February 1, 2015 | Canin Associates

CNU Florida Summit 2015: Our Takeaways

February 26, 2015/by Canin Associates

Last week, members of the Congress for the New Urbanism convened in Orlando for the 2015 CNU Florida Summit. The event’s theme was Transit and Transects: Sparking Florida’s Urban Revival. Speakers and tours covered topics including the rebirth of Downtown Orlando, the return of rail transit to Central Florida, and the development of urban neighborhood centers. Below, six Canin Associates team members share their takeaways from the two-day conference:

“We were pleased to hear Billy Hattaway [District 1 Secretary, Florida Department of Transportation] talk about taking the connection between land and transportation seriously. The new standards will help urban state roads support community building.”

Eliza Harris, Director of Urbanism

“The conversation about the successful conversion of College Park was really interesting, especially how the design of our main streets plays a fundamental role in how we think and feel about our community. The public realm is such an essential part of every community, and fully utilizing the economic, environmental, and social benefits is key.”

JT Cinquemani, Architectural Designer

“As a newcomer to both CNU and Orlando, I was surprised by how much more I learned about the city, and how much New Urbanism is shaping it. Behind the scenes, Orlando is implementing many more New Urbanist principles than I realized.”

Elena Haas, Intern Architectural & Interior Designer

“Seeing several projects at different stages and in unique contexts helped me rethink the approach to design and its impact on end users. Since the challenges of urbanization are universally similar, it’s great to see how teams react to each project’s specific context with innovative solutions.”

Monica Pinjani, Urban Designer

“I found it interesting that important design elements that used to be optional are now required in many jurisdictions. It was inspiring to see policy and design begin to take steps in the same direction.”

Alex Lenhoff, Urban Planner

“It was refreshing to be reminded of the strong directional opinions at play in building and design-related industries. Despite overall progress, leaders continue to find creative ways to deal with the current social and built environments on a more detailed scale.”

Michael Richardson, Architectural Designer

More information on individual sessions and speakers can be found in the 2015 CNU Florida Summit Agenda.

5 Tips to Get Your Clubhouse Right

February 18, 2015/by Canin Associates

A clubhouse can be a neighborhood focal point and help attract new residents. However, not all amenity centers are created equal. From functionality to aesthetic appeal, here are five tips to make your clubhouse shine:

1. Function, then form.

The program of your clubhouse is everything. Decide on what functions your clubhouse should have, and that will inform how much space it will require; don’t try to squeeze in amenities where they don’t fit, or they won’t add value to your space or community. Certain rooms require specific minimum sizes. For example, fitness rooms should be around 40 feet wide to allow for cardio equipment on outside walls with space for weight machines in the center. Give some thought to how the entrances and exits of spaces are aligned, so furniture space isn’t wasted, allowing for crisscrossing circulation paths across the multi-purpose room or other large, open spaces.

2. One building, or several?

So you’ve decided on a hefty program, and now you’ve got to figure out where it’s going to fit into your community. Phasing, access, and amenity sites can be used to determine if your needs can be met by one large building, or several single or double-purpose buildings. What you decide could create a community focal point or an amenity complex with meeting and multi-purpose space, fitness cabana, refreshment building, pool bathhouse, and more. Breaking up the building also reduces the overall square footage requirement, if the size is what’s holding you back.

3. The clubhouse is an important amenity to potential homebuyers.

One of the biggest selling points of a community is the clubhouse. If a neighborhood requires HOA fees, offering large-scale community resources is a great way to persuade potential homebuyers. Providing a clubhouse can also address a homebuyer’s typical hesitations, such as not having enough yard for a backyard pool, lacking space for large gatherings, being too far from the gym, or needing a way to get acquainted with neighbors. A clubhouse can be an excellent option as a “third place”—a gathering space other than home or work for community members to meet and mingle.

4. Elevation: scale and proportion.

This is your chance to “wow” guests and to create a community focal point. Use the clubhouse exterior to define the architectural style and feel of the neighborhood. With a great entrance and landscape package, it can create that memorable image that defines the community. Each part of the building has its own function, so use that to your benefit and pop the main entrance or fitness space forward or up, creating a defined piece and humanizing the scale of the structure.

