What Is Real Estate Redevelopment? There are many ways to invest in real estate including development, revitalization, and redevelopment of both commercial and residential properties. You can buy a property to fix-and-flip it, to reside in it or to lease it and redevelopment is becoming a big part of all those processes. So, what is the redevelopment and how does it compare to development and revitalization? The three are closely related to some key differences.
Development vs Redevelopment
Simply put, real estate development is taking property and turning it into a workable space. This includes both raw land and property with existing structures. When you exclude the raw land, it is considered redevelopment, even if you completely tear down the existing structure. Investors like Steven Taylor Taylor Equities take existing properties and redevelop them into multi-family living complexes, expanding the habitation of cities to include more people. Infill development is the process of taking the raw land between other properties and turning it into usable space. For instance, you can take the empty lot between two residential developments and turn it into a park or retail space.
Redevelopment vs Revitalization
Revitalization is the overarching plans and processes which will add to the life of the community, redevelopment is one of the tools that investors and municipalities can use to revitalize cities and towns. Investors can pitch redevelopment plans to the committees overseeing revitalization and get grant money or access to real estate controlled by the government. An example of this is when a city decides to revitalize downtown areas by enticing investors to redevelop older buildings into functioning living or working facilities.
Real estate redevelopment can boost both residential and commercial areas to help revitalize communities with the living and working spaces needed. This process can give new life to properties that are outdated, empty or potentially hazardous. It is different from development because it excludes raw land and is usually not used for infill projects.