1
From the Past
to the Present &
Preparing for the Future
www.ftscities.com
Evolving Sunnyvale: March 20, 2014
Freedman Tu...
2
The World Has
Changed
© Freedman Tung + Sasaki 2014
Climate Change + Oil Price Instability
What We See
© Freedman Tung +...
3
Housing foreclosures + credit crisis
What We See
© Freedman Tung + Sasaki 2014
Market instability + government budget cr...
4
What is really
going on?
© Freedman Tung + Sasaki 2014
Perspective on Change
Source: Celebratebig.com 2007© Freedman Tun...
5
Up to the Late 19th Century:
Communities Were Small, Spread-Out, Self-
Sufficient, and Primarily Agricultural
© Freedman...
6
Population Population
Early 20th Century:
Wide-spread Urbanization
© Freedman Tung + Sasaki 2014
Business park
Shopping ...
7
Sunnyvale’s First General Plan: 1954-57
Neighborhoods Industrial AreasCity
© Freedman Tung + Sasaki 2014
The Post-WWII
A...
8
Mass Produced Suburbs
© Freedman Tung + Sasaki 2014
Population
Growth
Sunnyvale’s Population Growth 1912-2006
Mass
Produ...
9
Suburban Retail = “The Strip”
A linear pattern of commercial development along suburban arterial roadways
© Freedman Tun...
10
The Interstate Highway (1950’s)
© Freedman Tung + Sasaki 2014
80s/90s: Enlarged Retail Formats
Replacing Strip Retail (...
11
1979 - Sunnyvale Town Center Mall
© Freedman Tung + Sasaki 2014
New facilities, which were large to fit the new equipme...
12
Early 1900’s Sunnyvale was conceived of a railroad served factory town
similar to those along the shores of the Great L...
13
Low Density and Auto Oriented Single Use: No activity centers
Landscaping but no “Public” Space Inward focus hides acti...
14
The Experiment FIT with the
industrial economy of the Era.
Business park
Shopping Center
Housing Subdivision © Freedman...
15
Fundamental Changes
Since the Early 20th
Century:
Retail Trends
© Freedman Tung + Sasaki 2014
The financial foundation ...
16
DOWNTOWN
STRIP CORRIDOR
SHOPPING
CENTERS
Investment
moves to
Investment
moves to
Freeway
Corridor
Crossroads-located ce...
17
Global Trend: Internet sales growing 3X faster
than brick-and-mortar
Quote source: strategic economics
In the rapidly
e...
18
Supportable Pattern
of Retail Centers
Retail Entitlements
Existing Retail
Zoning
© Freedman Tung + Sasaki 2014
Disinves...
19
Fundamental Changes
Since the Early 20th
Century:
Mobility Trends
© Freedman Tung + Sasaki 2014
In 1950 People Traveled...
20
Libby’s
Cannery
1907
Joshua Hendy
Ironworks
1906
Schuckls
Cannery
1907
Through 1950 Communities Remained Compact
Origin...
21
Population growth has been
dwarfed by vehicle growth.
Source – NPTS
CommonIndex
Vehicle Growth Rate = 1.5 X Population ...
22
So we have learned to associate
growth with degraded mobility…
© Freedman Tung + Sasaki 2014
But Why are we
driving so ...
23
The Myth:
Americans drive so much because
we love our cars and we love to
drive.
We are not going to change
because we ...
24
B
A
3 Destinations
6 ITE Trips
C
B
A
3 Destinations
6 ITE Trips
3 Destinations
2 ITE Trips
B
A
C
C
Mixed-Use =
Reduced ...
25
Connected Network = Smaller Streets & More Capacity
As communities become more compact,
the demand for transit increase...
26
Fundamental Changes
Since the Early 20th
Century:
Housing Trends
© Freedman Tung + Sasaki 2014
Recession  a record num...
27
… especially in California
© Freedman Tung + Sasaki 2014
But when you look a little more closely…
Central Los Angeles –...
28
Nationally, “housing prices
in walkable urban places
have [a three-fold] premium
over drivable single-family
housing. ....
29
How do we create
value in the new
economy?
© Freedman Tung + Sasaki 2014
Wide-Spread & Rapid Digitalization
© Freedman ...
30
1950 - 0% of information was digital
2007 - 94% of information was digital
Source: Manual lima© Freedman Tung + Sasaki ...
31
With significantly less labor needed
to move and make things, people
can spend more time thinking,
strategizing, and an...
32
Saskia Sassen: this is not just about
software and design, but also about
mining and agricultural industries,
all indus...
33
2011
Lynda Gratton
“We are witnessing now
…a break with the past as
significant as that in the
late 18th and early 19th...
34
In the early 1900’s the Bay Area’s economy
was centered around San Francisco as a
major financial center and hub of tra...
35
Electronics component entrepreneurs: High tech manufacturing and
the relationship between research, engineering, and pr...
36
Semiconductor wafer
diffusion area, circa 1958
Credit: Fairchild Camera
and Instrument
Corporation
The Origins of Silic...
37
The Origins of Silicon Valley
1920s
Radio
1940s
Vacuum tube
1950s/60s
Semiconductor
1970s+
Integrated Circuit
Electroni...
38
Built on the established regional electronics
components industry
The Origins of Silicon Valley
1920s
Radio
1940s
Vacuu...
