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- Greyfield land is underused real estate assets or land. The term was first coined in the UK in urban design theory in the late 1990s, and later adopted in the US about a decade later, with the name coming from the "sea" of empty asphalt concrete that often accompanies these sites. The word greyfield is a relative neologism as compared to more commonly known terms such as brownfield and greenfield. In the UK, the term applies specifically to buildings and land in towns and cities that is underused and could be intensified by the addition of rooftop developments (in the case of an existing building) or 'airspace' developments (above an existing carpark, for example). Unlike brownfield, which features actual or perceived levels of environmental contamination, greyfield typically does not require remediation in order to unlock value to an investor. The hidden value, in many cases, comes from underlying infrastructure (such as plumbing and sewerage, electrical systems, foundations, etc.) the presence of which allows a developer to improve the site efficiently through capital expenditures (sometimes quite minor) that may easily lead to increased rents and greater value. Other important potential qualities, such as parking, a central location, etc., may also be leveraged in a well-executed redevelopment of the site. Some greyfield may also be considered favourable to investors because even if it is outclassed or physically in disrepair, it has revenue in place through long- or short-term leases. Greyfield with short-term leases may work well for an investor/developer who has a strategy involving intensive real estate asset management. By actively managing the Greyfield in a short-term lease environment, rents may be increased after improvements are made. In the US, the term has historically been applied to formerly-viable retail and commercial shopping sites (such as regional malls and strip centers) that have suffered from lack of reinvestment and have been "outclassed" by larger, better-designed, better-anchored malls or shopping sites. These particular greyfield sites are also referred to as "dead malls" or "ghostboxes" if the anchor or other major tenants have vacated the premises leaving behind empty shells. Still in the US, the "greyfield" term may also be applied more broadly to urban infill or commercial locations where underused or outdated (non-retail) uses hamper an otherwise valuable real estate asset. An example would be a formerly industrial waterfront site that is potentially valuable as a mixed use/residential site as it is being encroached upon by residential sprawl, or other economic or redevelopment pressures. In this example, the revitalization of the greyfield may require zoning changes and/or a public-private partnership of some kind to achieve the highest and best use. (en)
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