HomeMy WebLinkAbout2019/08/07 - Agenda Packet - SpecialAUGUST 7, 2019 - 3:00 PM
SPECIAL MEETING AGENDA
CITY COUNCIL JOINT MEETING
WITH PLANNING COMMISSION
Tri -Communities Conference Room, 10500 Civic Center,
Rancho Cucamonga, CA 91730
A. CALL TO ORDER
Pledge of Allegiance
Roll Call: Mayor Michael
Mayor Pro Tem Kennedy
Council Members Hutchison, Scott, Spagnolo
Planning Commission Members:
Chairman Guglielmo
Vice Chair Wimberly
Commission Members Dopp, Munoz, Oaxaca
B. PUBLIC COMMUNICATIONS
This is the time and place for the general public to address the City Council and Planning Commission on any item
listed or not listed on the agenda. State law prohibits the City Council and Planning Commission from addressing
any issue not previously included on the Agenda. The City Council and Planning Commission may receive testimony
and set the matter for a subsequent meeting.
Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor, depending
upon the number of individuals desiring to speak. All communications are to be addressed directly to the City
Council and Planning Commission not to the members of the audience. This is a professional business meeting
and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, making
loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting.
C. ITEMS FOR DISCUSSION
C.1. Presentation on Integration of the Retail and Warehouse Sectors (Verbal Report).
D. ADJOURNMENT
CERTIFICATION
I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby
certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least twenty-
four (24) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho
Cucamonga, California and on the City's website.
Page 1
UIFAAO,kl�m
EST. 1 3'
DEVELOPMENT
LEGACY REAL ESTATE
"THE
IMPACTS
ON
LAND
PLANNING
CAUSED
BY
INTEGRATION
OF
THE
THE
RETAIL AND WAREHOUSE SECTORS"
AUGUST 7, 2019
RANCHO CUCAMONGA
•
EST. 1939
DEVELOPMENT
LEGACY REAL ESTATE
Over 80 -years and 5 -generations, Birtcher has developed, acquired,
and/or managed over 65 million square feet of assets valued at over
US$7 billion.
T I M E L I N E
1939
Over 20,000 acres of orange groves
cover the Orange County landscape,
making it one of the nation's leading
citrus producers. Fayette Birtcher, son
of Justus, forms Mar Crest
Corporation, to invest in commercial
real estate and manage operating
citrus properties throughout the
Southwest.
SEQUOIA PACIFIC
A �3cuthern Pacific company
1969
Birtcher Pacific establishes a major
joint venture with Southern Pacific
Railroad's land division and forms
Sequoia Pacific Realco, to serve as
the railroad's sole in-house real
estate development company
overseeing 2 million acres in 17
states.
**�+; BIRTCHER
; DEVELOPMENT
fl&%Sew*.�
Birtcher is awarded the National
Association of Industrial and Office
Park's (NAIOP) highest national
honor as "Developer of the Year."
T I M E L I N E
fITS UI&C .
1990
Birtcher sells 50% of its development
and construction divisions along with
selected assets to Mitsui Bussan
forming Birtcher Real Estate Limited.
Birtcher
20 12
Birtcher makes strategic decision to
partner with Goodman Group of
Australia, the largest publicly traded
logistics warehouse developer/
owner outside of the U.S., alongside
the Canada Pension Plan
Investment Board (CPPIB), for a
joint equity capitalization of $2
billion. Goodman Birtcher, in 48
months, established a development
and investment pipeline valued at
$1.7 billion, containing 14 million
square feet across 13 sites in 4
states.
**�+; BIRTCHER
; DEVELOPMENT
�ST. 1139
BIRTCHER
DEVELOPMENT
LEGACY REAL ESTATE
2 0 1 7
The 4t" and 5t" generations, Brandon
Birtcher and Brooke Birtcher
Gustafson, become 50/50 owners in
Birtcher Development LLC.
