ReportWire

Tag: Urban planning

  • Old downtown Danvers fire station for sale

    DANVERS — The old Danvers Fire Station on Maple Street is up for sale.

    The building that was built about 1900 is listed for $2 million on loopnet.com.

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    By Caroline Enos | Staff Writer

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  • Social Explorer Becomes Comprehensive Platform for Community Analysis With Addition of 40+ Essential Datasets

    Press Release


    Nov 18, 2025 07:00 EST

    Social Explorer announced a major expansion of its data library, adding more than forty datasets that transform its web application into a one-stop solution for community analysis. Known primarily for demographic data, Social Explorer now offers professionals across industries – from urban planning to real estate investment to public health – a unified platform for understanding communities through demographic, economic, environmental, health, and social equity data.

    This expansion positions Social Explorer as the go-to platform for anyone who needs to understand community composition, how they function, why they change, and what interventions work. Users can now analyze communities through multiple dimensions in a single platform:

    • Economic Vitality & Workforce Dynamics – The Job-to-Job Flows (J2J), Business Formation Statistics (BFS), Local Area Unemployment Statistics (LAUS), and Nonemployer Statistics (NES) datasets provide insights into labor markets and entrepreneurship trends.

    • Housing & Real Estate Intelligence – Housing Affordability Strategy (CHAS) and Location Affordability Index (LAI) data enables the analysis of housing markets, affordability gaps, and investment opportunities.

    • Infrastructure & Environment – The Freight Analysis Framework (FAF), Air Quality Index (AQI), and Environmental Justice Screening & Mapping (EJSCREEN) support transportation planning, environmental assessment, and infrastructure investment decisions.

    • Risk & Resilience – The FEMA National Risk Index (NRI) and NOAA Climate Normals help assess disaster preparedness, climate adaptation needs, and community resilience.

    • Health & Equity – The Food Access Research Atlas (FARA), Fatality Analysis Reporting System (FARS), and Social Vulnerability Index (SVI) enable analysis of community health, safety patterns, and social determinants of wellbeing.

    Who Benefits

    • Urban Planners & Municipal Officials can conduct comprehensive community needs assessments, evaluate zoning decisions, and design data-driven resilience strategies.

    • Real Estate Developers & Investors can gain access to workforce trends, housing affordability metrics, transportation infrastructure data, and environmental risk factors that influence property values and development feasibility.

    • Public Health Departments can correlate food access, environmental hazards, social vulnerability, and health outcomes to target interventions and resources.

    • Economic Development Professionals can track business formation, analyze workforce mobility, identify growth sectors, and understand regional competitiveness.

    • Community Organizations & Nonprofits can document disparities, strengthen grant applications, and advocate for resources.

    • Academic Researchers can access the same authoritative data used by practitioners, strengthening both teaching and research.

    • Consultants & Policy Analysts can deliver community assessments without maintaining subscriptions to multiple data sources.

    Why This Matters Now

    Communities and the organizations that serve them face increasingly complex challenges – from housing demands to workforce development and public health needs. Addressing these issues requires seeing the full picture, assembled through a combination of demographic, economic, environmental, health, and social equity data.

    “Decision-makers have always needed demographic data, but they also need economic indicators, environmental metrics, and equity measures – all in one place,” said Dickson Musslewhite, CEO of Social Explorer. “This expansion makes Social Explorer the command center for anyone serious about understanding and improving communities.”

    Source: Jake Gerli

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  • Opinion | The Brains Behind Ukraine’s Pink Flamingo Cruise Missile

    Kyiv, Ukraine

    If politics makes strange bedfellows, war sometimes makes strange career paths. In her 20s, Iryna Terekh was a “very artsy” architect who viewed the arms industry as “something destructive.” Now Ms. Terekh, 33, is chief technical officer and the public face of Fire Point, a Ukrainian defense company. She and her team developed the Flamingo, a long-range cruise missile that President Volodymyr Zelensky has called “our most successful missile.”

