Brightline Train Construction – What This Means for Orlando

It seems intuitive that commercial real estate properties near public transportation would be more sought after, and would, therefore, have higher property and rental rates. While intuition is important in commercial real estate, facts must always become the underlying source of conclusion. Extensive sums of data confirm that in commercial real estate development: location matters. This saying becomes particularly true when looking at specific locations and public transport availability.  

Owners, developers, investors, or any stakeholder who wants to gain a competitive edge in the market must understand the importance of monitoring today’s shifting transportation, especially in developing regions such as Orlando. We must prepare for its impact on commercial real estate development both now and shortly. 

The most exciting new prospect comes from the privately run company Brightline, looking to develop a new transportation infrastructure in Orlando after their recent success in 2018 which included routes to and from Miami and West Palm Beach.  Passenger service is expected to begin in early 2023 on the privately held company’s $2.7 billion extension now linking South Florida with Orlando! It is said that Brightline high-speed rail to Orlando has reached 70% completion by January 16th. Eventually, travelers will be able to ride the train between Walt Disney World and the Orlando International Airport (MCO) with its main goal to finally establish an effortless intercity rail connection between Miami and Orlando. 

But what does this mean for Commercial real estate and the economy of Orlando…? 

It seems a more interconnected city only improves growth and developmental potential within regions. A joint study conducted by the American Public National Association of Realtors, released in 2019, found that commercial properties that were located within a half-mile radius of public transit services seemed to have higher median sale prices than those located farther away.  Based on an examination the report noted that residential sale prices were 4 to 24 percent higher and that commercial property values increased 5 to 42 percent per square foot. In Boston, office sales prices were found to increase by 35 percent which was attributable to nearby transit availability, while Los Angeles saw a 15 percent increase, and Hartford saw a 14 percent increase for the same reason. Orlando could potentially follow the same trend.  

The networks also provide additional business-generating connections that ultimately increase property value further. As undeveloped transport infrastructures are evaluated and revamped, areas without robust regional networks should plan to incorporate them as much as possible. Given the positive influence on commercial real estate, developers should support the thoughtful inclusion of regional connections into the cities in which they are building.