Forum Questions:

New Urbanism Index

Was Kentlands a financial success for the developer? Is it possible in a new development such as Kentlands to have the population density needed to support a business district?

Jeff Speck, co-author of Suburban Nation, responds:

The Kentlands developer lost the project early on, because he was unable to secure an anchor for his proposed adjacent mall, so he could not satisfy the terms of his $40 million bank loan. The bank took it over, and has subsequently done very well. It has appreciated faster than its surrounding sprawl. A recent study condicted by statisticians at G. Washington U., published by the ULI, demonstrates that if a typical house was taken from a surrounding subdivision and plopped into Kentlands, its value would go up by $35,000 that day. The success of a retail district depends on two factors: how many people live nearby, and how many people drive by. Retailers count cars before they count rooftops. This can be good news, since a small development like Kentlands may be able to support more than its share of shops if it sits along a major road. Read Suburban Nation if you'd like to hear more. . .

Prof. Dorn McGrath of George Washington University responds:

According to local press, the first developer of Kentlands has serious problems making the project's finances work. Note that it took nearly twenty years for Reston, a much larger and very carefully planned new community, to achieve the critical mass of density required to support a full-scale town center and competitive shopping facilities. This was anticipated from the outset.

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