What are the main barriers and drivers for circular real estate development in your market?

The problem with any assistance from policy makers, whether in regulatory or financial assistance, is that the help always comes with conditions. Either in the form of a required affordable housing element or a requirement to hire labor at prevailing wage. The affordable housing element reduces potential income for the project, forcing market rates units to support the affordable. Prevailing wage increases project cost. Both make feasibility more difficult. Help without handcuffs is the only way it works.

As mentioned above- these regulatory barriers and added costs are making things impossible to offer incentives for circular type build and renovations- and I'm in Washington State which "should" be the ring leaders here but the left hand doesn't talk to the right and instead add layers of burecruecy- with expenses and hoops to jump. It would be nice to see tax breaks and lower fees on remodel jobs. The demand is huge but labor shortage means pay more money to get labor- so offset that by lowering fees if we want to fix up what we have vs. give incentives to the box builders to build new and let old deplete.

As stated in the article: It is based on the principles of the circular economy, which seeks to transform linear systems of production and consumption into regenerative cycles of reuse, repair, and recycling. The "Linear system" as originally intended was, buy the land, develop the living space and sell it to the people. With linear thinking, we'll be building rental projects forever, with ever increasing rents. Lets build it to sell it, and as any developer knows. It starts in the office with the proforma before the permits are even applied for. Circular friendly isn't building more rentals. It's building communities that Americans can own. The opportunity of equity for all.

Environmental concerns: With increasing awareness of climate change and the need to reduce carbon emissions, many people are looking for more sustainable and environmentally-friendly building options. Resource efficiency: Circular real estate development can help reduce waste and promote more efficient use of resources such as water, energy, and materials. Cost savings: Implementing circular economy principles can lead to cost savings in the long run, as buildings and infrastructure become more energy-efficient and require fewer resources to operate.

Innovation: Circular real estate development offers an opportunity for innovation in design, construction, and management, which can attract investors and tenants. Corporate responsibility: Many companies are looking to demonstrate their commitment to sustainability and social responsibility, and circular real estate development can help them achieve these goals. Overall, while there are some barriers to circular real estate development in Alabama, there are also significant drivers that suggest the potential for growth in this area. With increasing awareness of the benefits of circular economy principles and the need for sustainable building practices, we may see more circular real estate development projects in the future.

Just like any market being created, circular businesses and projects focus will be on stabilised unit economics and how they are comparable to the current market alternatives to ensure near term conversion to then build scale. In some cases, for new technology enabled business this may be focused on bringing down the cost base by example by focusing on economics of scale to be able to negotiate. In cases of projects and existing businesses, it will be finding and working with specialised pockets of finance enablers.