N
A PRIMER IN LOGISTICS
N D U S T R I A L
Incubator
Business Park
Manufacturing
Warehouse
• Fulfillment
1 B S E C T O R S
we$
**�+;BIRTCHER
"`;
DEVELOPMENT
W A
R E H
O U
S E
&
FU LFILLM ENT
" B
E S T
I N
C L
A
S S 17
DEVELOPMENT PROSPECTS
Manufacturing
Economy hotels
Sing Ie-farnily rental housing
Luxury hotels
NeighberhoodI
Cornmunn shopping centers
Lifes#yle1eWert.ainmer t centers
Outlet centers
Suburban office
Power centers
Reg ional malls
3.n2
2.s3
2.91
2.86
2.91
2.73
2.70
Abysrrral P'>Dr Fair Goad
INVESTMENT PRO PECTS
E,Furfillimer7
tk�
Warehouse
Senior housing
Moderate-inoomeJ
wnrldnrce apartments
Centrall-City office
Upscale hot -els
Medicalfiine
Flex
Affordable apartments
Urbanfhig"treet retail
R&D
Studerrf Lousing
High-income apartments
Midsoale hot -els
Econmy hot -els
Luxury hot -els
NeighborhoocV
Community shopping centers
Single-family rental Dousing
Lifestylefentertainrmnt centers
I anUfaCturirig
Suburban office
Oubet centers
Pyr ors
SOURCE: ULI EMERGING TRENDS IN REAL ESTATE 2018; BASED ON US RESPONDENTS ONLY.
Regional malls
�
_0 1
x_55
x_53
i
3.49
3.48
x_46
:2_4h
x_39
3-37
3.23
o_23
:32D
3-10
3_'13
:3_0:5
2.92
2.90
2.56
sma I Pair Fair Cod
**�+;BIRTCHER
;
DEVELOPMENT
7
Fulfrllment
4.2$
Warehouse
4.�1
Son ior hosing
Moderate-incornel
waidaroe apartments
Medical office
Affordable apartments
:3,46
Cenfral-city office
3.43
R&D
3.43
Flex
:3.37
Student housing
3.32
Highinaame apartments
a.az
Upscale hotels
3.23
UrbaNhigh-sfFeet retail
:3.14
Midscale hotels
3.07
Manufacturing
Economy hotels
Sing Ie-farnily rental housing
Luxury hotels
NeighberhoodI
Cornmunn shopping centers
Lifes#yle1eWert.ainmer t centers
Outlet centers
Suburban office
Power centers
Reg ional malls
3.n2
2.s3
2.91
2.86
2.91
2.73
2.70
Abysrrral P'>Dr Fair Goad
INVESTMENT PRO PECTS
E,Furfillimer7
tk�
Warehouse
Senior housing
Moderate-inoomeJ
wnrldnrce apartments
Centrall-City office
Upscale hot -els
Medicalfiine
Flex
Affordable apartments
Urbanfhig"treet retail
R&D
Studerrf Lousing
High-income apartments
Midsoale hot -els
Econmy hot -els
Luxury hot -els
NeighborhoocV
Community shopping centers
Single-family rental Dousing
Lifestylefentertainrmnt centers
I anUfaCturirig
Suburban office
Oubet centers
Pyr ors
SOURCE: ULI EMERGING TRENDS IN REAL ESTATE 2018; BASED ON US RESPONDENTS ONLY.
Regional malls
�
_0 1
x_55
x_53
i
3.49
3.48
x_46
:2_4h
x_39
3-37
3.23
o_23
:32D
3-10
3_'13
:3_0:5
2.92
2.90
2.56
sma I Pair Fair Cod
**�+;BIRTCHER
;
DEVELOPMENT
7
P
s
W.�
I
- - 7--7
AwFiffp.-;gig.
�.
77 7.-=
**�+; BIRTCHER
DEVELOPMENT
D E M A N D D R I V E R S
>e US$139/bl in 115 months between Nov. '98 ($17b1) and
1008 ($156/bl) ... then fell US$80/bl in 19 months between June
09/bl) and Jan `16 ($29/bl).
Panama Canal widens from original 7,100 TEU max ship to
candle 13,000 TEU vessels, ship builders have launched
TEU's and are designing ones even larger, stressing port
facilities.
lroads develop intermodal facilities throughout North America
giving unprecedented access to hundreds of new "Inland Ports."
