Real Estate News and Advice   
Get more leads every month with Market Leader! May 25, 2012

Search Realty Times
 

Get more leads every month with Market Leader!






Need Product Help?

Customers -- Click for Live Support


Call: 214-353-6980




Get more leads every month with Market Leader!




Share on Facebook       
Building Communities That Attract Investment

Many popular designers have opted to commodify their names by associating them with colognes, clothing, home accessories and much more. In this way, the name itself becomes a psychological image that has value.

Communities too can capitalize on this form of commodification. Perhaps two of the most notable communities with strong commodification value are Salem, Massachusetts and Palm Springs, California. Salem, famous for its witch trials and Nathaniel Hawthorne’s “House of Seven Gables” has built an entire tourist industry that significantly contributes to the city’s coffers. Likewise, Palm Springs, with its extensive list of residents from Hollywood’s gilded age and many structures representing mid-century architecture, has a draw all of its own.

Get more leads every month with Market Leader!

While I have noted two of the more renowned communities that have capitalized on their histories, there are lesser ways to commodify communities:

One might be through their actual name. La Jolla, a community of San Diego, translates to “The Jewel”. To many San Diegans thinking of purchasing jewelry, La Jolla is one of the first places that comes to mind.

Another way is to host an annual event. Long Beach, California hosts the annual Long Beach Grand Prix, and Glennallen, Alaska hosts the annual Copper Basin 300 Sled Dog Race. Other communities have opted to be the official home to some significant feature or event, for example, the Kentucky Derby is held in Louisville, Kentucky and the National Basketball Hall of Fame located in Springfield, Massachusetts.

Some communities have numerous opportunities for commodification, but choose to be selective in the ones they use. For example, Santa Barbara, California, which has many famous residents including a rather infamous pop singer and until recently a former president, has chosen not to commodify the community based on their residents but rather their rich history. By calling upon their rich colonial Spanish history and enacting city ordinances to preserve this history, the Old Town district of Santa Barbara is rich in Mission Revival architecture.

However, not every community can have infamous histories, famous residents, interesting names, host big races or be the site of national points of interest. So what can these communities do to commodify themselves to attract interest?

I would first recommend an extensive examination of the community’s history. Like Salem MA which capitalizes on an historical event, or Santa Barbara which capitalizes on an architectural style, most communities have some interesting points in their history. For example, the city of Orange in Orange County, California was known for its many orange groves. Capitalizing on this reality, I might look at ways to build an image around this history. Likewise, the town of Amherst, Massachusetts has three well-known colleges and another two within close proximity. This, and the fact that Emily Dickinson resided in the town, might lead me to recommend enticing literary conventions there and to commodify it as a premier literary destination.

Sometimes, however, if a community does not have a strong history, it might have to be more creative in developing its image. For example, the community of Kittery, Maine enticed numerous factory outlets to locate there. Hence the community has become known for its outlet shopping. While this is only one example, there are many ways to commodify a community.

In my community in San Diego we have an historic live theater and hotel that were frequented by many Hollywood icons of the 1920s. However this history was allowed to be virtually forgotten by many of the local residents. Later the community became known for its annual Christmas Toyland Parade, and they installed what look like oversized children’s blocks and large toy-like umbrellas which are used as places to sit and wait for buses.

For this community, we have two strong mediums to develop commodification: The first would be to draw upon its silver screen past by developing some link between the hotel and theater, and maybe passing ordinances that mandate 1920s deco style architecture in the commercial area. Or the community could capitalize on its past association with toys by attracting big name stores with strong imagery (e.g. FAO Schwartz with its giant teddy bear statue in front of many urban stores).

Commodification of community may not resonate for many because it does bring tourists, but it has many financial rewards. Not only does the commercial district benefit, but so do residential properties because many people like to be affiliated with a place that others know and respect. Because of the pride associated with living in places with strong commodification value, people in Beverly Hills CA, Salem MA and Roswell NM are able to identify with something bigger than themselves.

However, just as with my community which lost its commodification value associated with the roaring 20s, other communities can also lose theirs. Palm Springs for example is rich with decadence, which is a form of commodification. Liberachi, Elvis Presley and the notorious "Rat Pack" all had mid-century homes that capitalized on the plastic decadence of the late 50s, 60s and early 70s. However, numerous mass developments utilizing more earth colors and Tuscan architecture could endanger that commodification and hence leave the city to go the way of my community, all but forgotten.

Communities that want to stay competitive and insulate themselves from becoming depressed areas must find ways to commodify themselves and develop name-brand associations.

Published: August 16, 2004

Use of this article without permission is a violation of federal copyright laws.


Order a Webcast About This Article Bookmark and Share




Connect with your Customers.



Real Estate News Network





Spotlight

Get more leads every month with Market Leader!

Today's Headlines 08/16/2004

LIBRARY


Agent Publicity | eNewsletter | Local Market Conditions | Video Newsletter | Article Index | Terms & Conditions | Privacy | Contact Us

Copyright © 2004 Realty Times®. All Rights Reserved.