Brightline and Virgin sever rail ties

Brightline and Virgin sever rail ties

By: Beatrice Silva

2 min read August 2020 — Brightline is passing on Virgin Trains. On Aug. 7, the high-speed passenger train operator announced that it would not be rebranded as Virgin Trains USA and would continue its operations under Brightline LLC. The withdrawal represents a sudden and apparently astringent end to the link between Brightline and Virgin Group. 

Brightline originally announced its strategic partnership with billionaire Richard Branson, founder of the Virgin Group, two years ago. Brightline quickly welcomed this new partnership and underwent a complete makeover. Virgin Trains USA was officially supposed to debut its rebranding transformation this summer. However, COVID-19 related issues looks to have stopped the deal dead in its tracks. 

Originally, the relationship seemed like a match made in transit heaven. Branson and his team have carved out a successful enterprise in the transportation and hospitality industry with a fleet of carriers ranging from airplanes to cruise ships. “It’s already a very good experience,” Branson told the South Florida Business Journal in 2019. “We just need to sprinkle a bit of magic dust over it. We need to make sure the two hours, 45 minutes to Orlando is magical, and we are used to doing that in the UK, where we have longer train journeys.” 

Unfortunately, that seamless experience of having guests fly in on Virgin Atlantic then transported on a Virgin Train to their Virgin Voyage will have to be postponed. Branson’s lucrative business, like many others in the hospitality industry, came to a halt as a result of the pandemic. To make matters worse, Brighline’s 2019 passenger count was less than half what it projected and its revenue was less than a fifth of its expectations, according to The Palm Beach Post. The future of Virgin Atlantic Airways remains uncertain after the airline filed Chapter 15 bankruptcy earlier this week. 

Brightline, however, seems to be moving along. Its current routes consist of Miami, Fort Lauderdale and West Palm Beach. Progress also continues to be made on its fourth station in Florida at the Orlando International Airport. Operations are scheduled to begin sometime in 2022. There has also been talk of building additional stations in Aventura and Boca Raton. 

The Miami-Dade County Commission was negotiating terms regarding proposed stations with Virgin Trains USA but it’s unclear whether the county will agree to a new county commuter service. “We really need to think about what is the future of transit and how people will get around this town…” Mayor Carlos Gimenez told The Real Deal in June. “We may have as many of 20 to 30 percent of people working out of their homes.” How Brightline’s withdrawal from its Virgin deal will impact the commission’s decision remains unknown.

Although the future of the Brightline expansion may be up in the air, if more stations do pop up it could leave a positive impact on the local economy. Brightline’s expansion could bring over 5,000 jobs on average per year after rail-line construction is complete through 2021 and have a $6.4 billion direct economic impact to Florida’s economy over the next eight years, according to Washington Economics Group, Inc. 

Real estate development is booming in Fort Lauderdale

Real estate development is booming in Fort Lauderdale

By: Beatrice Silva 

2 min read –  Real estate development in Fort Lauderdale is getting a jolt of confidence despite the lingering impact of COVID-19. On March 24, a majority of businesses were forced to shut down after Gov. Ron DeSantis announced a statewide shelter-in-place order. However, construction companies, hospitals, grocery stores, gas stations and other essential businesses were allowed to carry on with work as usual.

 

Florida is just one of several states that allowed construction to continue despite nationwide shutdowns. Similar to many other regions in the area, development is a vital part of Fort Lauderdale’s economy. The construction industry is projected to have the largest industry increase in employment from 2014 to 2024, according to the U.S. Bureau of Labor Statistics. 

A strong signal of the confidence in the market is a recent move by Oko Group, an international real estate development firm founded by Vladislav Doronin. It is the first company to close a large deal since the beginning of COVID-19. The firm recently purchased 6.68 acres of land east of the county courthouse in Downtown Fort Lauderdale for $62.59 million. “Oko Group is excited to expand its portfolio of South Florida real estate with the acquisition of a mixed-use development site in the heart of Fort Lauderdale’s urban core,” the developer said in a statement reported by South Florida Business Journal. “The Oko Group team, led by Doronin, now looks forward to working with the city of Fort Lauderdale to finalize plans for an exceptional development that will help to further transform the Downtown district while adding significant amenities for nearby residents and businesses.”

The majority of developments in the pipeline for Fort Lauderdale will most likely be residential. Retail and office real estate have proven themselves to be the weakest sectors in the market during the pandemic. “Prior to COVID-19, South Florida’s real estate sector was very strong, propelled by the demand and low interest rates. I think the commercial office market may see a bit of a correction. So many people are working from home and I imagine that most of them are going to continue to do that the rest of the year. I think business owners are getting more comfortable allowing their employees to work remotely. So far, the industrial and residential markets have proven themselves to be the strongest sectors in the real estate industry during the pandemic. I don’t think we’ll see any correction there. Currently, at Touchstone Webb Realty Company, we are watching retail and commercial as we move forward. We think it is going to take a good year before we see this sector begin to correct. We are still purchasing industrial and flex spaces for our clients,” Susan Thomas, president of Touchstone Webb Realty Company, told Invest: Palm Beach.