,
Air quality regulations in metro areas discourage unnecessary
vehicle movements, encouraging supply chain managers to locate
closer to their customers in urban areas.
orts start taxing containers after 72 hrs from debarkation, forcing
containers to their ultimate destinations.
Current
litigation
over driver classification
will cause the cost to
deliver
a
container
to the
IE
from $750 to $1,600.
Ports restrict container pickups during regional peak traffic times and
-{� Ports becoming closed to diesel trucks(only LNG, CNG & Electric
allowed)
Driver shortages become critically low due to impacts of E -Verify
policies, retirement and attrition.
Electronic Log Devices (ELD's) limit truck drivers to 11 consecutive
hours followed by mandatory 8 hour rest.
E -Commerce has supplanted traditional retailing models & fulfillment
W
thrives. 8
**�+; BIRTCHER
DEVELOPMENT
D R I V E R S
H A N G E PANAMA C L
Super Post-Panamax ships can not transit through the newly widened canal.
Container drops are now larger, stressing ports & forcing warehouses to handle the surge.
SOURCE: WCL CONSULTING
F ••�• � . rte[ a i
AERSK LINE
i
t
r
E M M A M A E R S K 2 6 0 0 0 T E U C A P A C I T Y
BIRTCHER
DEVELOPMENT
iul
�BIRTCHER
DEVELOPMENT
U S I N D U S T R I A L S U P P L Y & D E M A N D
Completions 8 Net Ahsorpkn (MSF) Auailobii-4 Rate {%)
iso 12
1 DO ��- 1.
] 4
60 6
40 - - - -
20 2
C3 C3 C3 C3 c3p c3p C3 C3 C3
�Coirnplefions (Q Net Absorption (1) —AYM'614 Rote (R)
11
SOURCE: CBRE ECONOMETRIC ADVISORS, Q4 2018.
W
3PLS AND E-COMMERCE OCCUPIERS CAPTURE OVER 50% OF DEMAND
17%
11%
16%
�0%
26%
Note: Based on 100 largest warehouse leases in H 1 2018.
3PL
m EmCommerce
m Manufacturer
Food & Beverage
m Others
m Retailer
■ Technology
W H A
H A S
T I F
T W O
T H
I S
E C
O
N
O
M
I C C
Y C L E
M O R
E Y
E
A
R
S
L E F
T ?
**�+; BIRTCHER
;
DEVELOPMENT
13
SOURCE: CBRE ECONOMETRIC ADVISORS, Q4 2018; NAIOP.
THE E-COMMERCE EFFECT
ON WAREHOUSING
55%
45%
35%
25%
15%
5%
-5%
**�+;BIRTCHER
;
DEVELOPMENT
AMAZON S G ROWTH
AMAZON'S PACE OF GROWTH IS DOUBLE THAT OF E -COMM AND RETAIL IN GENERAL
—Total Retail Sales
-15%
co M o
O O
O O O O
N N N N
Company filings, Department of Commerce
SOURCE: CBRE ECONOMETRIC ADVISORS, Q4 2018; NAIOP.
—eCommerce Sales
—Amazon Sales
N
co
Ln
CO
I,-
co
N
N
N
N
N
N
N
15
2 0 1
8 L O G I S T I C S
D
J 4,0
LU
}0
01
2016
2017
R E V I
F-1
L.1
2018
0 dotal Retail (Trillions)
E W
019
E- C O M M
2020
E online Retail (Billions)
2021
**�+; BIRTCHER
;
DEVELOPMENT
2022
This will
require 160 new e-commerce
logistics
centers of +800,000SF
& 110
new
or re -purposed
facilities
of 75,000-1 00,OOOSF
sites are necessary
to support local delivery
in key
urban
markets.
SOURCE: FORRESTER 2018; .IMS 2018 TOMPKINS 2016
16
**�+; BIRTCHER
;
DEVELOPMENT
T H E
E- C O M M E R C E
E F F E C T
-
•� -� Y i
+ r 4
it y .dL
=dA
17
SOURCE: CBRE RESEARCH, Q3 2018.
