Return on investment for placemaking activities

 

Community and tenant benefits

• Workers remain after work and draw in friends and family - street level trade benefit

• Office workers return at the weekend for F&B and retail

• Use of space and animation reduce opportunity for vandalism and anti-social behaviour

• Improve recruitment and retention of employees for tenant companies

• Increased use from local residents

• Ingress of visitors from outside the immediate catchment area

• Perception of the development as a destination for business and leisure

 

Developer / investor benefits

• Enhanced reputation for the development and developer

• Positive community relations

• Enhanced relationships with planners / city council

• Return on investment from placemaking include soft and hard benefits which occur during both development and trading.

 

1. Indirect Benefits include:

• The creation of energetic precincts that are attractive to locals, and tourists alike

• Greater economic activity and employment opportunities.

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2. Direct Financial Benefits are more readily quantifiable, and can be broken down into two phases:

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Development Portfolios:

• Faster absorptions rates; 

• Higher forecast rents; 

• Higher prices / lower capitalisation rates

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Trading Portfolios:

• Lower vacancy rate; 

• Capacity to maintain / increase rents; 

• Lower capitalisation rates and increased valuations;

• Increased tax revenue from the increased economic activity.