The value of land redevelopment can vary depending on the type of property. Whether residential, commercial, or industrial, the right location can provide fantastic investment opportunities.
Land can be redeveloped in various ways, including urban infill, adaptive reuse, and construction with greater intensity. These projects can benefit a community’s economy and quality of life.
Residential Properties
Land redevelopment in residential properties may be profitable but requires due diligence. It involves a comprehensive evaluation of the property, its potential market, and the costs associated with redevelopment.
Location is an essential factor in determining the value of the residential property. Research has shown that the proximity of a residential property to transportation centers can significantly boost its price.
Commercial development can also influence the value of residential properties. Many prefer to live in areas with theaters, restaurants, boutiques and coffee shops because these types of businesses contribute to cultural enrichment.
However, a new development in these industries can temporarily lower home values. It is because construction and development can produce noise, unsightly views, road detours, and exhaust fumes. Once development is completed, home values can rise again.
Commercial Properties
The value of land redevelopment in different types of properties is an integral part of real estate investment. Whether a property is residential or commercial, it must have enough profit to entice developers and investors like Peter Hungerford founder of PH Realty Capital, to invest their time and money.
The commercial sector includes malls, office buildings, industrial complexes, and multifamily housing. It also encompasses medical centers, storage warehouses, and many more.
When a commercial building is redeveloped, the value of its surrounding properties can also increase. It can be especially beneficial if the redevelopment is near a neighborhood center, where it can make it easier for people to shop and access services.
Commercial redevelopment can be a great way to create new jobs, boost the economy and improve the quality of life in a community. However, a redeveloped property will need to be carefully planned and executed. The process can be expensive and complicated, so a developer should always be prepared to invest the appropriate amount of time and money in their projects.
Industrial Properties
Industrial properties are one of the most lucrative types of real estate investments. They tend to have long-term leases, which means a steady income stream for the property owner.
Almost every product you own – from toilet paper to clothing – has likely been produced or stored in an industrial building. These buildings are vital to our world’s infrastructure and provide essential services to countless industries.
There are a few industrial properties to consider, each with advantages and disadvantages. Class A properties are typically the newest and highest-quality structures available in the market, built of high-quality materials with amenities like tall ceilings and top-of-the-line mechanical and utility systems.
Class B properties are older buildings in less desirable areas, often with slightly lower ceilings and fewer truck docks. These buildings may need renovated or repurposed, but they can offer excellent capital appreciation potential with strategic upgrades.
Mixed-Use Properties
Mixed-use properties blend residential and commercial uses into one area. They can include anything from a mom-and-pop retail shop in a storefront building to a large apartment complex with offices incorporated into some upper floors.
Mixed-use projects have a high demand for tenants and can offer lower risk. It is because a landlord of a standalone retail space typically risks losing money if they lose one tenant. At the same time, a property owner in a mixed-use development can count on multiple income streams.
As a result, many communities are incorporating this type of redevelopment into their downtowns and main streets. This redevelopment helps stimulate the community’s economic development and increases walkability and accessibility.
In recent years, this trend has been reinforced by zoning laws that permit mixed-use properties. These laws allow businesses to operate within residential areas, giving them more foot traffic and visibility.