•
W
HOW MUCH SPACE?
•
MSF
t
Industrial Cold Storage
Arise in
online
grocery will
transfer at
approximately
7 5-100 MSF of
demand from
retail to
industrial
THE E-COMMERCE EFFECT
ON RETAILING
HOW P RCHASES
Research online
and in
buy in,,
2 2 °
Search an(
buy in storE
20%
A R E M A D E ( 2 0 1 6 )
Research online
in store, buy
online
16%
■ Research online and in store, buy online
■ Search and buy in store
Search ai
buy onlir
42%
■ Search and buy online
Research online and in store, buy in sto
SOURCE: JLL, RETAIL/E-COMMERCE DISTRIBUTION, MARCH 2018.
**�+;BIRTCHER
;
DEVELOPMENT
W
W O R L D
S T O P R E T A I L E R S
TheWorld'sTop 10 Largest Retailers
Hold Nearly Haff the Global Market
Global E -Retail Market Share, Company Type
Everyone
Else
54.8%
■ Puri Marketplace
■ Hybrid Marketplace
SOURCE: INTERNET RETAILER.
Allbaba (China ) 26.6%
eBay (U.S.) 4.5%
/
RaWen (kpanj 1.5%
Arnazon (U,S.) 13.0%
JD.corn (Chiriaj 3.8%
—Apoe (U.S.) 1.4%
—
Xjawi (China) 1.0%
— De I N.S.) 0.9%
Burring (Chink 1.3%
Wal-Mart (U, Sj 0.8%
■ Brand ■ Retail Chain
**�+; BIRTCHER
DEVELOPMENT
Pure Marketplace: Does not sell
anything—it i*s a pure
marketplace. It makes its money
ly via fees and advertising.
Hybrid Marketplace: Sells its
own products as well as allowing
others to sell on its online
platform.,
Only sells its own
products.
'•^' ..... Retailers with
online presence.
21
A
T
V
O
E R A G E M O N
T H E T O P P
T H L Y U S V I S I T O R S
O P U L A R R E T A I L
W
E
B S I T E S I N
2 0 1 7 ( I N M I L L I O N S)
amazon
N*'M�0
KOHL'S
�11
Etsy
WEffSe
lip 34
32
MW 31
25
23
MIA
LAd
57
SOURCE: JLL, RETAIL/E-COMMERCE DISTRIBUTION, MARCH 2018.
E'lb
em
183
**�+; BIRTCHER
;
DEVELOPMENT
W
•
50.0%
45.0%
43.5%
40.0%
1. 5 %
35.0%
1.2
30.0%
0.9 %
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
6.8%
I I I Kr -4011 WE "00�.
•
/ ,�
M
Amazon is #1 leading the U.S. share of
e-commerce sales, but Walmart and
Waytair a. expected to be the top two
companies that will grow the fastest.
3.6% 3.6%
1. 5 %
1.4 %
1.2
% 0.9 %
0.9 %
0.7 %
0
E - C O M M E R C E S T R A T E G
* Regional distribution
* Dedicated e-commerce
0 `Ship -from -store'
* Outsourced `last mile'
`Click & collect'
� Drop shipping4 0 ItESIr
� Dedicated in-store pick-up d �'B�0
� Innovative adaptive re -use Mk
14W
SOURCE: JLL, RETAIL/E-COMMERCE DISTRIBUTION, MARCH 2018.
E S
LL
s@4Jtlrb9}i
*•�+; BIRTCHER
;
DEVELOPMENT
MILLENNIUM MILE
24
M�tiy:.-
. ,A x:'..:::....:.
t.. .. ... ': � ...
.................iii
Al .,:':'.. '.. �: ..