39
• Built on existing strengths
• Synergy between research, design,
engineering, and manufacturing activity
• Skilled lab...
40
In the Workplace
• In the office and the lab
• In the conference room
Outside the Workplace
• In cafes, bars and restau...
41
Centerless Workplace “Vital Center”
To foster creativity & innovation
cities must provide “Vital Centers”
Clusters of a...
42
Simply dressing the old inward focused, isolated model with
modern architecture and more trees…
apple
google
nvidia
© F...
43
The evolution of the most innovative cities points the way to
a new model of Vibrant Communities in the New Economy
© F...
44
Changes INSIDE the Workplace:
New
Work Processes
New
Offices Layouts
New
Workspace Formats
Decentralization & skilled l...
45
But the City has not
changed…yet
30© Freedman Tung + Sasaki 2014
Low Density and Auto Oriented Single Use: No Activity ...
46
Roughly 80% of
Peery Park built
out between
1960 and 1990
Before the
internet, email,
smartphones,
etc.
1981 LUTE
© Fre...
47
Accommodate a
Dynamic Mix of Uses
in Close Proximity
© Freedman Tung + Sasaki 2014
Segregated by type of work
(office, ...
48
The Heart of Manufacturing
Average 40-50%
Manufacturing
Manufacturing %
0-10%
10-20%
20-30%
30-40%
40-50%
50-60%
60-70%...
49
Changing Industry in Peery Park
00
20
40
60
80
100
120
140
160
00
2,000
4,000
6,000
8,000
10,000
12,000
1990
1991
1992
...
50
Companies’ Needs Vary
Based on the Type of Work Activities
THINKING PHYSICAL PRODUCTION
Service Software Research &
Dev...
51
Range of Building & Workspace Types
Established Corporate Space
Quality Medium Sized Space
Creative rehab – lower cost ...
52
Strategically
Reshape the
Pattern of Activity
© Freedman Tung + Sasaki 2014
Activity generating retail takes up the
lea...
53
“We have the
opportunity in this
hiatus to rethink how
we deliver retail in
better transportation-
linked urban centers...
54
Regional/Lifestyle Centers
City Centers
(including Downtowns)
Neighborhood/Community Centers
108
55
Major Opportunity: Re-organize workplace
districts around their unique pattern of retail
Lunchtime Activity
• Convenien...
56
20th Century Model:
Plenty of Landscaping but no “Public” Space
© Freedman Tung + Sasaki 2014
The Emerging 21st Century...
57
Signature Spaces
Courthouse Plaza: Redwood City, CA© Freedman Tung + Sasaki 2014
Signature Spaces
Media City: Mancheste...
58
Digital Engagement
Facebook: Menlo Park, CA© Freedman Tung + Sasaki 2014
59
Google:
Mountain View, CA
VM Ware:
Stanford Research Park,
Palo Alto, CA
Street View
Street View
© Freedman Tung + Sasa...
60
Foundsf.org
South Park, San Francisco, CA
Walk Score = 89 Transit Score = 100
© Freedman Tung + Sasaki 2014
Plan for
Co...
61
A Fundamental Shift:
The decline of “Drive until you can buy”
2010
Smaller housing units - close
to mass transit, work,...
62
CEOs for Cities survey of
25 – 34 year old college graduates:
• Almost 64 percent of them
reported they pick where they...
63
Auto-Oriented
Auto-Oriented
64
The Mission District,
San Francisco
© Freedman Tung + Sasaki 2014
The “Creative Class” Craves Vital Centers
for living,...
65
Vital Centers are Attractive to Compact Households
Changing Household Composition
Household Type 1970 2000 2030
HH with...
66
Housing & Lifestyle Choices
• Along future improved El Camino Real transit
• In and around Downtown
• Close to the City...
67
The Traditional Metropolis: Central City Model
Many residential commuter suburbs of a central City
20th Century Model: ...
68
The traditional relationship between the
metropolitan center and the suburbs is
transforming around “a new, regionally
...
69
Changing Lifestyles:
Commute by Transit
commute trips by transit (w/in ½ mi of stations vs. entire region)
20th Century...
70
Changing Lifestyles:
The Death of the 9 to 5
Source: Dunham-Jones, Retrofitting Suburbia© Freedman Tung + Sasaki 2014
N...
71
Personal / recreational trips are
driven by convenience
© Freedman Tung + Sasaki 2014
Transit-Connected Hubs of Activit...
72
Activity + Good Urbanism
goes a long way…
…but to be truly successful
in the new era, cities must
do more.
50© Freedman...
73
20th Century Assembly Line Economy:
Economic Value
Created by Large Firms
Economic Development
Attract Large Firms
© Fr...
74
Change #2: Highly connected network of
specialized, collaborating partners,
and service providers
Administration
Produc...
75
2006-2011 Job Growth By Sector: SF to SJ
SanFranciscoCountySanMateoCountySantaClaraCounty
2006 2007 2008 2009 2010 2011...
76
Change #4: Small and medium-sized firms
have become the most dynamic component
of the economy.
Survey: In the next 10 y...
77
The Critical Role of Small Firms &
Start-Ups in the Innovation Process
Large firms innovate by purchasing small firms &...
78
“Innovation
comes from
social scenes,
from passionate
and connected
groups of
people.”
WIRED Magazine: “Where Ideas Com...
79
The “Creative Class” Craves Vital Centers
for living, working, and recreation
Activity & Street Life Public SpacesTrans...
