Until recently, retail development—with its emphasis on increased consumerism and growth—and sustainability have been almost a contradiction in terms.

Although sustainability has become commonplace in residential and office developments, the retail model, with its emphasis on short-term financial deals, means many developers do not hold onto a project long enough to receive the benefits associated with sustainability. As a result, while developers pay for green attributes, it is the tenants who receive the benefits.

Add to that equation retail's dependence on the automobile and typical smaller profit margins and you can see why sustainability has been a design challenge.

The past decade, however, has witnessed a substantial change to retail's commitment to sustainability. As companies' sustainability programs have become more developed and the benefits to the business more obvious, funding and resources increasingly have been directed to sustainability programs. And while implementing sustainability into the design of a shopping center continues to be a challenge, there is an increased recognition that doing so will reap benefits to the developer, the retailer, and, most importantly, the customer.

This so-called “triple bottom line” has forced many retail stakeholders to consider the economic outcomes, social implications, and environmental impacts of integrating sustainability into all aspects of development. A retail project needs to be well-designed and attractive to the consumer for it to be economically successful. A well-designed place entices more people to visit. Ultimately, they linger longer and spend more money.

Beyond pure economics, though, the triple bottom line recognizes that retail development also delivers a cultural impact on the surrounding neighborhoods. Shopping is a social activity and all great retail environments should be about people. A project that becomes the social nucleus to the community is less about buying goods and more about creating experiences—in short, a place to live, work, and create memories.

Finally, developing the ethos of environmental protection into retail development is generating projects that are denser, closer to public transportation, and more energy efficient. The real trick has been to engage the consumer without diluting the message. As more retail developers have recognized this, they have focused on the benefits of creating an environmentally friendly retail environment that illustrates what a sustainable lifestyle can be, connecting the consumer to the natural world.

All three of these components are interconnected and equally important. The adaptation of the retail built environment to sustainability has been slow, but is now gaining considerable momentum. Ultimately, a sustainable retail environment will lower operating expenses, decrease risks, provide a focal point to the community, increase consumer loyalty, provide more flexible settings, reduce impacts to the environment, and increase the bottom line.

The ideal retail project is one that meets the needs of owners, retailers, and consumers, where sustainability is not just an add-on but an integral part of the design. Sustainable retail design is good design and good design is good business.

Guest author Dustin Watson is a partner and the director of sustainability at the Baltimore-based design firm DDG. He is also on the International Council of Shopping Center's Retail Green Planning Committee, the Urban Land Institute's Sustainable Development Product Council, and the AIA Baltimore's Committee on the Environment.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.