Developers & Investors

Smart Growth Stories: LOCUS President Chris Leinberger on the power of walkable development

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Over-building of drivable suburban development was a major part of the U.S.’s economic slowdown, and changing development strategies to meet shifting market demand will play an equally important role in repairing the national economy, says Chris Leinberger, President of Smart Growth America’s LOCUS.

As a vocal advocate for transit-oriented development (TOD) and walkable urban places, Leinberger sees how new demand for real estate is fundamentally changing the country – and its potential to revitalize economies across the nation.

“We’re in the middle of a structural shift in how we build the built environment in this country. The structural shift that we last had that was of this magnitude was back in the fifties where we shifted from investing in our cities to building the drivable suburban nature of our country,” he says. But now, “the pendulum is coming back to building walkable urban places.”

Leinberger detailed the rise of walkable urban places in the Washington, D.C. metro area in a recent report called “The WalkUP Wake Up Call,” which emphasized the economic potential of these places. “What you see created throughout the country as these walkable urban places get created is an upward spiral of value creation,” he says, whereby walkable development sets into motion a chain of events that ultimately enables neighborhoods to thrive.

Local Leaders Council LOCUS

Smart Growth Stories: Taking transit-oriented development to a new level in Portland, OR

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For developers selecting a site for new development, transit accessibility is a major selling point. A good transit connection can increase property values while making a site more attractive to potential investors and residents. But because transit stations are limited resources, only a handful of sites can boast direct transit access. What if a site were to have access to not only one transit line, but three?

That is the situation for LOCUS member ZRZ Realty and its property Zidell Yards. With three types of transit, the Yards might be the most transit-oriented development site in the country.

“There are very few sites that have streetcar and light rail,” says Dennis Allen, Director of Planning and Development for ZRZ Realty and LOCUS Steering Committee member. “I guarantee you that we’re probably the only one that also has an aerial tram that goes next to it. If you throw that in, it’s probably the most pre-eminent transit-oriented development site.”

Zidell Yards is a 33-acre former shipbuilding yard along the Willamette River in Portland, which ZRZ is now working to develop into a mixed-use district. Located directly adjacent to downtown and close to Oregon Health & Science University, a major employer in the area, it is the largest undeveloped site in the city. With such immediate transportation access, the property has created high hopes for economic development and investment in the area and Allen is confident his company can capitalize on the demand for TOD in Portland right now. More amenities, retail stores and restaurants are expected soon, following the development-friendly path of the city’s expanding light-rail line.

Local Leaders Council LOCUS

Smart Growth Stories: Building a solid foundation for the future of Detroit

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Detroit is changing. The popular story of the last half-decade has largely revolved around the economic fallout of the troubled automobile industry, interspersed with tales of population drain and abandonment. Based on this narrative, it might be easy to dismiss Detroit, to write the city off as a once-great but now-fallen metropolis of yesterday.

Easy, that is, unless you’ve been following the news. A New York Times article from a year ago picked up on the massive influx of young, educated people even in the face of massive out-migration, while a Forbes article from July of this year highlighted the development in downtown Detroit, largely centered around Woodward Avenue, the spine of the downtown area.

These news stories are beginning to touch upon what people familiar with the new movement in Detroit already know: Detroit is rebuilding. But this time, developers and investors are taking a different tack, focusing on downtown, mixed-use, and transit-oriented development strategies, shifting the city away from the large manufacturing development that has characterized Detroit for so long.

Bedrock Real Estate is at the forefront of this new strategy. “We’re going to continue to fill up Detroit, downtown Detroit. There’s no longer this need for manufacturing plants. You don’t need these big, huge buildings anymore,” says Jim Ketai, Managing Partner of Bedrock and member of the Steering Committee for LOCUS: Responsible Real Estate Developers and Investors. “So we are recreating Detroit. It’ll be a new Detroit, something different than what Detroit once was.”

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Smart Growth Stories: Emerick Corsi on driving growth with transit

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Many people recognize Forest City Enterprises as one of the biggest real estate companies in the nation, with a multi-billion dollar portfolio that spans coast to coast and a spot on the New York Stock Exchange.

What’s less well known is that Forest City also happens to be one of the biggest advocates of walkable neighborhoods with transportation choices. Real Estate Services President Emerick Corsi is a firm believer in the power of transit to drive economic growth in surrounding areas, and the company is actively pursuing this kind of development. As a member of LOCUS, Forest City understands the impact of transit-oriented development on local economic growth and job creation.

Local Leaders Council LOCUS

Smart Growth Stories: More choice for less cost in Washington state

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“We cannot continue as we did in the 50s and 60s and 70s to sprawl out,” says John Hempelmann, one of the founding partners of Seattle-based law firm Cairncross & Hempelmann. “We need real economic opportunity for the development community building in the cities and building close to the transit hubs.”

Founded in 1987, Cairncross & Hempelmann is located in Seattle’s historic Pioneer Square District, highlighting its investment in maintaining the city’s distinct character. John Hempelmann is also a member of LOCUS, Smart Growth America’s coalition of real estate developers and investors committed to creating livable, economically vibrant places.

As a lawyer who represents real estate developers, Hempelmann keenly follows market trends in his hometown of Seattle. By helping developers build walkable neighborhoods, Hempelmann is giving consumers more options, allowing them to choose for themselves what kind of development they’d prefer.

“We are now providing an urban walkable option and we’re finding that a lot of people are opting for that choice,” he says. “It allows you to reduce transportation costs and allows you to spend more on housing so there’s an economic value to both the buyer and the seller.”

Local Leaders Council LOCUS

Smart growth stories: Michael Lander on changing markets and transit-oriented development in Minnesota

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To give people the kind of in-demand housing they want near jobs, shops and schools, America needs to invest in a diversity of transportation options and make it easier to build transit-oriented development, says Michael Lander of the Lander Group, an urban development firm based in Minneapolis, MN.

Helping meet that pent up demand won’t just be good for Lander’s bottom line, but will also enhance the quality of life for prospective residents in these new transportation-rich neighborhoods.

“High-density development really doesn’t work relying totally on single occupancy vehicles, so creating new transportation options and other ways to move around is critical to creating good urban places,” Lander says, adding that, “Our urban residents are looking for green spaces, certainly, open space, transportation connections, [and] ways to move around in their life to work and to services without using their car.”

With the successful opening of the Hiawatha light rail line last year, which connected downtown Minneapolis with the airport, as well as the nearly completed Central Corridor line between Minneapolis and St. Paul, Lander says there is a real opportunity in Minnesota to reap the benefits of transit-oriented development. And when that development takes root, many more local businesses and property owners will benefit from added sales and a greater “sense of place.”

Local Leaders Council LOCUS

Smart Growth Stories: Point C’s David Grannis on creating vibrant neighborhoods in downtown Los Angeles

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The right development can strengthen the economy of a neighborhood, a city or even an entire region. Places with housing and transportation choices are increasingly popular, and can benefit municipal budgets as well. Too often, however, this type of development is blocked by restrictive zoning guidelines or other regulatory policies, which stand in the way of fiscally responsible development – and market demand.

This is why real estate developers have joined together with Smart Growth America to create LOCUS: Responsible Real Estate Developers and Investors. LOCUS advocates for state and federal policies that help cities and communities get what they want from their spaces, while also investing ways that will remain viable for the future.

It is this shared vision for future development that drives people like David Grannis. Grannis is a managing partner of Point C, a strategic consulting group that focuses on land use and transportation and LOCUS member.

Local Leaders Council LOCUS