80
The DIY Generation
Cloudmagazine.com
© Freedman Tung + Sasaki 2014
Make the City A “Knowledge Center”
Innovation Anchor...
81
21st Century “Infrastructure”:
Beyond Data, Energy, & Transportation
MediaCity
Shared Research Facilities:
technology c...
82
Sunnyvale and
the Bay Area
will continue to
grow and change
Source: ABAG & CA Dpt. of finance
Bay Area Growth 2000-2040...
83
Improving Economy
National unemployment rate steadily decreasing
Source: BLS
12/2013
San Jose/Sunnyvale/Santa Clara MSA...
84
Improving Economy
Stock market is at record highs
© Freedman Tung + Sasaki 2014
Summary of Global Forces
Driving a New ...
85
Cities that align with
these Global Trends
will have a prime
advantage attracting
talent and investment.
© Freedman Tun...
86
Focus Exclusively on
Attracting Big, Vertically
Integrated Firms
Physically re-shape cities
to attract and accommodate
...
87
• Potential for Change
• Existing Conditions
• Market Demand
• Feasible
Development Types
Don’t Use a
One-Size-Fits-All...
88
Suburban Office Park vs. Vital Workplace Center
Same use, different district character
© Freedman Tung + Sasaki 2014
Mu...
89
Attractive Walkable Neighborhoods
© Freedman Tung + Sasaki 2014
Pomona Tomorrow -
Future City Structure
59
© Freedman T...
90
If We Focus on Building
Places for People We Will
Be Successful Because…
© Freedman Tung + Sasaki 2014
…in the New Era ...
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Evolving Sunnyvale

  1. 1. 1 From the Past to the Present & Preparing for the Future www.ftscities.com Evolving Sunnyvale: March 20, 2014 Freedman Tung + Sasaki, San Francisco Co-Hosts: Silicon Valley Leadership Group - Friends of Caltrain - Sunnyvale Cool Funding Courtesy of the Silicon Valley Community Foundation Erik Calloway - Principal Urban Design Public Realm District & City Strategies Land Use & Development Regulations Trends and City Evolution © Freedman Tung + Sasaki 2014
  2. 2. 2 The World Has Changed © Freedman Tung + Sasaki 2014 Climate Change + Oil Price Instability What We See © Freedman Tung + Sasaki 2014
  3. 3. 3 Housing foreclosures + credit crisis What We See © Freedman Tung + Sasaki 2014 Market instability + government budget crisis What We See © Freedman Tung + Sasaki 2014
  4. 4. 4 What is really going on? © Freedman Tung + Sasaki 2014 Perspective on Change Source: Celebratebig.com 2007© Freedman Tung + Sasaki 2014
  5. 5. 5 Up to the Late 19th Century: Communities Were Small, Spread-Out, Self- Sufficient, and Primarily Agricultural © Freedman Tung + Sasaki 2014 Early 20th Century: “Industry” Reorganized Around Assembly Lines • Mechanized • Synchronized • Low skill • Organized by component tasks • Mass production © Freedman Tung + Sasaki 2014
  6. 6. 6 Population Population Early 20th Century: Wide-spread Urbanization © Freedman Tung + Sasaki 2014 Business park Shopping Center Housing Subdivision City as Machine (CIAM 1933) Economy = Making & Moving Goods: Cities re-organized using Industrial Principles © Freedman Tung + Sasaki 2014
  7. 7. 7 Sunnyvale’s First General Plan: 1954-57 Neighborhoods Industrial AreasCity © Freedman Tung + Sasaki 2014 The Post-WWII Advent of Suburbia: 1950 - 1970 Sunnyvale’s population grew almost 500% Image: LIFE Magazine© Freedman Tung + Sasaki 2014
  8. 8. 8 Mass Produced Suburbs © Freedman Tung + Sasaki 2014 Population Growth Sunnyvale’s Population Growth 1912-2006 Mass Production/ Consumption + © Freedman Tung + Sasaki 2014
  9. 9. 9 Suburban Retail = “The Strip” A linear pattern of commercial development along suburban arterial roadways © Freedman Tung + Sasaki 2014 1950’s & 60’s 1960 Garey and Mission Holt Avenue 1967 East Holt Avenue * Free-standing * Exclusively Auto-oriented * Surface Parked *
  10. 10. 10 The Interstate Highway (1950’s) © Freedman Tung + Sasaki 2014 80s/90s: Enlarged Retail Formats Replacing Strip Retail (20 malls per year - USA) © Freedman Tung + Sasaki 2014
  11. 11. 11 1979 - Sunnyvale Town Center Mall © Freedman Tung + Sasaki 2014 New facilities, which were large to fit the new equipment or justify the cost of the investment, only fit on the outskirts of existing cities or in new “industrial suburbs” along existing or planned rail lines. Libby’s Cannery est. 1907 Early 20th Century Pattern of Work © Freedman Tung + Sasaki 2014
  12. 12. 12 Early 1900’s Sunnyvale was conceived of a railroad served factory town similar to those along the shores of the Great Lakes. Sunnyvale has always been forward looking & driven by industry “City of Destiny – A Manufacturing Center” © Freedman Tung + Sasaki 2014 • Business Parks • Corporate Campuses • Edge Cities 1960s-80s Suburban Workplace © Freedman Tung + Sasaki 2014
  13. 13. 13 Low Density and Auto Oriented Single Use: No activity centers Landscaping but no “Public” Space Inward focus hides activity Characteristics of 20th Century CBDs & Business Parks © Freedman Tung + Sasaki 2014 Sunnyvale’s First General Plan: 1954-57 Sunnyvale Today Housing Workplace © Freedman Tung + Sasaki 2014
