Developers, property owners, architectural and engineering consultants, real estate brokers, smart growth advocates and lenders joined the attorneys of Lerch, Early & Brewer's land use practice at Columbia Country Club for a discussion on the future of urban areas in Montgomery County. Primarily concentrated around metro stops, these areas drive the economic growth of the County. Transit-oriented development in White Flint, Silver Spring, Wheaton, Gaithersburg, Germantown Rockville, and Bethesda is pivotal to Montgomery County as the area seeks to attract an increasingly diverse, technologically savvy, well-educated population looking for walkable places to work, live, and play. In 1994, the Bethesda CBD Sector Plan was created as a blueprint for Bethesda's development. Since then, Bethesda has emerged as the economic engine of Montgomery County and a showpiece for mixed-use, transit-oriented development. What's next? The upcoming Bethesda CBD Sector Plan review is a significant harbinger of planned urban design for the County. The Sector Plan process reevaluates original functions, design goals, and the desired environment. It also provides opportunities for new development and opens debate about what "smart growth" means for Bethesda and Montgomery County's future.

1. Visions of Urban Areas in
Montgomery County
Next Up: Bethesda Central Business
District
Presented by Lerch, Early & Brewer’s
Land Use Practice
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www.lerchearly.com
November 15, 2013

2. Gwen Wright
Director
Montgomery County
Planning Department

3. From Wedges and Corridors
to Centers and Boulevards
Montgomery County
in the 21st century

4. Montgomery County:
what are we known
for?
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Stream Valley Park System
Agricultural Preservation Program
MPDU Program
Downtown Silver Spring
Downtown Bethesda
Great single family neighborhoods
Good schools

5. Montgomery County today
 The County is changing – it is getting more diverse, it is
getting older, and the population is increasing at a slower
pace
 Use of transit is being embraced…transit rich
neighborhoods are changing
 We are not as attractive to millennials as a number of other
jurisdictions in the area
 To keep pace, we need to focus on the transit rich areas
and build communities that offer “10 minute living”
 We need a continued focus on infill and redevelopment
near transit instead of “greenfields” development
 We need a finer-grained approach to planning

6. Wedges and corridors are evolving
into centers and boulevards

7. Transit is the answer.

11. Establishing Landmarks and Icons:
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Strathmore Hall/Corby Mansion
Strathmore Concert Hall
D.C. Marker, Friendship Heights
Madonna of the Trails, Bethesda
Bethesda Crescent Building and Public Art
Bethesda Naval Medical Building

12. Challenges ahead
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Developing plans that create a hierarchy of unique, livable
centers, which address economic functions and roles:
• Mixed-use downtowns with density near transit
• Specialized centers (for example, NIH or Shady Grove
Life Sciences Center)
• Housing and more typical suburban centers
• Historic and rural villages
Putting the “T” in TOD
Providing high quality open spaces including urban parks
and public spaces
Establishing place-making features and recognizing the
unique characteristics of different parts of the County

13. Case Study: Bethesda
Evolution from a suburban strip
to a 21st century, fully functioning
downtown

14. Bethesda’s Evolution:
1970’s-Focus on Transit
• Metro Location Decisions
• Public Projects
• Planning Policies:
•
•
•
New Sector Plan
New incentive zoning tool – CBD zones
Staging of development

15. Bethesda’s Evolution:
1980’s
Stage I: Metro Core
Stage II: Development Competition:
• Sector Plan Amendment
• Development Guidelines and Selection Criteria:
– Housing
– Compatibility
– Connection to Metro and streetscape
– Visual and functional effectiveness
– Public open space and amenities
– Public art

16. Bethesda’s Evolution:
1990’s
New Sector Plan:
• Retail development
• Creation of Public Amenities
• Theaters
Public Projects:
• Public parking
• Housing
• Schools
• Continued emphasis on open
space

17. Bethesda’s Evolution Continues:
2000’s
• Build-out around Bethesda Metro Center Continues
• Focus on Woodmont Triangle per Sector Plan goals
• Continued development in Bethesda Row Neighborhood

18. What’s Next? 20 Year Tune Up
 Bethesda as a sustainable downtown
 Build on current “10 minute living” traits
 Reinforce and enhance as a retail and
entertainment destination
 Character of Wisconsin Avenue and
other streetscapes – how buildings meet
the street
 More special urban gathering places

19. “Men come together in cities in
order to live; they remain
together in order to live the
good life.”
Aristotle

20. Matt Hopkins
Director of Architecture
and Sustainability
Streetsense

22. M

25. MAINTAIN MIX
TRIANGLE
MORE CONNECTION
MORE OFFICE
URBAN MIX
MORE PARKING
LOCAL
ENTERTAINMENT
MORE PARK
WALK / BIKE
NG&S
MORE RESIDENTIAL
MORE CONNECTION
LESS RAISED PLAZAS
URBAN OFFICE
ND METRO ACCESS
REGIONAL BUSINESS
2
M
STREET DESIGN
LUNCH ONLY
1ST FLOOR FACADES
ACCESSORY RETAIL
CBD
MORE RESIDENTIAL
MORE CONNECTION
MAIN STREET RETAIL
MORE PARKING
MORE PARK
REGIONAL
DESTINATION
WALK/BIKE
NEEDS CENTER
MIXED RETAIL
THE ROW

28. Active Street = Open Wallet
Pedestrians are the Lead Species Indicator of a Healthy Environment

29. James McCandless
Director of Retail
Streetsense

30. EMERGING RETAIL
TRENDS
Streetsense.

31. TOPICS:
Changing Face of Retail
 Vibrant Street’s Strategy

32. Changing Face of Retail

33. 100 YEARS OF RETAIL IN AMERICA
Shopping Center Growth Curves

34. 1.
OVER SUPPLY OF MAJOR RETAIL
BRANDS
 Leading up to the downturn in
2008, Wall Street and the
Investor Market was driving
Retail Expansion
 Many major retailer lost sight
of sound expansion strategies
resulting is store
cannibalization and dilution of
brand
 National retailers will be
scaling back on new growth
moving forward with some
stores reducing the store count
by 50% over the next five
years