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    Jillian Kay Melchior

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  • Ordinance eliminates minimum parking mandates for new multifamily developments

    SALEM — An ordinance signed into law by Mayor Dominick Pangallo Monday eliminates Salem’s minimum parking mandates for new multifamily housing developments with three or more units.

    The ordinance, intended to address the hundreds of unused parking spaces throughout the city, requires new multifamily housing projects receiving a Site Plan Review to identify how they will address residents’ transportation needs by submitting a “Transportation Demand Management plan.”


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    By Michael McHugh Staff Writer

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  • Capitalism in the cracks: How Japan’s microspaces unleash economic experimentation

    This is part of Reason‘s 2025 summer travel issue. Click here to read the rest of the issue.

    A three-story house tucked into a mere one-meter gap between tall buildings. A flower shop shaped like a triangle, wedged between a retaining wall and the sidewalk. A standing bar humming with laughter beneath the rumble of passing trains. In most cities, these spaces would be dead zones—awkward, overlooked, written off by zoning and building codes as unusable.

    But in Tokyo, they bloom with life. These microspaces are amenities. They’re capitalism in the cracks, not just in form but in function.

    These strange slivers often become homes for new ideas: a two-person bar, a bookstore barely wider than a fridge, a late-night shop that opens on a whim. They invite experimentation, economic as well as architectural.

    Tokyo’s ability to cultivate these spaces isn’t just a cultural quirk. It’s a byproduct of a city that leaves room for improvisation, that adapts to its imperfections, and that transforms constraints into creativity. These spaces reveal what is possible when cities loosen their grip on regulations—when policy becomes an enabler, not a gatekeeper. They offer a glimpse of what urban life could look like if more places embraced flexibility.

    Tokyo’s urbanism emerged more than it was planned. Most of its neighborhoods weren’t drafted in a planner’s office. They were shaped incrementally by individuals responding to need and opportunity.

    Modern Tokyo is a city born from ruin. After the devastating bombings of World War II, with little funding available for formal reconstruction, residents rebuilt on their own—using salvaged materials to create homes on the ruins of old neighborhoods. Over time, the government stepped in to connect and formalize what had already taken shape. The result is a dense, oddly beautiful patchwork: irregular lots, winding streets, and spaces so small that most cities would ignore them. But Tokyo doesn’t.

    There are at least three varieties of microspaces here: pet architecture, yokochos, and undertrack infills.

    ***

    Of all of Tokyo’s urban quirks, few are as endearing—or revealing—as pet architecture.

    Coined by the architectural firm Atelier Bow-Wow, the term describes buildings that are “unusually small, humorous, and charming”: little pets in a city built for human beings. Awkwardly shaped and impossibly tiny, they defy conventional notions about how much space is necessary for any given use.

    You might stumble upon a rubber stamp store crammed into a leftover triangle of land between a train line and the road in Nakano. A one-meter-wide real estate office in Shimokitazawa. A tiny bakery that somehow fits between a wall and a utility pole in Koenji. These are buildings that shouldn’t exist, but they do.

    In many cities, spaces like these would be rejected outright as unusable. They’d run into a wall of regulatory barriers: minimum lot sizes, minimum unit sizes, parking mandates, and zoning codes that separate uses into rigid slots—residential here, commercial there, industrial somewhere else.

    Omoide Yokocho; Katarina Hall

    But in Tokyo, they’re opportunities. They challenge bureaucratic assumptions about what buildings are supposed to look like. As the Atelier Bow-Wow architect Yoshiharu Tsukamoto has put it: “They illustrate unique ideas with elements of fun, without yielding to unfavorable conditions.” Pet architecture is playful, it’s resourceful, and it’s all over the city.

     

     

     

    ***

    Yokocho literally means “side street” or “alleyway.” In Japan, it means something more: narrow lanes filled with tiny bars and restaurants. Usually found near train stations or commercial centers, these narrow streets range from just 1.3 to 2.8 meters wide—narrow enough to stretch out your arms and touch both walls, too tight to meet code in most U.S. cities. Inside, you’ll find bars the size of walk-in closets, seating six to 12 patrons and often run by a single staffer.

