Research group Cushman & Wakefield’s released a report in early October exploring the consequences of rapid population growth in ten major North American cities. Entitled, “Urban Development: Faster Greener Commutes Key to Sustained City Growth,”  the report touches on major urban issues, including intensified gridlock and slow commutes that impact work productivity, while highlighting the importance of transit-oriented developments in relieving congestion and supporting growth.

The cities covered in the report are Mexico City, New York, Los Angeles, Chicago, Toronto, Washington D.C., Miami, Atlanta, Boston and San Francisco.

According to Paula Munger, Americas Research Director for Cushman & Wakefield, “The report seeks to shed light on the issues shared by all cities undergoing explosive urban growth and how commercial real estate developers are stepping up to the plate to ensure their properties are accessible to workforces of tenants who want to locate in these exciting markets.”

With publicly funded transit and transportation improvements often stalled by red tape, impact studies and lack of funding, transit-oriented development has emerged as “the most substantial development trend of the early 21st century,” according to Christopher B. Leinberger, Chair of the Center for Real Estate and Urban Analysis at The George Washington University School of Business.

As Cushman & Wakefield points out in its research report, the majority of new commercial development, as well as residential development, in metro areas today is transit-oriented.

“Developers and governments must find ways to work together to overcome challenges and support continued growth,” said Michael Caplice, Senior Managing Director Toronto Office Leasing. “We’ve seen a migration of new workers, tenants and residents into the downtown core. Now we need the infrastructure to support that added population.”

“As C&W’s research shows, walkable urban development is occurring in both our central cities and urbanizing suburbs. Following the research findings will lead to rental and cap rate premiums that will not be ignored by investors and developers,” said Leinberger.

Key report findings include the following:

• Chicago is a public transportation-friendly city with an extensive transit system connecting the downtown area. Initiatives are underway to update the aging infrastructure, remove barriers to Transit Oriented Development, and provide greater connectivity for the area’s suburbs.

• New York is experiencing its highest level of new office construction in 25 years, with 8 million square feet in the works in Manhattan. Combined, two of the most significant projects, the World Trade Center and Hudson Yards, could add 10 per cent, or 39 million square feet, to Manhattan’s 394 million square foot office inventory.

• Toronto is attracting both the younger generation and empty-nesters to its urban core, evidenced by a shift in population from the suburbs to downtown in recent years. Businesses are following the talent, leading to a near-record boom in office construction. Like many other cities, investment in transit and transportation infrastructure has not kept pace with the growing population.

• Washington, D.C.’s population growth is not confined to the city centre, although population in the district proper is at its highest level in four decades. While the effects of sequestration continue to hamper the office market in the region, projects in the downtown core or along transit hubs in the suburbs, which offer the live/work/play lifestyle, are attracting businesses and residents alike.

For the complete report, click here.