What is TOD

What is TOD?

Transit Oriented Development (TOD) is a style of development which incorporates a mix of residential and commercial uses and is designed to maximize walkability and accessibility to public transport.

TOD Diagram Graphic

Why TOD?

TOD is a real estate investment concept gaining national attention for its ability to yield and sustain exceptional returns. From 2005 until 2010, annual editions of Emerging Trends in Real Estate, produced by PriceWaterhouseCoopers and the Urban Land Institute, have rated TOD as the top real estate prospect for the future. They noted that parcels of land near rail stations which exhibit a mixed-use, high quality urban environment appreciate faster in up-markets and hold their value in down-markets.

Over thirty studies across the United States have shown that land value premiums increase with accessibility to rail stations, when complemented by density, good design, and a mix of land uses. A range of studies have found that the proximity of land to transit station generates an 8 – 30% premium of land value. Additionally, shifting demographic trends forecast population growth to occur in urbanized areas in close proximity to public transportation systems.

Land value price premium in proximity to rail stations

Land Value Chart