NEW YORK AVENUE CORRIDOR STRATEGY
DEVELOPMENT CLIMATE
During the latter part of 2008 , new real estate development throughout the United States nearly ceased to exist . In the years that followed , the nature of real estate evolved from what it was in earlier decades . Successful real estate development now requires a paradigm shift in underlying evaluation metrics . This , the new face of real estate , is being driven by multiple factors including : limited development capital ; technology ; changing demographics and psychographics ( lifestyle segmentation data ); and better-informed municipal policies .
Every year , the Urban Land Institute and PricewaterhouseCoopers release their Emerging Trends in Real Estate publication , an annual forecast of commercial real estate based on interviews with developers and investors . The following are trends and opportunities identified in the 2012 publication that could influence real estate development over the near- and mid-terms in and around the Trade Area .
Development Trends
• Generation “ Y ”, individuals aged 15 to mid-30s , a larger group than Baby Boomers , are more frugal , comfortable in smaller spaces , and desiring of living units convenient to work , shopping and recreation / entertainment districts supporting continued growth in mixed-use environments .
• Generation “ X ” – now between 31 and 46 – are redefining the “ givens ” of the past several decades – they want equal parts traditionalism , work and leisure – but gravitating around the home – smaller , higher-quality homes .
• Two age segments prefer low-maintenance housing options ( e . g ., downtown apartments and condos , townhomes and rowhouses , flats and co-ops ) – individuals and couples ages 18 to 34 and empty nesters age 55 and over . These two segments comprise 46 % of the Trade Area population .
• Over the last several years and into the near term , consumers will seek ways to save on gas – shortening the desire to commute to work and shopping . This will generate more opportunities in urban infill and downtown markets .
• Urbanity in the suburbs ( not just walkable new urbanist design , but active programming of space to encourage active lifestyles ) will continue to be in demand as many consumers continue to be “ priced out ” of downtown locations .
• Ethnic retailing , non-store click and mortar ( smart phones ) concepts , and experience show rooms will dominate the retail field .
• Big box retailers will continue to deliver new boutique stores , particularly in inner-city locations .
Real Estate Opportunities
• Residential Product Opportunities
• Women ( as a target market )
• Downtown ( urban and infill rental and ownership )
• Workforce
• Low-Maintenance
• Senior
37
FINAL REPORT | SEPTEMBER 2013