    Yokochos emerged after World War II as black markets. They were improvised stalls selling basic goods. Over time these stalls became food joints and drinking dens, and eventually they were fixtures of Tokyo’s urban landscape.

    The Golden Gai district in Shinjuku packs more than 200 tiny bars into six alleyways in an area smaller than a city block. (It’s the kind of setup a North American fire marshal would never allow.) Most buildings are two stories high, with steep staircases leading to completely different experiences upstairs. Want a fancy whiskey bar? It’s there. A horror movie–themed bar? Absolutely. Hospital-themed? Erotic fetish? Retro video games? A quiet library bar? They have all of the above. All unique. All impossibly small.

    Nearby, on the other side of Shinjuku station, the Omoide Yokocho district is known for late-night yakitori (chicken skewers) and drinks, with around 80 shops squeezed into a single alleyway. In Shibuya, Nonbei Yokocho—or “Drunkard’s Alley”—crams 40 shops into spaces barely two meters wide. And in Ebisu, Ebisu Yokocho sits in a covered passageway built on the remnants of a former shopping center that houses izakayas (Japanese pubs) ranging from 10 to 16.5 square meters, serving everything from grilled fish to okonomiyaki to oden.

    So beloved are these places that developers have recreated them inside modern buildings. Shibuya Yokocho, a sleek version inside the Miyashita Park complex, mimics the feel of the real thing, with curated chaos, shared tables, and dishes from every prefecture in Japan.

    Nostalgia aside, yokochos are more than relics. Their size, affordability, and independence make them incubators for creativity and entrepreneurship.

    ***

    Tokyo’s rail system is everywhere—and wherever there are train tracks, there are gaps. In many cities, these would be fenced off. In Tokyo, they’re filled with life.

    Like yokochos, many undertrack infills began as black markets after the war. What were once dusty, makeshift stalls have since evolved into hubs of commerce and dining.

    Near Ueno Station, izakayas nestle underneath and between train lines. You can sit shoulder-to-shoulder with salarymen, sip a highball, nibble on sashimi, and watch the trains pass overhead.

    A few blocks from there is Ameyoko, a market wedged beneath the Yamanote Line between the Okachimachi and Ueno stations. It’s a sensory overload: cosmetics, spices, fresh seafood, and cheap street snacks packed into a narrow pulsing corridor under the tracks.

    A few stops away on the Yamanote Line, in Yurakucho, rows of cozy restaurants and standing bars are tucked into the arches beneath the tracks. Some are linked by narrow alleyways that run under the railway itself, connecting one lively pocket to another. At around 6 p.m., the lights come on, the smoke rises, and the area fills with after-work revelers grabbing food and drinks before catching their train home.

    What unites these undertrack infills is their uncanny ability to turn infrastructure into opportunity. Instead of ignoring the voids created by transit, Tokyo builds into them.

    To understand why Tokyo looks the way it does, you have to start with zoning. Zoning laws determine what can be built and where—homes, shops, factories, or nothing at all.

    In the U.S., zoning is local. Each city or county writes its own code, but most follow similar templates. Neighborhoods are typically residential, commercial, or industrial, with little room for overlap. The rules are rigid. It’s often illegal to run a small business out of your home or to build on a lot deemed too small. Any change of use typically requires hearings, permits, consultants, and months—maybe years—of paperwork. It’s a large bureaucratic system that tends to push out small, experimental, or unconventional uses.

    Japan takes a different approach. The same zoning system applies nationwide, from Tokyo’s densest neighborhoods to the smallest rural town. The rules are meant to maintain the scale of buildings, preserve sunlight access, and prevent fire hazards.

    Ueno; Katarina Hall

    Instead of rigid land-use rules, Japan uses a set of 12 flexible zoning categories, arranged on a spectrum from residential to commercial to industrial. These are broad guidelines, not strict prescriptions. Within them, landowners are largely free to decide how to use their space.

    Take Category 1, officially designated as “exclusively residential.” In practice, that doesn’t mean only homes can be built. Small shops, dental clinics, hair salons, and day cares are all permitted. What’s prohibited are large, disruptive developments. You won’t find a department store in Category 1, but you might find a ramen shop on the ground floor of someone’s home.