35. 2. MAJOR CHANGE IN CONSUMER
BUYING PATTERNS
 Po s t 2 0 0 8 t h e Ba b y Bo o m e r s
s t a rted t o c u t b a c k s p e n d i ng ,
p a r t icu lar ly wi t h r e s p e ct t o G o o d s
a n d G e n e r al M e r c h a ndi se
 Th e X & Y G e n e r ati on i s b e c o m i ng
a s i g n i f ica nt b u yi n g f o r c e f o c u se d
o n “ Exp e r i e n ce ” o ve r “ Th i n g s ”
 Th e n e w s h o p p er i s b r a n d
C o n s c io us b u t n o t b r a n d L o ya l a n d
vi e ws m o s t n a t i o na l r e t a i l ers a s a
c o m m o di ty
 N a t i o na l a n d L o c a l R e t a i l e r s a r e
a d j u sti ng t o t h e n e w b u yi n g
p a t te rns a n d t r yi n g t o r e g a i n t h e i r
f o o ti ng ….Th ere wi l l b e s o m e
wi n n e r a n d l o s e r s

36. PLACE MATTERS TO TODAY’S RETAILERS…
T H E C O N N EC T ION BET W EEN D ESIG N AN D SU C C ESSF U L
R ETAIL H AVE N EVER BEEN ST R O N G ER
Annual gross sales
over $1,000/sf
Washington DC’s F Street

37. PLACE MATTERS TO TODAY’S RETAILERS…
T H E C O N N EC T ION BET W EEN D ESIG N AN D SU C C ESSF U L
R ETAIL H AVE N EVER BEEN ST R O N G ER
Annual gross sales:
$500/sf
The Shops at Wisconsin Place

38. PLACE MATTERS TO TODAY’S RETAILERS…
T H E C O N N EC T ION BET W EEN D ESIG N AN D SU C C ESSF U L
R ETAIL H AVE N EVER BEEN ST R O N G ER
Annual gross sales
over $1,500/sf
Bethesda Row

39. Vibrant Streets

40. DEFINING RETAIL

41. PURPOSE OF RETAIL
Retail as Identity
Retail as Amenity
Retail as $$$ Generator
Retail as Civic Use
Retail as Commerce

42. SUPPLY/DEMAND
equilibrium

43. RETAIL CATEGORIES
Neighborhood Goods & Services
Saturday errands
Food & Beverage
Dinner date, Game day
General Merchandise, Apparel, Furnishings &
Other
Durable goods, Gifts

44. NEIGHBORHOOD GOODS &
SERVICES (NG&S)
•Grocery
•Pharmacy
•Florist
•Dry Cleaners
•Nail/Hair Salon
•Wine/Liquor Store
Basic Needs

45. FOOD & BEVERAGE (F&B)
• Restaurant
• Cafe
• Bar
• Coffee Shop
• Sub Shop
• Ice Cream Store
• Fast Food
Dining Out

46. GENERAL MERCHANDISE, APPAREL,
FURNITURE & OTHER (GAFO)
• Clothing Store
• Shoe Store
• Furniture Store
• Electronics Store
• Jewelry Store
• Bookstore
• Home Décor Store
• Hardware Store
• Sporting Goods Store
• Card Store
• Office Supplies Store
• Pet Store
• Toy Store
• Discount Variety Store
• Thrift Store
Shoppers’ Goods

47. RETAIL MARKET FUNDAMENTALS

48. study of model vibrant streets
Model Vibrant Retail Streets
Small-Scale Shopping
Streets
Madison Park • Seattle, WA
Carytown • Richmond, VA
North Market Street • Frederick, MD Bethesda Row • Bethesda, MD
Main Street • Manayunk, PA
East Davis Street • Culpeper, VA
Charles Street • Boston, MA
O’Donnell Square • Baltimore, MD
Oak Street • Chicago, IL
Atlantic Avenue • Brooklyn, NY
Destination Streets
Walnut Street • Philadelphia, PA
Newbury Street • Boston, MA
North Michigan Avenue • Chicago, IL
Third Street Promenade • Santa Monica, CA
Champs-Elysees • Paris, France
Omotesando Dori • Tokyo, Japan
First, we studied, measured, and investigated
16 model vibrant streets…

49. study of model vibrant streets
Researching Common Elements
No. of
Tourists
Civic Uses
Supported by
an
Assoc./Org.
Mix of
Retailers
# of Bus
Routes
No. of Blocks
in Length
Retail
Vacancy Rate
Median
Household
Inc
Located
within a
BID
Locals :
Nationals
Daytime
Population
Underground
Utilities?
Condition of
Ownership?
Upper
Floor Uses
Cultural
Anchor?
Primary
Customer?
Residential
Population
Vehicles
per HH
Average
Retail
Rents
Parking
Facilities
Avg. Building
Height
Year
Establishe
d
Crime
Statistics
Site
Condition
walkscor
e
Average Daily
Traffic Count
Within an
Historic Dist.?
Subway/LR/
Streetcar
Stop
From these streets, we extracted data in
39 different research categories.
Avg
Sidewalk
Width
Streetscap
e Design

50. VIBRANT STREETS PROCESS

51. ABOUT MORE THAN RETAIL

52. For more information
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Lerch, Early & Brewer, Chtd.
3 Bethesda Metro Center
Suite 460
Bethesda, MD 20814
(301) 986-1300
www.lerchearly.com
Thank you for your participation
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