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.

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

Development Portfolios:

  • Faster absorptions rates; 

  • Higher forecast rents; 

  • Higher prices / lower capitalisation rates

Trading Portfolios:

  • Lower vacancy rate; 

  • Capacity to maintain / increase rents; 

  • Lower capitalisation rates and increased valuations;

  • Increased tax revenue from the increased economic activity.

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