Business parks that have been abandoned are getting a second chance as residences.
A recent report from the Wall Street Journal says this new trend is appealing to land owners, developers, and residents, making this never thought of area the perfect place for interesting neighborhoods.
Vacant Buildings
The closing of warehouses, merchandising, and other businesses in corporate offices isn’t good for anyone. With no rent being paid, adjacent companies may find the empty offices may not only cause their rent to be raised but could affect their own business prospects. City and local government officials lose out on the tax base and the building owner is trying to keep the office building viable.
Benefits for Repurposing
When two warehouses sat vacant for a period of time, developers decided to tear it down and build an apartment complex to bring residents back into the city of Minnetonka.
Located in the middle of the 600-acre Opus II Business Park, the $62 million development is expected to be offering studio and two- bedroom apartment units with monthly rents from $1,155 to $2,520. Planned amenities for residents include underground heated parking, a fitness center, a fire pit, and rooftop patio. All of this will be within walking distance to area businesses as well as easy access to major freeways and thoroughfares which will make commuting a breeze.
The benefits are tremendous for all parties. Most corporate parks are owned by a single entity, which makes it easy for developers to work directly through any issues that may arise during the redevelopment phase.
Like the Minnetonka project, many corporate offices are strategically near major highways and near mass transit. This appeals not only to residents but also to government officials. Cities are interested in maintaining a healthy economy with more residences in town and with infrastructure already in place, there is no need to have to plan to accommodate residents.
Land Values
In some areas of the country, land is at premium. Take Boca Raton, Florida for example, where the cost of land is at top dollar. Boca Raton luxury homes are available but they may be in neighborhoods where commuting time and traffic jams are an issue.
South Florida is reaching its maximum when it comes to development. Without much space available to expand, Danburg Management Corp. President Jamie Danburg decided to look at an office park for inspiration. Currently, Danburg is working on transforming a 700 acre corporate park into a 282 unit luxury apartment project.
Of the 5.2 million square feet of office space, three residential projects are planned that will bring anyone moving to the area a number of amenities. From a gym and yoga studio to a pool with cabanas and a theater. Rent costs are expected to be $1,775 to $3,100.
One of the main objectives for this Boca Raton development is to make living in the Park at Broken Sound all encompassing. The apartments will allow residents to walk or bike to major employers or a commuter railroad station, so vehicles will become obsolete.
Walkability Factor
Walkability factors have become a major feature of many commercial real estate buys because employers want to provide employees with the added benefit of being nearby restaurants, shopping, and similar businesses.
Real estate prices have reflected the benefits of being located in a strong walkable area with rebounding price points higher wherever walkability is at a premium. This is why office parks are turning into a gold mine for residents and developers alike.
