Profile of Downtown Investors

Often this seems to pit developers against the interests of preservation. The best investment opportunities are typically found in "hot" locations, and these locations today are often the same locations that were hot in previous generations; such locations include the main "four corners" of downtowns or adjacent to established institutions or businesses. Thus small older buildings in these prime locations are seen by developers as underutilized, and are not considered the "highest and best use" for that property. Historic structures are often considered as standing in the way of progress.

However, when developers are looking for investment opportunities, their biggest concern usually is in not knowing what roadblocks they will be facing. From their perspective, a project may take many months or years to be realized, and during that time interest rates may change, investors may back out, and the market cycle may take a distinct change in direction. Also during that time a developer may become aware of many regulatory restrictions with which he was not initially aware. Developers spend considerable amounts of money, and run many risks, during this period of "up front" investment, before the prospects for a project can be assured. All they ask beforehand is that they know "the rules of the game" so they can minimize these risks.