Real Estate Developers Dive Into the New Urbanism Concept
The new urbanism combines a walkable and sustainable mixed use property type. This real estate property type reverts back to the classic, 1980’s configuration of commercial mixed use, with retail at the street level and residential above. The interest by developers in this particular type of real estate development has grown rapidly over the past 5-7 years. For example in Salt Lake City, an old mall was replaced with City Creek Center, a walkable retail city block where a real grocery store is present. This allows people to have access to more than just retail that they would find in a mall of the 1990’s. They also have a space to buy groceries, Pampers, everyday items for living. Although the City Creek development isn’t one of the purest, or best examples of the new urbanism, there are many of them out there. The point is that this type of real estate development presents opportunities for investors.
For a successful grocery business, for example, a residential component on the 2nd and 3rd floors with apartments with rental income potential would be a nice way to offset the risk of the business in the store at the street level. Conversely, when vacancies occur in the residential apartments above, the store at the street level is thriving and revenues can offset a loss in rental revenues. This is quite an appealing property type for investors because it has so many possibilities.
What other trends do you see coming onto the forefront or growing in popularity? Please share.
Posted by Corey Curwick Dutton