LOCUS: Identifying Top OZ Markets by Smart Growth Potential
A report from LOCUS, an organization comprising real estate developers and investors, offers a distinctive perspective on selecting Opportunity Zone locations. It deviates from conventional indicators of economic hardship to pinpoint leading Opportunity Zone markets, focusing on their capacity for intelligent, enduring, and fair development. The study highlights walkability, access to public transportation, and current population density as crucial determinants of investment potential.
The Smart Growth Advantage
LOCUS contends that the most effective and significant Opportunity Zone investments will materialize in areas already characterized by pedestrian-friendliness, extensive public transit, and established residential and commercial infrastructure. Such “smart growth” areas present multiple benefits:
- Reduced Risk: These areas possess a demonstrated demand for development, coupled with a reduced risk profile compared to more secluded or car-dependent regions.
- Higher Impact: They are capable of accommodating a broader array of functions, such as diverse housing options, retail establishments, and office premises, thereby fostering more dynamic and robust communities.
- Sustainable Outcomes: These locations advance environmental sustainability by decreasing automotive dependence and encouraging more efficient utilization of land.
Key Metrics for Site Selection
The LOCUS analysis utilizes a proprietary model to score and rank Opportunity Zones based on several key smart growth metrics:
| Metric | Description |
|---|---|
| Walkability | An assessment of an area’s pedestrian-friendliness, determined by factors like population concentration, street block dimensions, and the diversity of land uses. |
| Transit Access | The standard and regularity of available public transport options, encompassing buses, trains, and alternative transit methods. |
| Job Proximity | The quantity and variety of employment opportunities reachable within a practical travel distance from the designated zone. |
| Housing Diversity | The assortment of residential property categories and varying affordability ranges present in the locality. |
Concentrating on these specific metrics enables investors to pinpoint Opportunity Zones that not only require investment capital but are also primed for enduring, sustainable development. Such a data-informed methodology for choosing sites represents an essential element of any effective OZ 2.0 plan.