5 Hot Trends in Real Estate Development

Daily Real Estate News
From "Green Construction" to Mixed Use Developments, Engineering Firm Giffels-Webster Engineers identifies some of the most robust trends in Real Estate Development.

Green building and design. Increased pressure on communities and businesses to promote environmentally sound designs has led developers to incorporate green elements into their projects. A plan to develop a parcel of land for retail might include green roofs, rain gardens, or gutter water retention and irrigation systems. LEED-certified environmental experts soon will become "must-have" team members as demand for energy efficient, healthy spaces grows stronger.

Assisted living centers. Assisted living developments are on the rise due to higher life expectancies and the influx of aging baby boomers. By helping seniors lead independent lives in non-institutionalized environments, these projects are designed to incorporate nature trails, community dining, exercise facilities, music rooms, libraries, salons, and game rooms. Opportunities exist to work with both private developers and public government-funded projects.

Hospital expansions, education campus additions. The hospital and education expansion trend is fueled by institutional projects being funded privately though corporate gifts and individual endowments. These "recession-proof" resources mean even during economic downturns, the market segment moves forward with plentiful building and capital improvement projects.

Mixed-use developments. Mixed-use developments are growing popular today because they reduce risk. Retail and residential can adjoin each other, and it's common to see large, national retailers combined with smaller, boutique-type stores, as well as housing varying by size, budget, and amenities. With this approach, the developer's investment is spread across the spectrum so it remains viable even if one segment does not perform as expected.

Urban revitalization. To attract and keep people in their communities, municipalities and townships are working to make their downtowns, retail hubs, and central business districts more inviting and accessible. Streetscape improvements, including attractive landscaping, decorative streetlights, brick sidewalk pavers, and strategically planned parking areas, are examples of how municipalities are proactively transforming their space to appeal to potential and current residents.

What does this mean to you? By looking at these trends and spotting areas where any one of them is begining to take place, you may have the opportunity to purchase a property in an area rip for revitalization, for example. In such a case, your investment may increase in value both during and after revitalization. If you are considering building a home, integrate "green" technology to increase its desirability, efficiency and potential resale value.

The Thomas and Drake Group in Palm Desert has provided services to clients who operate Senior Assisted Living homes. The real estate itself is typically a five bedroom home in a quiet residential area with no steps or stairs. A small group of seniors live at the property and continue to lead independent lives with the help of a live-in caregiver. From a real estate investment standpoint, the property and its expenses are paid for by the income from the business. From a business standpoint, owning multiple smaller units is a more affordable capital outlay than purchasing a larger facility.

Since the temperatures in the California Desert can be extreme, the use of Green Technology and energy efficient design in construction is not only eco-friendly, it also can make a huge difference in heating and cooling costs. Super-insulated homes, for example, can cut summertime electric bills by as much as 90% - sound unbelievable? The Palm Springs and Palm Desert areas are known for their mid-century architecture. These beautiful homes were built as winter-time seasonal retreats - not year-round residences - and as such were not well insulated and were built in the 1950's when the technology for energy efficiency did not exist. A typical summertime electric bill for one of these mid-century homes can be as much as $1800.00. The same sized home built today with super-insulation, tight construction, radiant heat barrier, double-paned low-e windows has a typical monthly summertime electric bill of about $200.00.

Both Palm Springs and Palm Desert now have mixed-use developments under construction. Port Lawrence in Downtown Palm Springs is combining retail, office and residential in one project. Residential lofts and condos will be situated above retail, restaurant and other commercial space, and the interest is huge. Since Palm Springs is a resort destination, many visitors want to be in the middle of everything - as close to the restaurants, shops and casinos as possible. This project does just that.

What could a hospital or college campus possible have to do with your residential real estate investment? Rental Properties. As both The College of the Desert and the UC San Bernardino / UC Riverside campuses expand, students will need housing. A time-tested simple investment strategy is to own rental properties around college campuses.

If you would like more information on any of the Real Estate Trends in this article or on commercial or residential properties in the California Desert, including Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta, Desert Hot Springs, Cathedral City and Indio, please contact the Thomas and Drake Group or visit our website at www.ThomasAndDrake.com .