September 24, 2024
CRE Practices for Maintaining Year-Round Property Success in Popular Tourist Areas
Commercial real estate (CRE) in popular tourist destinations can sometimes come with the challenge of maintaining success throughout the year. While these locations promise high occupancy rates and strong revenue streams during peak seasons, the off-season can present a different scenario. Through strategic approaches and an understanding of industry trends, these properties can achieve year-round success.
CRE Trends and Strategies
Diversification and Mixed-Use Developments
Mixed-use developments are gaining popularity for their ability to attract diverse demographics. These properties combine residential, commercial, and recreational spaces, ensuring steady foot traffic. For example, Armada Hoffler’s Town Center of Virginia Beach combines retail, dining, office space, and entertainment venues, making it a year-round destination that appeals to both locals and out-of-towners. According to the Urban Land Institute, mixed-use developments can increase property value and reduce vacancy by offering a variety of attractions and conveniences.
Community Engagement and Events
Hosting community events and activities throughout the year can draw local residents and off-peak tourists. Harbor Point in Baltimore, with its waterfront views and diverse amenities, regularly hosts community events that maintain its vibrancy even during quieter months. Studies indicate that properties hosting regular events tend to experience a significant increase in local visits compared to those that do not, owing to the added attractions and engagement these events offer.
Enhanced Digital Presence
Digital marketing and social media platforms can do a great deal for maintaining property visibility and reaching the public as they search for activities during the fall and winter. Properties can use these assets to promote events and special offerings. The Interlock in Atlanta maintains a strong online presence and effectively uses digital campaigns to engage with both locals and visitors, ensuring consistent interest and attendance. According to the National Association of Realtors, properties with active digital marketing strategies tend to experience a noticeable increase in off-season engagement.
Sustainability and Eco-Friendly Practices
Corporate social responsibility and sustainability are increasingly becoming priorities within the CRE industry. Eco-friendly practices not only reduce operational costs but also attract environmentally-conscious consumers. By offering amenities like green spaces and energy-efficient technology, tourist-driven properties can better align with consumer demand for sustainable development.
Maintaining success in CRE within popular tourist cities requires strategic planning, community engagement, and innovation. By adopting tactics such as diversification, community events, enhanced digital presence, and prioritizing sustainability, these properties can thrive year-round. Armada Hoffler’s approach provides a model for navigating these challenges effectively, ensuring continued success throughout the year.
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