Impact Development — using place as a platform for positive outcomes

Impact Development uses place-based solutions to equitably grow communities and improve quality of life with the intelligent use of resources.

Impact Development — A Primer
FIX defines Impact Development as the use of place to equitably grow communities and improve quality of life with the intelligent expense of resources.  It is the intersection of real estate and impact capital or socially responsible investing, formally referred to as Sustainable Responsible and Impact Investing (SRI or simply, impact investing).  SRI uses capital to support organizations that have a positive impact on social and environmental concerns while generating a financial return.  The outcome is a triple-bottom-line return, with consideration for people, planet and profit.

There is growing expectation for triple bottom line outcomes among investors.  SRI Investing is up 33%, now representing 22% of all professionally managed assets in the US.

In 2016, impact capital in the United States grew to $8.72 trillion which is up 33% from the two years prior, representing 22% of all assets under professional management in the US.  While real estate is not typically a class of impact investing, FIX Impact Development believes it is one of the strongest platforms for creating positive outcomes.  Real estate represents 15% of our country’s GDP, providing a massive opportunity for impact.

The Three Petals of Impact Development
FIX believes Impact Development to be an extension of the triple bottom line philosophy, providing for people, profit and planet with every project.  At the intersection of each is a different opportunity for impact, creating three petals of Impact Development.  Here is how we see the opportunities:

Equitable growth

  • Housing affordability – providing diverse housing options across the spectrum, including more inclusive ownership structures
  • Commercial affordability – creating supportive markets for burgeoning small local businesses to innovate and thrive
  • Access to opportunity – increasing access to diverse types of education and creating employment opportunity

Quality of life

  • Ease of mobility – enabling more people to move more easily locally and across the region
  • Access to nature – nurturing a connection to and appreciation for nature for all people across all neighborhoods
  • Thriving arts & culture – supporting the spiritual growth of that comes with the creation and enjoyment of expression

Resource intelligence

  • Smart design – designing with best practices, including traditional and advanced techniques, for smart buildings and urbanism
  • Economical project delivery – improving our methods of construction and assembly to reduce all forms of waste
  • Efficient building operations – evolving behaviors to be more efficient with long-term operation and management of places

See our related post for the top five reasons why place is such a strong platform for impact.