Four Community Engagement Strategies Applied to Real Estate Development
How Community Integration Transforms Real Estate Value
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In this week’s letter, we explore the increasingly significant role of community building in fostering successful real estate projects.
Developing new buildings or neighborhoods can significantly impact the surrounding communities, sometimes leading to displacement. However, the modern approach to Real Estate Development places ESG considerations at the core of stakeholder engagement, with the 'Social' aspect gaining equal importance to the 'Environmental' one.
The effectiveness of Social Value initiatives is now quantifiable through the Social Return on Investment (SROI).
Traditionally, community involvement in real estate often meant developers implementing compensatory measures for the affected locals. Nowadays, the concept of community has evolved to become central to the real estate development process.
Examples like the Innovation Districts and Tech Incubators demonstrate how building a network of economic actors can precede the development of physical real estate infrastructure. Notable instances include MIND in Milan and Factory in Lisbon.
UK developer Stories, known for its focus on socially impactful real estate projects, embraces a community-led approach. Their projects, such as the initiative with London charity St. Mungo’s to tackle homelessness, are co-designed with those they aim to help, like the local homeless community. Learn more about this project.
Below are four strategies to effectively engage communities in real estate development projects, enhancing stakeholder benefits.
Let’s dive in.
1. Cultivating Innovation Districts: Building a Business Ecosystem
Innovation Districts serve as expansive hubs for businesses to converge and innovate within a supportive ecosystem. These entities, both private and public, thrive on collaboration and innovation, independent of the physical real estate.
At MIND (Milano Innovation District), a virtual network was established to foster collaboration among competing businesses before any real estate was developed. This initiative, known as Federated Innovation, aims to support multi-disciplinary and inter-sectoral innovation processes.
Federated Innovation @MIND intends to create an unprecedented ecosystem beyond open innovation and traditional corporate innovation which fosters, through a multi-disciplinary and inter-sectoral approach, scientific, economic and social innovation processes.
Federated Innovation.
2. Strategies for Effective Community Engagement in Development
Effective community engagement is essential for placemakers to deliver projects that garner widespread support from local communities. Engaging locals early in the design process ensures their needs are integral to the project proposals, often leading to the launch of 'Meanwhile' projects that cater to immediate community needs during construction.
3. Leading Social Impact: Real-World Initiatives and Outcomes
Decision-makers can drive substantial social impact through direct initiatives. An example is the Programma 2121 by Lendlease in Milan, in partnership with Bollate Prison, located near the MIND project site.
This program is a shared-values partnership aimed at facilitating the social reintegration of inmates through fairly compensated work placements in non-protected environments.
4. Enhancing Road Safety Awareness: A Collaborative Approach
Real Estate Developers and their construction partners play a crucial role in promoting inclusive road safety awareness.
The increase in construction traffic has unfortunately led to numerous cycling accidents in cities like London and Milan. Contractors have responded by leading initiatives that educate truck drivers and cyclists on road safety, reducing risks for all road users.
In Summary
Involving the community in real estate development not only diversifies the approach but significantly adds value to the entire process.
Today’s key takeaways highlight the importance of:
Establishing a community of companies as a catalyst for real estate projects.
Incorporating community needs into the design process.
Promoting road safety awareness.
Measuring the impact of social initiatives through SROI.
See you next week.
Is there anything else that you would like to add to the list?
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