city streets.

“High Line as a public park revitalized a swath of the city and generated $2 billion in private investment surrounding the park” according to Mayor Michael Bloomberg.

Consumer Confidence: where are we really?

After reading the ominous, attention-getting headline “Consumer Confidence Hits 6 Month Low” by a housing publication, I thought  “better to share the bigger picture.”   So here it is.

10 years of consumer confidence

As people need to feel confident before investing in large purchases, like new homes, consumer confidence is a topic worthy of discussion.  The graph below provides a perspective using the  U.S. Consumer Confidence Index over the past tumultuous decade. 

Some of the major events of the era are noted to illustrate their effects on how people feel.  For example,  when the US experiences a new war,  natural disaster, or other severe crisis, the index gauges the reaction and eventual recovery. What it doesn’t show is how this process changes people.

Key Take-away: Today, the larger picture shows consumer confidence slowly, hesitantly trending up.   (click the graphic to enlarge)

We are moving into a recovery economy mind-set and while it is taking time at least the trend is definitely  positive.

Worth Visiting: The Conference Board

top 20 healthiest housing markets – 2011

Which housing markets are the best bets to recover first?  The Annual Builder Healthy Markets Index for 2011 was recently released by BuilderOnline.  The index uses economic metrics such as home prices, employment, household formation, and incomes to assess if a market should be considered healthy. 

2011: much stronger than 2010.

A Market Health Indicator (“MHI“) of 50 is considered the barometer for a truly healthy market. Last year the top 20 markets ranged from 30 to 57.5 MHI – a rather dismal picture for real estate. For 2011… 62.8 to 86.9 MHI! 

Here’s the quick run-down of this year’s Top 20. Note: each market links to the BuilderOnline data & analysis.

#1 Raleigh-Cary, NC  (2010’s #2) 

MHI: 86.9  (Building Permit Forecast: 9,604 / Annual % Change: 90%) 

#2 Austin-Round Rock, TX (2010’s #1)

MHI: 86.5 (Building Permit Forecast: 11,079 / Annual % Change: 57%) 

#3 Durham-Chapel Hill, NC  (2010’s #9)

“clearly out of the Great Recession”

To hear “the nation is clearly out of the Great Recession of 2008/2009”  made the BIA/OC Development Conference on March 26th  a welcomed glimmer of positive news. 

Professor Kerry Vandell, the Director of  UCI’s Center for Real Estate confidently shared this positive along with: the stabilization of US employment; rising consumer confidence; and increases in retail sales. And then like most recent economic presentations, we heard about: the high deficit;  wealth & income erosion;  constrained credit; and the worries of:  inflation, stagnation and massive federal government intervention.  Vandell followed this with how especially dysfunctional California is. But don’t worry