5. Quality over quantity.

Building costs almost always affect design choices, so think practically. For example, over-articulating corners and walls can create dead spaces in a plan and add extra construction costs. If you have porches or patios, make sure they are of an adequate size to perform their function, like allowing space for furniture. A beautiful, functional clubhouse does not have to break the bank, and when done right, can help to sell every lot and home in the neighborhood.

Single-Family Can Be Urban, Too

February 10, 2015/by Canin Associates

American housing design is in need of a paradigm shift. Recognizing generational preferences, increasing affordability constraints, and sustainable solutions are needed to start a new chapter in the planning of our cities, especially when it comes to housing. But that doesn’t mean the single-family home is dead. In fact, if we begin to build houses around the principles of density, efficiency, and flexibility, a modern version of the single-family home could bridge the gap between what incentivizes builders and developers, and the new reality faced by many potential homebuyers.

Seattle, 1947. Photo © Seattle Municipal Archives

The nation’s changing demographics are a driving force behind a new focus on the often overlooked needs of two explosive market segments: singles in both Gen Y and Baby Boomer cohorts. With over half of all American adults single¹, it’s no surprise that 28% of new-home buyers (18% women and 10% men) are single². Additionally, Generation Y (now between 20 and 34 years old) and Baby Boomers (currently between 50 and 68 years old) make up nearly two-thirds of homebuyers³. While the housing industry has begun looking at the opportunity to serve Baby Boomers, it often fails to completely understand the needs of Gen Y and single buyers.

While three-quarters of Americans across all cohorts still prefer to live in single-family detached homes⁴, it has become difficult for Gen Y and single buyers to find affordable, tailored homes in the current stock of home designs and builder offerings. Financial pressures are increasingly affecting young homebuyers’ decisions. Adjusted median household income has remained virtually unchanged since 1989⁵ and is one of the factors behind increased credit card debt and high student loans. Combined, stagnant earnings and growing personal debt are reducing the buying power of many young Americans, which is reflected in a 12% drop in first-time homebuyer market participation in the past decade⁶. Because the conventional building model does not take these restrictions into account, it misses out on a large portion of potential homebuyers.

Changing demographics, increasing financial constraints, and modern preferences create the perfect springboard for a new era of very different single-family offerings. For example, without losing the quality and appeal of a traditional single-family community, micro homes (under 1000 sq. ft.) can create neighborhoods of truly detached single-family homes at densities of over 20 units per acre. For builders, higher densities can mean lower land costs per unit; for developers, micro neighborhoods can yield significant margins in per-acre sales; and for buyers, the ability to afford a detached home can once again become an aspirational reality.

In our site planning tests, we found that micro neighborhood designs can fit between four and six specially-designed homes (ranging from 500 to 900 square feet) onto a quarter-acre lot, allowing for densities of 16, 20, or even 24 units per acre. This model gives developers the ability to create complete, intimate neighborhoods. By limiting the size of the offerings to no more than 20 to 30 homes per neighborhood, it becomes possible to drive rapid absorption by matching demand and opportunity on a finely calibrated scale. Developers can create a sense of buyer urgency with flexible pricing that they can adapt to demand, available inventory, and market pricing.

With diversifying preferences and changing economic conditions, increasing residential density is the next logical step in American home design for builders, developers, municipalities, and, most importantly, buyers. By adapting the single-family home to a more urban context, we can take these considerations into account and create walkable, authentic communities.

Sources:

[1] Bureau of Labor Statistics, 2014
[2] National Associates of Realtors, Profile of Home Buyers and Sellers, 2011
[3] National Association of Realtors, Home Buyer and Seller Generational Trends, 2014
[4] National Association of Realtors, National Community Preference Survey, 2013
[5] US Census Bureau, 2012
[6] National Association of Home Builders, Wall Street Journal, 2014

ULI Central Florida: 2015 Emerging Trends in Real Estate

February 5, 2015/by Canin Associates

On January 30, 2015, ULI Central Florida held its annual Emerging Trends in Real Estate conference. At the half-day event, guest speakers and panelists shared their 2015 forecasts and projects with over 200 registrants from industries including real estate, development, urban planning, and architecture. With a recovering economy and positive job growth particularly in Orlando, the general outlook for 2015 was positive, albeit cautious. Jobs, oil, and Millennials proved to be steadfast topics of discussion throughout the event.

