Market feasibility analysis of the Martin Luther King, Jr. Station Transit Oriented Development Zone

Abstract

The area surrounding Capital Metro’s Martin Luther King, Jr. (MLK) MetroRail Station was designated a Transit-Oriented Development (TOD) zone and a plan was published in 2009. However, to date there has been very little development, and the development that has occurred is significantly different from what is called for by the plan. This report examines some of the difficulties of implementing TOD in Austin and the factors that could contribute to successful TOD projects. A market analysis of the MLK Station Area explores the economic feasibility of developing land there to its highest and best use. It concludes that the general dearth of TOD in Austin and lack of dense, mixed-use development in the MLK neighborhood make the kind of development called for in the MLK Station Area Plan excessively risky for developers. However, a more conventional multifamily development would be feasible, and increased station-area density could contribute to the success of future TOD.