Obsolescence - Zoning Issues

Issue: Can a small transition area shopping center which has seen better days be turned around? Or should it be demolished and rebuilt with a higher density use?

Approach: A shopping center with less than 50% occupancy had neglected much-needed repairs and upgrades. It had no anchor because it was too small. Tenants were leaving, many newer retail centers were close by, and a land use plan change would enable the property to be redeveloped with a much higher level of density along a transportation corridor. The property was in the path of commercial redevelopment. We researched zoning and land use and compared market conditions for similar transitional properties nearby which had faced the same decisions. We evaluated the economic strengths and weaknesses of the location. An extensive rental income analysis was conducted as well, and we concluded that the best use for the property was to hold off on redevelopment until market conditions justified redevelopment.