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HUD Multifamily Loans Blog
Last updated on Dec 8, 2022
1 min read
by Jeff Hamann

The Difference Between Brownfield and Greenfield Developments

A brownfield development is any project built on land that has previously been developed, while a greenfield development is a project that will occupy a space that has not been previously developed.

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In this article:
  1. What are Brownfield Developments?
  2. What are Greenfield Developments?
  3. Brownfield Advantages
  4. Greenfield Advantages
  5. Brownfield Disadvantages
  6. Greenfield Disadvantages
  7. Get Financing

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

In this article:
  1. What are Brownfield Developments?
  2. What are Greenfield Developments?
  3. Brownfield Advantages
  4. Greenfield Advantages
  5. Brownfield Disadvantages
  6. Greenfield Disadvantages
  7. Get Financing
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  • Education

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