.. ........�...�.�..ii
..
illi?i�`i`'!'I
Nil 141
*•�+; BIRTCHER
;
DEVELOPMENT
MILLENNIUM MILE
24
W
,M •
0
a
W
Until now, last mite has stayed in the realm of a nebulous concept rather than a measurable distance. Since
� the fast mile of the supply chain, we are now forced to find
mething more quantitative.
goads
purchased online are
highly
dependent ars
a way
to transform last mile
from a
concept to so
ubmarket
Last Mile Average
Although last mile 'infrastructure developmentIs tiii in its early stagesin certawin parts of the GLA -OC -IE region , the figure above
provides a thorough cross-section of the current state of last mile ire the area.
By sampling a number of last mile and parcel delivery facilities extrapolated the average by measuring the distance from the
facilities to the most densely populated zip codes within each respective metro area..
B R E Res e a rc h found that lista noes ra n gel from 4.5 miles in range County to 9.2 miles in the Inland Empire. S u b rn a rkets with
homer distances indicate more progress has been made in densely populated urban areas than in others.
THE E-COMMERCE EFFECT
ON RETAILER CLOSURES
�BIRTCHER
DEVELOPMENT
M A J O R C H A I N C L O S U R E S I N 2 0 1
DESPITE A STRONG ECONOMY, 2018 CLOSURE LEVELS SURPASSED GREAT
RECESSION LEVELS
14,000
Major Chain Store Closures
'Z,°°° The Structural (not Cyclical)
Issues Challenging Retail:
10,000
� A Convergence of Five Factors:
$,°°° 1. Acceleration of eCommerce
2. Over Retailed Marketplace
6,000 3. Race to the Bottom
Discounting (Rise of Off -Price)
4. Shifting Consumer Patterns
4,000 (Millennials Spending
Differently than Past
2,000 Generations)
5. Toxic financial models
(leveraged buyouts, challenges
a of being public, etc.)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
■Major Chain Closures ■Forecast Major Chain Closures
27
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
BAN KRU PTCIES ( A
2017
Aerosoles
Alfred Angelo
BCBG Max Azria
Bob's/Eastern
Mountain
Central Grocers
Charming Charlie
Gander Mountain
Gordman's
Gymboree
HHGregg
Limited
Marbles/Brain Store
MC Sports
Papaya Clothing
Payless
Perfumania
RadioShacK
Macaroni Grill
Rue 21
Sheikh Shoes
Sports Zone
Styles for Less
Toys R Us
Traffic Shoes
True Religion
Vanity
Vitamin World
Wet Seal
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
T T O P
2018
Charlotte
Olympia
Agaci
Bon Ton
Kiko USA
Walking
Company
Claire's
Southeastern
Grocers
Nine West
Rockport
Bertucci's
Samuels
Jewelers
Brookstone
National Stores
Gump's
Real Mex
Mattress Firm
O F C Y C L E )
2019
**�+;BIRTCHER
;
DEVELOPMENT
Sears Beauty Brands
David's Bridal Innovative Mattress
Taco Bueno Solutions
Gymboree
Shopko
Charlotte Rousse
FullBeauty Brands (Online)
Things Remembered
Payless
Diesel USA
Z Gallerie
Samuels Jewelers
Roberto Cavalli
L E V E R A G E B U Y O U T BAN KRU P
THE VICTIMS OF DEBT AND NOT E-COMMERCE
Albertson's
JoAnn Fabrics
Chuck E. Cheese
Pep Boys
Hudson's Bay Co.
Hot Topic
The Fresh Market
Belk
Staples
PetSmart
Petco
Talbots
Academy Sports
Toys R Us
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
Guitar Center
99 Cents Only
GNC
Calceus (Cole Haan)
J. Crew
Lands' End
Neiman Marcus
**�+; BIRTCHER
;
DEVELOPMENT
Over the past 20 years,
private equity groups
I 1 9
acquire retaners ii
R US and then pu
debt on the retails
balance sheets. 1
k e Toys
t that
�r
phis risky
practice, known as
leveraged buyouts, is
creating issues for many
relevant retailers today.
