Greyfield land is underutilized and often includes outdated or poorly maintained buildings. Developers see it as an opportunity to create profitable sites that fit community needs. Redevelopment can revitalize underprivileged communities and maximize land use while generating high land tax revenues for cities.
Greyfield land is estate or underutilized land, typically producing much less revenue than it would if managed properly. Unlike brownfield, land which may be partially contaminated, greyfield does not usually require environmental remediation before it can be redeveloped. Some urban areas actively promote gray land improvements, for a variety of reasons ranging from a desire to increase the level of density to improving communities.
Greyfield ownership can take many forms. It often includes buildings that are outdated or poorly maintained and, in many cases, is the site of a once thriving shopping center or office park. The site may be making less money because it no longer meets tenant and community needs or because the demographics of the community have shifted, leaving the gray field behind. For example, many greyfields are located in once-thriving urban areas that have been impacted by the flight to the suburbs.
In many cases, the gray land is surrounded by asphalt parking lots, which explains the name. While at one time the buildings could have been well used, over time it has been possible to depreciate the land; buildings could be poorly maintained, tenant turnover rates could rise, and the site’s infrastructure could be left to decay.
Developers often see gray land as an opportunity. In the right hands, such land could potentially become very profitable if taken over. Some developers may mop up all the buildings and start over, building a site that fits the community’s needs, while others may opt for extensive renovation efforts. Typically a well known anchor tenant will be attracted to the site to encourage a steady income. Developing greyfield land is usually more cost-effective than developing a new lot because sewer lines, electricity and other basic infrastructure are already in place, although work may be required to bring it up to current standards.
There are a number of benefits to developing greyfield land. In underprivileged communities where community resources have dwindled as wealthier people move out of the area, a mall or community hub on a gray field can revitalize the community. For cities concerned about density and a desire to maximize land use within city limits, gray land redevelopment is often seen as a good thing; rather than spreading out, the city is exploiting the existing land. Redevelopment also results in high land tax revenues from the city, which can be attractive to cash-strapped cities.
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