  14. 14. 14 The Experiment FIT with the industrial economy of the Era. Business park Shopping Center Housing Subdivision © Freedman Tung + Sasaki 2014 When the nature of work changes, the City is Entirely Transformed © Freedman Tung + Sasaki 2014
  15. 15. 15 Fundamental Changes Since the Early 20th Century: Retail Trends © Freedman Tung + Sasaki 2014 The financial foundation of commercial strip development has disappeared 1954: IRS changes commercial building depreciation from 40 to 7 years 1986: Tax Reform Act returns commercial building depreciation to 39 years © Freedman Tung + Sasaki 2014
  16. 16. 16 DOWNTOWN STRIP CORRIDOR SHOPPING CENTERS Investment moves to Investment moves to Freeway Corridor Crossroads-located centers have been draining economic vitality from retail properties everywhere else. © Freedman Tung + Sasaki 2014 “For the first time since the early 1950’s, no regional malls are under construction in the United States.” Emerging Trends in Real Estate 2011 & Robert Gibbs – Retail Traffic Magazine © Freedman Tung + Sasaki 2014
  17. 17. 17 Global Trend: Internet sales growing 3X faster than brick-and-mortar Quote source: strategic economics In the rapidly evolving and oversupplied retail real estate universe Most areas need less retail, not more. ‘Endless strip construction is over.’ © Freedman Tung + Sasaki 2014
  18. 18. 18 Supportable Pattern of Retail Centers Retail Entitlements Existing Retail Zoning © Freedman Tung + Sasaki 2014 Disinvested and/or ready for change Vacant Land Obsolete formatsLow site coverage Vacant, low value buildings © Freedman Tung + Sasaki 2014
  19. 19. 19 Fundamental Changes Since the Early 20th Century: Mobility Trends © Freedman Tung + Sasaki 2014 In 1950 People Traveled Around 10 miles per day 5 miles to Santa Clara
  20. 20. 20 Libby’s Cannery 1907 Joshua Hendy Ironworks 1906 Schuckls Cannery 1907 Through 1950 Communities Remained Compact Original Townsite 1898 Early Sunnyvale © Freedman Tung + Sasaki 2014 1950 - 1970 Sunnyvale’s population grew almost 500% © Freedman Tung + Sasaki 2014
  21. 21. 21 Population growth has been dwarfed by vehicle growth. Source – NPTS CommonIndex Vehicle Growth Rate = 1.5 X Population Growth Rate © Freedman Tung + Sasaki 2014 In 1950 People Traveled Around 10 miles per day Today People Travel Around 40 miles per day 5 miles to Santa Clara 20 miles to San Mateo
  22. 22. 22 So we have learned to associate growth with degraded mobility… © Freedman Tung + Sasaki 2014 But Why are we driving so much? 14© Freedman Tung + Sasaki 2014
  23. 23. 23 The Myth: Americans drive so much because we love our cars and we love to drive. We are not going to change because we don’t want to. © Freedman Tung + Sasaki 2014 The Truth: We Drive so much in response to our Pattern of Land Use & Development. © Freedman Tung + Sasaki 2014
  24. 24. 24 B A 3 Destinations 6 ITE Trips C B A 3 Destinations 6 ITE Trips 3 Destinations 2 ITE Trips B A C C Mixed-Use = Reduced Trips & Fewer miles traveled
  25. 25. 25 Connected Network = Smaller Streets & More Capacity As communities become more compact, the demand for transit increases DENSITY VMT DENSITY VEHICLEOWNERSHIP
  26. 26. 26 Fundamental Changes Since the Early 20th Century: Housing Trends © Freedman Tung + Sasaki 2014 Recession  a record number of foreclosures and historically slow sales/ construction… FORECLOSURE ACTIVITY © Freedman Tung + Sasaki 2014
  27. 27. 27 … especially in California © Freedman Tung + Sasaki 2014 But when you look a little more closely… Central Los Angeles – every 600 homes < 20 miles = every 200 homes 20 - 40 miles = every 100 home > 40 miles = every 50 homes Approx. average number of households per foreclosure activity (RealtyTrac) © Freedman Tung + Sasaki 2014
  28. 28. 28 Nationally, “housing prices in walkable urban places have [a three-fold] premium over drivable single-family housing. . . . [this reflects] the dramatic shift in values that has taken place over that time period” …Urban Locations are Holding Value Better © Freedman Tung + Sasaki 2014 Business park Shopping Center Housing Subdivision Does the 20th Century approach to city-building FIT with the new economy? © Freedman Tung + Sasaki 2014
  29. 29. 29 How do we create value in the new economy? © Freedman Tung + Sasaki 2014 Wide-Spread & Rapid Digitalization © Freedman Tung + Sasaki 2014
  30. 30. 30 1950 - 0% of information was digital 2007 - 94% of information was digital Source: Manual lima© Freedman Tung + Sasaki 2014 At first, many thought it was just a change in tools. But digitalization has led to Fundamental changes in work activity © Freedman Tung + Sasaki 2014
  31. 31. 31 With significantly less labor needed to move and make things, people can spend more time thinking, strategizing, and analyzing (augmented by computing power) © Freedman Tung + Sasaki 2014 This process is called Innovation and it has become the primary wealth-generator in the new economy. + = = + = + © Freedman Tung + Sasaki 2014
  32. 32. 32 Saskia Sassen: this is not just about software and design, but also about mining and agricultural industries, all industries. © Freedman Tung + Sasaki 2014 BLS 2003 PC & Internet Use at Work (table2)
