Commercial Real Estate Dictionary
Redevelopment | Commercial Real Estate Development

What Is Redevelopment?

In real estate and urban planning, redevelopment is the replacement, rehabilitation, or repurposing of existing improvements on an already developed site.


What Is The Difference Between Development And Redevelopment?

Real estate development is the overall process of improving real property. Redevelopment specifically refers to the real estate development process as applied to a site that has already been improved and built upon. In principal, real estate redevelopment excludes raw land, although in practice replacement may involve scraping a property down to nothing.


What Is Infill Development?

Infill development refers to development of vacant lots in communities or urban areas that have already been developed. Infill development fills in the gaps by developing land among other properties that have already been improved.


Why Redevelop A Property That Has Already Been Built?

Overtime, certain properties and developments may become obsolete, perform poorly, or have inherent flaws due to a defective design or concept. Communities and local economies also change overtime. Industries rise and fall, demographics change, and tastes and technology evolves.

Real estate must adapt to respond to the changing needs of the market. Real estate redevelopment allows landowners, investors, and developers the opportunity to realize greater values from existing real estate by replacing, rehabilitating, or repurposing existing properties so they can better serve the market and realize greater profits.

Examples of redevelopments include a retail strip mall that was converted into a multi-residential complex, or a multistory manufacturing building that was converted into apartment lofts.

Changes overtime may not just impact a particular property, but a community as whole. Cities throughout the world constantly manage this challenge. They must manage growth and tax revenue while ensuring communities remain vibrant and healthy.

As social and economic factors take course, people may fall upon difficult economic times. Areas may become blighted, while others may find it difficult to find affordable housing. Urban redevelopment offers cities a tool to address these problems. Through zoning ordinances, subsidies, and tax incentives, cities can promote redevelopment of obsolete or neglected properties and encourage investment to address problems, foster growth, and increase tax revenues.


What Is The Difference Between Redevelopment And Revitalization?

Redevelopment is a tool governments can use to revitalize a given area. Where redevelopment yields the buildings and structures that support the community, revitalization is the overarching set of policies and processes that brings back and sustains the life of a community.


What Is Brownfield Redevelopment?

Brownfield redevelopment is the redevelopment and remediation of environmentally contaminated properties so they can be put back to productive use for the community and the economy.

Brownfields are properties that have been contaminated, typically due to an industrial process that resulted from its previous use. In addition to the complex regulatory process and financial demands to remediate the property, the site can have adverse affects on the surrounding area.

Brownfield redevelopment provides a solution to the multitude of potential problems and consequences of brownfield sites. Once the site is remediated, redevelopment can help cover, or at least partially recover the costs of remediation while resulting in a positive or productive use for the area.



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