Big-box developers take special considerations when constructing urban projects such as more stringent code requirements and multi-level parking garages.

In the past, retail developers never considered big-box construction to be the most glamorous work. However, with the growing urban big-box trend, these former monoliths of the retail world are becoming high-end, consumer-friendly stores and desirable additions to a contractor’s portfolio.

Although the typical superstore chain is built on concrete slabs with minimal décor, companies such as The Home Depot are upgrading their facilities – mainly in urban locations – to meet the rising expectations and needs of their customers.

For New York City-based IBEX Construction , meeting big-box demand in urban areas requires a different approach. Unlike the typical big-box supercenter situated on an oversized piece of land, urban developers are forced to construct multi-level stores on smaller pieces of property.

New Requirements
According to IBEX Construction Chairman and CEO Andy Frankl, the prototypical stores for many big-box retailers are not conducive to split-level facilities, due to the size of the merchandise. “Many of these retailers do not even have average-sized shopping carts,” he says. “They also usually offer oversized, bulk products, and this is not a problem in the typical, single-story locations. But, in urban settings, consumers are often using public transportation and can’t always load up a car after shopping.”

IBEX confronted many of these challenges when it was contracted to build a store for The Home Depot in a historic Manhattan building.

“The location is what makes this Home Depot unique to others,” Frankl explains. “The historical building is clearly not designed for that type of store, so there is a stark contrast between the big-box atmosphere and this upscale building. The opposites came together and created a beautiful project.”

The environment inside the store is more akin to a high-end furniture showroom, he says. “That’s why the company chose IBEX Construction to construct the Manhattan store,” Frankl asserts. “We have experience in these high-end markets.”

The firm designed this Home Depot from a shopper’s perspective. IBEX installed escalators that can transport shopping carts. “There are special considerations like this that companies have to make in order to create a urban big-box store,” Frankl says.

Even the retailers located in these urban areas take special considerations before stocking the shelves. Where many typical stores feature oversized, bulk products, many city dwellers cannot carry these types of items on public transportation. “Many retailers have started offering deliveries as an option for these people,” Frankl explains.

Strict Requirements
Although IBEX specializes in high-end retail, its expertise can be put to use in a variety of big-box projects. IBEX has applied its extensive experience in performing work for luxury retailers such as The Plaza Hotel Retail Collection and Nordstrom to its urban big-box projects.

IBEX recently constructed the higher-end Borders Books & Music store in the Time Warner Center in New York City, it says. The store is located in one of Manhattan’s few malls, and required the firm to meet strict code requirements. “Containing a café and book-searching kiosks, this application required an elaborate HVAC system and additional mechanical and electrical support systems,” IBEX explains.

Following the Trends
As a rule, Frankl says, attitudes toward big-box developments tend to follow economic trends. “When there are high times, all of a sudden, companies snub their noses at big-box,” Frankl asserts. “They only want to construct higher-end stores, like the Cartiers and Louis Vuittons of the world.”

However, in economic downturns, consumer demand for value increases, and these low-price supercenters are sought-after projects and welcome additions to communities.

The economic climate today, according to Frankl, is at a turning point. “There are quite a few developers out there who are still fantasizing that they’re going to attract the high-rent tenants,” he says. “Although there is some indication that they will, I believe that if the market softens any more, there will be many more big-box centers appearing throughout the country.”

Luxurious Location
In 2003, Home Depot opened its first urban, two-story location in Chicago’s Lincoln Park neighborhood. The facility features floor-to-ceiling windows to maximize natural sunlight, and marked one of “its deepest forays yet into a modern, urban environment,” it said.

The company tailored its merchandise offerings to the local clientele, removing the typical home and garden center that typically occupies much of the store. The firm excluded this department after finding that many homeowners throughout the neighborhood have very limited yards.

“By carefully choosing the merchandise that is in demand within the neighborhood, we can get the job done extremely well in a smaller store,” Global Product Merchant Jim Warrington said in a statement. “The new store enables us to provide the convenience of being local, while maintaining the capabilities of a traditional Home Depot. This is the new local hardware store.”

The Lincoln Park project also includes a multi-level, 150-car garage. In total, the facility is 80,000 square feet, whereas the average location is approximately 100,000 square feet. However, “The average Home Depot just wouldn’t fit here,” Warrington said.