You’ve likely heard the term ‘transit-oriented
developments’ being thrown around lately. Whether it’s in business
conversations, in article headlines, or on an expert interview; it seems like
everyone in the commercial real estate business is interested in
transit-oriented developments.
But why the sudden burst in popularity?
Well, it’s really
because transit-oriented development projects are the new ‘golden child’ of
the commercial real estate industry. It seems like every commercial real estate
pro has their eyes on transit-based developments. Tenants, developers, or
investors all love these properties - and it’s not hard to see why.
Let’s take a deeper look at transit-oriented
developments in commercial real estate and why they’re causing such a buzz:
Transit-Oriented
Developments Defined
First, we need to define the term.
A transit-oriented development is referring to
a commercial real estate property that is located nearby local public
transportation networks. This provides the building occupants greater access,
convenience, and opportunity while also placing the building within a popular
and bustling area.
Tenants
Prefer Them
There’s no debate that transit-oriented
developments make life easier for tenants. Whether it’s multifamily, office, retail,
or even restaurant property; being located nearby local transit options makes
it convenient for residents and employees to get where they need to go.
This is especially true in big metro areas
where driving may not be the most convenient option. In today’s busy world,
more and more professionals are choosing public transportation as their daily
mode of getting to and from their destinations.
Tenants are more likely to rent out a space
that’s located near public transit. Clients and consumers prefer the ease and
accessibility of public transit options when visiting a business or brand. Team
members are attracted and retained by these prime locations.
No matter how you look at it, it’s a winning
property type.
Great
Marketability for Property Owners
Property owners and investors always have
their eyes on transit-oriented commercial buildings. Being close to the local
area’s network of public transportation is amazing marketing leverage within
the commercial market.
On top of this, transit-oriented developments
are more likely to produce high returns since commercial properties close to
transit opportunities are a hot commodity. It gives investors a great
competitive advantage, increases the property’s market value, and are
profitable additions to any commercial portfolio.
Developers
Love That They Attract Prospective Buyers
Developers are always looking to build a
commercial project that has access to public transportation. Planning a new
development along the city’s public transit network is a surefire way to
attract interested buyers.
Transit-focused projects quickly catch the
eyes of serious buyers who are willing to pay for the convenient location. It’s
a great strategy to ensure the long-term success and profitability of a
commercial property.
These are all reasons why transit-oriented
developments are so popular in today’s commercial real estate industry. Make
sure you’re adding this diverse and convenient property type to your commercial
strategy in 2020 and beyond.
Comments
Post a Comment