2 0 1 9
Payless (USA +
Gymboree
Charlotte Russe
Ascena Retail
C L O S U R E S
Canada) 2,450
800
Shopko
Family Dollar
Things Remembered
C h i co's FAS
Gap
GNC
LifeWay Christian Stores
Foot Locker
Tesla
Samuels Jewelers
Hibbett/City Gear
Sears
Victoria's Secret
Vera Bradley
Office Depot
PetSmart
Kmart
Lowe's
The Children's Place
Chico's
Stage Stores
530
400
370
360
300
250
230
200
170
165
130
122
80
72
53
50
50
+/-50
48
47
45
+/-40
40
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
... S O F A R
Abercrombie & Fitch
40
Pat Catan
36
White House Black Market
+/-30
Williams -Sonoma
Build -A -Bear
30
JC Penney
27
Pollo Tropical/Taco Cabana
23
Southeastern Grocers
22
ELF Beauty
22
Saks OFF Fifth
20
Z Gallerie
17
Bentley's Pet Stuff
Bi -Lo
13
Walmart Neighborhood
11
Petland Discounts
10
Roberto Cavalli
10
SOMA
+/-10
Johnny Mac's 9
Hemispheres 8
Winn-Dixie 7
**�+; BIRTCHER
;
DEVELOPMENT
Topdontraction
Categories:
Debt -Added Concepts
Apparel (Mid -Price)
Media -Related Retail
Offldg0
Supplies
Weakest Category Players
W
**�+; BIRTCHER
DEVELOPMENT
R E T A I L S F U T U R E
POWER OF THE PHYSICAL RETAIL LOCATION
Omni -Channel math is not binary —Complementing platforms yield compounding
results
Retail Armageddon? Hardly!
Leveraging the store for eCommerce — ship, pick-up & returns
Always will be demand for well-curated, professional sales experience and/or
value experience — Brand Experience
Alternative development opportunities for select retail assets
31
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
2 0 1 9 A N N O U N C E D G R O W T H P L A N S
SO FAR...
Dollar General
975
Sephora
35
Dollar Tree
350
Jack in the Box
35
Starbucks (USA)
+/-350
Warby Parker
+/-35
O'Reilly Automotive
210
Target
30
Five Below
159
Sprouts Farmers Market
30
Aldi
150
At Home
30
Green Growth Brands
108
Texas Roadhouse
30
Peloton
100
PJ's Coffee of New Orleans
30
TJX (TJ Maxx, Marshall's,
+/-100
Untuckit
+/-30
HomeGoods)
ZIPS Dry Cleaners
+/-30
Chipotle Mexican Grill
+/-100
Dd's Discounts (Ross)
25
ULTA
80
Trader Joe's
+/-25
Tractor Supply
80
Habit Burger
23
Crunch Fitness
80
Indochino
20
Ross
75
Wegman's
17
Hobby Lobby
65
Noodles & Company
16
Burlington
50
Walgreen's
16
Pet Supplies Plus
50
Lands'End
15
Darden (all concepts)
45
Shoe Sensation
15
011ie's Bargain Market
44
Dave & Buster's
+/-15
Grocery Outlet
40
Floyd's Barbershop
+/-15
Shake Shack
40
Costco
12
Paris Baguette
40
Michael's
12
Adore Me
+/-40
Boardroom Salon for Men
12
Lululemon
+/-40
PetSense (Petco)
10
Aerie
35
American Eagle
10
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
**�+; BIRTCHER
;
DEVELOPMENT
Top Expansion
Categories:
Beauty/Cosmetics
Clicks to Bricks
Coffee
Discount Grocery
Dollar Stores
Fitness/Health Clubs
Off -Price Apparel
Super Stores (smaller
sizes)
32
**�+;BIRTCHER
;
DEVELOPMENT
G R E E N S H O O T S C L I C K S T O B R I C K S
THESE DIGITAL NATIVE BRANDS HAVE OPENED EVERYTHING FROM PERMANENT TO POP-UP TO
STORE WITHIN STORES
ADAY
Adore Me
Allbirds
Amazon
American Giant
Athleta
Away
BaubleBar
BHLDN
Birchbox
Black Tux
Blue Nile
Bombas
Bombfell
Bonobos
Brilliant Earth
Brooklinen
Burrow
Carbon38
Casper
Chubbies
Cotopaxi
Curology
Cuyana
Combatant Gentlemen
Dia&Co
Draper James
Drunk Elephant
Duluth Trading
E.L.F. Cosmetics
Eloquii
Essentia
Everlane
Fabletics
Fashion Nova
Floyd
Framebridge
Frank & Oak
Function of Beauty
Gilt
Glossier
GOAT
Goop
Greats
Hanna Andersson
Happy Returns
Harry's
