The End of the Beginning

Where is the brownfield market headed? Prognostication is a tough business and I make no claim to be a Nostradamus. But one thing I can say with certainty is that the brownfield market is at a transition point. Whether you mark the start of the market in 1977, when the word “brownfield” first showed up in print, in 1993 when the U.S. Conference of Mayors discussed brownfields, or in 2000 when the word “brownfield” was first published in the dictionary, we clearly are at the  end of the beginning.

I view 1993 as the pivotal date, making the market about 15 years-old, barely a teenager. It’s no wonder it has been so difficult to predict as of late.

Why do I say we are at the end of the beginning? When the brownfield movement began in 1993, we were focused on defining a brownfield, increasing public awareness about the benefits of redevelopment, passing legislation to establish state voluntary cleanup programs (VCPs), educating on how to use state programs and government incentives, and teaching the various specialty groups how to finance, insure, clean up, and develop brownfield sites.

Certainly, the brownfield market is no longer as politically attractive as are green buildings, sustainability and climate change. But many VCP programs are well established and, while they may not be perfect, they continue to provide consistency, predictability and comfort to business and industry.

And while the term “brownfield” is not a household name, those who need to know, understand what a brownfield is. Debt and equity capital is available, environmental insurance is understood and the various stakeholders understand their role in redevelopment.

But now that we’ve been there and done that, what’s next? Is the brownfield market headed downward, going sideways or will it continue to move ahead?

My prognostication is that it will continue to change and those who can assimilate change will see even more growth and opportunities.

So what can you do to be on the right side of change?

Get greener, for openers. Let’s face it, brownfields have always had a green aura about them, but we need to continue to repackage our message for funding and show how brownfield redevelopment is the ultimate green.

If we want federal funds, we must show how brownfield redevelopments can reduce the carbon footprint by recycling infrastructure and earth, and show how they can minimize transit issues via urban infill development. We must work with the U.S. Green Building Council to place a higher value on green structures built on brownfield sites to increase their certification designation.

Massage the political message. We are coming into an election year and transition teams are forming at the federal and state levels. Let’s join those teams to help shape the political message and show why brownfield development is important both environmentally and economically.

My intuition and anecdotal information tells me that more projects are entering state VCPs or are being cleaned up to VCP standards, but many never seem to graduate from those programs. Why? Do state VCPs need legislative fixing? If so, let’s have open, honest discussions with regulators and legislators to tweak these programs so that they are more efficient.

Lead by teaching. As an industry, we have done a great job at education and outreach. We have educated federal, state and local government officials, property owners, developers, and a wide range of service providers on the benefits of brownfield redevelopment. But we have a growing market and new people are coming in every day. The job of outreach and education is never done. The message should be modified as we continue to play an important role in providing consistent and new information to make this market grow.

Buy opportunity. Those who buy brownfields already know that the recent decline in certain real estate market sectors represents a buy opportunity. Many properties were overpriced and were not discounted for their liabilities. I think it’s safe to say that those properties will be repriced and good real estate that is impaired will represent a great investment opportunity.

O.K., maybe I’m not the new Nostradamus, but I am an optimist, and I say, “The future’s so bright, I gotta wear shades.” Let me know what you think when you see me in Chicago this Oct. 16 and 17 at The Big Deal: NBA Brownfields 2007.

Enjoy the read!

    Robert Colangelo
    Publisher
    robertc@brownfieldnews.com