    Each zone builds on the one before it. If something is allowed in Category 1, it’s automatically allowed in Categories 2 through 12. The only major exception is strictly industrial areas. Elsewhere, layers of possibilities build on each other, allowing for the kind of vibrant, fine-grained mixing of activities you see in Tokyo.

    Japan also avoids rules that would make small-scale development impossible. There are no minimum lot sizes. Small parcels can be freely subdivided. Building heights are based on road width, not a fixed number. And it’s legal to run a business out of your house. The result is a city that allows for increasingly complex and nuanced configurations.

    The rules are more like scaffolding than a straitjacket. They set the frame, but decisions are left to property owners, architects, and builders.

    This flexibility has made Tokyo radically adaptable. It makes space not just for small businesses but even smaller microbusinesses. If you have an idea and a few square feet, you can start something without hearings or expensive consultants.

    “There are a lot of ways in which not only zoning but other pieces of the puzzle all come together to encourage these experimental, intimate, small-scale mom-and-pop businesses,” explains Joe McReynolds, an urban studies scholar at Keio University’s Almazán Architecture and Urban Studies Laboratory. “There’s a lot of tilt in the regulations toward small businesses,” he says, from lower taxes and simpler food safety rules to the relative ease of getting a liquor license.

    Gap House; Nicholas Kane

    Tokyo may be unique, but you can sometimes spot a glimmer of flexibility even in cities with heavy-handed planning systems.

    Take London. With its heritage protections, conservation zones, strict building codes, and endless red tape, changing the built environment there often means running an obstacle course of applications, consultations, and design reviews. Yet small-scale invention sometimes slips through.

    In West London’s Bayswater conservation area, where uniform facades and historical preservation rules are the norm, you’ll find the Gap House. With a street frontage of only 2.3 meters (8 feet), this five-story home fills what was once a narrow alley between two buildings.

    “My inspiration was Japan and the Netherlands,” explains the architect (and owner), Luke Tozer. “Both make good use of small bits of land.”

    The project required extensive negotiation, creative diplomacy, and imaginative design work to bring neighbors and planners on board. “We ultimately convinced them of a design that could be contemporary and sympathetic to the adjoining areas without it trying to mimic them,” Tozer says. “One of our arguments was [that] it should be different because it’s obviously of its time but also we want to try and still make it clear that it is a gap.”

    The result is a home that opens into a rear garden and maximizes every inch of its narrow footprint. “It required some imagination. Thinking out of the box. Good design, that’s where it comes in,” Tozer reflects. “That’s where good design adds value on tricky sites.”

    The Gap House shows that even in cities bound by strict zoning and preservation overlays, there’s still room for architectural courage.

    “I love the fact that in a city—even a city where you’ve got an acute housing crisis like in London—there are always bits of land that are left over, forgotten,” Tozer says.

    There are cracks worth filling. But if every project demands a fight, we will never see this kind of development flourishing.

    “Letting people run a little coffee shop, a little bookstore out of the ground floor of their houses, that’s the sort of thing that makes a neighborhood charming and local and lovable and livable,” McReynolds says.

    That’s part of what makes Tokyo so magnetic. It’s a city where the unexpected flourishes. Walk a single block and you’ll see a narrow home tucked between buildings, a pet-sized owl café, or a triangle-shaped standing bar. It’s this patchwork—this mixture of building scales and uses—that gives the city its pulse.

    Tokyo can’t be copied. Its history is unique. But we can learn from its ethos of trusting its citizens and adopting policies that enable rather than restrict. If more cities embraced the idea that flexibility breeds vitality, we might start to see cracks of our own—cracks that could be filled with opportunities.

    This article originally appeared in print under the headline “Capitalism in the Cracks.”

    Katarina Hall

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  • Preregistration for trail run ends next Monday

    Preregistration for trail run ends next Monday

    HAMILTON — Essex County Greenbelt is hosting its 16th annual trail run Saturday, Aug. 24, at Vineyard Hill Reservation in Hamilton.

