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Useful Tools to Rejuvenate CRE Assets and Communities: New Urbanism, Smart Growth, and ESG Investment Principles

The Coronavirus Disease (COVID-19) pandemic has heavily disrupted commercial real estate (CRE), especially hospitality and retail properties. Across the United states, whether in midsize or large coastal cities, these property types have largely experienced vacancy rates at peak levels not seen since the 2008 recession. This disruption in CRE provides the opportunity to re-examine property location, use, and design elements that could point the way to more resilient, sustainable, and innovative developments of all types. In particular, the incorporation of New Urbanism and Smart Growth Development principles, which are consistent with environmental, social, and governance (ESG) factors, provide a framework for redeveloping, repurposing, and reusing CRE properties in order to rebuild communities and cities in the aftermath of the coronavirus pandemic. New Urbanist and Smart Growth communities incorporate environmental and social principles outlined in generally accepted ESG investment criteria, as well as . Communities and developments that have been built following New Urbanist principles particularly reflect positive characteristics that could insulate investments from environmental and social risks. These positive attributes will be increasingly important to ESG-focused CRE investors because they are predisposed to reflect these positive ESG principles.