Big box in the Big Apple.

Over the last few years, smaller-sized retail expansion has helped keep the New York City construction industry afloat. Banks such as Washington Mutual, Fleet, Wachovia and Commerce Bank--as well as telecom providers like Cingular Wireless, Sprint, Nextel, AT&T and Verizon Wireless--are prime examples.

But in 2004 and beyond, we will see another retail construction boom. This time, the impact will be much "bigger."

With banks and telecom providers taking up relatively small space, "big box" retailers will continue to grow throughout the five boroughs. While a few national retailers like The Home Depot and Kmart have operated stores in New York City for years, others have only recently set their sights on Broadway. Best Buy is one such retailer. The company, which specializes in consumer electronics and appliances, opened its flagship store on 86th Street and Lexington Avenue in Manhattan in 2003--its sixth store in the city and second in the borough.

Home Depot, the world's largest home improvement chain, has been in the outer boroughs since the mid 1990's. Now, the Atlanta-based company has announced it will open at least two stores in Manhattan--one on 23rd Street in Chelsea and one in the new Bloomberg Media tower at 59th Street and Lexington Avenue.

The challenges of building big box in the Big Apple should not be underestimated. The retailers themselves--as well as the companies like IBEX Construction that build them--need to adjust from the "cookie cutter" approach that has epitomized the industry in areas with a less dense population.

Let's face it. New York City is not your average cornfield. There is no luxury of endless space to fit 100,000-s/ f stores.

Adequate parking is non-existent. High ceilings and floor loads to hold stacked merchandise are rare, expansive ground floors and loading docks are difficult to find.

Contrary to their suburban prototype, big box retailers have no alternative but to build up rather than out. There is a need for elevators, vermaports and escalators--items never imagined in an average suburban big box.

Other uniquely urban considerations add to the challenge. In the case of the 23rd Street Home Depot, imagine the logistics of inserting a 120,000 s/f home improvement store into a luxury building topped by $2 million apartments!

Then there is the issue of cost. New York City has some of the world's highest-priced real estate. This has scared away many retailers in the past.

But those that do decide to enter the city should understand that the potential benefits can outweigh the significant costs.

In a nutshell, building big box in New York requires a bit of acrobatics, creativity and a willingness to do what it takes to succeed.

But retailers need to be flexible in terms of store location, and they need to ready to tailor their product selection.

Though the sight of a customer lugging 4x4s home on the 6 train would be great TV sitcom fodder, it's worth noting that lumber will be delivered to a customer's home and more design-related items will be emphasized.

New York City has the capacity for growth throughout its five boroughs. While projects like the rebuilding of lower Manhattan, the development of the Hudson Rail Yards and redevelopment of downtown Brooklyn loom, big box will, despite its challenges, change New York's retail landscape and drive construction activity for many years to come.