How Mayor O'Connell's Transit Plan Could Impact the Nashville’s CRE Market
The commercial real estate (CRE) market is an ever-evolving industry impacted by spending patterns, technology, and cultural movements. Government policies and regulations, too, have always played a role in the CRE market, and this trend is expected to be prevalent in Nashville's CRE market in 2024 in light of Mayor Freddie O'Connell's newest transportation and transit initiatives.
Nashville Mayor Freddie O’Connell recently unveiled updated concept maps that depict how dedicated transportation funding could revolutionize Nashville's mobility options. These maps, evolved from earlier concepts presented at the Technical Advisory Committee meeting, outline potential enhancements in various key areas. The mayor is actively seeking input from the public, Metro Council, and advisory committees as part of the transportation planning process.
The "Choose How You Move" concept maps illustrate plans to enhance:
Bus Rapid Transit (BRT) on major roads
Frequent Service Network
Sidewalk infrastructure
Smart traffic signal systems
Expansion of local public transit services
Introduction of new express transit routes
Mayor O'Connell emphasizes the significance of engaging with stakeholders to shape transportation priorities, including sidewalk construction, traffic signal improvements, and investment in modern infrastructure for safer mobility options.
The concept maps focus on the “core areas where Nashville's transportation system needs modernizing,” proposing:
Potential construction of 86 additional miles of sidewalks to connect neighborhoods and major corridors.
Improvement of approximately 600 traffic signals to optimize traffic flow, particularly along major routes to county lines.
Introduction of 38 miles of BRT lanes on busy corridors such as Dickerson Road, Gallatin Road, Murfreesboro Road, and Nolensville Road.
Expansion of frequent service, express routes, and new local transit routes to enhance accessibility and reduce transportation costs for residents.
Additionally, considerations for equity, such as reduced fares for low-income individuals and enhanced safety measures, are integrated into the plan. (nashville.gov)
Overall, the "Choose How You Move" initiative aims to address Nashville's transit deficit, as "there are only four major metro areas in the country that do not have funding dedicated to transit," and Nashville is one of them (Capital Analytics Associates). With an emphasis on accessibility, safety, and community input, O'Connell's transit plans could potentially have several impacts on the commercial real estate (CRE) market in Nashville, including:
Transit-Oriented Development (TOD): The introduction of new transit infrastructure, such as bus-rapid transit lines and transit centers, could stimulate transit-oriented development in areas surrounding these transportation hubs. Developers may seek to capitalize on the increased accessibility and connectivity provided by the transit system by constructing mixed-use developments, including residential, commercial, and retail spaces, near transit stations.
Property Values: Properties located near transit stations or along transit corridors may experience an increase in value as access to public transportation improves. This could lead to higher demand for commercial real estate in these areas, potentially driving up prices and rents for office, retail, and other commercial properties.
Shift in Demand: The availability of improved public transportation options may influence tenant preferences and location decisions. Businesses may prioritize office locations that are easily accessible by public transit to attract employees who rely on public transportation for their daily commute. Similarly, retailers may seek locations near transit hubs to capitalize on foot traffic generated by transit users.
Redevelopment Opportunities: The development of new transit infrastructure could create opportunities for redevelopment or adaptive reuse of underutilized or vacant properties along transit corridors. Developers may explore options to repurpose existing properties into transit-supportive uses, such as mixed-use developments, transit-oriented retail, or affordable housing.
Market Perception: A well-executed transit plan could enhance the overall attractiveness and competitiveness of Nashville's commercial real estate market. Investors, tenants, and businesses may view access to efficient and reliable public transportation positively, potentially boosting confidence in the local CRE market and attracting new investment.
O'Connell's transit plans have the potential to impact the CRE market in Nashville by influencing development patterns, property values, tenant preferences, and market dynamics. However, the actual impact will depend on the implementation and success of the transit initiatives, as well as broader economic and market factors.
At Eshelman Construction, we strive to stay ahead of development in the communities we serve. We are more than happy to consult with you regarding O'Connell's plans and how they may impact your commercial real estate project. Email us or give us a call today.
Photo credit: Ambrose Prince.