
22 Sep What the property industry needs to understand about placemaking
With millions of new homes to be built it’s easy to focus on the ‘units’ needed rather the sense of place and neighbourhood being created.
The same can be said about the rise, in some town centres, in vacant properties and a need to relet them quickly to a reliable, well known tenant.
What if there was a pause before plans are finalised and budgets set, and a greater understanding of the return on the softer, place shaping elements which require up front investment but have the potential to increase sales and/or footfall?
Residential
Residential land values are high, as are interest rates for purchases and in London, even affordable schemes are out of reach for many. These are the hard aspects around building, developing and selling residential schemes, but they often aren’t what makes the sale.
What helps sell a home is the connection between the potential lifestyle on offer and the amenities that support that.
In many schemes, there is a strong focus on financial return, which is, of course, important, but less emphasis on the softer aspects of place shaping that make successful neighbourhoods and might provide a better return in the medium to longer term.
Some developers think about the feel of the neighbourhood up front rather than focusing solely on the number and types of units. Examples include the 7-acre park at Brent Cross Town, which was delivered before the housing.
Introducing public amenities and spaces where people can meet, mingle, socialise and shop rather than resident-only cinema rooms, gyms and gardens builds connections with a wider community. It makes a location busier and more attractive.
A place-first approach
On residential schemes, it’s about understanding who the residents might be and what they are looking for besides transport links and a safe neighbourhood. What attracts them to a place?
What is their level of income? Are they commuters or WFH, are they families, etc? Do you want them to spend more time in the neighbourhood, invite others to visit or become part of a community?
Plenty of engagement focuses on what might be built, but not as much on what people want to find there, such as public art, play spaces, a place to walk the dog, have a picnic or exercise.
Can you create spaces for events to happen both during the build and on completion, and give the residents the autonomy to programme them?
Return on place shaping investment – residential-led development
It’s these ‘softer’ elements that shape places and deliver a different return on investment.
By creating a neighbourhood with shared amenities for play, art, events, retail and services, there is likely to be a greater sense of community.
This leads to people spending more time and money locally, supporting the commercial elements of the development and neighbourhood, so they thrive.
In return, the area becomes desirable, homes sell or let more quickly, retain value and change hands less frequently (less churn).
But it requires place planning from the outset.
Town centres and high streets
There is much discussion around empty units across town centres and high streets, how to fill them and with what.
The focus is often on the highest offer, which is understandable, but looking beyond that could be a better tactic.
One of the factors leading to high streets and town centres losing their appeal is the fact that they have the same identikit brands. We shouldn’t forget that some of the big names that were once perceived as anchor tenants – Debenhams, Wilko and, increasingly, M&S as they relocate to edge/out of town – are the ones that have left the biggest spaces.
What if, rather than the biggest brand name, the space could be used differently?
Both meanwhile and Class E (planning category) provide more flexibility of uses, offering other options beyond the ‘same old’.
Take a high street fashion retailer like Primark, for example, footfall is likely to increase in the location, but it may only appeal to limited segments of the demographic and activity is limited to daytime shop hours. Appeal can wane if there are bigger, equivalent stores nearby.
However, opting for a multi-purpose offer, more people will find something to interest them and bring them back into the place. It’s an opportunity to extend activation to other times of day and can create a buzz into the evening too.
Understanding what will activate a place
There is no one-size-fits-all solution that works everywhere. It’s important to gather an in-depth understanding of the place – who uses it now (and who might in the future), busy and quiet times, price point, services needed and who is doing something already but needs a space (which aren’t there already and take time to evaluate a range of options beyond the most obvious.
Can you forgo a short-term return for medium to long-term growth?
And it’s not just about the retail and leisure offer, what else can you install or initiate to help attract people? This could be something simple like seating or public art, as well as services.
Who can you collaborate with on place shaping, such as a BID or the town centre team at local authority level?
It’s about taking a place-based approach to tackling empty units rather than an asset-based approach.
Return on place shaping investment – town centres and high streets
Thinking about new and different offers, including evening and social activities that attract different people, more often increases footfall overall.
And increasing footfall can lead to rent increases in the longer term. The location becomes more desirable, leading to more interest from others for new uses and housing.
Would a greater understanding of the return on investment from the softer elements of place shaping deliver more successful places across both resi and commercial delvelopments?
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