What's your State of Place? Boosting the triple bottom line + through walkability!

Walking toward sustainable change

How  State  of  Place  can  influence  placemaking  decisions,  enhance  walkability,  and  maximize  the  triple  bo>om  line

Mariela Alfonzo, Ph.D. Founder, State of Place

President, Urban Imprint Research Fellow/Adjunct Professor, NYU-Poly

www.urbanimprint.com/state-of-place

Why Walkability? Triple. Bottom. Line. +

It’s about how we live “Weh-­‐‑che-­‐‑steh,”  Miami:  My  hometown…and  my  

motivation  to  #getwalkable!

It’s about our health…

Yes, behavior important…

But so is Built Environment

VMT in the US, 1971-2012

Mode Split in the US, 1960-2010

It’s about our planet’s health

Residen'al  values  more  stable  in  walkable  neighborhoods  

Have  experienced  less  than  half  the  average  decline  in  value  from  the  housing  peak  

A  10pt  increase  in  Walk  Score  linked  to  5-­‐8%  increase  in  commercial  values    

Avg.  opera'ng  cost  /yr.,  Bike:  $308    Avg.  opera'ng  cost/yr.  Car:  $8,220  

A  1pt  increase  in  Walk  Score  linked  to  $700-­‐$3000  for-­‐sale  residen'al  premiums      

Urban  mixed-­‐use  developments  generate  25-­‐59x  revenue/acre  than  suburban  counterparts  

1%  rise  in  urban  sprawl  index  increases  obesity  risk  by  0.5%  In  2008,  medical  $$  to  treat  obesity  in  US,  approx.  $147B  

And now it’s about our economic health

(Walking)  

Individual Factors

Design matters….

Urban  Design  

Exchange!

Use!

Environmental!

Social!

Cultural!

Image!

See CABE

Exchange  

Use!

Environmental!

Social!Cultural!

Image!

E.g.  Walking  

E.g.,    Retail  Sales  

Individual Factors

E.g.,    Guggenheim  Effect  

to value generation….

Walkability driving place consumption…

The Power of PLACE

“Places” have become products

Their “sellers” compete with each other for resources

Educated residents

Talent

Businesses

Investment

Americans are choosing which locations to “consume” based on place quality

walkability is an important “driver”…

But…shortage of walkability? Public policy hurdles + Legal issues + NIMBYism + Lack of benchmarks and metrics = More difficult to finance/underwrite/create/deliver

Lack effective, cost efficient methods that demystify the process of identifying, differentiating, and creating the quality

places people want

BUT…in this stiff competitive place “market” AND in light of sustainability benefits,

walkability is no longer an “intangible luxury”

Why State of Place™ ?

¤  Art  à  Science:  Quantifying  walkability

¤  Comprehensive,  Objective,  Reliable

¤  Captures  “Micro-­‐‑scale”  &  “Sensory”  features

¤  Diagnostic,  Empirically-­‐‑Based

¤  Ties  Place  Quality,  Economic  Impact

¤  Facilitates  Evidence-­‐‑based  decision  making,  Accountability

¤  Provides  empirically-­‐‑based  ROI  predictions,  Customizable

Comprehensive. Reliable. Micro-scale.

Measuring Walkability: The Irvine Minnesota Inventory

Uses street-level built environment data Collected using the Irvine Minnesota Inventory (IMI 2.0) 250+ micro-scale features •  Sidewalk presence, street trees, street benches, parks, street

facades, land uses, etc. Reliable, used widely in research

Measuring Walkability: The Irvine Minnesota Inventory Raters receive full day training; tested for accuracy/reliability Data can be collected for sample of blocks in a neighborhood or on a select number of blocks •  10-12 min/block

•  Avg. 40-50 blocks/neighborhood Neighborhood defined based on existing boundaries

Diagnostic. Empirically-based.

