Thursday, October 9, 2014
Washingtonians Flock to Transit Hubs to Live, Work & Play
One of the leading real estate services firms, Cushman & Wakefield, released a report on development patterns in the DC area, Urban Development: Faster Greener Commutes Key to Sustained City Growth. The report stresses the popularity of transit-oriented developments both within cities and in some suburban areas like Tysons.While Fairfax County has placed an emphasis encouraging future growth in transit-oriented developments, the question could be asked whether Fairfax County is doing enough to ensure that these new developments are walkable and bikeable. The Mosaic District is touted as an example of good mixed-use development near transit, but walking and biking conditions in the Gallows Road/Lee Hwy area are dangerous and unfriendly, with wide streets, fast traffic, and almost no dedicated space for cyclists.
From the Cushman & Wakefield press release (emphasis added):
WASHINGTON, October 7, 2014 – Cushman & Wakefield today released a special research study detailing Washington, D.C.’s expanding transit system and development plans for keeping pace with the rapid population increase since 2000. The “Urban Development: Faster Greener Commutes Key to Sustained City Growth” report explores the trends, consequences and solutions of hyper-urbanization in 10 major North American cities: Washington D.C., Mexico City, Manhattan, Los Angeles, Chicago, Toronto, Miami, Atlanta, Boston and San Francisco.
The report features industry-leading insights and market analysis, animated GIFs is available to download at the following link:http://www.cushmanwakefield.com/en/research-and-insight/2014/urban-development-fall-2014/
Key findings of this report for Washington D.C. include:
Paula Munger, Cushman & Wakefield’s Washington-based Research Director, spearheaded the report and notes that “Public Private Partnerships are most critical to the successful revival of downtown cities—hip eateries, thriving arts districts, and fully occupied offices and residences depend on sustainable, quality transit—developers and governments must work together to make this happen.”
In April 2013, Maryland and Virginia were among 31 other states to pass legislation to enable public/private partnerships to be established for transportation projects. Virginia was an early leader in these partnerships and has evolved into a national role model.
Real estate occupiers and investors are seeking accessible locations close to where the millennial generation – expected to make up more than half of the global workforce by 2020 – live, thus driving the construction of the Transit Oriented Developments (TODs).
In the Washington region, the report highlights four key mixed-use developments, which are all located very close to Metro stations: CityCenterDC, The Yards in Southeast, Capitol Crossing and the Wharf.
“Transit oriented development (TOD) is the most substantial development trend of the early 21st century,” said Christopher B. Leinberger, the Charles Bendit Distinguished Scholar and Research Professor of Urban Real Estate, Chair of the Center for Real Estate and Urban Analysis at the George Washington University School of Business and President, of LOCUS: Responsible Real Estate Developers and Investors.
“As Cushman & Wakefield points out in its Urban Development research report, this trend is a majority and in some cases the vast majority of new commercial development, as well as residential development, in many Metro areas today,” said Leinberger.
The Sustainable D.C. Plan lays out a strategy to have 75% of all D.C. commutes taking transit, biking or walking by 2032. “Re-orienting our transportation spending toward rail and bus transit, biking and walking are the most important infrastructure investments North American metropolitan areas can make,” said Leinberger.
“As the C&W research shows, this new walkable urban development is occurring in both our central cities and urbanizing suburbs. Following the research findings will lead to rental and cap rate premiums that will not be ignored by investors and developers,” concluded Leinberger.
The report features industry-leading insights and market analysis, animated GIFs is available to download at the following link:http://www.cushmanwakefield.com/en/research-and-insight/2014/urban-development-fall-2014/
Key findings of this report for Washington D.C. include:
- Population growth is not confined to the city center although population in the District proper is at its highest level in four decades.
- Projects in the downtown core, or along transit hubs in the suburbs, which offer the live/work/play lifestyle, are attracting businesses and residents alike.
- DC ranks first in the U.S. among all urban areas in terms of wasted time commuting: a total of 67 hours per year, per commuter.
- Commuters in the District of Columbia are second only to New York City in terms of walking, biking or using public transport—D.C. government aims for 75% of all commutes to be within these modes, shrinking auto use among commuters from 42% to 25% by 2032, a goal no major city has yet attained.
- Long-term plan for Tysons calls for 75% of new development within a half mile of a Metro station.
- Montgomery County has a potential 13 million square feet of commercial space and 14,000 residential units within three quarters of a mile of the Red Line’s White Flint Metro stop.
Paula Munger, Cushman & Wakefield’s Washington-based Research Director, spearheaded the report and notes that “Public Private Partnerships are most critical to the successful revival of downtown cities—hip eateries, thriving arts districts, and fully occupied offices and residences depend on sustainable, quality transit—developers and governments must work together to make this happen.”
In April 2013, Maryland and Virginia were among 31 other states to pass legislation to enable public/private partnerships to be established for transportation projects. Virginia was an early leader in these partnerships and has evolved into a national role model.
Real estate occupiers and investors are seeking accessible locations close to where the millennial generation – expected to make up more than half of the global workforce by 2020 – live, thus driving the construction of the Transit Oriented Developments (TODs).
