The Los Lunas development potentials are geared towards residential in the near term, while support for commercial uses is expected to grow over time.
Factors impacting the market for TOD in the Los Lunas station area - both positively and negatively - include:
Daytime Population Dilemma - The low daytime population of Los Lunas is a restraint to the existence of more retail in the area of the station. There are modest contingents of commuters in the morning and evening, but unlikely to support more retail in itself.
Expanding Market Conditions - One of the most evident features of the Los Lunas market is its accelerated expansion over the past three years. Local residents and Albuquerque commuters have found it to be a good investment and have increased demand to new levels. Retail development has responded to the growth in rooftops. A submarket with high growth is generally conducive for niche projects, such as TOD.
Inadequate Infrastructure - Infrastructure and traffic problems must be addressed to facilitate development. Problems with traffic are paramount in Los Lunas around the intersection of Highway 6 and Highway 314.
Land Supply - Los Lunas offers parcels of significant size under single ownership within the station area. The challenges associated with land aggregation may be less of an issue.
Latent Demand - Many Valencia County residents will be looking for a smaller house in retirement and do not want to leave the vicinity of Los Lunas. This population is ideally matched for a higher density neighborhood such as what is possible around the Los Lunas station.
Local Perception - Past attempts at townhouses have not absorbed so well, but were arguably not done at the "right" time.
Market Capture East of I-25 - The market is booming adjacent to the I-25 corridor with conventional commercial and residential development. The challenge is to capture some of this activity in the station area.