Tenants Pay More For Properties Near Parks

October 23, 2014

As the urbanization trend continues across the country, parks and open space environments are becoming more valuable to commercial real estate investors and commercial real estate brokers.

Proximity to parks, especially in large cities, can attract help new tenants, increase rent prices and reduce vacancies. People want to live and work near the hustle and bustle of busy neighborhoods, however parks offer a nearby escape — providing fresh air and sociability.

In a recent National Real Estate Investor article, Peter Harnik, director of the San Francisco–based Trust for Public Land’s Center for City Park Excellence, gave insight to why CRE can benefit from the upkeep and continued expansion of parks:

  1. Reduction in air pollution, water pollution and flooding
  2. Direct use by local residents, who are able to participate in no-cost or low-cost in activities
  3. Improved health for the local populace
  4. Increased tourism
  5. Increased property values, in turn bringing higher property taxes
  6. Elevated office rents in adjacent properties

The challenge is changing perceptions about the value of parks to recruit investors to help maintain existing parks and develop new parks. It’s difficult to put an immediate return on the value of a park for tenants, but the increase in tenant quality of life paired with year-over-year increase in rent could easily outweigh the upkeep investment.

Meet with the Intelica brokerage team to discuss possible government incentives, such as real estate tax credits, for supporting parks and community open spaces. Our commercial brokerage team can also help you locate valuable commercial properties with close access to community parks.