The next big thing is actually an old idea: trains. Commercial real estate developers are currently focusing on transit-oriented construction: high-density developments in close proximity to rail stations.
According to the Urban Land Institute (ULI), rail-focused construction is back in vogue. ULI notes:
“What is different about all these station concepts today, compared with renovation projects decades ago, is that, once again, they embrace trains. They also integrate additional development opportunities, ultimately resurrecting the role of train stations as civic linchpins.”
One of the projects being closely watched is the redevelopment of the Transbay terminal and surrounding neighborhood in San Francisco. A new high-speed rail station is planned for downtown San Francisco, connecting with local transit options, including buses and the Bay Area Rapid Transit metro system and Caltrain commuter rail.
Hines and Boston Properties are planning a 1.4 million-square-foot office tower, the Transbay Transit Tower, adjacent to the station at 101 First St. The planned high-rise will be the tallest building on the West Coast, and the seventh tallest in the United States.
In addition, developers TMG Partners and Northwood Investors recently acquired a group of parcels at Mission and First streets out of bankruptcy, and have plans for high-density development near the station of 1.2 million square feet of office space and 605 condominium units.
Loretta Clodfelter is a contributor to Institutional Real Estate, Inc.