Heyday
Huckberry
Indochino
Interior Define
Knot Standard
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
Kopari Beauty
Kuiu
Leesa
LIVELY
LumberUnion
LXR & Co
M. Gemi
Mackage
Mack Weldon
Madison Reed
MeUndies
Milk Makeup
Ministry of Supply
MM. Lafleur
Moda Operandi
Nadaam
Nisolo
Outdoor Voices
Parachute Home
Peloton
PIRCH
Primary
Qalo
Quay Australia
RealReal
Rebag
Reformation
Rent the Runway
Rockets of Awesome
Rothy's
Snowe
Stance
Sugarfina
SuitStudio
Suitsuply
TechStyle
The Arrivals
Third Love
ThredUp
Tie Bar
True Botanicals
Trunk Club
Universal Standard
Untuckit
VSP
Warby Parker
Wardrobe NYC
Wayfair
Wolf & Badger
Yogibo
Zenni Optical
33
THE E-COMMERCE EFFECT
ON LAND PLANNING
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DRIVE-THRU PICKUP
PAR KI NG DECK
ABOVE
RESTAURANT
ABOVE I STORY
ANCHOR
RESTAURANTS
5000 SIF EACH
PICKUP LOCKERS
F U L F I L L M ENT C E N T E R
360 F
W,
Y-1
140 1
C3
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105 LOADING DOCK BAYS
1260'
FULFILLMENT - 523,800 SF
40' CLEAR HEIGHT
RETAIL 481 r50 SF -
VAiq
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SPACE
STORY
IRTHER
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DEVELOPMENT
901601
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SOURCE: JLL, RETAIL/E-COMMERCE DISTRIBUTION, MARCH 2018.
The Lamar Johnson Collaborafive, LLC
36
A D E C A D E O F C H A N G E
Pre -2008 Global Financial Crisis:
Front loaded with one 125' truck court
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Post Global Financial Crisis:
Cross dock with two 185' truck courts
**�+;
37
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Post Global Financial Crisis:
Cross dock with two 185' truck courts
**�+;
37
F L E X I B L E
1
S I T E P L A N S
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**�+; BIRTCHER
;
DEVELOPMENT
Cross dock design provides optionality for e -Comm parking loads or additional container storage.
360 degree circulation provides onsite security management.
Divisible to 4 tenants. 38
**�+;BIRTCHER
;
DEVELOPMENT
G R O W I N G O B S O L E S C E N T S
COMPOSITION OF VACANT WAREHOUSE PRODUCT BY VINTAGE AND CLEAR HEIGHT
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
60% of available
logistics space is
more than 20 years
old. Over half has
clear heights below
28'
That presents
limited options for
tenants seeking
modern space to
compete.
W
**�+; BIRTCHER
;
DEVELOPMENT
K E Y S U P P L Y C H A I N D R I V E R S
NOT YOUR FATHER'S DELIVERY NETWORK
1. Proximity, Proximity, Proximity. Labor, Labor, Labor.
2. AMZN, DHL, XPO) UPS, FDX, USPS and rest of massive 3PL sector investing heavily in
last mile infrastructure — super close to the customer;
3. Speed of delivery vs. cost vs. customer experience; AMZN has trained us to demand fast
and free
4. Complexity of supply chains will continue to drive further investment in technology and
physical assets — ever closer to the customer.
5. Single story warehouses with parking on the roof to Multi -story urban solutions.
Wo
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
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U R B A N I N F I L L - M U L T I- S T O R Y W H S E
IT'S NOT FOR EVERY MARKET, BUT THE 1ST GENERATION IS BEING DEVELOPED
IN SELECT U.S. CITIES
- A*
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Georgetown Crossing —Seattle
(complete, in lease -up)
SOURCE: CUSHMAN & WAKEFIELD RESEARCH.
