Big Dreams & Big Bets

The Delray Beach Market is the talk of the town.

As well it should be.

At 150,000 square feet, the market is said to be the largest food hall in Florida.

It’s big, bold and brave.

It also represents a colossal investment in the future of Delray Beach so it’s audacious too. I like the audacious part. We cheer big, bold and brave bets on this blog. Small bets too. We like people who try. It’s the risk takers who leave a legacy.

Basically, the market is a food incubator enabling chef/entrepreneurs to pioneer concepts at what’s probably a reasonable cost of entry.

Downtown Delray Beach has become a foodie haven but with that success, the barrier to entry has gotten very expensive. Rents of $100 a square foot are common, build out costs can be exorbitant and competition is fierce. Atlantic Avenue has become its own ecosystem with eye popping statistics accompanying the buzz. Hand’s Stationers just sold for a whopping $1,100 a foot. That’s an astonishing number especially considering the limitations of what you can and can’t do with a building in the downtown. Let’s just say you’d have to sell an awful lot of number two pencils to make those numbers work.

Meanwhile, the new food hall allows entrepreneurs to get into business for much less than the cost of opening a full-service restaurant. It also enables them to gain exposure to the hordes of people flocking downtown these days without having to consult the Forbes Billionaires List to find investors.

I’m sure the model hopes for the vendor’s to succeed so that they can launch traditional restaurants and allow for other fresh concepts to come into the market.

We went to the grand opening party a few weeks back and couldn’t find anyone who wasn’t floored by the sheer scale of the ambition behind this project. It’s a big bet.

Subsequently, I’ve heard a range of opinions (mostly positive) but a few who are questioning how or whether this $60 million investment will work. Speculating on a business model is above my pay grade. I’ve been involved with can’t miss deals that fizzled and have also been involved with impossible dreams that turned into wild success stories including one multibillion dollar brand (Celsius) that was left for dead on several occasions and now has a market cap of $5 billion plus. Go figure.

Personally, I wouldn’t bet against Craig Menin—the developer behind the market and several other huge bets in Delray Beach including the Ray Hotel and The Linton. There’s a strategy unfolding here and it’s going to be fascinating to watch.

I’ve had the pleasure of spending a little time with Mr. Menin and he’s a fascinating man. A visionary with a lot of courage.

My advice is to never bet against the innovators. Not every bet lands you in the winner’s circle and you have to have the cash to play, but the big winners in business are those who find the courage to roll the dice and think big.

What I’m seeing is a company that believes in distinctive architecture, luxury amenities and the power of food and beverage to drive value and community.

Anyway, we sure have seen a lot in Delray over the years.

Leaving the party that Friday night, I found myself experiencing a bunch of different emotions.

I thought about how much we have changed since I came to Delray in the summer of ’87.

I thought about how when we did the Downtown Master Plan in 2001, we were dreaming big. Those dreams matched or maybe even exceeded the ambitions that were attached to Visions 2000, the landmark charrette process that led to the Decade of Excellence in the 1990s. Yes, my friends, we were swinging for the fences.

Back then, we were trying to get on the map and build something sustainable—something of value.

We can and we do argue over whether what’s happened here has been good or bad. And I can argue and empathize with both sides of the growth/change divide.

But…here’s one thing I think is immutable. Change is a constant. It’s inevitable.

We can and have sought to “shape” the growth with height limits and other tools designed to maintain our scale.

Despite the rhetoric of the last election cycle, we will never be another Fort Lauderdale. We won’t even be another Boynton Beach. Both cities —and Boca too— allow much taller buildings. We will always be a three and four story town.

But I can see why some people lament the congestion and activity and what they see as the loss of the laid back “village by the sea” aesthetic, although I would argue that you can still find quiet places to enjoy.

I can also see why others are cheering what’s happening.

They like the activity.

They appreciation the vibrancy and they benefit from the value being created.

If you own a home in east Delray, your property values—often a family’s largest asset—have appreciated substantially since the days when downtown Delray was rife with vacancies. If we lived adjacent to a dead and decaying downtown, it’s doubtful we would be seeing the real estate prices we are seeing.

I get it, it doesn’t matter unless you’re selling and it stinks if you want to buy in at this high level, but I think increasing values sure beats the alternative.

Choices.

Change.

The march of time….

Cities evolve.

We can and should do our best to shape that change—incentivize behaviors we want to see, restrict those we don’t wish to experience.

But market and societal forces are strong and it might be better to recognize that and adjust accordingly. It makes for a happier village and it also enables us to exert more control.

Change is going to happen. We are going to like some things and not like others.

You can’t shape what you don’t understand. You have a shot if you meet the world where it’s heading.