Overheard ICSC @ Midwest: Real estate leaders talk mixed-use projects, community engagement
New approaches to placemaking and mixed-use development are underway in the Midwest and beyond.
During a panel titled “Thinking Outside the Box: Retail Redevelopment” at the recent ICSC @ Midwest show in Chicago, commercial real estate players detailed their outlooks on financing projects, finding the right uses for mixed-use retail developments, and how to effectively engage with communities.
Sam Whitebread, VP of development, Centennial
On financing
“Capital is certainly available today, but lenders are exercising tremendous discretion. Getting pro formas to pencil in an era of elevated construction and financing costs is a genuine hurdle. That said, well-located retail fundamentals are remarkably healthy – occupancy is high, and sales per square foot at top centers remain robust. To get financing across the finish line today, you must present a compelling, highly-curated vision to your lending partners that proves foot traffic and stability.”
[READ MORE: ICSC @ Midwest: Retail, restaurant brands looking to expand include…]
On placemaking
“It starts by understanding how customer behavior has shifted over the past decade. Decades ago, developers planned shopping centers solely for consumers to fill shopping bags at department stores. Today, a 15,000-to-20,000-sq.-ft. fitness center or grocery concept will generate vastly more frequent, consistent trips than a 100,000-sq.-ft. traditional department store ever did.
Today’s campuses must offer complete daily-needs ecosystems: dropping off children at daycare, picking up groceries, grabbing coffee, visiting a wellness clinic, or enjoying open park space. When you demonstrate that kind of recurring foot traffic to prospective lenders and municipal leaders, your vision becomes investable.”
Eric Olson, AICP, director of real estate, Marcus Corporation
On placemaking
“When private market math falls short on a transformative project, public tools like Tax Increment Financing (TIF) become indispensable. Real estate development is an intergenerational investment. These projects will outlive everyone in this room. When presenting to city councils and economic development boards, our message is simple: the municipality will reap substantial long-term tax windfalls once the project is built, but without gap financing like TIF today, that future value simply won’t materialize.”
On finding the right blend of uses for a new project
“For us, any new use must protect and complement our core theater business. We avoid bringing in outside restaurants that compete directly with our own in-theater dining concepts.
Theaters are almost universally located adjacent to major highway corridors, transit lines, and established retail nodes, making them natural candidates for high-density infill housing. Most suburban communities face a severe deficit of quality rental housing. Multifamily fills that housing gap and provides our retail partners with the steady customer base they need right outside their doors.”
On engaging with the community on new projects
“Construction and labor costs escalate continuously, which directly impacts the funding gap and the amount of public assistance required. Additionally, realize that municipal leadership can change. City councils and plan commissions are made up of community members who may not possess a deep background in real estate finance or urban planning. If you run into initial resistance or political delays, don’t give up. Continue educating stakeholders, refine your narrative, and be persistent. Good, well-conceived projects eventually win out.”
Vic Howell, VP of development, Focus
On placemaking
“Malls were the original suburban gathering places, but that dynamic has evolved. Today, communities are hungry for authentic public gathering spaces – a vibrant ‘third space’ or an alternative downtown.
In our partnerships with Centennial, our primary goal is integrating generous, programmable public space. High-quality outdoor amenities, dining patios, and green space directly benefit our residential communities. Residents stay longer and renew their leases because they love the lifestyle right outside their front doors.”
On finding the right blend of uses for a new project
“It’s also about changing the physical orientation of retail. Traditional enclosed malls face inward. At Hawthorn, we carved through the footprint to create an outward-facing Main Street’ lined with storefronts and sidewalk dining. At Old Orchard, we are wrapping retail around an activated, half-acre public town green. How people interact with the space is just as critical as the square footage itself.”
On engaging with the community on new projects
“Start the process years earlier than you think you need to. Navigating multi-party cross-easement agreements (REAs), negotiating municipal incentive packages, and managing cost inflation requires tremendous runway. The earlier you cultivate relationships with city staff, adjacent property owners, and neighborhood groups, the smoother the execution will be when construction starts.”
Jimsi Kuborn, economic development director, City of Janesville, Wis.
On finding the right blend of uses for a new project
“For Janesville [Woodsman Sports & Convention Center], data and community need drove the decision. Our youth and league hockey teams were skating in an obsolete, deteriorating arena. At the same time, regional market studies confirmed that our retail corridor draws shoppers from an hour away who prefer avoiding the congestion of Madison or Rockford. Letting a massive, visible retail property like the mall fail would have depressed property values and commercial health across the entire city.
Furthermore, our local residential vacancy rate had dropped below 1%, signaling an acute need for housing. Combining an anchor sports tourism asset with planned hotel and residential capacity addressed multiple municipal priorities simultaneously.”
On engaging with the community on new projects
“The public expects open communication from day one. Even if city statutes don't formally mandate public neighborhood meetings at the early stages, hold them anyway. Host community forums, articulate your vision early, listen to concerns, and bring stakeholders on board before rumors fill the vacuum.”
