JL Architects

Lisa Lister

Your Real Estate Asset: Achieving the Best Use & Greatest Financial Payback

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As COVID wanes and deals wax, commercial real estate is flexing its muscles to reinvigorate the economy. The number of on and off market transactions are well ahead of predictions, and the pre-COVID numbers. This can put a strain on a buyer’s ability to perform due diligence and come to a clear understanding of both the actual and potential assets being purchased.

This is where documenting the physical building asset comes in, and it is a skill not everyone has. The ability to do it accurately and efficiently has grown with technology. And with any new technology a new skillset is needed.

Where to Start:

The Technology – For a long time, Building Information Technology (BIM) was one of the greatest inventions since the Blackberry smart phone. BIM is a digital creation of new/original building drawings or drawings created by measuring existing buildings. How we measure those existing buildings and spaces is the latest leap forward. During my time as an architect, we have moved from measuring tapes and clipboards to laser measuring to today’s laser scanning (LIDAR). Today’s LIDAR is faster, smaller, and more accurate; accurate to a hundredth of an inch, gathering information on anything in its line of sight in all directions including buildings, site features, and topography. Scanning is also faster and requires less technical training. The scans create augmented reality-like images that can be scaled and traced to produce very accurate, data packed and manipulatable drawings – the graphic component of BIM. Bottom line, more information for less money.

So, What does this Newfound Information Mean to You?

Repositioning & Repurposing – It has been widely published and popularly believed that Retail has died, and the Office is going hybrid and remote, leaving lots of empty Gross Leasable Area (GLA) in its wake. What to do with those buildings is the question lurking on the minds of many. The answer is to Repurpose and Reposition. Current technology allows us to create accurate drawings of these existing buildings for their new, and more profitable use. Drawings created by skilled and experienced architects, using today’s technology results in tight bids, and few change orders resulting in greater value and profit for you, the owner. The return on a good as-built drawing set is recognized even before construction begins.

The Acquisition/Due Diligence – how any times has a rent roll been “stretched”? Then the property goes on the market and a deal is struck. The current technology presents the opportunity to use the same documentation in the due diligence phase as well as in the operations phase. It also is an irrefutable way to know just how big the building is and justify – or challenge – the rent rolls, and any needed negotiation. What is the best time to find out about an inaccurate area verification? The answer – before you own it!

Debt and Financing – We had a client who bought several connected medical office buildings. The property also included some higher ed spaces. They thought it was a great value, yet it got even better when we were able to show that they had purchased 200,000 sf more than they thought! Sounds like an overnight 8 figure valuation increase. In this case, having accurate square footage numbers before financing may have helped them.

Leasing and Management – Rent rolls often seem to be made of rubber; sometimes you really need to organize them and put them into balance. Having a reliable As-Built in a BIM format makes that not only possible but hard to resist.

  • Stop measuring the building every time there is a tenant change.
  • Show a graphic timeline of the core factor changing with each lease.
  • Get ahead of the competition and produce test fits and LOD’s in hours, not days.
  • Spend less to re-tenant your building. As an example, if the cost to document the entire building is $5,000 and you save $1,000 on field verifications with every new lease, it is not long before you see a return on your investment.
  • Reduce change orders and construction bids with accurate drawings that do not need contractors to build in “fudge factors” to make up for drawing inaccuracies and inconsistencies.

There are many ways to build a database of real assets. From that data new opportunities can be found, and increased returns on existing assets are within reach.  Leaders in the industry are proactively using these methods to build their bottom line. Ask me how JL Architects can help you reach your project goals.

John Lister, Founding Principal

Designing Your Post Pandemic Office

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We are finally beginning to see the light at the end of the COVID tunnel. Some states have already lifted pandemic restrictions, travel and entertainment are increasing, and restaurants and retail stores are coming back to life. For the millions of Americans who have been working remotely, we are also seeing a shift back into the corporate office.  While plastic dividers and floors taped off at 6-foot increments may have become familiar safety precautions, designers are looking at more permanent solutions for the office.

How will the Physical Space Change?

  1. Hybrid offices allowing for part time in person and part time remote work are becoming increasingly popular. In this setting, more square footage will be dedicated to smaller collaborative spaces and less to individual workstations.
  2. Technology and video conference calling have permanently changed meeting options. Smaller, and more conference rooms will allow access to the technology needed for remote meetings, while also allowing for fewer people to be in the same room at the same time.

Staying Healthy in the Office:

  1. Air flow: Public health officials agree that one of the simplest ways to prevent the indoor spread of germs and viruses is to increase the volume of outside air that comes into buildings. This can be accomplished by installing windows that can be manually opened and closed.  If operable windows are not an option such as in large office buildings or places where it isn’t safe for children, a new air filtration system should be considered.
  2. Touch free surfaces: Installing automatic doors, faucets, soap dispensers, and paper towel dispensers can curb the spread of germs to keep employees healthy.
  3. Hand washing: Handwashing has been proven to help decrease the spread of germs. Increasing the amount of hand washing stations and/or hand sanitizing stations (especially at entrances and exits) will encourage employees to wash their hands frequently during the workday.

