Today, many transit "nerds" lament how countries like Japan have amazing railroad stations replete with stores and other amenities, or that MTR in Hong Kong is an active developer and a significant amount of their annual revenue comes from property leasing, not just rider fares.
What the nerds fail to recognize is that for that to work, you need incredible passenger volumes. "Small" stations in Tokyo have at least 100,000 riders per day, allowing the creation of great places that are also attractive to non-train users.
Even in the US, Grand Central Station and Penn Station aren't great places for retail ("MTA struggles to fix the dead mall under New York City," Crain's New York Business) despite their relatively high volumes of riders.
The food hall at Grand Central Station in better days.
Other cities, even DC or Philadelphia or Los Angeles, with grand stations have a difficult time as well. Smaller places have no real chance.
That being said, subway systems like DC's have been quite good at fostering economic development, even though it can take decades for the effects to fully play out. One success in particular has been the infill New York Avenue Station ("
NoMa: the neighborhood transit built,"
Urban Land).
But the reality is that most of the areas served by Metrorail in DC's core, both commercial districts and neighborhoods, have significantly improved in the almost 50 years since the system began opening.
And because government agencies aren't especially good at entrepreneurship, most of the direct benefits have been reaped by real estate developers, although cities benefit from the tax revenues they generate.
A thread on Reddit got me to thinking about the antecedents that laid the foundation for today what we call transit oriented development.
Before trains there were the waterways--rivers, oceans, ports, canals--and bumpy roads that weren't a network. Before electricity, water was also used as a form of power for industrial operations in particular "mills." Lowell, Massachusetts created a set of canals so that flowing water could power all sorts of industry.
Erie Canal.
Before railroads, George Washington thought what became Washington, DC would become an excellent location for commerce, by developing the C&O Canal to provide access to the nation's interior. But canals took a long time to dig, especially when they were dug by hand.
Railroads ended up overtaking canals for the primacy of commerce--although barge traffic is still significant today in some places--because they could serve locations beyond proximity to a river.
Freight Train services facilitated industrial development, transporting raw materials to plants for reproduction into final products, transporting finished goods, agricultural products, etc.
Food companies trading at the national scale developed in response to railroad-based transportation created the foundation of the mass market of the US as a whole, rather than goods being produced and traded more regionally, because of the high cost to get goods to market before train service existed.
E.g., instead of just a handful of stove manufacturers or battery makers today, most big cities had their own firms, because of the expense of shipping super heavy items.
In time, passenger railroad services helped to develop cities more generally, but also "suburbs," more bucolic places in a metropolitan area not too long a trip from "the city." An astute conductor for the New York Central Railroad recognized he had repeat riders "to the city," and proposed a reduced rate to ride, "commuted" from the regular rate. It spawned the term "commuter."
The streetcar, in various iterations, facilitated residential development outside of the core of center cities, which were pretty much developed. These are referred to as "streetcar suburbs" by the academics (
Streetcar Suburbs: the Process of Growth in Boston, 1870-1900).
In the DC area, Chevy Chase is a classic streetcar suburb. Takoma Park is a classic railroad suburb (Chevy Chase: A Home Suburb for the Nation's Capital).
Within the city, outer areas from the central core, like Mt. Pleasant or H Street NE were opened up to development by streetcar services.
Business districts around train stations. For both passenger railroad stations and termination points for the streetcars, usually a small commercial district developed, focused on the sale of convenience goods, often times the area around the station may have had tenements, apartments, boarding houses, etc., in part serving railroad workers, but also providing lower cost housing.
This was true at two different scales, the areas around city train terminals, and the stations serving suburban and rural communities.
Grand Central Station. According to the Smithsonian Magazine, "New York’s Grand Central Terminal Helped Provide the Blueprint for American Cities. It Happened by Accident." Trains serving the city ran on the surface, using coal powered locomotives. It was dirty and grimy.
Grand Central Station as the first example of Station Area Planning. Terrible train crashes resulting in multiple deaths led the New York Central Railroad to create a new station, where the yard and tracks serving it were undergrounded, leading to a newly constructed grand station. To pay for it, they built a deck over the railyard, and then leased those spaces to developers of office buildings, hotels, and other commercial establishments.
The station, bringing together multiple train lines, led to the concept of the "Union Station" or Terminal served by multiple railroads, rather than each firm ending service at its own station. (Chicago today is a great example of that form of service, as some of the stations predating Union Station still exist.)
Still, creating Union Stations was hard because railroads competing and didn't want to lose what they thought of as their competitive advantage.
Grand Central Station as a civic monument. The Station is also notable for harnessing the architecture and design around the station as a civic monument and anchor of the city. Special attention was paid to the design of the station in all aspects, including entryways, waiting areas, retail services including food, and travel to and from the platform--GCS is far superior to Penn Station when it comes to "herding" passengers on and off the trains.
The Santa Fe Railroad versus the Transcontinental Railroad. President Lincoln initiated the transcontinental railroad project as a national building exercise, linking east to west. Union Pacific Railroad, from Omaha, and Central Pacific, from Sacramento, met in Utah, creating a nationally serving freight and passenger rail service by connecting to eastern railroads.
But the transcontinental railroad had/has a problem. It served the northern and upper central parts of the West, which are underpopulated, although still with plenty of business for railroads. But not as much business compared to other areas.
The privately created Santa Fe Railroad, serving the southern and lower central parts of the West, was much better positioned to facilitate and take advantage of commerce ("How the Santa Fe Railroad Changed America Forever," Smithsonian Magazine, "The Entrance of the Santa Fé Railroad into California," Pacific Historical Review).
Astutely, the company created cities at prominent locations served by the railroad, pairing them with economic development programs (most all the railroads did a form of this) and marketing the areas to future residents ("
Santa Fe Railroad Built Empire,"
Los Angeles Herald-Express), "
Railroads and Real Estate - The Pacific Land Improvement Company," Orange County Historyland) and tourists.
The large scale Western National Parks drew millions of tourists arriving by train
A parallel firm, The Fred Harvey Company, working with the railroad, developed hotels and restaurants along the line, and in the national parks. The park concessionaire firm Xanterra, has its foundation in the Harvey Companies.
Extension of the Santa Fe to Chicago further facilitated the development of rail-based commerce. Montgomery Ward created the first large scale retail catalog operation in Chicago, leveraging access to the railroads meeting there, serving all parts of the country. Etc.
Brightline Florida and modern TOD. Is a new private passenger railroad service between South Florida and Orlando, home to Disney World. They intend to extend service to Tampa and possibly at some point, Jacksonville.
I argue the reason they can make it privately, maybe--right now they are losing tons of money--is because tourists arriving in Orlando don't need a car once they are at Disney World.
Rendering of a future train-served Downtown in Stuart, Florida.
Anyway, they claim to be driven by real estate development as a significant source of future revenue.
I'm somewhat doubtful, although development is happening at their stations, because of the relatively low usage of the train, plus the fact that station locations don't necessarily lend themselves to development the way they might in Japan or Hong Kong, or even in Downtown DC.
Labels: real estate development, station area planning, transit and economic development, transit oriented development/TOD, urban history