The American Society of Civil Engineers estimates that the United States needs to spend $3.6 trillion by 2020 just to bring the country’s infrastructure back to a level described as adequate.
A new report by Transwestern, a privately held real estate firm, makes a case that investing in infrastructure can also be beneficial to surrounding commercial real estate. Called “Cranes and Lanes,” the report identifies major infrastructure projects in nine markets, and describes how the projects are impacting—or are likely to impact—the larger built environment.
“Cities have recognized that in order to stay competitive and generate economic development, the city’s infrastructure must keep up,” adds Brian Landes, a GIS expert and the report’s author. “While projects analyzed in the report run the gamut from new stadiums to reworked interchanges to entirely new districts, they do have one thing in common: a relatively certain boost in rents and occupancy.”
Several of the projects cited revolve around transit, such as the ongoing Modernization Project at Chicago’s O’Hare Airport, which Transwestern sees as a “catalyst for economic growth and job creation.” But there are a number of nonresidential building projects that are also expected to lead to ancillary development and construction.
Examples include:
• SunTrust Park, the new stadium for Major League Baseball’s Atlanta Braves designed by Populous, which should be completed next year. Transwestern says this stadium will bring with it a $400 million shopping, dining and entertainment district, as well as a new Omni Hotel and a 300,000-sf office building that Comcast will occupy.
• Seaport Square is a new neighborhood created from 23 acres of undeveloped land in South Boston’s emerging Seaport District. When it’s completed next year, it will encompass 2.75 million sf of residential, 1.25 million sf of office, 1.25 million ft of retail, 800,000 sf of hotels, 265,000 sf of cultural and civic space, and 2.25 million sf of parking. “The district will spur an evolution of Downtown Boston and shift the commercial center to the south and east,” the report states.
• Hudson Yards is the redevelopment of a vacant former industrial neighborhood along the West Side of Manhattan in New York City. It traces its roots to a 2005 rezoning aimed to transition the area into an extension of the Midtown business district. The project will eventually feature 6 million sf of office, 750,000 sf of retail, 5,000 apartments, 2 million sf of hotel and 14 acres of public space. Completion 2018.
• In San Francisco, Transbay District is currently under development. It will eventually house an intermodal transportation destination and 6 million sf of new office space. The new transit center will house three transportation options: (1) Caltrain will extend its terminus further downtown into the Transbay Transit Center; (2) The center will be the terminus for the future California High Speed Rail Line; and (3) the center will be the hub for regional bus service. Amidst the office build-out will be Salesforce Tower, the corporate headquarters for Salesforce and the second tallest building in the Western U.S. Completion 2020.
• Oakland Global Trade & Logistics Center will sit adjacent to the Port of Oakland on an Army base decommissioned in 1999. The project will bolster the West Coast’s third-largest port by adding an intermodal rail hub, additional railyards, a bulk terminal and more than 1 million sf of warehouse and distribution space. The project, which should be done next year, comes at an important time for the Port of Oakland, which moved nearly 2.3 million containers in 2015 and whose volume is expected to grow in the coming years.
Related Stories
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 85 Office Sector Construction Firms
Turner, Structure Tone, and Gilbane top BD+C's ranking of the nation's largest office sector contractors and construction management firms.
Giants 400 | Aug 5, 2015
OFFICE SECTOR GIANTS: Today’s workplace design must appeal to Millennials’ ‘activity-based’ lifestyle
Office market AEC Giants discuss the latest trends workplace design, and the state of the office construction sector.
Contractors | Jul 31, 2015
Nonresidential fixed investment falls in second quarter
In the first half of 2015, both the broader economy and nonresidential investment lost the momentum they had coming into the year, said Associated Builders and Contractors Chief Economist Anirban Basu.
Sports and Recreational Facilities | Jul 29, 2015
Milwaukee Bucks arena deal approved by Wisconsin state assembly
Created by Milwaukee firm Eppstein Uhen Architects and global firm Populous, the venue will be built in downtown Milwaukee. Its design draws inspiration from both Lake Michigan, which borders Milwaukee, and from aspects of basketball, like high-arcing free throws.
Contractors | Jul 29, 2015
Consensus Construction Forecast: Double-digit growth expected for commercial sector in 2015, 2016
Despite the adverse weather conditions that curtailed design and construction activity in the first quarter of the year, the overall construction market has performed extremely well to date, according to AIA's latest Consensus Construction Forecast.
Multifamily Housing | Jul 27, 2015
Miami developers are designing luxury housing to cater to out-of-town buyers and renters
The Miami Herald reports on several new multifamily projects, including the Paramount Miami Worldcenter, whose homes include maid’s rooms, larger terraces, boutique-size closets, and guest suites.
Green | Jul 23, 2015
NASA: U.S. headed for worst droughts in a millennium
Data from NASA shows carbon emissions could be the driving force behind devastating water shortages and record droughts in the western U.S.
Airports | Jul 22, 2015
MUST SEE: JFK airport taps Gensler to design terminal for animals
Pets can enjoy luxurious spa and grooming services before being transported directly to their flight from the terminal.
Office Buildings | Jul 21, 2015
Finally! There's a workplace trend that’s worth embracing
There’s a realization by corporate real estate executives that in order to create a successful workplace, there must be alignment between their people, their place, and the tools they have to do their jobs.
Codes and Standards | Jul 16, 2015
Berkeley, Calif., adopts balcony inspection program following deadly collapse
Apartment building balconies will be subject to inspections every three years under new regulations adopted following a deadly collapse.