Infill
An infill development is a real estate development site that exists within a mostly built-out market. Usually located within an urban area, infill locations look to fill the few vacant lots that exist between other developments in the area. Infill locations are characterized by having a high level of demand, due to increased property values in desirable locations, with high barriers to entry.
An infill real estate investing strategy targets an infill location that may serve to fundamentally benefit the property’s performance. Limiting the number of new developments in an area, infill locations can help keep new, competitive properties out of a market. For example, a Whole Foods located in downtown Denver may see success due to the lack of available space that could be used to house another major grocery store chain.
Infill development is different from redevelopment. Redevelopment converts an existing site into one that has a better economic benefit for the community.