What do you think of when you hear the phrase “urban center?” Do you imagine bustling commercial districts and expensive, in-demand housing, abandoned buildings in decline, or revitalized, trendy communities? Over the past few decades, cities large and small have experienced all of the above. Often, a key difference between a thriving city center and one experiencing decline is the way urban spaces are utilized.
Benefits of Apartment Redevelopment
The restoration of older, run-down apartment buildings or abandoned commercial spaces into updated, functional centers for urban living can benefit the whole community. Real estate professional Steven Taylor Los Angeles points out that when an old commercial building is transformed into apartment homes, much-needed affordable living spaces are created.
In urban centers, it does not pay to have space go under-utilized. That’s why we are seeing an increased demand for mixed-use projects, such as building housing on top of a car lot. Providing housing in the heart of a city makes the urban center more walkable, and puts potential customers in reach of other businesses in the area.
Revitalization of a poorly-used apartment building not only benefits residents and surrounding businesses, but it also creates an opportunity for real estate investors who can recognize the potential for growth in an area.
Considerations for Investors
With the growing popularity of apartment redevelopment among investors, it’s important to evaluate the community and the space you are considering before making an investment. Steven Taylor LA recommends looking for a building with strong walls and floors, a good roof, and no environmental damage. In a city with rich history such as Los Angeles, there are many older buildings, but not all are suitable for an apartment redevelopment. Some would be too costly to renovate, or have other factors, such as environmental pollution, that would make them undesirable for tenants.
In addition, it’s important to consider the surrounding neighborhood. While a redevelopment can benefit the broader community, one building cannot reverse a trend that is heading in the wrong direction. Do your research on any community where you are considering investing. If businesses are shutting down, traffic is declining, and residents are moving out, that area may yet be on its way downhill. If businesses in the neighborhood are growing and hiring, that may be an area that is undervalued and ready to expand.
If you choose to invest in a redevelopment project, you have just become a vital part of the community. Get to know the neighborhood, both its strengths and its needs, and your real estate investment can benefit the entire city.