As Thomas mentioned, CDC regulations like social distancing have compelled more people to want to work from home. As a result, business owners could require less office space. Fairfield Cypress Creek is just one example of this trend. The new mixed-use project is currently underway between 6500 and 6520 N. Andrews Ave. The land which was originally occupied by office buildings will now hold 295 residential units, shops and restaurants. A new downtown could be another exciting project on the horizon for Broward County. Broward is recruiting a large company to relocate to the 140 acres next to the Everglades in Sunrise. “It’s one of the last few pieces you could make a statement. We really want to market this site internationally, not just nationally,” County Manager Bertha told the Sun Sentinel. 

 

 

How Broward is Solving its Transportation Troubles

How Broward is Solving its Transportation Troubles

By Max Crampton-Thomas

4 min read October 2019 —  For over a century, the car has been America’s top transportation choice when getting from point A to point B. As the population in the United States has grown exponentially year over year, so has the dependency on these vehicles, which has led to worsening transportation issues like congested roads, air pollution, traffic accidents and in some cases fatalities. Throughout South Florida, in this case Broward County, the negative effects of the population’s dependency on single-occupancy vehicles are rampant throughout the region. While these issues pose a major challenge to Broward, there is hope as the younger generations are looking to avoid the stress of car ownership, and many community leaders and organizations are making a push toward better mass transit and alternative transportation options.

While these are not all new ideas, in the last couple of years the emphasis for Broward has become truly exploring and executing these ideas. This starts with the  30-year Penny For Transportation Surtax that was passed last November and is set to generate billions of dollars toward improving transportation and mass transit options throughout the county. Invest: recently spoke with Monica Cepero, deputy county administrator for Broward County, who discussed what the community could expect from the revenues generated by the tax. “This sales tax is set to generate about $16 billion over the next 30 years, and will be used in the more immediate future to improve and modernize public transit services. Our long-term plan for those funds is focused on creating connectivity, extending roadway capacities, multimodal improvements and improving transportation facilities and service.”

Invest: also spoke with Gregory Stuart, executive director of Broward MPO, about the near-term changes that could be expected from the revenues collected from the tax. “Realistically, the immediate changes aren’t going to result in construction; we are focusing on enhancing the traffic signalization program. This includes a coordination between the traffic lights, people’s vehicles and installing smart communication equipment. Another immediate change that has happened already but which we’re not going to notice for about another year, is the county transit agency’s purchase of another 130 buses. Considering they are operating a fleet of about 300 buses right now, this is a one-third expansion and a significant increase in the bus system,” he told Invest:

While the tax is going to be a huge benefit for transportation in the region, a change in mindset is another factor impacting how people get around. One option is the Tri-Rail, which is celebrating its 30th year servicing the South Florida community. Tri-Rail Executive Director Steven Abrams spoke about how it is benefiting from the changing mindset toward mass transit in the area. “South Florida is a tourist and service-related economy, and these individuals, like waiters or construction workers, cannot work from their homes. We have people coming from all over the world who are used to rail transportation in their countries, and they are feeding into our system. Our roads are also just becoming so congested. It used to be that our ridership would principally, and almost exclusively, fluctuate with gas prices, but now that  gas prices are stable and dropping, we still have people riding our system because ultimately it is the overabundance of cars on the road that is urging them to seek alternative transportation.”

Abrams also spoke to how Tri-Rail has improved and updated its operations over the years to encourage use by a larger population. “Over those 30 years, we have improved our service, added more trains, added weekend and holiday service and added connections to the three airports. We are a transportation system that has become popular over time and we have really embedded ourselves in the tri-county area.” 

The other popular train in South Florida is also the newest mass transit option for the region, Virgin Trains USA. Running through the three counties of Miami-Dade, Broward and Palm Beach, the train is looking toward the future by connecting the three counties with Orlando and an eventual Tampa Bay stop as well. 

Patrick Goddard, president for Virgin Trains USA, discussed with Invest: how it wants to be a catalyst for transit change in South Florida. “We are reinventing train travel in America, so there are always going to be challenges, but none that we have not been able to overcome so far. The advent of this project has awakened a desire and a curiosity within the municipalities to recognize the full potential for mass transit in South Florida. We are solving the challenge in Florida of medium-haul travel. Airlines take care of long trips, while rideshare, motorized scooters and buses take care of short ones. There has always been this gap with the 200- to 300-mile distances that are too short to fly and too long to drive. By introducing an option like this, it encourages people to leave their cars at home and start using a more environmentally sustainable means of transit.” 

A key factor in remaining economically sustainable is having good transportation and mass transit options. As Broward County continues to develop into an economic powerhouse so to must its transportation, and with changing mindsets and push from community leaders the future looks bright. 

To learn more about our interviewees, visit:

https://www.tri-rail.com/

http://www.browardmpo.org/

https://www.gobrightline.com/

https://www.broward.org/