While currently a limited area for the use of public-private partnerships, this sector holds significant promise for growth in the near future. This is largely due to a number of high profile projects that amply illustrate a creative and cost effective way to address a number of urban development challenges. Military base housing, urban "mixed use" development projects and even public schools have shown how public and private resources can be blended to provide innovative answers. Simultaneously, federal, state and local governments, with large real estate asset holdings that are significantly under maintained or under developed, are examining ways for engaging the private-sector in "shared risks/shared rewards" arrangements.
While some challenges remain for development of appropriate procurement and taxing policies, as well as refined investment instruments, this is an area that will continue to grow in the coming year.