    Start time is 9 a.m. from the reservation, located on Asbury Street. Registration is $40 for members, $45 for the general public. Online pre-registration ends next Monday, Aug. 19. Race day registration goes from 7:30 a.m. to 8:45 a.m. To register, visit ecga.org/GreenbeltRuns

    The scenic course offers runners the opportunity to experience a variety of different elevations and landscapes as they ascend Vineyard Hill and wind through sections of Bradley Palmer State Park, the Bay Circuit Trail, and Greenbelt’s Shaw Field. Both 5K and 10K options are available. Prizes will be awarded for top finishers overall and in each age category.

    Proceeds from the Vineyard Hill Trail Run directly support Greenbelt’s conservation and stewardship work, ensuring the preservation of natural landscapes and ecosystems for future generations.

    This event is part of the North Shore Trail Series, which has existed since 2010 and features seven of the region’s top off-road races spread over seven months. The goal of this series is to showcase the area’s best trails and support the organizations responsible for their upkeep. The trail series is sponsored by New England Running Company and Salomon.

    Greenbelt, based at the Cox Reservation on Eastern Avenue in Essex, works with individuals, families, and communities to protect Essex County’s natural landscapes and ecosystems, safeguarding its unique biodiversity and scenic beauty. To date, Greenbelt has completed more than 700 projects and protected more than 20,000 acres of local land.

    By Times Staff

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  • Tech Billionaires’ Plan for a New City in California Doesn’t Include a Local Government

    Tech Billionaires’ Plan for a New City in California Doesn’t Include a Local Government

    From the moment I heard about tech billionaires’ weird plans to create a bustling new city in the heart of California’s Solano County, I was preoccupied with one basic question: Who is actually going to run this thing?

    Libertarian dreams of creating a new community from scratch are all well and good but, at the end of the day, you can’t operate a municipality of any real size without a team of boring, dysfunctional bureaucrats to decide what the local zoning laws are and how to spend the tax dollars. Bulldozers and construction workers could, hypothetically, build a bunch of new buildings, sure, but it wasn’t immediately apparent—at least not from the statements made by the project’s backers—who would be in charge of the city once it was actually built.

    Early on, California Forever made it known that they had some pretty radical ideas about how to run a city. Developers let it slip that they wanted to fund the community entirely through private sector money and that the whole urban project was viewed, more or less, as a business opportunity. From these statements, it didn’t seem out of the realm of possibility that the city would be some terrible, dystopian version of Disney’s Storyliving, where a company effectively called the shots and residents were just passive prisoners inside its overly priced walls. The question of how the city would be run was an open one, with more than a few unappealing answers.

    Now, however, it appears that this pivotal question has been answered: California Forever’s new city will not have a local government at all. Instead, the developers plan to keep their new urban hub as an unincorporated area and leave the governing to the pre-existing county government that already controls the region. In a recent interview with YIMBY (“Yes In My Backyard” ), an online outlet that promotes development in the Bay Area, California Forever’s Head of Planning, Gabriel Metcalf, revealed that there would be no local government to regulate the activity within the city’s borders:

    YIMBY: So, there won’t be any kind of local government that runs this city apart from the county government?

    Gabriel Metcalf: Yes, our intention is to remain part of unincorporated Solano County. So, the political body that will have jurisdiction is the county board of Supervisors. We’ll have a very close cooperative working relationship with the county to provide police and fire services, all the services, and work on economic development projects together. I expect we’ll be very close partners.

    This is interesting—and not unprecedented. There are a lot of unincorporated territories throughout the U.S. Many of them are small, impoverished communities, though there are a number of large and thriving metropolitan areas that are unincorporated and that, similar to California Forever’s hypothetical city, rely on the county government for regulation.

    Yet if there is some precedent to the new city’s proposed governmental organization, it does beg a lot of questions about how the project will actually function. If the Solano County government is suddenly beset with vast new responsibilities and has to help regulate every part of a blossoming (and, likely, chaotic) city-building process, how will the extant bureaucracy handle that? And, as the city develops and becomes populated, won’t the county’s resources be stretched thin—particularly in how it relates to essential services, like police and firefighters—with a special preference for the new community?

