Updated: May 2
The criteria that shapes the new infrastructure projects, particularly in transportation, will have a positive impact on the real estate sector. According to SmartBrief, excellent investment opportunities for real estate are coming from new infrastructure projects that are climate change resistant, value the previously marginalized neighborhoods, take in consideration traffic patterns and facilitate communication between places (transportation).
“Remy Raisner pointed out that the pandemic has been great for the growth of emerging Brooklyn neighborhoods, where his private equity firm The Raisner Group has apartment and commercial buildings. He expects that trend to continue. People are moving there because they value having more space at home, especially if they plan to continue working from home, even partially, he said. And while that may mean commuting less, Remy suggests that people may be willing to commute longer distances when they do. But strong public transportation will remain key”.
Infrastructure needs to incorporate multimodal transportation, the design and planning must take into account parking spots, pedestrian paths, bike lanes, buses and shuttle services. Experts said that “infrastructure bill impacts the region will depend on how that money trickles down from the federal government to the state and then how it's deployed throughout the municipalities, but well planned hubs are good real estate development opportunities”.
Similar development projects have worked in other areas, for example, the Big Dig, that helped reconnect east Boston with downtown. This project had an enormous impact on real estate opportunities that wasn’t easily recognized before. “If they're in neighborhoods where things like the existing housing stock is either insufficient, needs to be rehabilitated, or -- based on growth in those areas -- needs to be added to, I think that creates great opportunities for the real estate industry. There's certainly a significant number of examples of urban case studies where highways have cut off certain parts of a city.”
“Alexander Heil, vice president for research at Citizens Budget Commission and adjunct professor at Columbia University and New York University said: How can we actually think about levels of service that will optimize the mobility that is provided to residents, to workers, to commuters? And how can we get the greatest economic benefit in the long term for dollars? And if we can do that, I think, the transit system of the future may actually not in certain parts resemble the transit picture of the past.”
At MKThink we're developing technologies and strategies to help clients optimize their resources for the future. One of the biggest issues we face in real estate is under-occupancy and utilization, where space sits empty or partially full for many hours of the day. By better optimizing the use of space, we can help avoid building more buildings that we don’t need, saving money for clients and reducing the carbon impact on the environment. To learn more about how MKThink helps organizations strategize their future, please contact us.