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When Retail Rides the Rails

April 12, 2010

In the decades preceding World War II, many urban areas grew outwards around rail transit, with streetcar lines and other urban rail systems reaching out towards suburbs, and interurban rail lines radiating from cities to more outlying towns.  However, growth in personal automobile ownership and highway improvements conspired to sound the death knell for many of these rail transit operations.
 
More recently, with automobile traffic in many metro areas growing exponentially and "green" causes rising to the forefront, there has been a renewed interest in rail transit.  Cities around the country have built or expanded urban and suburban streetcar, light and heavy rail technologies.
 
What does this mean for retail?
 
Design firm URS says this regarding Transit Oriented Development ("TOD"),TOD is not simply high-density housing near a transit station.  Authentic and complete neighborhoods with amenities such as stores, parks, schools, landscaping and engaging streetscapes, support a lifestyle that is attractive to potential TOD dwellers.
 
As interest and implementation of rail transit continue to grow, so too will the implementation of Transit Oriented Development.  In many cases, these developments are mixed-use, with residential, commercial and retail space constructed in a tightly-knit community pattern clustered at or near a rail station or streetcar line. Property values tend to rise significantly in areas within a quarter mile of rail stations, reflecting the enhanced desirability of living, working and shopping in those rail-accessible areas.
 
Being outside of a transit-oriented development doesn't necessarily mean that a retailer can't capitalize on possibilities related to transit.  Walking and bike paths are often developed in conjunction with rail transit developments and stations, granting an additional boost to personal mobility for transit users.  Retailers and developers who understand the impacts of being near a transit line can find the hidden value in some sites which otherwise might go completely unnoticed, such as potential re-development properties which happen to fall near a future rail station site.  And, in some cases, what many would consider to be an unsightly freight rail line "neighbor" might have retail-friendly rail transit already on the drawing board.

How can Research Help?
 
SRS Research can assist you in a transit-oriented retail initiative by:
 
•Identifying rail transit lines and stations, and highlighting their proximity to potential retail locations
•Emphasizing a transit station location as a benefit to a particular property or development
•Highlighting walk-ability and bike-ability from a site or from a rail station, where available