State of Place™ : The IMI Scoring Algorithm

Dimensions Description/Example Items

Density Measure of enclosure based on building concentrations and height

Proximity Presence of non-residential land uses

Connectivity Measure of disconnectivty; Potential Barriers (e.g., six-lane roads)

Form Measure of streetscape discontinuity (e.g. drive-thrus)

Parks and Public Space Parks, Playgrounds, Plazas, Playing Fields

Pedestrian Infrastructure/Amenities

Curbcuts, Sidewalks, Street Furniture, Bike Racks

Personal Safety Graffiti, Litter, Windows with Bars

Traffic Measures Traffic Signals, Speed Limit, Traffic Calming

Aesthetics (Pleasurability & Maintenance)

Attractiveness, Open Views, Outdoor Dining, Maintenance

Physical Activity Facilities Gym/Fitness Facilities, Other Recreational Uses

Density

Form

Connectivity

Proximity

Parks & Public Space

Pedestrian Infrastructure & Amenities

Personal Safety

Traffic Safety

Aesthetics

Physical Activity Facilities

State of Place™ Diagnosis

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Density

Form

Proximity

Connectivity

Parks  &  Public  Space

Pedestrian  Amenities

Safety  from  Crime

Traffic  Safety

Aesthetics

Physical  Activity  Facilities

State

of Pla

ce

™

Dim

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ts Density

Form

Pedestrian Amenities

Traffic Safety

State

of Pla

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™

Dim

en

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ee

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Aesthetics

Safety

Place Quality. Economic Impact.

State of Place™ Built Environment tied to Economic Value

Corr

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ed E

cono

mic

Per

form

ance

+ $9 sf office rents + $7 sf retail rents

+80% retail revenues + $300/unit res. rent

+81 sf for-sale res. value

From Brookings Institution report, “Walk this Way”

Walkability = Economic Indicator

Can quantify the value of place….

The State of Place™ index is linked to premiums of up to:

+74% residential rents/unit +$1200/unit residential rent +108% office rents +84% retail rents +23% premium valuation before recession; +44% premium post

For DC, this translates into up to: +$744 mill in residential property taxes/neighborhood +$96 mill in retail taxes generated/neighborhood

Effective. Decision-making.

what is State of Place™? Like a credit rating for neighborhoods; Helps guide investment & underwriting; Aids branding; Siting

*Risk averse investors; Steady ROI

*Risk tolerant investors; Higher ROI

*Target for social equity advocates

*Regional retailer siting

*Aggressive developer enters market

ROI Predictions. Customize. Prioritize. Maximize.

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State of Place™ & ROI

Very Good ROI

Good ROI

Fair ROI

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Assess current performance

Predict ROI

Balance Costs, Benefits

Very Good

ROI

Good ROI

Fair ROI

Sidewalk improvements

Façade improvements

Intervention Options

Project Costs $500,000.00 $250,000.00

SoP Dimension Ped Amenities Aesthetics

Current Performance

25% 50%

Impact Factor 8 5

Predicted SoP Performance Increase

15% 10%

Baseline Indicator $25

$8/sf office $4/sf office Predicted Economic Upside

High Medium Walkability Impact Sc

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An

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sis

Office Rents

Can Prioritize Planned Interventions

¤  Add grid of streets

¤  Add Commercial office, retail, housing (as market bears)

¤  Add infill Metrorail station

¤  Add BRT Transit Line

FORM

DENS

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Can Prioritize Planned Interventions

¤  Add sidewalks, buffers

¤  Add street furniture

¤  Add plaza, public space

¤  Streetscape improvements

¤  Traffic calming

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AEST

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Metropolitan Washington Council of Governments, DC Metro Region

¤  Diagnosis 95 neighborhoods in the region

¤  Creating place profiles – based on assets and areas in need of improvement

¤  Informing Strategic Investment Plan for region

Conservation Law Foundation Ventures, Boston, MA

¤  Creating Healthy Neighborhood Equity Fund

¤  Piloting State of Place as project & neighborhood screening tool

¤  Creating estimated State of Place scores based on proposed projects ¤  Calculating potential upside

State of Place™ current & future “imprint”…

¤  Applicable across urban, suburban, & rural communities ¤  IMI data has been collected in California, Minneapolis, Houston, Iowa, North

Carolina RT, Denver, Salt Lake City, Kansas, Arkansas, Michigan, Illinois…

¤  Roll out State of Place in other metros ¤  San Francisco/Bay area – Spring 2013 ¤  Houston, Phoenix, Seattle, Los Angeles

¤  Incorporating a broader set of economic indicators ¤  Preservation Green Lab ¤  E.g. Job creation, retention, firm recruitment

¤  App – available soon!

¤  Partnering with universities

¤  Working with underprivileged community ¤  Brownsville + NYU-Poly

¤  China – in progress!

Let’s boost your State of Place™ !

What’s your State of Place™ ?

www.urbanimprint.com/state-of-place