Supported by Partner Engineering and Science

Propmodo Technology

By Franco Faraudo · June 19, 2024

Greetings!

This week’s Propmodo Technology deep dive about site selection is made possible by the support of our friends at Partner Engineering and Science. Partner is the leading provider of engineering, environmental, construction, energy, and valuation consulting for the commercial real estate industry. Coming up on June 27th, they will be hosting a webinar about what the EPA’s crackdown on “forever chemicals” means for the real estate industry. Keep reading to learn more, and register here.

Understanding a property's value largely depends on its allowable uses, as determined by city zoning maps. Historically, these maps were hard to access, but now many cities offer them online with interactive features. The National Zoning Atlas, for example, consolidates zoning data nationwide to aid urban planning and development. But, tools for analyzing zoning remain limited due to slow governmental adoption of new technologies. As we explore in today's email, advancements in zoning technology are important to the future of planning and development, helping developers and investors navigate local regulations effectively.

We’re excited to bring you several new articles about site selection challenges in real estate. Undetected soil contamination can turn assets into liabilities, but new technologies now offer quicker, cost-effective solutions for identification and remediation. We also discuss how environmental, zoning, and infrastructure issues can derail deals, particularly in redevelopment, making basic knowledge of assessments and risk management essential for developers. And, we highlight how Ottawa's digital twin is transforming redevelopment planning, aiming to streamline zoning and permit processes for 150,000 new homes by 2031.

Now, let’s go!

Technology Is Helping the Real Estate Industry Navigate Complex Zoning

Understanding what you can build on a property or what you can use a building for is fundamental to determining its value. The answers to these questions lie in city-created zoning maps. Historically, these zoning maps were often difficult to access and typically stored away in a planning department. Nowadays, cities are more proactive in sharing zoning information with the public. Most cities have some form of zoning map available online, and some even offer interactive maps that provide important information about each parcel, such as setbacks or usage restrictions.

There has been a push to aggregate all of this zoning data into one place. In 2020, the National Zoning Atlas was released. Initially housed at Cornell University, the organization has now become an independent not-for-profit with a full-time staff and hundreds of contributors. The affordable housing crisis has brought urban planning into the public eye, creating a need for interactive city zoning maps and sites like the National Zoning Atlas, which even has a filter to “show me where people can build” different types of housing. These tools help residents understand what can be built under current zoning laws. However, developers and investors also need to see proposed zoning changes in addition to current regulations.

New tools are emerging to help cities share upcoming zoning changes. Generally, this involves displaying the old and new zoning maps side by side. For instance, the City of Austin has partnered with GIS company ESRI to create a side-by-side view of current and proposed zoning maps. Another approach, used by Prince George County in Maryland, overlays the two maps and provides a “comparison bar” that can be moved back and forth to visualize each map. Being able to see potential future zoning is crucial, particularly for those planning to buy and hold a property long-term. However, this information is only available if local governments have the foresight and resources to build such mapping portals.

While zoning is critical to real estate development, it’s not the only factor to consider. Most cities and counties have Economic Development Departments that actively work to redevelop certain areas according to government plans, such as housing around transit corridors or more retail in designated shopping districts. These departments often use incentives or tax breaks to accelerate these changes and can be pivotal in getting a project approved. Some cities provide online resources for their Economic Development Departments. To centralize this information, the National Association of Development Organizations has created a map that provides information about economic development initiatives across much of the U.S.

Zoning is so important to property value that it's somewhat surprising how few tools are available to analyze it. Given the wealth of information we can now access about local real estate markets, building conditions, and foot traffic patterns, you would expect more technology to be used for tracking zoning. The problem is that publicly accessible zoning data requires governments to adopt technology, which they are not known for doing. However, if enough cities see positive changes from their online zoning portals and if there is enough pressure from constituents concerned about housing affordability, we might start to see more of these online tools provided by municipalities across the country.

PRESENTED BY PARTNER ENGINEERING AND SCIENCE
PFAS and Liability: How EPA’s Recent Actions Impact CRE Owners

EPA’s recent crackdown on PFAS or “forever chemicals” will have significant implications for the commercial and industrial real estate sectors. In April 2024, EPA introduced stringent measures to regulate PFAS, including finalizing the National Primary Drinking Water Regulation for six PFAS chemicals and designating PFOA and PFOS as hazardous substances under CERCLA, effective July 8, 2024. These actions, among others, could expose real estate investors, developers, owners, and operators to cleanup obligations and costs, as well as environmental damages and liability for human health risks.

Learn more about PFAS, EPAs actions, and how to evaluate property risk and assess liability via this free webinar from Partner Engineering and Science, Inc.

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Propmodo Technology is edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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