Shopping Center Business

DEC 2017

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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SHIPPING CONTAINERS 118 • SHOPPING CENTER BUSINESS • December 2017 impossible to get a new brick-and-mortar dining option open by the first day of class. "Zatar restaurant at MOS&T; was fully operational less than a week after set-up," Petitogut says. "There are tons of very practical reasons why shipping container architecture is becoming so popular: sus- tainability, affordability and mobility are all big differentiators for our industry. Those extra months of operation had a huge impact on Zatar's revenue last year." PRACTICALLY PROFITABLE The added perks that can be contained within the steel walls of those repurposed shipping shops are many, according to Ca- sey Stowe, a principal at Tulsa, Oklaho- ma-based Nelson+Stowe Development, which opened the Boxyard, a 39-contain- er shopping destination in Tulsa, in late 2016. Like Zatar's owner, one of the perks he noticed was increased profits across his tenant roster, which includes Beau & Arrow women's apparel company, East + West men's fashion shop, Nova Comics and WirWar bar and restaurant, among others. "My tenants at the Boxyard have re- corded sales two, three and four times what they projected to sell," he notes. "One of their biggest problems has been keeping enough inventory. A good prob- lem to have, to be sure." The lack of inventory touches on one critical aspect of container stores: the lack of space. While there can certainly be a downside to such small spaces, es- pecially where inventory is concerned, it also means lower rents, more flexibil- ity and more opportunity for creativity. These perks are particularly attractive in dense, urban cores with only small plots of available land, as Stowe is aware. The idea for the Boxyard initially came about after he visited Boxpark Mall in London during the 2012 summer Olympics and fell in love with it. The opportunity came about when Nelson+Stowe responded to a request for proposals (RFP) on a very small piece of land at the corner of 3rd Street and South Frankfort Avenue. "I think the scale is appropriate and at- tractive," Stowe says. "Of course, the nov- elty of a shipping container mall is what brings folks down to the Boxyard initial- ly, but they seem to really connect with it once they experience it. Almost everyone walks away with a very different opinion of the space versus what they thought it was going to be like going in. It is certainly something you need to experience to truly appreciate." Then there's the "story," which hits at the heart of many Millennial shoppers. "I think there's a little element of magic that shipping containers bring to a space," Petitogut believes. "Each container has a story. It's been on a journey — maybe somewhere you've never been — and now, you get to be part of that story by shopping or dining there. I think people fall in love with the fantasy and the end- less possibilities that shipping containers represent. They are a blank canvass that allows us to paint whatever we like." Gros, for one, has capitalized on this history, particularly in unique locations like Long Beach where the multi-facet- ed life of a shipping container can really come full circle. "Using shipping containers to build SteelCraft seemed only natural as the Port of Long Beach is the second largest port in the world," she says. "It has been exciting to build using materials that res- onate so well with what the city is about. As we value restoration and sustainability, utilizing containers allowed us the ability to restore and give life to used containers. It also allowed us to create a space that was unique and original." Stowe may be happy with the contain- ers' tales and tenant sales, but he knows complacency is a killer in this retail envi- ronment — especially if you rely solely on the merchandise. For him, as for many owners, the experience is key. "We have a unique venue for sure, so that helps from the experiential shopping perspective, but we also had event pro- gramming in mind from the beginning," he says of the Boxyard, which will have 20 shops at build-out. "We designed several public spaces for interaction and specific events. We stand out by not just staging our own events but by working with other organizations in the community." These events include the "Boo"yard, a daytime trick-or-treating event for kids, a cornhole tournament and Third Thurs- day Astronomy Night, held on the proj- ect's second floor in conjunction with tenant STEMcell Science Shop. Stowe believes this mix of tenants, ac- tivities and themed events has created a well-rounded project that results in not just more visits, but longer stays. "I think bringing the critical mass with you really helps," he says. "Someone can come and shop at more than one place, listen to some music, have a glass of wine, spend an afternoon. That is hard to do at a 'one shop at a time' place, so having 20 shops at once helps." SCB Boxyard is a container-based center in Tulsa, Oklahoma, that features retailers and restaurants housed in former shipping containers.

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