  33. 33. 33 2011 Lynda Gratton “We are witnessing now …a break with the past as significant as that in the late 18th and early 19th centuries when parts of the world began the long process of industrialization.” © Freedman Tung + Sasaki 2014 What can we learn about innovation from Silicon Valley? Based on: Christophe Lécuyer - Making silicon valley© Freedman Tung + Sasaki 2014
  34. 34. 34 In the early 1900’s the Bay Area’s economy was centered around San Francisco as a major financial center and hub of trade. There was a relatively small manufacturing base which primarily served the regional market. © Freedman Tung + Sasaki 2014 The Origins of Silicon Valley 1920s Radio Amateur radio hobbyists: information sharing, experimentation, technical innovation Vintagehamstaiton.com
  35. 35. 35 Electronics component entrepreneurs: High tech manufacturing and the relationship between research, engineering, and production The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube Lockheed Martin in Sunnyvale 1957 Moffet Park 1971 NASA In Sunnyvale 1937 NASA and Department of Defense spending were significant sources of demand for early silicon valley industry
  36. 36. 36 Semiconductor wafer diffusion area, circa 1958 Credit: Fairchild Camera and Instrument Corporation The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube 1950s/60s Semiconductor Electronics component entrepreneurs (spin-off companies): High tech manufacturing, supplied by vacuum tube industry Fairchild Semiconductor 1960 - Credit: Courtesy of Wayne Miller/Magnum Photos New management techniques, collaborative organizational structures The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube 1950s/60s Semiconductor
  37. 37. 37 The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube 1950s/60s Semiconductor 1970s+ Integrated Circuit Electronics component spin-off companies: created new markets world- wide and built up the venture capital markets in the region The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube 1950s/60s Semiconductor 1970s+ Integrated Circuit Electronics component spin-off companies: drew from a pool of semiconductor workers
  38. 38. 38 Built on the established regional electronics components industry The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube 1950s/60s Semiconductor 1970s+ Integrated Circuit 1980s PCs In the tradition of amateur radio enthusiasts The Origins of Silicon Valley 1920s Radio 1940s Vacuum tube 1950s/60s Semiconductor 1970s+ Integrated Circuit 1980s PCs 1990s-Today software Continuing the tradition of entrepreneurship, innovative technology, and the changing workplace
  39. 39. 39 • Built on existing strengths • Synergy between research, design, engineering, and manufacturing activity • Skilled labor pool • Access to investors (San Francisco) • Access to customers (Defense/Nasa) Silicon Valley’s Success: Accumulation of Local Skills & Unique Knowledge © Freedman Tung + Sasaki 2014 Innovation is a social process REQUIRES • Group Collaboration • Different Specializations, Skills, Experiences, Perspectives Source: analytics20.org © Freedman Tung + Sasaki 2014
  40. 40. 40 In the Workplace • In the office and the lab • In the conference room Outside the Workplace • In cafes, bars and restaurants • During breaks, recreation and leisure • Especially while socializing Essential Principle: Innovation requires settings that bring people together to collaborate and exchange ideas face-to-face © Freedman Tung + Sasaki 2014 Golden Gate Park Golden Gate Bridge Treasure Island & the Bay Downtown, Financial District, SOMA SFO Digital Sharing in SF - Twitter - Flickr - Both Source: ERIC FISCHER© Freedman Tung + Sasaki 2014
  41. 41. 41 Centerless Workplace “Vital Center” To foster creativity & innovation cities must provide “Vital Centers” Clusters of activity, density, mix, and settings for interaction © Freedman Tung + Sasaki 2014 Essential Principle: Put Ideas on Display Public studio viewing room BBC Sport production activity © Freedman Tung + Sasaki 2014
  42. 42. 42 Simply dressing the old inward focused, isolated model with modern architecture and more trees… apple google nvidia © Freedman Tung + Sasaki 2014 …or adding a few floors to the same model will not help us create truly prosperous and sustainable communities. © Freedman Tung + Sasaki 2014
  43. 43. 43 The evolution of the most innovative cities points the way to a new model of Vibrant Communities in the New Economy © Freedman Tung + Sasaki 2014 Changes are Already Underway INSIDE the Workplace © Freedman Tung + Sasaki 2014
  44. 44. 44 Changes INSIDE the Workplace: New Work Processes New Offices Layouts New Workspace Formats Decentralization & skilled labor i.e.: Pixar, Google, Amazon, Facebook Co-working spaces, work cafes, “Hacker villages”… GOOGLE AMENITY © Freedman Tung + Sasaki 2014 When the nature of work changes, the City is Entirely Transformed © Freedman Tung + Sasaki 2014
  45. 45. 45 But the City has not changed…yet 30© Freedman Tung + Sasaki 2014 Low Density and Auto Oriented Single Use: No Activity Centers Landscaping but no “Public” Space Inward focus hides activity The 20th Century Assembly Line City… …no longer fits the needs of the innovation economy
