Cities of all sizes are constantly developing and redeveloping infrastructure needs to meet changing population demands and improve growth opportunities. Think of the major infrastructure initiatives like the Big Dig in Boston, or adding light rail transit in Californian cities. These are examples of initiatives that continue to impact commercial real estate pricing, especially as those projects near completion.
This interdependency between infrastructure initiatives and economic development is well known, but how does it play out when looking at real-world examples in commercial real estate? Let’s focus on one.
The Big Dig Case Study
The Central Artery/Tunnel Project (CA/T), also known as the Big Dig, was a complex, multi-billion dollar project taking more than 15 years to complete. Its main initiative was rerouting the city’s main highway into a mile-and-a-half long tunnel (among other changes and extensions). Simple? No. Expensive? Yes. And not without its share of major problems.
On the other hand, from a commercial real estate and economic development perspective, the outcome has been positive. Construction on the tunnel was completed in 2007. Since that time, developers have been jumping at the chance to take advantage of the new development space above the tunnel. In fact, the development zone has attracted corporations like Amazon and General Electric, which has a significant impact on increasing commercial real estate valuations.
Successful infrastructure initiatives can offer prime real estate opportunities, whether it be in the form of a new developments or better transit access. As these infrastructure projects near completion, commercial real estate prices can fluctuate significantly within a shortened timeframe. Keeping an eye and ear tuned to real-time CRE data in your market can provide a strategic advantage when seeking out real estate opportunities as markets experience paradigm shifts.
Infrastructure initiatives and new developments can cause immediate changes in surrounding commercial real estate valuations and trends. Professionals who rely on commercial real estate for consistent revenue and success are doing themselves a disfavor by solely utilizing quarterly reports and manually updated listing data to inform their business decisions.
Stay ahead of real-time CRE market trends as major infrastructure initiatives occur. RealMassive’s commercial real estate data solutions offers real-time insight for real-time business decisions.