Category public transportation

The “King of Prussia Line” will change Philadelphia forever

 

As PBJ quotes, “All aboard the KOP Express!”

For those who are unfamiliar, KOP is a local acronym for King of Prussia, which is considered to be the largest mall in the US (when measured by total retail space). It’s a slippery slope, as Mall of America has more “stores.”

No matter which way you slice it, KOP is a big and awesome place.

Now, to address the article that inspired this post. There has been lots of talk as well as various plans presented (remember the Schuylkill Valley Metro) for a new rail line out to KOP … for years. For the most part, the plans were always too big and the cost was too extreme.

Enter, the “King of Prussia Line.”

Since SVM is basically dead, and the need for convenient rail out to KOP is more alive than ever, the simplest and most doable approach seems to be an extension of the Manayunk/Norristown Line. Over the last 2 years, there were 30 different options being explored based on location, number of stops, cost, etc. Those 30 options were then whittled down to 16 different options, and today there are only 4 options being considered.

In other words, progress is being made.

With over 30,000 jobs (just within KOP Mall and its surrounding office parks alone), and 25M visitors each year, $500M to get something like this done kind of sounds like a small investment to make for such a large and significant improvement. Not only will it make 76 East/West (in between Manayunk/Roxborough and KOP) more bearable to drive, but it will create a more efficient business/residential/tourist environment for everyone in the Greater Philadelphia area.

As for real estate, you only have to look at the Main Line for an example of transit oriented suburbia. This large part of suburban Philadelphia has thrived since the 1830s, when rail was constructed in areas like Malvern, and it continues to do well today due to it’s storied history, generational families, top-notch schools, and convenient location.

Today, it’s suburban areas like Radnor, Ambler, and Conshohocken that continually do well from a market value perspective, and much of it has to do with their access to convenient SEPTA rail lines.

Traffic patterns in Philadelphia are changing real estate development

 
If you don’t believe me, check out this article. It’s pretty sweet.

The subject caught my attention for a few reasons, as cited within: 1) Major highway traffic is lower than forecasted, 2) Suburbanization is now trending toward the city, and 3) Millennials like to use mobile devices while in transit.

In traditional Philly Urban Living fashion, let’s break these down.

1) Major highway traffic is lower than forecasted: This one actually surprised me, as I do drive on the Schuylkill regularly. The decrease in traffic was not only true for the PA Turnpike, I-76, and I-95, but it was also true for the NJ Turnpike (where since 2005, overall volume has decreased by 10%); seriously? So what does all of this mean, and why am I blogging about it? It means that urban populations are rising, it means that downtowns/cities are reaping both private/public investment dollars, and it means that cars are becoming less desirable for many people (especially younger people; we’ll get to that). We can get into the nitty-gritty and talk about The Great Recession, rising gas prices, overall car prices, and parking, but in general, public transportation is on the rise in major metros across the country (not just in Philadelphia). This is changing the way we think about getting around our respective neighborhoods/towns/cities, and how we live our lives.

2) Suburbanization is now trending toward the city: As stated in the article, “We had a 50-year period of unrestricted suburbanization, and now there’s a dramatic shift.” I’ve talked about this one in past blog posts, many times over. Not because it’s my opinion, but because it’s constantly being buzzed about in the media. Philadelphia’s suburbs are not declining, it’s just that preferences are changing; especially amongst the younger crowd. Millennials are a big reason why Philadelphia’s population has risen over the past 7 years. There are lots of jobs in Philadelphia. There are lots of restaurants and nightlife/entertainment options in Philadelphia. There is a lot of history, culture, and events in Philadelphia. It’s home to our beloved Eagles, Phillies, Sixers, and Flyers. But at the moment, our crime rates are still high and our public schools are very undesirable. Whereas suburban Philadelphia has enjoyed relative safety and great public education since the 1950s. Fix Philadelphia’s fledgling public schools, and the biggest reason to flee the city goes away. But as it stands today, preferences are trending toward cities.

3) Millennials like to use mobile devices while in transit: No, really? I feel like I hear about millennials every day of my life now. What do millennials like? What do millennials want? Why do millennials love Twitter? Why do millennials hate Facebook? Why do millennials order pizza, with pepperoni, in their dorm room, on a Tuesday night, before exam week, and pay with AmEx? I don’t know, but you get the picture. One thing this article mentioned that really caught my attention, is that you can actively use your mobile devices while riding on public transportation. This is so true, and it’s also a reason why so many people text and drive today. People love their phones, and can’t stop using them; myself included. If you can read, work, socialize, blog, text, or tweet while you ride to work or dinner, why wouldn’t you choose a train/bus over a car. You’re there before you know it, and you got some things done on the road; awesome. As we all know already, the most convenient public transportation options lie within Philadelphia proper.

So as you can see, traffic is starting to affect how people think, live, and choose their home. It also affects how investors buy, rehab, and develop real estate.

Who knows, 10 years from now, the President of the United States may be talking to all of us about how we need to create more rail lines. Rather than he/she talking to us about expanding our highways.

How do most Philadelphians get to work everyday?

 
Car?

Bus?

Train?

Subway?

Walk … Run … Bike?

The answer to this question is public transportation.

To put things into perspective, a recent study by the Center City District (CCD) and Central Philadelphia Development Corporation (CPDC) revealed that an astonishing 70% of Philadelphians use public transportation to commute to work. This includes all forms (e.g. bus, train, subway, etc).

Wow, 70%! That’s crazy high.

What does this mean, and why am I blogging about it?

It means that not only has the overall mindset among those living in Philadelphia changed from car-centric to commuter-friendly, but it also forces developers to start thinking differently about their current and future projects. Which in turn, changes the way development is ultimately decided upon across the entire Philadelphia region.

As PlanPhilly notes, 2 local developers were interviewed in this article. They both agree that access to public transportation is a key component during the development planning process.

And it should be.

If 7 out of 10 people already need public transportation to continue their current job commute, why would you build something that does not give them the option to access it easily? Since this trend doesn’t seem to be slowing down anytime soon, it’s only going to become more important in the years to come.

Please also understand that this type of thinking has large real estate implications as well. If 70% of Philadelphians prefer to use public transportation over a car, it will have an impact on home values as well. To be honest, it already does today in some parts of the city; including the neighborhood I call home (Manayunk/Roxborough). Most Manayunk/Roxborough buyers/renters, that I work with today, inquire upfront about their potential public transportation options for each home we view.

My guess is that this post will spawn future posts about public transportation and real estate, but for now, please enjoy a brief introduction to this change in preference.