Cultivating Development: Sowing the Seeds of Innovation Maureen McAvey
ULI Report on Food and Real Estate Central Theme Incorporating opportunities to: Grow Purchase Consume Food within development projects can pay dividends in terms of health, sustainability, social equity and profitability.
FOOD-CENTRIC DEVELOPMENT TYPES AGRIHOODS Residential Working farm FOOD- CENTERED MIXED-USE DEVELOPMENT Restaurants Food stores Mixed-use FOOD-CENTRIC RESIDENTIAL DEVELOPMENT Community gardens Restaurants Residential FOOD HUBS + CULINARY INCUBATORS Regional processing Distribution centers Workforce development NEXT- GENERATION URBAN MARKETS Food halls Workforce Development Mixed-use development INNOVATIONS + INNOVATORS Sustainability Access to healthy food Economic development
Changing Nature of Agriculture 18 th & 19 th Century 21 st Century
Changing Nature of Food Fewer fruits, veggies & whole grains More meat & high calorie fast food
Food Facts Agricultural production is a major source of greenhouse gases 13% of all global emissions. More than 1/3 of all food in the US is wasted 19 % of food in US is discarded or uneaten at home. On average, US produce travels 1500 miles before reaching the plate. More than 29 million Americans live in food deserts.
Today there is a growing interest in food, food systems, and agriculture.
Why the Growing Interest in Food? Growing interest in fresh, local and healthy. Growing interest in green and sustainable. We all eat 3 times a day. You can t eat the Internet. Young people prefer experiences more than stuff. Growing, preparing and eating food can all be social activities
Trends in Food & Real Estate Incorporating farms and community gardens into communities is a trend in Residential Development 5 fold increase in number of Farmers Markets European Style Food Halls are proliferating Proliferation of celebrity chefs and concept driven restaurants Malls & mixed use projects replacing apparel with food Craft brewing has doubled its market share in last 5 years Food Truck Revenue is Growing 12.4% a year Grocery Stores changing locations, formats and offerings 36% of American households grow vegetables at home
Agrihoods One of the hottest trends in new home development is incorporating farms into communities
Conservation Development Saves land Increases value Reduces infrastructure Preserves rural character
Agrihoods Everywhere Agritopa - AZ Bucking Horse CO The Cannery - CA Harvest TX Kukui ula HI Prairie Commons KS Sendro CA Serenbe GA Skokomish Farms WA South Village, VT Wetrock Farm - NC Willowsford - VA
Agrihoods Prairie Crossing, Grays Lake, IL Serenbe, Fulton County, GA The Cannery, Davis, CA Harvest, Argyle, TX
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Agricultural Space Can Add Value As a developer it s been humbling to see how such a simple thing and such an inexpensive thing as a small farm can be a development s most loved amenity. Brent Herrington, DMB Associates
Serenbe Fulton County, GA 220 townhouses, cottages & estate homes 25 acre organic farm 3 restaurants A country inn System of interconnecting trails and pathways Abundant green space Edible Landscaping
Willowsford Farm Loudoun County, VA 50 varieties of fruits and vegetables Small livestock laying chickens and hens for poultry Goats for mowing Bees for honey & pollination Weekly CSA Program Market stand Open 3 days a week Educational programing and farm events
Agrihoods Lessons Learned Farms are the new golf. Farms create an ethos of sustainability & community building. Novelty creates interest and energy around projects. Open space can be a source of revenue. Eases concerns about density in suburbs and rural areas. Appeals to buyers seeking something a little more authentic. Consumers will pay a premium for access to trails, open space and protected land, but want assurances that it will be protected in perpetuity. Don t count on residents to do the farming or gardening.