    In his interview with YIMBY, Metcalf revealed another interesting aspect of the project, which is that residents of the new city (and Solano County writ large) don’t really have much of a say in the direction of the new community. When asked about how county voters would be able to maintain some kind of “checks and balances” over the new development, which is expected to take 40 years to effectively mature, Metcalf replied:

    There are two primary ways that voters in Solano County maintain democratic oversight. One is the terms of the voter initiative themselves, which are legally binding. Those have been developed through intense consultation with the people and elected leaders in the county. It includes funding commitments, a zoning envelope, and a development footprint. So, all of that is locked in by a vote of the people.

    In other words, whatever is inside the ballot initiative (which voters will vote on in November) is what will come to pass. But Metcalf had more to say:

    The second main way voters in the count will exert control is through the terms of the development agreement. After our process and the voter initiative, we do a full EIR (Environmental Impact Report) and then negotiate a development agreement with the county board of supervisors. A development agreement is a voluntary contract in which both parties can agree to whatever they choose.

    In other words, voters won’t really have that much control over this development at all. If county residents vote for it, they will get whatever is in the ballot initiative. The development agreement, meanwhile, will be hashed out between the county board of supervisors and the company. A lot of the rest of this scenario—and the way everyday people fit into it—remains something of an open question.

    Lucas Ropek

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  • Guyana Innovation Group (GIG) Unveils Ambitious Vision: Guyana Innovation Village at the Heart of Silica City Masterplan

    Guyana Innovation Group (GIG) Unveils Ambitious Vision: Guyana Innovation Village at the Heart of Silica City Masterplan

    In a historic development, the Government of Guyana, alongside the Guyana Innovation Group (GIG) and the University of Miami, has announced a transformative agreement for developing the Masterplan for Silica City. This pioneering urban project, designed to become a future city for the nation, is positioned on an 11,000-acre area near the Guyana International Airport.

    Conceived by the University of Miami’s School of Architecture, the Masterplan will integrate advanced technology, sustainable practices, and a vibrant lifestyle, symbolizing a new era in city design. Silica City aspires to be a model of sustainability, resilience, and futuristic thinking.

    President Irfaan Ali’s vision for Silica City reflects his administration’s commitment to the welfare and sustainable future of Guyana. Guyana, the fastest-growing economy globally, is on a path of modernization and sustainable growth.

    Following the inauguration of the Innovation Village in Georgetown in September 2022, Guyana’s strategic initiatives continue to advance. The Innovation Village will become a central feature of Silica City, marking Guyana’s transition to the forefront of the information age, encompassing elements of industrial, digital, biomedical, and Artificial Intelligence sectors.

    The Guyana Innovation Village has attracted interest from global corporations, eager to collaborate and invest in Guyana. GIG’s efforts have drawn attention from the DAR Group, UMusic Hotels, a renowned international Logistics Company, Alder Fuels, OEC, and various MIT Centres.

    Innovation Village introduces “innovation districts,” an urban model promoting synergies between public and private sectors, academia, and NGOs, to foster societal change. Leveraging technologies like blockchain, AI, and big data, these districts aim to nurture local talent and innovative solutions. A highlight is the inclusion of an all-electric motorsports, and water circuits, emphasizing innovation and sustainability.

    GIG is in discussions with global tech companies to develop the framework for Silica City, aiming to establish it as a leader in smart city technology.

    Rodrigo Arboleda Halaby, co-founder and Chairman of GIG, emphasized the transformative impact of the Silica City Masterplan. Co-founder Rodrigo Veloso highlighted Guyana’s potential and business-friendly environment.

    Bashar Rihani, Director of the DAR Group, expressed enthusiasm for supporting Silica City and the Guyana Innovation Group.

    Ahead of COP 28 in Dubai, GIG has explored cities in the UAE, Saudi Arabia, and Qatar for insights applicable to Guyana.

    The Silica City Masterplan aims to set a new standard in sustainable urban planning, showcasing the collaborative spirit of Guyana, Guyana Innovation Group, and the University of Miami.

