Feel Good Edition 3

THE FEEL GOOD TRILOGY EDITION #3: THE VALUE OF LEISURE How much value will new leisure elements add to an existing development? It’s a frequent question, whose answer partly depends on an array of local variables that are specific to an individual location. And it also depends on an investor’s own criteria and attitudes towards investment. But by asking a number of key questions (Making Feel Good Pay, page 4) it is certainly possible to calculate what order of improvement in value might be achievable. It would, however, be a crucial misunderstanding of how leisure works, how it makes each of us feel good about ourselves and our environment, to see adding leisure to an existing development simply as a real estate transaction. Successful integration of leisure elements – which adds real value – comes from initiating behavioural changes in consumers. Giving visitors more reasons to go to a particular location sets up a virtuous cycle that will: That is why we believe focusing on behavioural changes, and not just footfall or catchment, is crucial to improving investment returns. Sounds expensive? Not necessarily. The best leisure enhancements are those that are tailored to their local environment. Relatively modest additions – soft landscaping such as water features and mini-parkland areas – can still induce actual behavioural change, though larger developments, such as a boutique cinema, will have commensurately more impact, as long as they are appropriate for a given location. Non-traditional ways of adding value are increasingly relevant. The extent to which a development benefits the community that it is part of, whether it employs local people and boosts the socio-economies of the local area and whether tenants operate to a high level of corporate, social and environmental responsibility can all have a positive impact on a scheme’s returns. Cushman & Wakefield’s adaptable blueprint in this edition (see pages 6 & 7) clearly demonstrates the benefits of introducing new leisure elements. It also highlights the very real risks of a ‘do nothing’ approach. A ‘do something’ attitude will almost certainly yield the best reward. Dominic Bouvet Head of UK Retail & Leisure Leasing Catherine Stevenson Associate EMEA Cross Border Leisure & Retail Services THE VALUE OF LEISURE | 03 RUNNING ORDER 02 .............. 03 .............. 04 .............. 06 .............. 08 .............. 08 .............. 09 .............. OUT NOW: In Edition #1 of The Feel Good Trilogy, Cushman & Wakefield sets out the key factors shaping the leisure sector and highlights the key hurdles facing those who operate within it. Get up to speed on the latest trends, including a consumer-led shift towards wellbeing, as well as current challenges. Previously... View Edition #1 Here THE CUSHMAN & WAKEFIELD VIEWPOINT THE FEEL GOOD TRILOGY EDITION #3: THE VALUE OF LEISURE MAKING FEEL GOOD PAY: OPTIMISING RETURN ON INVESTMENT – ASKING THE RIGHT QUESTIONS A FEEL GOOD CASE STUDY: STRENGTHENING AN UNDERPERFORMING SHOPPING CENTRE WITH LEISURE WHAT'S NEXT: THE FEEL GOOD FUTURE LISTEN NOW: THE FEEL GOOD PODCAST CONTACTS • increase dwell times & extend traditional trading hours • encourage repeat visits • increase total spend OUT NOW: In Edition #2 of The Feel Good Trilogy, Cushman & Wakefield define three key types of feel good and wellbeing spaces – and provide topical insight into how consumer-led demand for social spaces is changing how we think about feel good and wellbeing environments. Plus, we consider the variety of operating models available to those involved in bringing additional leisure to retail and mixed-use schemes. View Edition #2 Here