Back by popular demand, local political commentators Lou Frey and Dick Bachelor of WMFE’s Intersection opened the conference with their trademark banter on the local and national political scene. Mr. Frey, a former Florida Congressman (R), and Mr. Bachelor, a former Florida House Representative (D), gave their thoughts on the presidential race and what it could mean for Central Florida.

The event’s Keynote Speaker was Jeff Korzenik, Chief Investment Strategist at Fifth Third Bank. He summarized his economic outlook for 2015 into five points:

The US economy will continue to grow.
The GDP gap is shrinking.
Oil will a big deal.
The Federal Reserve will a bigger deal.
Investment opportunities are narrowing.

Mr. Korzenik went on to describe each point in detail, using jobs as a context. Despite the slowing growth of emerging markets worldwide, the United States has seen the strongest job growth since 1999 by adding over 200,000 jobs each month. Still, two challenges remain: employers are having a hard time finding qualified labor and aging Baby Boomers, who are retiring en masse, are leaving behind a diminished available workforce.

Other observations included:

Oil prices will rise again, but not to previous levels.
While bonds are still lagging worldwide, US bond yields are still attractive enough to draw local and international investments.
If your business is labor-dependent, it will be a tough year due to rising wages.
Slowly rising interest rates are not destructive to the economy, but will affect industries like real estate and development more than others.

Overall, Mr. Korzenik’s forecast was positive for Florida’s land-use related disciplines. The state is set to benefit from continuing to expand and improve its infrastructure, as well as the growing population in areas like Orlando and Miami.

Following Mr. Korzenik, Andrew Warren gave the event’s signature Emerging Trends in Real Estate presentation, based on the Emerging Trends in Real Estate – United States and Canada 2015 book, which can be downloaded here (PDF). Mr. Warren, the Director of Real Estate Research at PwC, called for more awareness and “sustainable momentum.” He noted the importance of “keeping an eye on the horizon and how much of the runway is left, more so than in 2006.”

Some of the takeaways from the Top 10 Emerging Trends for 2015 were:

Millennials and Baby Boomer are still affecting the market, notably through urban preferences.
The “18-Hour City” and diverse infrastructure will play important development roles.
Land costs are up, which translates into people taking greater risks.
While domestic government gridlock threatened to derail the economy in the past year, 2015’s biggest uncertainty will be worldwide geopolitical events.
One side effect of global events could be higher construction costs.
Despite growing job numbers, income is lagging behind, causing affordability to decrease.
More information on the presentation can be found on the PwC website.

After Mr. Warren’s presentation, two panels took the stage. The first group featured John Classe of Crescent Communities, Tony Eelman of FBC Mortgage, LLC, Maurice Johnson of Taylor Morrison, and Trip Stephens of ZOM. Together with moderator Lisa Dilts (Compspring), the panelists discussed Housing Trends for 2015. Once again, jobs were a major topic of discussion: “Job growth will stoke Millennial household creation, who prefer urban areas,” said Mr. Classe. Therefore, Mr. Johnson argued that “single-family homes should have all the features and amenities of city life to attract Millennials.”

The second panel, Commercial Trends, was moderated by Michael “Doc” Terry of the UCF Rosen College of Hospitality Management, whose panelists discussed commercial trends with a focus on Orlando’s tourist corridor: International Drive. Mr. Terry was joined by Jim Bagley of Encore Housing Funds, Carl Kernodle of Hyatt Hotels, and Josh Wallack of Mango’s, SOBE, and Skyplex. One major trend expected by the panelists will be the diversification of hotels, including urban hotels with a city atmosphere, hotels geared towards longer-staying international tourists, and families looking for multi-generational accommodations. Meanwhile, attractions in the district are becoming more aware of pedestrians and their safety. For International Drive itself, this means improved infrastructure such as pedestrian bridges.

The 2015 Emerging Trends in Real Estate conference concluded with the 2015 Trendsetter Award. This year’s winner was The Church Street Exchange. The team behind this effort took a defunct mall in downtown Orlando with nearly complete vacancy and leased it fully within 18 months, creating a model for adaptive reuse that serves Orlando’s growing tech, start-up, and non-profit scene. Other nominees included the City of Tavares, Laureate Park at Lake Nona, and First Green Bank.

CNU Florida Summit 2015: Our Takeaways