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5 infrastructure initiatives that could affect CRE

Jan 25, 2017

light-rail-792314-edited.jpegThe election of a new President of the United States could affect commercial real estate in numerous ways. For one, there is his pledge to spend $1 trillion on the nation’s infrastructure.

There is always plenty of economic uncertainty when a new administration takes office, and it’s true that the state of U.S. infrastructure has been in decline for a while now. If improvements are made, there are several ways this could boost the commercial real estate industry.

1. Public transportation

Public transportation improvements are key in urban areas nowadays. Millennials and baby boomers are both flocking to these areas in major metropolitan neighborhoods for their proximity to live/work/play environments. If buses, subways, commuter trains and other modes of transportation are more readily available, those areas will likely be more attractive to tenants in multifamily buildings and retail and restaurant patrons.

2. Regional and national rail systems

Improvements to rail systems will help business travel, especially on the Northeast Corridor line of Amtrak, which regularly shuttles people to cities in regions with major conferences. This would benefit hotels, conference facilities and restaurants.

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Additionally, and maybe more importantly, the rail systems are a primary way of transporting goods from ports to warehouses and distribution centers. If that process is sped up, then the delivery time to get products to consumers will, too.

3. Roads and bridges

Of course, roads and bridges are also essential to both commuters and trucks carrying goods and products around the country. Improving these everyday modes of travel helps everyone—getting products to warehouses, workers to offices, and consumers to shopping centers.

4. Ports

There has been a lot of talk over the past few years about how the nation’s ports, on both coasts, are not ready for the Panamax switch. This would mean dredging deeper entry points and widening boat moorings to allow larger ships to make their way in.

5. Airports

We’ve all had bad airport experiences (delays, LaGuardia, LAX, etc). When business travelers in particular face delays, that costs some company time and money. The same goes for goods and products being sent to faraway destinations.

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Topics: Industry News

Ian Ritter

Written by Ian Ritter

Ian Ritter is a veteran commercial real estate writer. He worked several years as retail editor at GlobeSt.com and currently writes about the industry for several corporate clients and news organizations. He holds a Master's Degree from Columbia University's School of Journalism.

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