  46. 46. 46 Roughly 80% of Peery Park built out between 1960 and 1990 Before the internet, email, smartphones, etc. 1981 LUTE © Freedman Tung + Sasaki 2014 To be successful and prosperous in the new economy, we must physically re-shape cities to align with contemporary lifestyles and support innovation © Freedman Tung + Sasaki 2014
  47. 47. 47 Accommodate a Dynamic Mix of Uses in Close Proximity © Freedman Tung + Sasaki 2014 Segregated by type of work (office, R+D, manufacturing) with little variation © Freedman Tung + Sasaki 2014
  48. 48. 48 The Heart of Manufacturing Average 40-50% Manufacturing Manufacturing % 0-10% 10-20% 20-30% 30-40% 40-50% 50-60% 60-70% > 70% The area in and around Sunnyvale contains some of the highest density of manufacturing in the Bay Area Source: The Concord Group Lower Average Wage Higher Average Wage AverageWage PerWorker Source: The Concord Group
  49. 49. 49 Changing Industry in Peery Park 00 20 40 60 80 100 120 140 160 00 2,000 4,000 6,000 8,000 10,000 12,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Manufacturing 00 05 10 15 20 25 30 35 40 45 00 500 1,000 1,500 2,000 2,500 3,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bioscience Bioscience employment has grown 10% per year since 1990 The industry has grown 10x in last four years Technical manufacturing industries are taking the place of traditional manufacturing Manufacturing jobs in Peery Park have gained 86% since the recession --- Businesses Jobs Source: The Concord Group Contemporary Business Ecosystem: Beyond Simple “Office” & “Industrial” Categories Dense Collaborative Network of Partners, Suppliers, Customers © Freedman Tung + Sasaki 2014
  50. 50. 50 Companies’ Needs Vary Based on the Type of Work Activities THINKING PHYSICAL PRODUCTION Service Software Research & Development (R&D) Design & Engineering (D&E) Component Production Product Assembly from Components 50% of businesses 33% of businesses 50% of businesses © Freedman Tung + Sasaki 2014 Companies’ Needs Vary at Different Stages in their Lifecycle © Freedman Tung + Sasaki 2014
  51. 51. 51 Range of Building & Workspace Types Established Corporate Space Quality Medium Sized Space Creative rehab – lower cost spaces New lower cost, small scale space Tenant Mix with a Single Building or Complex Source: 5M/Forest City© Freedman Tung + Sasaki 2014
  52. 52. 52 Strategically Reshape the Pattern of Activity © Freedman Tung + Sasaki 2014 Activity generating retail takes up the least amount of land in a city but is a critical ingredient of building vibrant communities. Where (and how) to build retail is a key strategic decision facing suburban cities. © Freedman Tung + Sasaki 2014
  53. 53. 53 “We have the opportunity in this hiatus to rethink how we deliver retail in better transportation- linked urban centers, moving away from car- dependent models.” © Freedman Tung + Sasaki 2014 Cities can strategically position themselves to align with evolving retail development formats and trends in the real estate industry. © Freedman Tung + Sasaki 2014
  54. 54. 54 Regional/Lifestyle Centers City Centers (including Downtowns) Neighborhood/Community Centers 108
  55. 55. 55 Major Opportunity: Re-organize workplace districts around their unique pattern of retail Lunchtime Activity • Convenience (3min walk) • Variety • Small plazas and outdoor eating After Work Activity • Happy hour • Home-bound errands • Health and exercise © Freedman Tung + Sasaki 2014 Create Attractive, Livable Places: Amenity, Image, and Publicness © Freedman Tung + Sasaki 2014
  56. 56. 56 20th Century Model: Plenty of Landscaping but no “Public” Space © Freedman Tung + Sasaki 2014 The Emerging 21st Century City Model: Settings for Convenience, Interaction, Activity © Freedman Tung + Sasaki 2014
  57. 57. 57 Signature Spaces Courthouse Plaza: Redwood City, CA© Freedman Tung + Sasaki 2014 Signature Spaces Media City: Manchester, UK© Freedman Tung + Sasaki 2014
  58. 58. 58 Digital Engagement Facebook: Menlo Park, CA© Freedman Tung + Sasaki 2014
  59. 59. 59 Google: Mountain View, CA VM Ware: Stanford Research Park, Palo Alto, CA Street View Street View © Freedman Tung + Sasaki 2014 Amazon: South Lake Union, Seattle, WA VM Ware = 26, Facebook = 31, Google = 69 © Freedman Tung + Sasaki 2014
  60. 60. 60 Foundsf.org South Park, San Francisco, CA Walk Score = 89 Transit Score = 100 © Freedman Tung + Sasaki 2014 Plan for Convenience Living © Freedman Tung + Sasaki 2014
  61. 61. 61 A Fundamental Shift: The decline of “Drive until you can buy” 2010 Smaller housing units - close to mass transit, work, and 24- hour amenities gain favor over large houses on big lots at the suburban edge. ULI Emerging Trends in Real Estate 2013 Development continues to shift away from the suburbs to more urban lifestyles where infill locations “remain hot.” © Freedman Tung + Sasaki 2014 Source: “More Than 'Millennials': Colleges Must Look Beyond Generational Stereotypes” Mano Singham, The Chronicle of Higher Education, Oct 11, 2009 Purchasing Power of Millennials © Freedman Tung + Sasaki 2014