In the Washington region, the report highlights four key mixed-use developments, which are all located very close to Metro stations: CityCenterDC, The Yards in Southeast, Capitol Crossing and the Wharf.
“Transit oriented development (TOD) is the most substantial development trend of the early 21st century,” said Christopher B. Leinberger, the Charles Bendit Distinguished Scholar and Research Professor of Urban Real Estate, Chair of the Center for Real Estate and Urban Analysis at the George Washington University School of Business and President, of LOCUS: Responsible Real Estate Developers and Investors.
“As Cushman & Wakefield points out in its Urban Development research report, this trend is a majority and in some cases the vast majority of new commercial development, as well as residential development, in many Metro areas today,” said Leinberger.
The Sustainable D.C. Plan lays out a strategy to have 75% of all D.C. commutes taking transit, biking or walking by 2032. “Re-orienting our transportation spending toward rail and bus transit, biking and walking are the most important infrastructure investments North American metropolitan areas can make,” said Leinberger.
“As the C&W research shows, this new walkable urban development is occurring in both our central cities and urbanizing suburbs. Following the research findings will lead to rental and cap rate premiums that will not be ignored by investors and developers,” concluded Leinberger.
Saturday, March 24, 2012
Fairfax County 2050 Transit Study
It's a wide-ranging survey that asks about quality of life issues such as living in walkable, mixed use communities, the importance of access to transit, and the importance of providing better biking facilities. Is it more important to be able to walk to local destinations or would you rather have a short drive?
While a few of the questions mention biking, it isn't really treated on the same terms as walking, driving and transit. An example is the questions that asks "How far would you be willing to walk on a regular basis from home" but no mention of biking from home to cover much greater distances. There are also no questions about the importance of bike parking at transit centers or about the integration of bicycling and transit.
We suggest you take the survey and weigh in on these topics.
Labels: mixed-use development, transit, transit-oriented development
Monday, January 16, 2012
Road to the future: Bike-friendly communities
In the article Road to growth is out of the exurbs Post columnist Steven Pearlstein discusses this trend. When discussing the future of suburban office parks he notes that
Workers no longer prefer to work in them, companies no longer want to occupy them, banks no l onger will finance them, real estate trusts no longer want to own them band planning boards have become reluctant to approve them. In the future, developers say, offices will be part of mixed-use developments, with shops, restaurants, schools, day-care centers, and doctors' offices, preferably within walking or biking distance of condos, townhouses and Metro stops.
Across the region, a generation of baby boomers is getting ready to sell three-bedroom suburban colonials to Gen Xers who either don’t want them or can’t afford them. Add to that a wave of foreclosures and excess inventory left over from a speculative housing boom that has driven home prices in many submarkets to levels below the cost of new construction.
For exurban developers, the implication is pretty clear: The raw land they’re holding isn’t worth much and in any case, and there’s not much point trying to build on it until the excess inventory is worked off. Perhaps that is why developments that were started during the boom but were never finished are selling at 35 cents on every dollar invested in land, roads, street lights, sewer and water lines and half-finished golf courses. Even when the market clears, exurban development is likely to focus on low-cost starter homes.
All that contrasts sharply with what is going on in the District and inner suburbs, where prices have held steady and a construction boom is under way for new and remodeled townhouses and apartments. Despite the absence of bank lending, speculative condo developments have even begun to spring up in the hotter neighborhoods, almost all of them equity financed. This market is driven by singles, young-marrieds and empty-nesters, plus a growing number of families with children, all looking for a more urban, less car-dependent lifestyle.
This has major implications for Fairfax. Those areas that are more dense, with a mix of land uses near transit and that are more bike and pedestrian-friendly will thrive. Unfortunately, after years of catering to our car culture, we have few of these areas. Reston, Herndon, Vienna, Burke, and Alexandria have some of these characteristics. Many of our other more densely populated areas like Tysons, Springfield, and Annandale have not developed with pedestrians and bicyclists in mind and are in a transition period.Across the region, a generation of baby boomers is getting ready to sell three-bedroom suburban colonials to Gen Xers who either don’t want them or can’t afford them. Add to that a wave of foreclosures and excess inventory left over from a speculative housing boom that has driven home prices in many submarkets to levels below the cost of new construction.
For exurban developers, the implication is pretty clear: The raw land they’re holding isn’t worth much and in any case, and there’s not much point trying to build on it until the excess inventory is worked off. Perhaps that is why developments that were started during the boom but were never finished are selling at 35 cents on every dollar invested in land, roads, street lights, sewer and water lines and half-finished golf courses. Even when the market clears, exurban development is likely to focus on low-cost starter homes.
All that contrasts sharply with what is going on in the District and inner suburbs, where prices have held steady and a construction boom is under way for new and remodeled townhouses and apartments. Despite the absence of bank lending, speculative condo developments have even begun to spring up in the hotter neighborhoods, almost all of them equity financed. This market is driven by singles, young-marrieds and empty-nesters, plus a growing number of families with children, all looking for a more urban, less car-dependent lifestyle.
Bicycling has become part of the mainstream and the sooner our leaders recognize the need to accommodate them the better off we will all be.
Labels: bicycle friendly community, mixed-use development, suburban, transit-oriented development, urban
