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Trend Continues as Builders Flock to Transit-Oriented Development

December 15, 2017 - By Brendan Carroll - Perry Research

BOSTON–Despite a scarcity of developable sites and high costs, construction activity has overwhelmingly switched to transit-accessible locations over the last several years, a dramatic shift from the transit indifference illustrated in previous decades.

A slowly renewing interest in locating new development proximate to transit in the early 2000s has turned into a torrent of demand, both for users as well as for developers hoping to capitalize on the trend. Despite a much higher density and associated cost of land, developers have been snapping up train-accessible land and under-utilized sites with a confidence the demand from the growing population of transit-dependent residents and workers will absorb these facilities upon completion. Since just 2014, the trend has become dominant with most of the region’s office and residential development occurring near transit-oriented sites, the most pronounced such trend since before the automobile craze beginning in the mid-1950s. Below are some facts related to this trend, in both office/lab and multifamily properties.

What’s With That Commuter Rail Craze?

With commuter rail traditionally serving a parking-oriented set of suburban commuters, development has accelerated in recent years around commuter rail stations themselves. While observed regionally, some development is intriguing as it suggests a future with a far more robust role of the commuter rail system, one reflecting its original purposes. This escalating use is illustrated by Boston Landing, completed earlier this year and potentially a good example of an increase in use of the system for both inbound and outbound point-to-point travel.

Read the full Node Report by Perry Research Here.

Graphics Courtesy of A.W. Perry Research