Introduction:
Walkability is a concept increasingly shaping the commercial real estate (Cw) landscape.
Defined as urban locations that offer convenience, unique experiences, and easy access to amenities, walkable areas are highly desirable to both residents and employees, creating prime opportunities for Cw investors.
Key Takeaways:
- Strong correlations exist between walkability and Cw metrics like property values, rental rates, retail sales, occupancy, absorption, and price resilience.
- Mixed-use developments in urban areas often outperform single-use properties in attracting tenants and delivering returns.
- Companies are willing to pay a rent premium for walkable locations, recognizing the importance of walkability in attracting top-tier talent.
- There is a substantial investment opportunity in walkable real estate, as demand continues to outpace supply.
How it Works:
Walkability is assessed through various metrics, such as address, neighborhood, or city-level scores.
Cw firms like JLL often calculate proprietary Walk Scores, which have shown that properties with higher scores experience greater price appreciation and rent premiums.
Key Components:
Walkability factors include proximity to public transit, availability of amenities, and thoughtful urban design.
This enhanced walkability brings foot traffic and boosts retail sales, contributing to higher occupancy rates and property values.
Benefits:
- Higher Property Values and Rental Rates: Urban walkable properties see significant price and rent growth compared to car-dependent areas.
- Increased Foot Traffic and Retail Sales: Infrastructure supporting walkability—like pedestrian and bicycle paths—boosts foot traffic and retail sales for nearby properties.
- Appeal to Tenants and Employees: Walkable spaces offering convenience and amenities are attractive to tenants and employees alike, enhancing leasing demand.
Takeaway:
Walkable locations drive increased property values, rent premiums, and retail sales, making them valuable assets for Cw investors. Considering factors like transit access, amenities, and urban design can help investors make well-informed decisions and contribute to a more vibrant future in the Cw industry.
Disclaimer:
The information on this website, including glossary definitions, is intended for educational and informational purposes only and not as professional advice. While we strive for accuracy, we make no guarantees regarding the completeness, reliability, or timeliness of the information provided. We are not liable for any loss or damage arising from your use of the site. Investment decisions in Cw should be made based on individual due diligence and professional advice. Laws and regulations are subject to change; always consult legal and financial experts before making decisions.
