My wife and I just spent a marvelous week in the Rocky Mountain area of Colorado.
Vail was our homebase from which we ventured out onto a number of remarkable excursions. We floated the Colorado river, we rode horseback through rolling hills to observe grazing elk, soaring eagles, and beautiful wildflowers.
We fished for the bounties of the Eagle and Colorado rivers. Finally, we practiced goat yoga in the shadows of Vail Mountain. We adopted the phrase baaaa-maste. Sorry!
So you may be wondering, what any of this has to do with commercial real estate? Bear with me and allow me to draw a few parallels.
Strategic location: Just as Vail is strategically located to offer access to various outdoor activities, commercial real estate must consider location as a critical factor. Properties situated in prime locations with easy access to amenities, transportation, and attractions are more likely to thrive.
Experiential value: The unique experiences we had in Colorado, from floating the river to goat yoga, underscore the importance of offering memorable experiences in commercial real estate. Retail properties that provide unique and engaging experiences can differentiate themselves in a competitive market and attract loyal customers. Think Bass Pro and REI, as examples. You go to experience, not just buy.
Collaboration and partnerships: Many of our activities were facilitated by local guides and businesses working together. Similarly, commercial real estate can benefit from strategic partnerships and collaborations with local businesses and organizations to create a vibrant and interconnected community.
Connection to nature: Our adventures emphasized the value of connecting with nature. Commercial real estate can integrate green spaces, rooftop gardens, and natural elements to create a calming and attractive environment for tenants and visitors. Most class A office developments – such as Boardwalk in Irvine – understand this.
Seasonal flexibility: Colorado’s attractions vary by season, from skiing in winter to myriad summer activities. Commercial real estate properties can also adapt to seasonal changes by offering different services or promotions throughout the year, ensuring continuous engagement and relevance.
Cultural integration: The rich cultural backdrop of Colorado, with its mix of Western heritage and contemporary influences, adds depth to the experience. In commercial real estate, integrating local culture and history into the design and branding of a property can create a unique identity that resonates with the community and visitors alike. The District in Tustin has done a good job integrating local history into its buildings.
Industry creation and innovation: The development of the ski industry in Colorado transformed the region into a world-renowned destination. This innovation parallels the rise of new industries, like Silicon Valley tech, which created a whole genre of commercial real estate — the R&D buildings of the mid 1980s.
Embracing and supporting emerging industries can lead to the creation of dynamic, economically robust communities that attract investment and talent. The boom in logistics spaces with high cube warehouses, enhanced fire suppression and room for trucks to maneuver is a recent example.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.