  62. 62. 62 CEOs for Cities survey of 25 – 34 year old college graduates: • Almost 64 percent of them reported they pick where they want to live before launching a job search. • They are about 90% more likely to live in close-in urban neighborhoods © Freedman Tung + Sasaki 2014
  63. 63. 63 Auto-Oriented Auto-Oriented
  64. 64. 64 The Mission District, San Francisco © Freedman Tung + Sasaki 2014 The “Creative Class” Craves Vital Centers for living, working, and recreation Activity & Street Life Public SpacesTransit © Freedman Tung + Sasaki 2012
  65. 65. 65 Vital Centers are Attractive to Compact Households Changing Household Composition Household Type 1970 2000 2030 HH with Children 45% 33% 27% HH without Children 55% 67% 73% Source: Arthure C. Nelson, Presidential Professor & director of Metropolitan Research, University of Utah© Freedman Tung + Sasaki 2014 Source: “More Than 'Millennials': Colleges Must Look Beyond Generational Stereotypes” Mano Singham, The Chronicle of Higher Education, Oct 11, 2009 Vital Centers are Attractive to Empty Nesters © Freedman Tung + Sasaki 2014
  66. 66. 66 Housing & Lifestyle Choices • Along future improved El Camino Real transit • In and around Downtown • Close to the City’s train stations • Consider in and around workplace districts © Freedman Tung + Sasaki 2014 Reshape the Mobility Network for Contemporary Lifestyles © Freedman Tung + Sasaki 2014
  67. 67. 67 The Traditional Metropolis: Central City Model Many residential commuter suburbs of a central City 20th Century Model: Low Density & Auto Oriented © Freedman Tung + Sasaki 2014
  68. 68. 68 The traditional relationship between the metropolitan center and the suburbs is transforming around “a new, regionally centered entrepreneurial economy that is committed to the enhancement of local places” (building the polycentric region) The “Polycentric” Metropolis Regional entrepreneurial economy composed of sub-regional units which rely on the enhancement of local places (Building the Polycentric Region) Per-capita vehicle miles traveled in the U.S. Total vehicle miles traveled by Americans (in millions) Source: FHWA Changing Lifestyles: 8 Straight Years of Declining VMT © Freedman Tung + Sasaki 2014
  69. 69. 69 Changing Lifestyles: Commute by Transit commute trips by transit (w/in ½ mi of stations vs. entire region) 20th Century Model: Synchronized Workday, Managed from the Top-Down © Freedman Tung + Sasaki 2014
  70. 70. 70 Changing Lifestyles: The Death of the 9 to 5 Source: Dunham-Jones, Retrofitting Suburbia© Freedman Tung + Sasaki 2014 Not many people know that Over 70% of all trips are for family, personal, or recreation reasons. Source: 2001 NHTS© Freedman Tung + Sasaki 2014
  71. 71. 71 Personal / recreational trips are driven by convenience © Freedman Tung + Sasaki 2014 Transit-Connected Hubs of Activity: © Freedman Tung + Sasaki 2014
  72. 72. 72 Activity + Good Urbanism goes a long way… …but to be truly successful in the new era, cities must do more. 50© Freedman Tung + Sasaki 2014 20th Century Assembly Line Economy: Economic Value Created by Large Firms • Build Infrastructure • Attract Talent • Train Employees • Provide Benefits © Freedman Tung + Sasaki 2014
  73. 73. 73 20th Century Assembly Line Economy: Economic Value Created by Large Firms Economic Development Attract Large Firms © Freedman Tung + Sasaki 2014 Wrigley Change #1: The scale & complexity of business operations has increased dramatically © Freedman Tung + Sasaki 2014
  74. 74. 74 Change #2: Highly connected network of specialized, collaborating partners, and service providers Administration Production Production WarehouseDispatch Social Club Silos © Freedman Tung + Sasaki 2014 Change #3: Sharp growth in producer services To service the more complex business ecosystem. 0 10,000 20,000 30,000 40,000 50,000 60,000 Series1 Series2 Series3 Series4 SERVICES: Community,Social andPersonal CONSUMPTION: Wholesale/RetailTrade, Restaurants,&Hotels SERVICES: Financing,Insurance, RealEstate,&Business PRODUCTION: Manufacturing PRODUCTION: Agriculture, Mining,&Utilities CONSUMPTION: Construction 1980 1990 2000 2008 Source: Sassen – Cities in a World Economy (2012) • Advertising • Consulting • Accounting • Design • Engineering • Software © Freedman Tung + Sasaki 2014
  75. 75. 75 2006-2011 Job Growth By Sector: SF to SJ SanFranciscoCountySanMateoCountySantaClaraCounty 2006 2007 2008 2009 2010 2011 Source: econovue Firm Size 1 to 9 10 to 99 100 to 499 Over 500 All firms 48% 20% 5% 17% Manufacturing Firms 49% 32% 7% 11% Professional, Scientific, Technical, and Other Services Firms 75% 16% 2% 7% All employment 11% 24% 14% 51% Manufacturing Employment 5% 22% 18% 55% Professional, Scientific, Technical, and Other Services Employment 24% 34% 13% 29% The Majority of Producer Services are Small & Medium Sized Firms 81% 91% 58% © Freedman Tung + Sasaki 2014
