Did you know that food adds value? In particular, food-based amenities add value to southern California real estate. Consider some of the food-based concepts that consumers are considering food-based “amenities” in today’s market trends that are popping up not just in southern California real estate, but also across the nation. In everyday language, you might say that we’ve all developed an appetite for more food-based amenities.
Popular Food-Based Amenities:
- Agrihoods (Communities with Functioning Farms)
- Edible Landscaping
- Farm-to-Table Restaurants
- Organic Fruit/Vegetable Farms
- Food Halls
- Food Markets
All of the above food-based amenities draw homebuyers. And homebuyers purchasing in areas with food-based amenities aligning with these market trends are willing to pay a premium rate over comparable homes in nearby areas. The willingness of buyers to purchase at higher prices in comparison to market value of comparable homes support the experts’ opinions that food amenities actually add value to real estate projects. Many of these trendy food-based concepts not only add to the desirability of a residential development and lead to higher office rents in the area, but also improve overall community health as a result of the increased availability of healthy food options.
You might say that food is still driving Americans, but at least in the case of this particular trend food is driving consumers towards forging a new relationship with food – a healthier relationship in which food is grown on site. Some experts hold hopes that these market trends could help change the way Americans eat and grow food. Doing so could make a significant difference in the health of Americans and the sustainability of our environment. It’s just a bonus that it also brings added project profitability for southern California real estate developers.
It’s been common knowledge among real estate industry experts for years that real estate including open spaces earns higher prices. In the 1990s, builders found maximum profitability by generating residential developments tied to golf courses. They added value to the residences, but they cost developers millions to create and then maintain.
The current trend towards maximizing real estate profits through “agrihoods” and other food-based amenities may prove more effective for everyone involved. They provide developers with increased profitability through amenities that often do not require investments above and beyond what would be required for traditional landscaping. So with little to no additional costs, developers increase profits. At the same time, buyers are happier and the entire community is healthier.
If you have questions regarding incorporating food-based amenities in a planned southern California development or would like to discuss barriers to doing so, please get in touch with one of the experienced real estate attorneys at The Law Office of the Law Office of Ernesto Aldover.