In a recent episode of The Real Finds Podcast, host Gordon Lamphere sits down with Professor Jesse Saginor, an associate professor of real estate development at the University of Maryland, for a captivating discussion on zoning policies, housing development, and creative disruption in urban planning. This episode is packed with insights for commercial real estate professionals, developers, and anyone interested in understanding the dynamic world of real estate development and urban revitalization.
Zoning, a critical yet often contentious aspect of real estate development, plays a significant role in shaping the built environment of cities. However, it also presents challenges, particularly when it comes to balancing community needs with development costs and housing affordability. Throughout the conversation, Dr. Saginor highlights the importance of flexible zoning and creative problem-solving in overcoming these challenges. He also delves into how converting underutilized office spaces into residential units is gaining traction, a trend that could reshape the future of urban housing.
At the beginning of the episode, Lamphere and Saginor dive straight into one of the most pressing issues in commercial real estate: the cost implications of zoning on housing development. Zoning policies, often viewed as barriers to affordable housing, can drive up costs by imposing restrictions that limit development density or require certain design features. Dr. Saginor points out that while zoning laws are intended to promote order and prevent incompatible land uses, they sometimes stifle innovation and contribute to the housing crisis by making it harder for developers to build at scale or experiment with new housing types.
The conversation then turns to how developers and commercial real estate professionals can work within these constraints to create housing that meets community needs while still being economically viable. Saginor emphasizes the need for creative solutions and government involvement, especially in areas where the cost of housing is outpacing wages. “The role of the government,” he explains, “is essential in balancing the needs of the community with the realities of development.”
As the episode progresses, the discussion shifts to the complexities of affordable housing. Saginor acknowledges that providing affordable housing is one of the toughest challenges developers face today, particularly in urban areas where land values are high, and community opposition can be fierce. NIMBYism (Not In My Backyard) often plays a significant role in stalling projects that could provide much-needed housing, particularly affordable units.
Lamphere and Saginor explore how developers can navigate community opposition by building strong relationships with municipalities and engaging in meaningful dialogue with residents. Saginor shares some of his own experiences in urban revitalization projects, where he successfully worked with local governments to ensure that projects met both community expectations and development goals. This collaborative approach, Saginor notes, is critical for commercial real estate professionals who want to see their projects succeed.
One of the most exciting trends discussed in the episode is the growing potential for converting underutilized office spaces into residential units. With the rise of remote work and the decline in demand for traditional office space, many cities are grappling with vacant or underused office buildings. Saginor and Lamphere explore how these spaces can be repurposed into much-needed housing, providing a win-win solution for cities, developers, and residents alike.
Saginor describes the process of adaptive reuse, where existing structures are repurposed for new functions, as a key strategy for addressing the housing shortage in many urban areas. By converting office spaces into apartments or condominiums, developers can bypass some of the high costs associated with new construction, while also helping to revitalize downtown areas that may have been hit hard by the shift to remote work.
Looking to the future, Saginor and Lamphere discuss what commercial real estate professionals can expect from zoning policies and urban development trends. Saginor is optimistic about the potential for more flexible zoning laws that allow for greater density and mixed-use development, which can create more vibrant, walkable communities. He also sees the ongoing shift in work patterns, with more people working from home, as an opportunity for real estate developers to rethink how they design residential spaces.
They also address the role of government and policymakers in shaping the future of zoning and urban development. Dr. Saginor emphasizes that government policies must evolve to meet the changing needs of cities, particularly in terms of promoting sustainability, affordable housing, and adaptive reuse. He encourages aspiring developers to stay informed about policy changes and to actively engage with municipalities to help shape the future of their communities.
Towards the end of the episode, Saginor offers valuable advice for those just starting out in real estate development. He emphasizes the importance of building strong relationships with key stakeholders, including municipalities, community leaders, and industry professionals. He also encourages young professionals to stay adaptable and open to new ideas, particularly as the real estate market continues to evolve.
“Real estate development is all about relationships,” Saginor explains. “Whether you’re dealing with zoning officials, local governments, or community organizations, having those connections is critical to getting projects off the ground and ensuring their success.”
Saginor also recommends that aspiring developers immerse themselves in the world of urban planning and real estate by reading key books and following industry thought leaders. He shares some of his top book recommendations, which include foundational texts on zoning, urban economics, and sustainable development.
This episode of The Real Finds Podcast offers a wealth of knowledge for anyone involved in real estate development, from seasoned professionals to newcomers. With expert insights from Dr. Jesse Saginor, listeners gain a deeper understanding of the challenges and opportunities that come with zoning, housing development, and urban revitalization.
As Lamphere and Saginor explore the future of real estate, one thing is clear: the landscape is changing, and those who can adapt to new trends and build strong relationships with communities and governments will be well-positioned for success.
Whether you’re interested in affordable housing, creative reuse of office spaces, or simply understanding the complex world of zoning, this episode is a must-listen. Tune in for expert advice, actionable insights, and a forward-thinking approach to real estate development.
The future of in-person real estate, particularly in the office and retail sectors, hinges on…
The recent acquisitions by Glenstar and 601W Companies—purchasing office buildings in Chicago at steep discounts—highlight…
As the digital economy continues to expand, Chicago has emerged as one of the top…
The recent announcement of Celadon Partners’ $70 million senior housing project in Deerfield underscores a…
Schaumburg, one of Chicago’s most dynamic suburbs, is poised for a significant transformation with ambitious…
The recent approval of zoning changes for the residential conversion of 65 E. Wacker Place,…