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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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