Past two years among most active for Gardiner & Theobald.

Despite a sluggish economy, luxury retail activity in New York City is booming, with many of the world's most expensive retailers either establishing or re-building their North American flagship stores in New York City. The impact this new wave of high-end retail has had on Gardiner & Theobald's retail service line is tremendous. The past two years constitute one of the most active periods ever for our New York office Retail Division.

In addition to the influx of activity, the nature of the projects has changed. The very fact that a construction consultancy -- comprising an external cost and project management group - has been brought into a retail construction team is a reflection of the breadth and scope of the work that is arriving in New York. This is retail construction with extremely complex fit-outs that are more sophisticated and expensive than in the past. Final costs on many of the projects can range anywhere from $800 to $1,200 a SF, and sometimes higher.

Increasingly, we are working on retail projects with major architectural firms. Such design luminaries as Sir Norman Foster, Peter Marino, Bill Sofield, Rem Koolhaas and others are enthusiastically bringing their work directly to the street, adding even more cachet to these prestigious projects. Moreover, the publicity about the stores inevitably includes references to the pedigree of the architectural design. Evidently, along with the glamorous products, the stores' clientele appreciate the identification with superstar architects and designers.

The sizes of the projects have expanded, as well. One of our projects on East 57th Street, Louis Vuitton, has an ample space comprising approximately 22,000 SF. The Burberry Store around the corner, which Gardiner & Theobald recently completed, has an even greater expanse at 30,000 SF.

Luxury stores are expanding in both size and style. More than merely retail outlets, they are part of a culture in which consumers are pampered as they shop in extremely comfortable surroundings. This is a luxury retail culture that is unusual even by New York standards and, in terms of style and ethos, is more reflective of bygone eras. The shopping corridors along East Fifty-Seventh Street, and those on adjacent Fifth- and Madison avenues, are among the most expensive parcels of retail real estate in the world.

The interior design work is topflight. This is extremely detailed work, often requiring complete infrastructure alterations (both structural and MEP) and new sophisticated storefronts. Coordination of these projects is important with the number of individuals involved. There is the design architect, sometimes additionally an interior designer, local architect of record, structural engineers, MEP engineers, other specialist designers and vendors and general contractors. In some ways, the organization of this level of interior construction is as complex as it can get.

Although some of the larger retail concerns have their own store development teams, the flagship store fit-outs are anything but standard and benefit from additional expertise.

In-house construction groups are very experienced in their field, but are generally building within fairly consistent guidelines and may not have experience with complex renovations or new construction. Construction of a flagship store is different, especially in New York City. We are not only coordinating the branded retail store, but also addressing issues specific to the physical plant of an existing building and a myriad of codes and other requirements. The designs often require considerably complex alterations to the actual buildings, which is unlike the work needed for a typical mall unit or even a standard storefront unit. Gardiner & Theobald is unique in that we are also expert in cost management and we have an entire division of professionals trained in and dedicated to this discipline. We understand how to control costs, which in these extraordinary fit-outs is of the utmost importance. Again, not to disparage a standard fit-out, but the variables that occur daily in a high-profile New York City bui ld-out of a flagship are countless.

There is also the issue of scheduling. Everything about retail is contingent upon scheduling and meeting a designated opening date is essential. Therefore, if a store is due to open in early fall, so as to take advantage of pre-holiday marketing, then there is no question about the timing. Most stores will carry seasonal product that has been ordered well in advance, manufactured and shipped, so it is crucial to open within the designated framework.

But glitches do occur, such as design changes, field conditions, materials that aren't delivered on time, permits issued late and plenty of other contributing factors. In these cases, the varying issues and options are considered and a balance determined. This is where the Gardiner & Theobald's expertise in construction consulting truly becomes apparent.

There are many other issues that require our attention in terms of retail construction. Deciding when to order such elements as light fixtures, storefronts, HVAC infrastructure and, elevators requires diligent planning. We must also determine at which point to engage the different professionals and contractors, and pre-qualify that these companies are the best fit for a particular project. But what we find when working on these one-of-a-kind flagship stores is that there is no repetition, only endless, exciting challenges to meet on behalf of our clients.