Part of being successful in commercial real estate is keeping up with trends and how the industry and society as a whole are changing. After all, a few years ago nobody would've expected the office industry to lose some of their market share to co-working office spaces, the newest way that people across the world are working.
The fact is that society changes over time, and people’s expectations change along with it. The United States has always been known for its commuting culture, but that’s starting to change. These days, Americans are tired of spending hours in traffic; they want to live near their workplace and would like to have the option of public and alternative modes of transportation. Enter transit-oriented developments. This trend has taken the CRE industry by storm, and here’s why:.
It’s the Future of City Planning and Real Estate
Transit-oriented development has become the hottest buzzword in the industry, and for good reason. Large cities and small metropolitan areas have been working tirelessly for the past five years to make real estate and transportation more ergonomically designed, and it’s a trend that doesn’t appear to be losing popularity in the future. Simply put, residents want convenience and commercial real estate developers want easier access to their properties, so it’s a win-win situation.
CRE Investors Win Big
The shift towards transit-oriented development has benefitted the real estate industry in a number of ways. In a report released by the Federal Transit Administration, transit-oriented development has helped the real estate industry by:
- Revitalizing old neighborhoods that were previously neglected.
- Less traffic congestion for residents going to and from malls, shopping centers, and other businesses.
- Increased housing along transportation routes.
The move towards transit-oriented development means that people have easier access to parks, workplaces, businesses, and even apartment buildings. All of this helps inform their decision of where they want to shop, live, and even work; by making urban areas more accessible and easier to navigate, city planners are giving real estate developers and investors added support.
Transit-Oriented Development Is Part of a Bigger Trend
The CRE industry isn’t just capitalizing on transit-oriented development, but rather an entire cultural shift in how we live, work, and play. These changes are spearheaded by the millennial group, who are now the biggest part of the United States’ labor force. Changes in Midwestern cities over the past decade can be partly attributed to the influx of millennials coming from the East and West Coasts. During this time, a lot of large and medium-sized cities have experienced revitalization and more transit-oriented development, which in turn made their cities more attractive to businesses and Americans from other parts of the country.
When it comes to urban planners, transit-oriented development has been a buzzword that’s been around for nearly 20 years. Now that it’s been put into place in cities across the United States, we’re seeing just how much growth and development it can bring metropolitan areas. For the CRE investor, this means more shopping centers, multi-tenant properties, and a demand for more commercial and industrial buildings.