Greyfield Development

Greyfield developments are adaptive reuses of former commercial or light-industrial properties in which remediation of hazardous wastes is not a financial barrier (or perceived barrier) to redevelopment. Such developments can contribute positively to sustainable communities because they reuse properties and existing infrastructure, and thereby reduce the consumption of virgin land. The genesis of greyfields, along with an analysis of the benefits and challenges of redevelopment, is outlined below.

The neologism greyfield parallels the terms brownfields and greenfields and is thought to derive from the color of the vast asphalt parking lots surrounding obsolete strip malls, declining regional malls, or vacated freestanding retail stores. Although the term is most often used to refer to former retail properties, it may also be used more broadly to refer to any parcel with nonresidential vacant or underused buildings unencumbered by the threat of toxic substances and their remediation.

Greyfields originate as a consequence of suburban sprawl, when new commercial development at the ever-expanding fringe of metropolitan areas supersedes older, smaller developments in first- and second-ring suburbs, leaving behind a swath of outdated and less visually attractive retail space. As population shifts to areas farther from the central city, and as consumer tastes change, such retail spaces become progressively less competitive and vulnerable to decline and abandonment. The Congress for the New Urbanism estimated that in 1999, approximately 7 percent of the 2,700 regional or super regional malls in the United States could be considered greyfield malls, with an additional 12 percent of all U.S. malls likely to fall into greyfield status by 2004. These greyfield malls generate less income, have lower occupancy rates, and are smaller and older (on average, 32 years old, with their last renovations on average 13 years ago) than their counterparts in more affluent, newer areas farther from the center city. For their communities, they represent potential gaps in the urban fabric: swaths of underused land with declining tax revenues, visual blight, and diminution of services for nearby residents.

Because of their large size and readily accessible locations (often near highway interchanges), greyfields present attractive opportunities for developers. Greyfields are also attractive because infrastructure (water, sewer, electrical, communications services) is already in place and because site work—grading, parking lots, and other site amenities—has already been completed. Adjacent neighborhoods present a potential built-in market for new uses.

For communities, greyfield development can also be appealing. It makes more efficient use of infrastructure and municipal services, it increases the tax base, and it creates new jobs. Greyfield development thus also has the benefit of reducing single-occupant vehicle trips by clustering residential and other uses. It can revitalize surrounding neighborhoods if care is taken to integrate the project into the existing urban fabric.

However, greyfield development is not without challenges. Cosmetic improvements to facades or mall interiors, or even changes to the retail mix, are not sufficient to reverse the decline of such properties, because newer and better retail opportunities already out-compete these sites. Rather, developers must find a mix of new uses that are economically viable and that will garner local support. Existing buildings must be able to be retrofitted [Page 245]for these new uses while meeting current standards for the particular use, or must be demolished and replaced. “Big box” buildings, in particular, are not easy to retrofit because of their large footprints, lack of windows, and concrete block walls. Last, community support for redevelopment must not be taken for granted: Residents of surrounding areas may be apprehensive about congestion, overdevelopment, and changes in the character of their neighborhoods. For project developers, it is important to be in touch with community needs and desires and to put in place a planning process that respects neighborhood concerns and input.

...