Developments

[circuitboard]

This makes me sad. No quail springs village for now, no outlet mall, or theatre. BOO. I was really looking foward to quail springs village.

Economy slows local development - KFOR

[OKCMallen]

OKLAHOMA CITY -- The Sluggish economy slows development on several major projects in Oklahoma City. Among the delays is a $50 million outlet mall planned along Council Road and I-40.

Work there had been set to begin in 2008. That didn't happen.

18 months ago, plans were also announced for a new I-MAX theatre complex north of Quail Springs Mall. The grand opening there was set for this spring, but construction never even got underway.

The problem is that national retailers just aren't in the mood to build.

"It's tough. You have to plan way ahead. We've all been pushed back a year or two in development," says local developer Larry Owsley.

Larry says his plans at Quail Springs Village are to start building some small office space with the hope that national retailers jump on board again next year.

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[BDP]

The problem is that national retailers just aren't in the mood to build.

Which is just another downside of being dependent on national chains. Generally speaking, if they are in contraction, they won't even look at new markets no matter how good a specific market might be, if for nothing else because when the boss says "we need to close 150 doors", no one is going to stand up in that meeting 1500 miles away and say "yeah, but we need to open one in Oklahoma City..."

[flintysooner]

National credit tenants are conserving cash. Cash is the only thing that matters until the current recession ends. Those that have cash will survive and those that don't will not.

The prediction is another 200,000 stores or more will probably go out nationwide over the next couple of years. That leaves a huge amount of retail space. The Circuit City demise alone vacated more than 15 million square feet.

It is about survival right now for the national credit retailers.

Local retailers usually are unable to present sufficient financial strength by way of balance sheet evidence to make a lease qualify for credit approval. Equity investors and lenders have much higher requirements now.

So with neither national credit retailers nor credit worthy local retailers able or willing to sign leases that are acceptable to secure short term and long term financing it is next to impossible to do much developing.

It will likely become more difficult as more retailers have to quit and vacate more space.

[Jesseda]

i read this earlier on kfor news, its sad, i really wanted a outlet in okc hopefully it does back out completely

[Insider]

Other things not happening are the new Warren Theatre on the north side and the expansion to 20 screens of the one in Moore.

[CuatrodeMayo]

Darn...no sprawl this year.

[oneforone]

I think it is safe to say that your are not going see too much expansion of any for a good long while.

[BG918]

Blessing in disguise for OKC? Maybe developers and city leaders will wise up once the economy recovers so we don't keep sprawling all over the place.

[LakeEffect]

Blessing in disguise for OKC? Maybe developers and city leaders will wise up once the economy recovers so we don't keep sprawling all over the place.

I agree - but I also feel for Larry, specifically, because the site work is nearly done, which means he was basically ready to build up. In terms of a regional destination or spoke system, the Quail Springs area isn't necessarily a bad thing. We need to support the existing infrastructure in the area, now that it's built. No sense letting it decline now... If we really want to grow as a City, we need to support many clusters of development with radiating thinning density.

[FritterGirl]

What's just as sad is the number of smaller strip-type centers (I don't like them either) that are newly-built, and which have been sitting vacant for several months.

There is a very lovely high-end development with room for about 15 tenants on the NE corner of 150th and Western. Has a true piazza look, with beautiful building details, fountain, decorative lighting and landscaping. It's not your average corner strip center. It was completed many months ago and sits there empty. Of course, the section of Western between 150th and 164th is getting ready to be closed again for construction (this time for about 4 months), so that doesn't bode well for them, either.

There are at least three other small strip centers I know of that are sitting empty, or nearly empty, even though they are complete, or nearly complete. Market just not moving right now.

[flintysooner]

Many developers believe the recession has pretty much nailed the coffin lid shut on the "life style" center concept.

[veritas]

Things have picked up in the new home market over the last three months. As roof tops go, so does commercial development so, assuming the upward trend continues, I would expect to see the commecial market start to bounce back in the next one to two years as the article alludes to.

/perspective from an "evil" sprawl developer

[tpm]

Other things not happening are the new Warren Theatre on the north side and the expansion to 20 screens of the one in Moore.

interesting...

[scootinger]

I too hope that this recession comes as a sign that we are building way too much and that it can help slow down sprawl, especially around the OKC area. Retail has been overbuilt over the past decade or two, and hopefully this recession will slow down how much sprawling *crap* (ie big-box stores, poorly planned neighborhoods with low-quality houses, etc) is being built. Even as someone in his early 20s, I have seen the Edmond/North OKC area change remarkably in my lifetime, and I don't even want to think about what will happen within the rest of my lifetime if things keep up as they do.

What's just as sad is the number of smaller strip-type centers (I don't like them either) that are newly-built, and which have been sitting vacant for several months.

Yes, Edmond is littered with these eyesores, with a majority of them being less than half leased, if they are not completely vacant. It annoys me that they keep building little strip malls like these, in spite of the fact that nobody's renting out the ones that have already been built. You would think that the developers would be smart, count their losses, and move on, and possibly wait to develop the land until the real estate market improves.

[onthestrip]

Many developers believe the recession has pretty much nailed the coffin lid shut on the "life style" center concept.

Really? Why? I dont see how one recession has killed the life style center concept. Whats the alternative?

[flintysooner]

Really? Why? I dont see how one recession has killed the life style center concept. Whats the alternative?

The lifestyle center concept is to provide a venue for shopping at smaller, upscale retail stores grouped around common areas with nice amenities. The idea is that the venue itself is sufficiently desirable to attract customers as well as the attraction of individual retail offerings.

It is often compared to an enclosed mall in that regard with the important and notable exceptions that it is smaller and not enclosed. Smaller means less land and less development cost. Not enclosed means the retailers avoid the high cost of utilities and maintenance associated with enclosed malls.

Those who believe the concept has run its course argue that the current recession is only the beginning of a long term retail trend. Some believe that more than 200,000 additional stores will close over the next several years. Generally those stores will be upscale stores because it is that segment that is most heavily impacted by the recession. The upscale customers who buy from such stores are simply diminishing in number and those that remain are cutting back themselves.

The retailers that are left then are typically ones who demand high visibility, fast access, and high traffic counts. Their development model simply does not fit into a lifestyle center concept.

The power center so called has been the best fit for these retailers. This is generally a center with one or more big box retailers either anchoring or shadow anchoring and stores all lined up facing the high traffic roadway. Many developers believe this concept is also nearing the end of its life if it hasn't already.

There are developers who disagree on the lifestyle center but they generally are those who have projects they want to do and are hardly impartial.

Retail development is rather different than many people imagine. The developer brings together land, financing, and retailers well before anything is ever started. The retailers often spend years planning future expansion. There is very little speculation in the process and it is very fragile. Losing one retailer or one element of the process can collapse the entire project. Or changes in the economy can disrupt a project even pretty far along as has been the case recently.

There is argument about whether this is a long term retail change or not. There is really no way to know that now with certainty.