**�+; BIRTCHER
;
DEVELOPMENT
Innovo's 2025 Bruckner — Bronx (pre -leasing)
i
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CHALLENGES AHEAD
N C R E A S I N G O P P O S I T I O N
**�+; BIRTCHER
;
DEVELOPMENT
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E N T I T L E M E N T
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**�+; BIRTCHER
;
DEVELOPMENT
Legal Challenges are commonplace, in particular from insincere lawyers looking for payoffs.
Encourage stakeholder workshops with active community groups.
Educate residents as to the sustainable measures these new buildings feature that reduce
truck emissions, traffic and generate high paying local jobs 46
BIRTCHER
DEVELOPMENT
SU P CHAIN S U S T A I N A B I L I T Y P R O G R A M
98% OF FORTUNE 500 COMPANIES HAVE SCS PROGRAMS
r
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The miracles of. science,
TARGET
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SAFEWAY
M''IVNOLESALE
r
LNG/CNG Trucks, Electric hookups at every truck door, Concrete truck yards for reflectivity & anti -
percolation qualities, Underground detention clarifiers w/clean water percolation into water table (where geo
permits), 2.5% parabolic skylights, solar -ready roof loads. reflective roofs. and motion sensors on whse
lighting, to name a few.
SOURCE: WSL CONSULTING.
47
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**�+;BIRTCHER
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DEVELOPMENT
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I O N S
Lot assemblages: master plan overlays on "hold out" parcels to accommodate bldg
expansion and/or additional parking.
**�+; BIRTCHER
DEVELOPMENT
Encourage fast-track EIR's for logistics projects (beat your competing cities to job and tax
creation and capture "trickle-down" economics of new job creation).
Pre -designate "heavy -weight corridors" and maintain accordingly.
Eliminate building size restrictions to attract the higher credit national companies on
longer lease commitments to your community (job stability).
ncrease clear heights maximums >36ft (market wants up to 50' whse & 70' cold storage)
Fire code upgrades to embrace latest UL rated sprinkler heads.
Allow higher FAR's >50% driven by roof top autos, last touch carriers, trailer chassis, etc.
he electrical grid.
Provide aggressive solar incentives in cities that own/control t
Encourage trade schools in logistics & computer training for non -college bound citizens.
Participate in the League of Cities initiative to recapture E -Commerce generated sales
taxes.
W
OBIRTCHER
R E P O S T I O N I N G Y O U R M A S T E R P L A N DEVELOPMENT
F O R T H E N EW COMMERCE M A R K E T P L A C E
AT NO COST TO YOUR JURISDICTION, BIRTCHER WILL:
Revisit this presentation with members of your Staff, Commissions and/or Council.
Evaluate modifications to General Plan.
Zoning & building code clarifications are need to accommodate the buildings
necessary to service our citizens.
Discuss ground leasing city or county owned sites for logistics related uses.
Redevelop aging residential or commercial neighborhoods.
Establish tools that encourage owners of existing obsolete buildings to reinvest or
redevelop (such as tax holidays, reduced fees, increased FAR's & infrastructure
upgrades).
51
THANK Y O U
EST- BIRTCHER DEVELOPMENT
1939
B R A N D O N B I R T C H E R
9 4 9- 6 3 2- 2 2 9 2
b b i r t c h e r @ b i r t c h e r
c o m
E
F
F
E
C T
S
O
F
S L
O W
CANAL
Mayor rail
Days "Normal Speed„
W
ING
Shanghai
S T E A M I N G & BIRTCHER
DEVELOPMENT
Manzanillo
The time to transit from China via canal to NYC is 11 day
bridge.
SOURCE: IMS WORLDWIDE.
s longer than t
-.1
0
Tier 1 contarnar port
0
Established inland port
4Mt
Maar US container seaport
Major US cargo airport
Mayor rail
Days "Normal Speed„
Days "Slow Steam"
he LA/LB land
53