Transit-Oriented Development and the Future of Commercial Real Estate

By maninboulder, Unfiltered 8-17-05

Transit-Oriented Development and the Future of
Commercial Real Estate

Understanding Transit-Oriented Development is becoming more important for the users and investors of commercial real estate in Boulder/Denver. Transit-Oriented Development, or TOD, is a powerful trend shaping the urban/suburban built-environment. TOD allows for people to live, work and shop with far less dependence on the automobile. And as crude oil prices approach $70/barrel, this trend in real estate in one to pay close attention to.

Brief TOD History. Prior to the advent of the automobile in the United State, the vast majority of all real estate development was transit-oriented. Where public transportation was not available, private developers built private street-car lines to serve the neighborhoods they were developing on the fringes of the urban areas. These privately-built transit systems allowed Americans to live outside of the city, yet work and shop within the city. Thus was born the Suburb.

When use of the automobile began to grow geometrically in the 1930’, 40’s and beyond, many of these private transit lines were bought up and torn out by companies with automobile interests, including the likes of General Motors, Firestone Tires and Standard Oil. As the automobile became the pre-eminent means of transportation, the suburb became the dominant way of living in the United States. Commercial development followed housing to the suburbs to provide retail and office space for the burgeoning population of the post-World War-II Baby Boom, and other population waves to follow.

Suburbia ruled during the second half of the Twentieth Century. Along with this great expansion outside of the urban core came a deep dependence upon the automobile and fossil fuels to power them. Sprawling development into previously rural areas and urban decay in large cities, accompanied the rise of the suburb.

Fast-forward to November 2004. With the voter passage of the $4.7 billion FasTracks plan, residents of Boulder and Denver Metro sent a clear signal of their commitment to mass transit and the TOD which will surround the transit stations. In this way we are re-embracing some of the best aspects of the past, and establishing Denver/Boulder as a metropolitan region who ‘walks her talk’ when it comes to matters of sustainability and smart-growth. Transit stations are planned throughout with metro region, including very significant stations in Boulder, Louisville, Broomflield and Longmont.

FasTracks is a long-term project, with the public infrastructure to built-out over the next 12 years. As FasTracks re-shapes the way we get around Boulder/Denver, there will be many opportunities for commercial and mixed-use development and investment. Conversely, commercial real estate that can be accessed only by car, may begin to become less favored by tenants and investors as gasoline price top $3.00/gallon mark……as some energy experts predict will occur in the next twelve months. Savvy investors and users of commercial real estate will pay keen attention to these trends. The best way to learn FasTracks and the TOD opportunities that will arise, is to attend public information meetings, and stay tuned in through newspapers, professional organizations like the Urban Land Institute, and through the internet.

For those interested in Boulder’s Transit Village at 30th and Pearl, The City of Boulder is offering a series of planning meeting at the West Senior Center at 909 Arapahoe in Boulder:

Wednesday, Aug. 31, 6 - 9 p.m.
Bus tour & Presentation - RSVP to 303-441-3229 for bus tour

Wednesday, Sept. 7, 6 - 9:30 p.m.
Workshop #1: Community Character - RSVP to 303-441-3229 for Workshop #1

Friday, Sept. 16, 6:30 - 8:30 p.m.
Speaker: Dena Belzer, Berkeley, Calif.
Transit-oriented Development Examples

Saturday, Sept. 17, 8:30 a.m. - 1:30 p.m.
Workshop #2: Future Vision - RSVP to 303-441-3229 for workshop #2

Wednesday, Sept. 21, 6:30 - 8:30 p.m.
Results of the future vision workshop

For more info on these meetings, please visit www.bouldertransitvillage.net .
For info TOD seminars offered through the Urban Land Institute, visit www.uli.org. My firm also has created a weblog where information can be obtained on the TOD and the FasTracks project. The blog address is http://transitorienteddevelopment.blogspot.com/ .


About the Author. Mark Casey is president of Casey Partner, Ltd. a commercial real estate firm headquarter in Boulder. Mark holds a BS degree in Public Administration from the University of Missouri and a Master of Business Administration (MBA) from the University of Virginia. Mark began his real estate career with Trammell Crow Company in the 1980’s and spent twelve years with The Neenan Company a Colorado Architecture/Construction company , before founding Casey Partners, Ltd. He is a member of Commercial Brokers of Boulder and the Urban Land Institute (ULI).

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