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Spring 2012 - Sares-Regis Group

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Guest Column<br />

Common Values, Contrasting<br />

Demands Drive Global Markets<br />

Perspective Gleaned From Experience<br />

In California, China; Similarities End<br />

With Scale Of Mixed-Use Development<br />

By Robert Steinberg, FAIA<br />

Several common trends are dictating mixed-use<br />

development internationally. In China, where unprecedented<br />

development is under way, there are interesting comparisons,<br />

as well as contradictions, to what is happening in the U.S. and<br />

elsewhere.<br />

Our outlook on where housing is going is based on being<br />

active participants in two of the most dynamic markets in the<br />

world: the hot California market and even hotter China market.<br />

Steinberg Architects has been active in China since 2007.<br />

From that perspective we have observed three common values<br />

driving mixed-use development: Urbanization, Demographic<br />

Transitioning and Authenticity.<br />

Urbanization<br />

The urbanization of the world is accelerating. People want to live<br />

and work in cities. This is as true in California as it is in China. The<br />

difference is in approach and scale.<br />

In the U.S., mixed-use developments are being built adjacent<br />

to transit, retail and employment. While ground-up, mixed-use<br />

developments such as San Jose’s Santana Row have proved<br />

successful, today’s investors don’t want the risk of such a largescale<br />

challenge. Instead, the trend is to leverage in fill sites<br />

adjacent to existing retail or complementary, synergistic locations.<br />

This trend is leading to a surge in infill development of downtowns<br />

in places like Sunnyvale and Walnut Creek. Likewise,<br />

underutilized industrial space in Pasadena and downtown<br />

Steinberg’s award-winning concept for Changsha. The megadevelopment<br />

is envisioned with 80 million square feet spread<br />

over 3-square miles in south-central China.<br />

parking lots in Burlingame are being converted to mixed-use<br />

developments.<br />

In China, scale is much less of an issue. The Chinese are creating<br />

Robert Steinberg is President<br />

of Steinberg Architects.<br />

Volume 16 . Number 1<br />

entire communities from the ground<br />

up. These massive mixed-use developments<br />

are building both horizontally<br />

and vertically.<br />

Steinberg Architects is currently<br />

actively designing several of these<br />

mega-developments. After winning<br />

an international design competition,<br />

the firm will begin design for the<br />

extensive Changsha Songya Hu<br />

mixed-use project in China.<br />

Set in the scenic outskirts of Changsha, a regional metropolis<br />

with 7 million residents on the Xiang River about 400 miles north<br />

of Hong Kong, Changsha Songya Hu will develop 7,000 acres.<br />

Key aspects of the project include a waterfront business district,<br />

an entertainment district, and an ecological model community<br />

mixing residences and green public spaces. The total building<br />

area is 80 million square feet – the rough equivalent of 30 Empire<br />

State Buildings spread across a 3-square-mile area. Changsha<br />

Songya Hu will include 63 million square feet of residential space,<br />

5.5 million square feet of office space, 4 million square feet of<br />

commercial space, 1 million square feet of hotel space and 1.5<br />

million square feet of community space.<br />

The design of this new city is also influenced by several demographic<br />

factors.<br />

Demographic Transition<br />

Gen Y, the aging population and growing economic stratification<br />

are elements of demographic transition affecting development<br />

trends, too.<br />

Gen Y influence – Gen Y (also known as the Millennial<br />

Generation or Echo Boomers) is dictating trends the worldover.<br />

Characteristics of the generation – which includes those born<br />

around 1980 to 1995 – vary by region, depending on social<br />

and economic conditions. However, it is generally marked by<br />

an increased use and familiarity with communications, media,<br />

and digital technologies, as well as a penchant for living in<br />

the moment.<br />

This Gen Y demographic eats out more often, so less food<br />

preparation area is needed. Kitchen and dining areas are less<br />

formal, more open. In fact, there is less room definition and a<br />

sense of attitude. While the individual units may be smaller and<br />

more informal, multifamily projects feature larger and enhanced<br />

common areas and amenities – everything from bike workshops<br />

to multi-media lounges to “gamer gardens.”<br />

Aging population – The world’s aging population is creating<br />

a huge demand for senior housing, as well.<br />

During the last few years in the U.S., financing has been difficult,<br />

so senior housing development activity actually slowed. However,<br />

new models – shifting from ownership to rental and away from<br />

isolated, stand-alone developments to intergenerational mixeduse<br />

communities – are becoming the new standard. This<br />

Continued on page 11<br />

3

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