    Source: Guyana Innovation Group

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  • How Wall Street’s REIT giants are reshaping U.S. real estate

    How Wall Street’s REIT giants are reshaping U.S. real estate

    U.S real estate investment trusts today manage $4.5 trillion in real estate worldwide. Many groups on Wall Street offer these tax-friendly funds to retail investors. 

    KKR’s real estate business is one of the big players in the REIT game. The private equity firm manages multiple REIT funds. The KKR Real Estate Select Trust, which currently manages $1.5 billion in assets, paid a dividend of 5.4% to its investors in July 2023.

    But the benefits extend beyond returns.

    “When you look at the after tax equivalent of that yield, it is very compelling.” said Billy Butcher, CEO of KKR’s global real estate business. “The depreciation from our properties has covered 100% of the income generated by our properties, and there’s no tax on that dividend,” he said in an interview with CNBC.

    Larger funds sometimes contain a diversified pool of assets. Categories may include office, student housing, casino, timberlands, radio and cell towers, server farms, self-storage properties, billboards, and much more.

    “Back in the 1960s, there were three or four different types [of REITs], said Sher Hafeez, a managing director at Jones Lang LaSalle, a real estate services firm. “Now, I can count at least 20 different types.”

    Top performing REIT sub-sectors in recent years include data centers, self-storage properties, residential housing and tower REITs. Residential housing delivered a return of 16% from 2010 to 2020, according to a S&P Global Investments report.

    The investor-friendly tax rules can also increase the pace of large-scale development. 

    “Having REITs there as a potential exit helps the market, and helps the availability of financing,” said Michael Pestronk, CEO and co-founder of Post Brothers, a Philadelphia-based housing developer. 

    Some funds like Invitation Homes and American Homes 4 Rent were founded in the yearslong slowdown in U.S. home construction. At the time, REITs bought and managed commercial-scale properties, which could include products like master-planned communities or traditional apartment complexes.

    In recent years, publicly traded trusts have targeted single-family rental market, and today, these REITs have grown tremendously — enough to build new neighborhoods in their entirety. 

    Watch the video above to learn the fundamentals of real estate investment trusts.

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  • East Coast mayors call for more office-to-apartment conversions

    East Coast mayors call for more office-to-apartment conversions

    Mayors in cities across the U.S. want to loosen rules that can slow the pace of office-to-residential conversions. In some instances, cities have offered generous tax abatements to developers who build new housing.

    “We have a great opportunity to change the uses in the downtown,” said Washington, DC, Mayor Muriel Bowser at a December 2022 news conference in support of her housing budget proposals.

    “It’s absolutely a budget gimmick” said Erica Williams, executive director at the DC Fiscal Policy Institute, referring to Bowser’s 2023 proposal to increase the downtown developer tax break. “We fully support the idea that some of these buildings could be turned into residential properties or into mixed-use properties, but that we don’t necessarily need to subsidize that.”

    In New York City, a task force of planners assembled by Mayor Eric Adams is studying the effects of zoning changes, and possible abatements for developers who include affordable units in conversions.

    Cities like Philadelphia have previously embraced these policies to revitalize their downtowns. In Philadelphia, homeowners and investors received more than $1 billion in tax breaks for their renovation projects.

    A small collective of developers have taken on this challenging slice of the real estate business. Since 2000, 498 buildings have been converted in the U.S., creating 49,390 new housing units through the final quarter of 2022, according to real estate services firm CBRE.

    Prominent investors Societe Generale and KKR have worked with developers like Philadelphia-based Post Brothers to finance institutional-scale office conversions in expensive central business districts.

    “Capital has gotten much more limited,” said Michael Pestronk, CEO of Post Brothers. “We’re able to get financing today. … It is a lot more expensive than it was a year ago.”

    Many experts believe local governments will alter zoning laws and building codes to make these conversions easier over the years.

    “Our rules are in the way, and we need to fix that,” said Dan Garodnick, director of New York City’s Department of City Planning.

    Watch the video above to learn how cities are getting developers to convert more offices into apartments.

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