Image by Tiago Nakamura from Unsplash.

What are Brownfield Developments?

In commercial real estate, a brownfield development is any project built on what is called a brownfield, or land that previously has been developed. For example, replacing a dated office building with a shopping center? Constructing an affordable housing community on the former site of a hospital? These would all be considered brownfield developments.

What are Greenfield Developments?

A greenfield development is exactly the opposite: a project that will occupy a space that has not been developed. A multifamily property rising on a never-before-utilized parcel would be a good example, though a more common one today would be the construction of an industrial park in distant, predominantly agricultural exurbs of a major metropolitan area.

Both types of developments have their pros and cons when it comes to affordable housing.

Brownfield Advantages

• Generally more central locations

• Infrastructure/transportation links in place

• Larger potential financial incentives

Greenfield Advantages

• Flexibility in design

• Lower costs

• Faster development timelines

Brownfield Disadvantages

• Potentially high land remediation costs

• Longer development timelines

• Land constraints (including zoning)

Greenfield Disadvantages

• Often far from urban centers where demand is highest

• Infrastructure may not be in place

• Negative environmental impacts