Transportation is a fundamental aspect of any metropolitan plan. Getting people to and from their destinations is a primary concern for cities, where accessibility and smart planning are keys to success.
In many of the country’s greatest cityscapes, driving on busy roads is not always the best way to move around. At the same time, public options such as buses, trolleys, trains and subways are getting vamped up with the latest advances in technology. Trains are getting faster, bus routes are becoming more diverse, and subways are getting more secure.
Transportation plays a major role in the commercial real estate business – specifically in the office and multifamily sectors. Let’s explore the connections between transportation systems and the commercial arena.
Transit: Pro or Con for Office and Multifamily?
Transit is a key benefit for any office or multifamily asset. People need to be able to easily get to and from the workplace, and multifamily tenants are looking to live in a centralized location that offers convenient transport networks.
On the flip side, transit can be a big drawback for office and multifamily when not properly planned. Even the greatest office buildings or multifamily properties will take a hit if they’re not located in a strategic area – specifically, one with ample public transportation options.
As we can see, transit-based planning is required to optimize a multifamily or office space.
Transit is a Major Point of Asset Desirability
A large part of creating an attractive CRE asset is thinking about the greater surrounding area. Investors and developers need to consider how team members, tenants and clients will be able to move around the asset.
Contemporary multifamily tenants want to feel mobile, well-connected and integrated into the rest of the world. Multifamily properties that have a convenient public transportation system nearby can mobilize this as an advertising point, which will boost resident appeal while also establishing a competitive advantage.
To the same effect, offices that are within a reasonable distance to transit systems are more likely to attract business and talented team members. Using this as leverage, investors and developers can market to top-tier tenants. This can help boost overall districts to have notably higher property values.
Transit Accessibility is a Must for CRE Investments
When it comes to investing in commercial real estate, be sure to consider how transit will impact your overall standings. While transit is often overlooked in investments, experienced investors know it can make all the difference in cultivating success.
Investors, make sure you’re performing due diligence on a potential asset’s location. When it comes to office and multifamily, it may be a good idea to gear your property shopping towards nearby transit outlets. Even if a transit-oriented property is listed at a higher price point, it’s overall ROI capacity may make it worth it.
The same thing goes for new developments. Driving your efforts towards a transit-accessible location can be a huge advantage for the asset down the line.
Don’t ignore the effects that transit has on commercial investments. For more on the office and multifamily sectors make sure to stay connected with the NAI Global Newslink.