Grand Parkway to Boost Commercial Sector

The recently completed segments of the Grand Parkway are thought to be a game changer.

HOUSTON—While there is general consensus that US infrastructure has long been underfunded and underdeveloped, a Transwestern report points to a number of cities that have projects underway that will reshape markets and boost the local commercial sectors. These projects span office, industrial, retail, hospitality and/or multifamily, depending on the specific focus. “Cranes and Lanes: The Link between Infrastructure and Commercial Real Estate” is the new report outlining some of the most prominent infrastructure projects currently underway throughout the country. It examines how cities making these massive investments will likely experience rent growth and increased occupancy in each respective market. Brian Landes , geographic information systems expert and the report’s author, says, “Cities have recognized that in order to stay competitive and generate economic development, the city’s infrastructure must keep up. 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. Cities have big decisions to make regarding when and where to make infrastructure investments, but the more progress made on this front, the more we’ll see commercial property markets contributing to a vibrant economy.” The report cites examples from numerous markets including Houston, specifically the Grand Parkway , explaining each infrastructure project as well as the commercial real estate sectors that are most likely to be impacted when work is complete. As the population of Greater Houston nears the 7 million mark, transportation planners are rushing to expand Houston’s sprawling transportation network to keep up. Houston has long grown past its first two beltways and is now expanding toward the route of Grand Parkway, which eventually will be a 180-mile beltway encircling Houston. The initial phase opened in 1994 with additions in 2008, 2013 and 2016.  The most recent sections complete an arc across Northwest Houston and surrounding suburbs. The expanded highway will help suburban commuters get around Houston easier and ease congestion on other roadways when completed this year. The project will eventually affect multiple commercial property types throughout Greater Houston. Grand Parkway will link two growing office destinations: the Energy Corridor submarket on the west side of Houston with The Woodlands in the north. Improved access and greater demand for office space in these submarkets is expected to lead to increased occupancy and higher rental rates. Funding is provided by toll revenue and the American Recovery and Reinvestment Act of 2009. Pete Johnston , senior vice president at Transwestern Development Company, tells Globest.com: “The recently completed segments of the Grand Parkway are a game changer, especially for Houston’s west and northwest markets. With the greatly improved access to these areas, significant pressure will be taken off I-10, the Beltway and 290, as the west side of Houston continues its rapid growth. Because commercial development thrives with expanding rooftops and superior transportation infrastructure, we anticipate development to stay strong in this vibrant area of the city.” Other projects reviewed in the report are in Atlanta–Interstate 285/GA-400 Interchange and SunTrust Park, Boston–Seaport Square, Chicago O’Hare Airport modernization, Los Angeles–Metro Line extensions and Middle Harbor terminal replacement, New Jersey Turnpike widening, New York City– Hudson Gateway project, Hudson Yards and Long Island Railroad eastside access, San Francisco Bay Area– Transbay District and Oakland Global Trade and Logistics Center , and Washington DC– Silver Metro Line .