A city’s parks are one of the top urban elements that can convey a tremendous lasting value upon real estate in the surrounding area — both residential as well as commercial real estate. The American Planning Association states that parks “…enhance property values, increase municipal revenue, bring in homebuyers and workers, and attract retirees.” They go on to call parks “a good financial investment for a community.”
Map of Parks Locations in Seattle – data from Seattle Parks Department
In a 2002 study titled, “How Smart Parks Investment Pays Its Way”, by Ernst & Young it was found that improving or adding a park can increase commercial property values by 225% in some cases. Adding parks, renovating parks, and managing parks well (so that they are not crime havens) can all help improve the value of surrounding property.
Probably the most famous example of a park’s impact upon real estate valuation is Central Park in New York, which has been called the world’s greatest real estate engine. Dozens of the most expensive residential real estate sales in the city were done on properties surrounding the giant green space or just one block away, and along 5th Avenue at the south end of Central Park, there are some of the highest commercial/retail rents in the world of over $2,000 per square foot!
As of 2014, Seattle is home to 430 developed parks, including 185 sports fields, 130 children’s playgrounds, nine swimming beaches, 18 fishing piers, 4 golf courses — a total area comprising over 6,200 acres! Seattle’s longterm investment in parks and greenspaces has helped the city’s overall property values, and has helped to drive the commercial real estate prices up to extraordinary rates. The park amenity is an often hidden element that conveys value to a building and can factor into the final prices the real estate can command in this competitive market.
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