Taking a Nod from Nature:

Research shows that regular contact with nature boosts physical and mental health, as well as productivity. Employers are recognizing this and looking for creative ways for their staff to encounter nature.

  1. Installing living walls and maximizing natural light is a great way to bring the outdoors inside.
  2. Designing a green outdoor area where employees can eat lunch or take breaks is a great way for employees to have the opportunity to get outside and enjoy fresh air.

As we begin our new work normal, one thing is clear – employees’ health and well-being will need to be a priority.  In navigating our post pandemic world, it is important to consult with an architect to safely design your office for the return of in-person work.

~Amy Estrella

Seeing your Design Project in Real Time 3D

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The digital age has enabled us as architects to present 3-dimensional project plans to our clients. This is allowing everyone from the design team – to the client – to zoning boards to have a greater vision of the outcome.

As the pandemic raged on, it became commonplace for us to present our client’s design progress in a virtual meeting.  Adopted technology now enables us to show a model from every angle instead of just two or three still visuals. With using real time rendering capabilities when discussing your project, we can change materials and building elements as they are discussed. Working with your immediate feedback is allowing your project to progress immediately, saving time and revisions down the line.

Design is an iterative process, and we are finding real time rendering to be an effective method of presenting and discussing design development, especially when there are many stakeholders, and those stakeholders are all in different locales.  Gone may be the days of flights, hotels, and conference rooms pouring over rolls of drawings or even the big screen, when we can all just log in to our computer.

Want to learn more about how we can help with your next project? Give us a call at 610-429-4470.

-Alex Schleicher, Architectural Designer and Rendering Guru

Opening a Second-Generation Restaurant

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Do you own a restaurant, or perhaps just love dining at them?  Has a restaurant in your community closed its doors recently?  Either way, you could be on a streak of good luck.  Businesses that were not able to pivot during COVID have created prime real-estate openings for new or expanding restaurants.  Here are a few things to consider before signing the lease or taking out that mortgage:

Site Assessment

  • Look for by-right use sites on the local zoning map. This will save you time and money with your building permit.
  • Sites that were previously the same type of restaurant as you are proposing will often be easier to renovate, saving on construction costs.
  • Confirm the mechanical, electrical, and plumbing utilities meet your proposed needs. This will save you on design and construction cost.
  • Involve your design and construction team from the very beginning to avoid unnecessary surprises and the accompanying expense. Your design team can also share ideas and methods for the most efficient design leading to construction and operational savings. And, always remember the great importance of design in creating that environment that draws in your customers and keeps them coming back.

Locale to Market

  • Do your demographic search to identify the customer base you are seeking.
  • Verify the distance from your proposed location to the center of your market, ensuring it is a viable location and delivery is feasible/practical.
  • Check out the neighboring businesses; they may bring you competition, they may bring you customers, and they may bring you both!

Nothing is Perfect

  • Just because the building type is not the same as your existing locations or is not just what you envisioned; it does not mean it is not a viable location/investment.
  • Building in an existing box often requires you to think outside of the box. Flexibility is key.
  • Know your core requirements. Have fun with the rest.

Look for Warning Signs

  • Even though the site location is a dream come true, certain site conditions can ruin it for you. Or they can create an amazing opportunity; seek the guidance of your design/build team.
  • If utilities and accessibility compliance need upgrades, it can be costly. Again, consult with your design team to be able to make an informed and reasoned decision on the site.

Our country is building momentum towards fully opening.  If you enjoy new cuisine in your neighborhood, get ready because it is coming!  If you are a restauranteur now is a great time to make moves on relocation and expansion.  Contact us at JL Architects to help you assess a site you have an interest in.  We can help you think outside the box while building inside an existing box.  Restaurant design and repurposing buildings is something we have a great deal of experience with.  You most likely have experience managing a restaurant.  Let’s collaborate to make something great.

-Nate Houser, Food & Beverage Project Manager

Embracing Restaurant Delivery through Real Estate

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Real Estate Considerations for Now and in the Future

There are many names for this fast-growing trend in commercial and industrial real estate. Whether you refer to it as a ghost kitchen, cloud kitchen, satellite kitchen, shared kitchen, or virtual kitchen, the idea remains the same.  This model provides an off-premise location for represented restaurant brands and their chefs a place to prepare food, without the expense and maintenance of a brick and mortar location.

Due to rapidly changing consumer habits, and recent advances in technology this delivery-only model is experiencing monumental growth. Statistics on food delivery point to the opportunities that exist for commercial real-estate:

  • Over half of US consumers order delivery at least once a week; more than 20% of Generation Z gets delivery at least three times a week.
  • Meal delivery is growing 300% faster than dine-in over the last 5 years.
  • Ongoing growth: A market research firm recently estimated that delivery-only restaurants could be a $1 trillion business by 2030.

