The Secrets to Success for Transit-Oriented Development

Proximity to downtown and employment centers, and the availability of developable land, are what lead to big real estate impacts from transit expansion. Source: CTOD
“Transit alone is insufficient to make a real estate market,” said Dena Belzer, the president of Strategic Economics, an urban design consulting firm. Her group is a partner in the Center for Transit-Oriented Development (CTOD), which this week released a new report on the effects of transit expansion on real estate markets.
Transit won’t, on its own, create a booming market for compact, mixed-use development, but if a city has a good, walkable grid and simply needs better access to jobs and centers of activity, it can do wonders. “There are sites where you can see that opening up access just really ‘popped’ things,” Belzer said. For the best chances of success, you need to use transit to connect underutilized land with walkable downtowns and employment opportunities.
The new CTOD report, “Rails to Real Estate: Development Patterns along Three New Transit Lines” [PDF], picked corridors in the Southeast (Charlotte, NC), the West (Denver, CO) and the Midwest (Minneapolis) to see how transit affected development patterns.

Residential units under construction near Charlotte's Blue Line. Photo: Willamor Media/Flickr
The big success story was Charlotte’s Blue Line – where transit “popped things,” as Belzer said. It’s the newest of the three lines, having just opened in 2007, at the height of an ongoing real estate boom. (It went bust along with the rest of the country, and all the big investors pulled out, but until that happened, everything was going great.)
Even in that short timeframe, this corridor saw the biggest spike in development after the opening of the transit line – nearly 10 million square feet of new development, compared with 6.7 million in Minneapolis and 7.8 million in Denver – and that’s along a rail line that’s only half as long as Denver’s (though tightly packed with 15 stations, compared to Denver’s 14).
Charlotte was destined for greatness because the city aligned its transit along all the right places, according to Belzer.