  76. 76. 76 Change #4: Small and medium-sized firms have become the most dynamic component of the economy. Survey: In the next 10 years who will drive innovation the most? 67% To be successful in this transformed economic landscape, Cities must: 1. Actively attract and accommodate small and medium sized firms along with large ones. © Freedman Tung + Sasaki 2014
  77. 77. 77 The Critical Role of Small Firms & Start-Ups in the Innovation Process Large firms innovate by purchasing small firms & integrating innovative components Over 100 including: Android, Picasa, Frommers, Zagat Over 30 including: Instagram Over 40 including: Siri © Freedman Tung + Sasaki 2014 To be successful in this transformed economic landscape, Cities must: 2A. Attract Knowledge Workers & Innovative Businesses. © Freedman Tung + Sasaki 2014
  78. 78. 78 “Innovation comes from social scenes, from passionate and connected groups of people.” WIRED Magazine: “Where Ideas Come From” Oct 2010 Innovation Starts with Talented People Innovative companies locate near “talent pools.” © Freedman Tung + Sasaki 2014
  79. 79. 79 The “Creative Class” Craves Vital Centers for living, working, and recreation Activity & Street Life Public SpacesTransit The same characteristics that drive innovation & sustainability© Freedman Tung + Sasaki 2014 To be successful in this transformed economic landscape, Cities must: 2B. Produce Knowledge Workers & Innovative Businesses. © Freedman Tung + Sasaki 2014
  80. 80. 80 The DIY Generation Cloudmagazine.com © Freedman Tung + Sasaki 2014 Make the City A “Knowledge Center” Innovation Anchors: “Institutions” that actively facilitate collaboration and knowledge exchange © Freedman Tung + Sasaki 2014
  81. 81. 81 21st Century “Infrastructure”: Beyond Data, Energy, & Transportation MediaCity Shared Research Facilities: technology centers that promote collaboration and education. Facilities provide scientists with technical know-how and access to state-of-the-art instrumentation, technologies, and materials. Shared Production Studio Facilities: logistics, management, and post production services, and satellite uplink. © Freedman Tung + Sasaki 2014 The Coming Wave of Growth and Prosperity © Freedman Tung + Sasaki 2014
  82. 82. 82 Sunnyvale and the Bay Area will continue to grow and change Source: ABAG & CA Dpt. of finance Bay Area Growth 2000-2040 Source: U.S. Census 2005 & City of Sunnyvale Sunnyvale Growth 2005-2025 0 200 400 600 800 1,000 1,200 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 Employment on the Rise across the Bay Area Job growth drives demand for all candidate land uses Source: The Concord Group Dotcom Peak 2020Today2008
  83. 83. 83 Improving Economy National unemployment rate steadily decreasing Source: BLS 12/2013 San Jose/Sunnyvale/Santa Clara MSA = 5.8% San Francisco/Oakland/Fremont MSA = 5.6% © Freedman Tung + Sasaki 2014 Improving Economy Bay Area Real Estate Market is Strong © Freedman Tung + Sasaki 2014
  84. 84. 84 Improving Economy Stock market is at record highs © Freedman Tung + Sasaki 2014 Summary of Global Forces Driving a New Era of City Change • Changing Pattern & Role of Retail • Needs of the Innovation Economy • Demand for Walkable Urbanism & Convenience Living • Population Growth & Demographic Change • Sustainability © Freedman Tung + Sasaki 2014
  85. 85. 85 Cities that align with these Global Trends will have a prime advantage attracting talent and investment. © Freedman Tung + Sasaki 2014 Looking to the Future © Freedman Tung + Sasaki 2014
  86. 86. 86 Focus Exclusively on Attracting Big, Vertically Integrated Firms Physically re-shape cities to attract and accommodate innovators and contemporary lifestyles + Assemble knowledge districts that foster innovation and produce innovators Industrial Economy Innovation Economy Building Prosperous Cities in the Innovation Economy Requires a new approach to Economic Development & Planning © Freedman Tung + Sasaki 2014 • Studies have shown that up to 80% of job growth is from existing businesses • Focus on strengthening existing workplace districts, activity centers, and neighborhoods • Target opportunities related to existing City assets Build on Local Strengths © Freedman Tung + Sasaki 2014
  87. 87. 87 • Potential for Change • Existing Conditions • Market Demand • Feasible Development Types Don’t Use a One-Size-Fits-All Approach2011 General Plan © Freedman Tung + Sasaki 2014 Place Types vs. Land Use Essential Principle: Plan Places for People © Freedman Tung + Sasaki 2014
  88. 88. 88 Suburban Office Park vs. Vital Workplace Center Same use, different district character © Freedman Tung + Sasaki 2014 Multi-family “Projects” & Housing Sub-divisions © Freedman Tung + Sasaki 2014
  89. 89. 89 Attractive Walkable Neighborhoods © Freedman Tung + Sasaki 2014 Pomona Tomorrow - Future City Structure 59 © Freedman Tung + Sasaki 2014
  90. 90. 90 If We Focus on Building Places for People We Will Be Successful Because… © Freedman Tung + Sasaki 2014 …in the New Era of: • Specialization • Networked Businesses • Digital Communication • Collaboration • Innovation Place Matters More than Ever © Freedman Tung + Sasaki 2014

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