Retail Real Estate Development: What it is and the Value it Brings

Dec 30, 2022Net Lease

Retail real estate development is the process of creating new retail properties, such as shopping centers, strip malls, or standalone stores, or renovating and repurposing existing retail properties. Retail real estate development plays a key role in shaping the landscape of local communities, as it provides spaces for businesses to sell their products and services and for consumers to shop and spend money.

There are many benefits to retail real estate development for local communities. Some of the key benefits include:

Job Creation: Retail real estate development can create new job opportunities in the local community, both during the construction phase and once the property is completed and occupied by tenants. This can help to boost the local economy and improve the job market.

Increased Economic Activity: Retail properties generate economic activity through the sale of goods and services and through the employment of local residents. This can lead to increased tax revenues for the community, which can be used to fund public services and improvements.

Improved Quality of Life: Retail real estate development can contribute to the overall quality of life in a community by providing convenient and accessible shopping and dining options. This can be particularly beneficial for communities that may not have access to a wide range of retail and dining options.

Increased Property Values: Retail real estate development can also lead to increased property values in the surrounding area. This can be particularly beneficial for homeowners in the community who may see their property values rise as a result of the new development.

Community Gathering Places: Retail properties can serve as community gathering places, providing a place for people to socialize and interact with one another. This can help to foster a sense of community and belonging within the local area.

While retail real estate development can bring many benefits to a community, it is important to consider the potential risks and drawbacks as well. These can include traffic congestion, environmental impacts, and the potential for displacement of local businesses. It is important for developers and community stakeholders to work together to ensure that the development process is transparent and that the needs and concerns of the community are taken into account.

Overall, retail real estate development can be a positive force in local communities, bringing economic and social benefits and contributing to the overall vibrancy and quality of life in the area.

Perennial Retail Development Strategies

As a retail real estate development company, we specialize in creating and renovating retail properties to meet the needs of our tenants and the local community. We utilize three main strategies to achieve our development goals: Build-to-Suit Development, Reverse Build-to-Suit Development, and Ground Lease Development.

Build-to-Suit Development: In a Build-to-Suit Development, we work with a tenant to design and build a custom property to meet their specific needs and requirements. This can include standalone stores, shopping centers, or other types of retail properties. We handle all aspects of the development process, from site selection and design to construction and leasing.

Reverse Build-to-Suit Development: A Reverse Build-to-Suit Development involves the tenant identifying a site and working with us to design and construct a property on that site. We then lease the property back to the tenant, who operates the business within the property. This type of development allows the tenant to have a say in the design and construction of the property, while still benefiting from our expertise and resources.

Ground Lease Development: In a Ground Lease Development, we lease a piece of land to a tenant, who is responsible for designing and constructing their own property on the site. We retain ownership of the land and collect rent from the tenant, while the tenant is responsible for the construction and operation of the property. This type of development can be a good option for tenants who have specific design and construction needs and want the flexibility to build their own property.

In all of our development projects, we prioritize working with high credit worthy tenants to ensure the long-term financial stability and success of the property. We believe that by focusing on retail development and partnering with strong tenants, we can create properties that not only benefit our tenants and investors, but also enhance the local community and contribute to its economic growth and vitality.

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