Manikka Bowman
America’s eating patterns are having an impact on how communities are built. Over the past decade, we have noticed how the growing interest in sustainable agriculture is sparking innovation in real estate development.
A recent market research report from NPD Group, “Analysis on Foodservice and Restaurants Trends,” points to the Millennial generation as one of the drivers impacting the nation’s fresh food movement. Couple this with the growing U.S. trend of more single-person households, it is clear market factors are forcing innovation in the space of food and real estate.
Agrihoods, an emerging theme in residential developments where farming is a central value proposition, is taking root across the country. One example is South Village in South Burlington, Vermont, which was developed as an edible community. It’s land-rich, with a 4-acre organic farm and community gardens, plus 150 acres of common land, which has conserved for wildlife and recreation.
“Developers figured out that unlike a golf course, which costs millions to build and maintain, they can provide green space that actually earns a profit,” according to Ed McMahon, ULI’s senior resident fellow of development and environmental policy. Gardens and urban farms, he points out, are helping developers distinguish their offerings.
A New Anchor Tenant
ULI is in the process of evaluating trends associated with food and real estate to better understand this shift in the marketplace. Through a series of forums, the ULI Building Healthy Places Initiative and the Center for Sustainability are engaging members to explore best practices regarding how improved approaches to food can translate into more sustainability and food secured environments that works for a developer’s bottom line. This work highlights development efforts that enhance health and sustainability practices across the country and encourage adoption of cutting-edge practices that are transforming communities.
“Food is the new anchor in development,” according to Andrew Gallinaro, senior vice president and director of asset management of National Development. “Experience drives place and currently, food is the experience consumer’s want.”
National Development’s Ink Block project in Boston is one excellent example. Food is a central component of the development, which features over 400 apartments and condominiums. Behind Whole Foods as the retail food anchor, others like Capital One Café and Sweet Greens have found their niche and are enhancing the food experience National Development is creating for this neighborhood.
Coming soon, Ink Block residents will have a new way to enhance their food experience. National Development is launching food-targeted programming, which will include cooking classes with professional chefs and a Community Supported Agriculture (CSA) program where residents can share in the cost and harvest of produce from a local farm.
ULI’s McMahon notes that the intersection of food and real estate is expanding for many reasons, including the desire to eat healthfully, locally and sustainably; invest in experiences more than material goods; and grow, prepare and eat good food as social activities.
This fall, ULI will release an insightful report examining the emerging trend of food and real estate. With access to fresh, healthy food being a high priority for 73 percent of U.S. residents, this is a trend the developers are paying attention to.
Manikka Bowman is manager of policy for ULI Boston/New England.
