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Transit-Oriented Developments are the Golden Child: Here’s Why


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.

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