AAuto retailing is in the midst of a construction boom fueled by favorable cash flow, upgrades after ownership changes and the pent-up demand for facility updates to keep up with customers and serve them efficiently. To review current construction and design trends, we talked with Joe Pella, head of National Commercial Real Estate at Truist, Jason W. Smith, head of Dealer Commercial Services at Truist, and Ryan Stancill, Principal at architecture and multidisciplinary design firm PRAXIS3. How has the rise of mixed-use development in major metro markets affected the way dealers approach the best use of their property? Smith: As urban sprawl extends to dealerships that were once on the outskirts, developers have started approaching dealers about their valuable real estate. Dealers often sit on large, contiguous pieces of land in densely populated areas. With vehicle inventory projected to remain at lower levels, this opens dealership space for redevelopment. For dealers with the population density and location attractiveness to support it, why not monetize the excess land and bring in more retail traffic, integrating the dealership into the community at the same time? Rethinking how much land you need and how that land can be used can point you to opportunities to unlock additional value, whether you develop the property yourself, partner with a developer, or sell a portion of your land. Stancill: We’re seeing a lot of mixed-use projects being discussed, and it’s often the municipality pushing dealers in that direction. We’ve studied several projects where a mixed-use component was a requirement for project approval. Mixed-use developments can bring resources and amenities closer together to create a more sustainable and walkable community. With these developments, dealerships can maintain a central presence in the community while blending residential, retail and commercial uses to fit site and local market needs. Also, if you want to put valuable land to its best and highest use, you might By Jason W. Smith, Head of Truist Dealer Services, and Joe Pella, head of National Commercial Real Estate at Truist. Written in partnership with Ryan Stancill, Principal at Praxis3 Architecture Design Firm. Dealership Facility Design Adapts to Shifts in Auto Retailing 20 Virginia Auto Dealer
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