Public realm drives wellness and increases commercial values

A series of recommendations have been set out for the property industry to get the most out of public realm by CBRE and Gehl Architects. The pair reviewed 11 placemaking initiatives in the UK, Australia, USA, Italy, Denmark, Germany, France and South Korea where the commercial and human benefits of public realm initiatives were tangible. Public realm was defined as areas between buildings which were accessible to all – with interiors being excluded due to restrictions on entry that some buildings had in place. The report recommended planners concentrated design towards the “human experience” – through increasing and maintaining innovative public space – and judging proposed new developments on their ability to enhance public life. Developers and investors should be taking the opportunity to create free outdoor public realm.  The opportunity to enhance the brand of a building and location should be taken, if it exists. Where it is not available, the study recommended there should be a clear contribution to the existing public realm. For occupiers who are concerned with recruiting and retaining talent, proximity to great public spaces is key due to the blurred boundaries between work and leisure time. While Gehl assessed the human impact of public realm in urban areas, CBRE examined the commercial effect, looking at values before and after the public realm intervention had taken place. Zoe Bignell, managing director, UK development and residential capital markets advisory, said: “It is no coincidence that good placemaking can, in turn, realise positive incremental effects on real estate values.” She added that part of delivering a holistic approach to development opportunities is paying attention to the characteristics and intrinsic benefits of placemaking to drive demand and “create value longevity”. In London, Granary Square, King’s Cross, N1, and Duke of York Square, Chelsea, SW3, formed part of the study. Retail and residential were the stand-out performers of Granary Square. While average house prices in prime central London rose by 48% between 2011 and 2016, average prices in King’s Cross have increased by 61%. Public realm has also fuelled demand for the location from retailers and office occupiers. Duke of York Square has been the centre of a residential market, which has risen 333% in value since 2000. Changing an area’s image in terms through using innovative building materials also had an effect. The study looked at the Liverpool One shopping centre where retail rents rose by 17.5%, compared with a 7.4% decline since 2008 across the rest of the city. Infrastructural public realm initiatives were seen to create greater desire to visit, an increase in dwell time, more expenditure and, in turn, greater demand amongst visitors, workers, shoppers and residents to locate there permanently. To send feedback, e-mail Shekha.Vyas@egi.co.uk or tweet @shekhaV or @estatesgazette