Four Types of Real Estate Redevelopment
Redevelopment is the process of constructing housing on a property that used to have a different use. Here are four types of real estate redevelopment.
1. Apartment Redevelopment
Apartment redevelopment can be a tricky process. Sometimes, the property is redeveloped while there are still tenants living there, in which case one of the main goals is not to disrupt tenant life. Depending on the property, this may require the developer to re-house some or all tenants elsewhere and either only redevelop part of the property or stagger the construction schedule. On the other hand, properties that are empty have no such restrictions. For example, a landlord like Steven Taylor Los Angeles might invest in a distressed property, a foreclosed building, and redevelop it before reopening it for potential tenants.
2. Adaptive Reuse
Adaptive reuse is the term for converting a building from its initial purpose to another use. It is also called recycling. This is a good method for creating sustainability in real estate and for optimizing the value of the building. There are several considerations to keep in mind when planning to recycle a building. For example, you must ensure that the condition of the building is safe and meets the standards for its intended new purpose. An old factory might be able to be repurposed as residential property while a defunct prison won’t have the right properties to be converted the same way.
3. Commercial Redevelopment
Not all redevelopment is residential, either. There are also commercial redevelopment projects. Like a distressed residential property, a failing business’s real estate may be bought by an investor, who then constructs something entirely different on the property or subdivided it. Examples of this are golf courses and some residential homes. A golf course may be divided up into smaller parcels of land and sold to builders. A residential home may be purchased in order to convert it to office space rather than to be sold to another family or converted to multi-family housing.
4. Housing Developments
Landlords like Steven Taylor LA specialize in urban real estate, but there are opportunities to invest in suburban and rural real estate, as well. As urban sprawl and suburban communities spread, there are opportunities to buy parcels of vacant or unused land from property owners on which to construct housing developments. The homes in these developments may be listed for rent or purchase, and tend to be single-family homes.
There are several different types of redevelopment, many of which are opportunities to revitalize urban areas.