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
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FINAL REPORT | SEPTEMBER 2013