Infill development in commercial real estate is defined as the development of unused land in urban areas. This commonly takes the form of developing an empty lot of land between two buildings, but can also involve the demolition of older or underused properties. Supporters of infill development believe that it makes efficient use of existing land and reduces burdens on municipal services, due to the fact the area is already being served by water, power, and communications infrastructure. Detractors, however, believe that it increases overcrowding and actually puts a greater burden on municipal services.

Industrial infill development has become significantly more popular in recent years. In most cases, industrial infill projects involve demolishing older industrial properties that are no longer suitable for today’s tenants and replacing them with more suitable properties. Industrial infill projects, however, can often involve significant environmental cleanups, which can add additional costs and a greater degree of risk to a development project.

In commercial real estate, infill development has a number of benefits. It allows investors and developers to recapture unused and underused space, making efficient use of existing land and reducing burdens on municipal services. Additionally, industrial infill development is growing in popularity due to the need for industrial space in major MSAs across the country. Industrial infill projects involve demolishing older industrial properties and replacing them with more suitable properties, which can provide a number of benefits for developers and investors.

In commercial real estate, infill development can have benefits for developers and investors, but it can often be challenging from a commercial zoning perspective. Some of the challenges of infill development include:

• Increased overcrowding
• Greater burden on municipal services
• Environmental cleanups, which can add additional costs and a greater degree of risk to a development project
• Zoning issues

For more information, please visit www.commercialrealestate.loans/commercial-real-estate-glossary/infill-development.

The best practices for infill development in commercial real estate involve understanding the local zoning regulations, researching the environmental conditions of the site, and obtaining the necessary permits and approvals. Additionally, it is important to consider the impact of the project on the surrounding area, including the potential for overcrowding and increased burden on municipal services. Finally, it is important to consider the financial implications of the project, including the cost of environmental cleanups and the availability of financing.

For more information, please see the following sources:

• Bisnow: Infill Development in Commercial Real Estate: What You Need to Know
• Forbes: Infill Development in Commercial Real Estate: What You Need to Know
• Commercial Real Estate Loans: Infill Development in Commercial Real Estate

The most common financing options for infill development in commercial real estate are commercial real estate loans. These loans typically require a larger down payment and a shorter repayment schedule. Additionally, they may involve significant environmental cleanups, which can add additional costs and a greater degree of risk to a development project.

For more information, please see the following sources:

• Infill Development in Commercial Real Estate
• The Most Common Ways to Finance a Multifamily Property

The tax implications of infill development in commercial real estate depend on the specific project and the jurisdiction in which it is located. Generally speaking, infill development projects may be eligible for tax incentives, such as tax abatements, tax credits, and other incentives. Additionally, some jurisdictions may offer tax incentives for projects that involve the demolition of older or underused properties. It is important to consult with a tax professional to determine the specific tax implications of a particular infill development project.