Food Centric Residential Developments Multi-family residential or mixed use communities focused around community gardens, restaurants or a strong food identity. These developments tend to be smaller than Agrihoods and are often redevelopments and/or in urban settings. Grow Community Bainbridge Island, WA Community gardens are a relatively low cost amenity. Eco- Modern Flats Fayetteville, AR
Arbor House New York, NY Eco-friendly, health promoting building. 124 units of affordable housing 10,000 sq.ft. hydroponic rooftop farm Food available to residents through a CSA. Extra food sold in neighborhood Indoor and outdoor fitness areas Smoke-free policy Low VOC paints/green Walls Accessible stairwell, daylighted, plays music
ECO Modern Flats Fayetteville, AR Before Rehab of a 1960 s apartment complex (93 units) Arkansas s first LEED certified(platinum) multi-family complex Strict non-smoking policy Clean indoor air (non-voc paints, ductless, energy efficient, minisplit HVAC Community Gardens, roof top decks, BBQ areas, other social interaction areas After
Eco Modern Flats - Results Fully leased since completion, with a waiting list Current rents 113% to 140% above pro-forma estimates Creating community gardens was not just about growing food. It was also about growing community. Jeremy Hudson, Specialized Real Estate Group Rent rates of $1.42 per sq. ft. exceed market average of.99 per sq. ft. Turnover rates 15% below market average
Increase Access to Healthy Food Community Garden Osage Cafe Cooking & Nutrition Classes Culinary Institute
Food-Centered Retail & Mixed Use Large, mixed-use (office, residential, shopping, theater) projects designed around a range of food and dining offerings. Restaurants, markets, grocery stores, etc. to enhance amenities, value, place-making. O Street Market Washington, DC Pearl District San Antonio, TX
The Pearl District A Culinary Destination 22 acre site of former Pearl Brewery 16 restaurants, 2 breweries, a bakery Culinary Institute of America (CIA) Twice Weekly Farmers Market (attracts 5,000 to 7,000 per day) Pearl District San Antonio, Texas Emma Hotel (146 Rooms) 432 Multi-family housing units Office and Retail 2.5 acre park Banquet & Meeting Facilities Adjacent to River Walk
Pearl District San Antonio Hotel Emma Stables Wedding & Banquet Facility Neighborhood Park & Apartments Culinary Institute in Former Warehouse
Pearl District San Antonio Micro Brewery in Pearl District Restaurant in former Brewery Offices Food Hall in former Bottling Plant Restaurant in former Manager s House
Outdoor Dining & Urban Vibrancy In 1990 Center City Philadelphia had no sidewalk cafes. Today Center City Philadelphia has 4,400 outdoor café tables. Center City is now the fastest growing zip code in Pennsylvania. Source: Better Cities & Towns, 2015
Place Making Dividend People stay longer, come back more often and spend more money in places that attract their affection.
Urban Agriculture Urban agriculture is the practice of growing, raising or cultivating food in or around a city or town. It can involve urban horticulture, beekeeping, animal husbandry and other practices. It may also involve processing and distributing food.
Urban Gardens Cropping Up: Everywhere! AT&T Baseball Park Urban Garden Urban Farm Cleveland, OH Urban Garden on Chicago City Hall Detroit has 1500 urban gardens
Roof Top Farms Metro DC Rooftop Farm Downtown Washington Rooftop Farm Bethesda, MD
Urban Agriculture: about more than Food Community Revitalization Jobs Environmental Justice Fostering Social Interaction Helping to solve the food desert problem
Access to Healthy Food Easy to find in urban neighborhoods Hard to find in many urban neighborhoods
Whole Foods With Rooftop Farm
Farmers Markets
Farmers Markets Benefits to Farmers Sell direct to consumers Less transport Less handling Less refrigeration Less time in storage Increased profit over selling to wholesalers or food processors Benefits to Consumers Fresher foods/seasonal foods A better variety of foods A place to meet neighbors Market traffic benefits other local businesses Creates links between urban and rural population Market accepts WIC & SNAP
Fresh and Local
Innovations and Innovators The Food Trust, Philadelphia Communities, companies and organizations are trying a wide array of new policies, approaches and concepts to reduce food waste, increase access to healthy food, and improve sustainability. Gotham Greens, Brooklyn, NY
Daily Table Dorchester, MA Non-profit supermarket sells discounted fruits & veggies, inexpensive surplus goods and healthy to go meals. Founded by former President of Trader Joes Hunger and wasted food are two problems with one solution.
Lessons Learned Food can catalyze residential and mixed-use projects, especially if it is part of a larger placemaking strategy. Buying and eating food can drive foot traffic and meet a vital community need. Farms and gardens are relatively low cost amenities, especially compared to other MPC amenities such as golf courses, spas or clubhouses. A market exists for high quality food stores in low and moderate income neighborhoods. Managing food services & restaurants can be risky. Successful projects require careful curation and management. Successful projects often involve partnerships with non-profits, institutions, chefs, farmers or others. When we think about the future of real estate, food and farming can be a profitable part of the equation.
Opportunities To Incorporate Food into Development Conserve farmland & allocate space to gardening and/or agriculture. Create programs or classes on nutrition, cooking, canning, beekeeping, etc. Reduce food waste and distance food travels between field and fork. Help low income consumers by accepting SNAP benefits, establish pay as you go food stands, offer job training in culinary arts, etc. Provide space for innovative restaurateurs and/or food retail concepts. Sponsor events or festivals to celebrate local foods and beverages (beer festivals, food fests, etc. Partner with chefs, restauranteurs, farmers, colleges and/or non-profits.
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