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.
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.