WASHINGTON, DC–We all know that walkable communities are viewed more favorably by tenants and by those tenants' customers — whether they are shoppers or office dwellers. Now JLL has conducted research to quantify just how favorable a walkable community is.
It has found that:
- Consumers spend more: Pedestrians may spend up to 65% more at retailers than shoppers that drove to the store.
- Office rents are higher: Average office rents are 37% higher in walkable markets than those that are not deemed walkable.
EVP at Federal Realty Chris Weilminster takes a stab at explaining the first finding. Federal Realty, of course, has several projects around the country and as Weilminster tells GlobeSt.com, walkability is an important component to them.
Retailers like walkable communities, he says , because the dwell time in the community — and hence the store — is so much greater compared to a shopping center where the consumer drives up to the mall, parks and goes in.
That, he said, is a very specific, pointed trip.
A walkable community by contrast with its longer dwell time means a shopper goes to a store, could bump into a friend, they browse together and then decide to go next door for some coffee, or some such scenario. “That is what happens when there is an all encompassing environment that's comfortable to stay in for an extended period,” Weilminster says.
The increased office rents are due to the numerous amenities in the community, JLL's Bernie McCarthy tells GlobeSt.com.
“When a decision-making team polls its workforce to understand what is most important to them, I think amenities are going to be the number one item on the list,” he says. “Second is transportation and most walkable communities are connected to public transportation.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
