Commercial Real Estate as a Revitalization Tool: What To Keep In Mind
The difference between a thriving community and a dwindling one often depends on the area’s commercial real estate — namely how inhabited the buildings are, how they’re used, and how the businesses that own and occupy them serve the community.
For builders, CRE is a business, but it also serves as a mechanism for change. At the community level, newly built structures and adaptive-reuse renovations serve a greater purpose. However, builders and construction professionals should keep several key factors in mind when pursuing this path. Here are three things to keep in mind when using CRE for the purpose of community revitalization.
Explore financial assistance programs before securing funding
When a developer pursues a CRE project with the intention of revitalizing a community, they can often access grants, tax breaks, and other forms of funding to help bring their vision to fruition.
Take Pennsylvania, for example. Last year, the Pennsylvania Housing Finance Agency awarded a total of $4.8 million across seven construction or rehabilitation projects in mixed-use developments. This funding is part of the Community Revitalization Fund Program.
Further west, the Colorado Community Revitalization Grant fills gaps in funding for projects in designated creative districts, historic districts, main streets, or neighborhood commercial centers.
On a national level, the Community Development Block Grant helps people improve their communities in various ways, including through development.
While the programs vary depending on where you live and where your project will take place, the important thing to remember is that funding is available for this kind of endeavor as long as you keep certain community revitalization standards in mind.
Stay up to date on community priorities amid economic change
A community is not static; it is a living, breathing, and — perhaps more importantly — evolving entity. A recent poll of 2,000 U.S. adults conducted by Built reveals that people now associate their dream home with features like green spaces, walk-in pantries, and easy-to-access laundry appliances, while old favorites, such as pools, have become less of a priority.
The survey also found that 58% of respondents have witnessed increased housing costs over the past five years, and 39% frequently feel like they’re stuck living where they are. But what if the place they already live gets new life breathed into it with revitalized commercial real estate? Just look at Built’s own hometown, which features the Nashville Promise Zone, a federally designated area made up of 46 square miles prioritizing collaborative revitalization from infrastructure to employment and beyond.
Ultimately, what communities want and need changes as time goes on, and developers should stay plugged in by attending meetings, speaking to residents and business owners, and being willing to build for a future for all (not just a future for one).
Solidify partnerships long before breaking ground.
A stalemate in the construction process is never ideal, but it is particularly detrimental when revitalizing a community. According to a recent Built survey, 89% of builders say the draw administration experience is better when lenders use Built.
Paul Kowalski, founder at Paul Kowalski Builders, said, “When working with a lender that has fully bought into Built, everything can be done online. It’s super easy, transparent, and intuitive. When working with a lender who doesn’t use Built, the process of requesting draws is unpredictable.”
Whatever side of the equation you’re on, the adjectives easy, transparent, and intuitive are exactly what you want to describe your experience. Naturally, the community you intend to serve will feel the same way.
Conclusion
In conclusion, commercial real estate is more than just a business opportunity; it’s a powerful tool for community transformation. By staying attuned to community needs, exploring available financial resources, adopting innovative technologies like Built, and fostering strong partnerships, developers can create spaces that not only benefit their businesses but also breathe new life into the neighborhoods they serve. Utilizing platforms like Built can streamline processes, enhance transparency, and ensure that projects remain on track, ultimately contributing to successful community revitalization efforts.