What are the Benefits for Real-Estate Owners and Ghost Kitchen Operators?

  • Low overhead costs. Your cost of real-estate will be much lower than a traditional restaurant location. And, no need to invest in an in-person dining experience.
  • Faster opening times -renting/buying space in existing facilities dramatically increases your speed-to-market.
  • Additional revenue streams – established brands can generate additional revenue by renting out a third-party ghost kitchen or by launching a delivery-only spin-off from their primary concept.
  • Flexibility – Ghost kitchens are easily adaptable as the market or customer preferences change.
  • Efficient ghost kitchens can accommodate a variety of cuisines and restaurant brands with the necessary corresponding equipment.

Ready to Dive in?

Here are 4 things to consider when looking at potential sites:

  1. Site selection is the most important aspect to consider. Potential sites can include closed restaurants and retail/big box stores, former culinary schools, warehouses and dated industrial space in markets all over the country. Warehouses and light industrial use space just outside dense urban centers often meet the need for delivery personnel parking, affordable rent, and satisfy the purchasing demand of nearby residents.
  2. Site selection must consider delivery driver parking in addition to shift worker parking. Locate where the driver waiting areas will be, and where you can place outdoor screens for drivers to monitor order times. Ask yourself if you can add a drive thru for an even more seamless driver pick-up.
  3. Interior space planning for the site must identify the most efficient layout for plumbing, electrical, HVAC, and other elements of the kitchen to allow various tenants to work and thrive side-by-side in a fast-paced environment.
  4. Remember the key to profitability is effective design that gets your food out the door and into the customer’s hands as fast as possible.

What Else Do You need to Know?

  • Because this concept is still new, zoning and approval processes are often not clear-cut, and vary depending on the municipality you are working in. Regulators may be unfamiliar with the concept, and requirements may be inconsistent from location to location and inspector to inspector.
  • Food production is largely regulated at the local level by the health department. This means the local Health Department is likely to be involved with your permitting.
  • Hire a professional firm (i.e. JL Architects) to secure the necessary building and operating approvals and design the best use for your location.

For years Americans have used third-party providers to place billions of dollars in food delivery orders. With the rise of ghost kitchens to compliment this trend, restaurants are capitalizing on this low-cost, low-risk way to maintain brand awareness, expand product availability, and endure the pandemic’s recent effect on the industry.

Will Commercial Building Repurposing be the Answer to Today’s Housing Crisis?

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The year 2020 certainly turned the world upside down.  The pandemic has had a dramatic impact on our way of life and certain aspects may never be the same.  When it comes to changes in real estate, we have watched malls and retail centers struggle due to the acceleration of changing shopping and dining habits. We see the impact of the pandemic remote and hybrid working model on office leasing, and wonder what will come of all this possible empty space? According to an article written by the New York Times, experts estimate that over 170 million square feet of office space is expected to be freed up in this year alone, and over 7,000 retail locations will be available. Nearly one in four hotels nationwide face possible foreclosure.  With the pressure of the pandemic, growing e-commerce, and changing work/lifestyles far fewer commercial entities are looking to take on new leases.  We don’t know for sure what trends will stick from the pandemic, but we do know there is still a great need for housing, especially affordable housing. As a result, architects have begun to look at how repurposing commercial space can contribute to both housing and a livable, sustainable community.

Traditional American malls often make prime locations for housing developments as they tend to be in convenient, transit-accessible areas.  A single vacant mall can be repurposed into several housing units mixed in with stores, restaurants, recreational facilities, and community gathering spots giving residents amenities and a sense of community.  To create this community a mall may be knocked down and the property redeveloped, or in the case of the Arcade Providence in Rhode Island be repurposed into a mixed-use property.  When it was built over 190 years ago, the Rhode Island mall had boutiques on all three floors. Now those shops have been transformed into 48 micro apartments on the 2nd and 3rd floors and hosts a mix of businesses, including restaurants, retail shops, and a hair salon on the 1st floor.

Hotel closures can also be especially valuable for residential development, as individual units come “prepackaged”. The fact that almost a quarter of all US hotel properties are facing foreclosure signals that the market could be flooded with easy opportunities for housing projects. Opportunities for repurposed housing also includes commercial offices, outdated industrial space, and decommissioned churches to name a few. These spaces usually exist within an already established community and offer a sustainable path forward for interesting time-honored design and construction.

To conclude, we find it is often less costly to repurpose a building than build from the ground up, especially in expensive markets.  It is also much more sustainable.  Nationally, new residential construction generally averages $225 to $350 a square foot, compared with $150 to $200 for an office-to-residential conversion.   With all the excess vacant commercial property coming to the market, it just makes economic sense to repurpose some of these properties into affordable housing to meet the needs of the existing community.

In 2008, we served as the architects for the above pictured project, repurposing a bank building into a ground floor Starbucks with apartments above. Give us a call to see how we can assist with your re-use project.