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Title:

Bus Rapid Transit and Office Rents

Accession Number:

01658038

Record Type:

Component

Abstract:

Bus rapid transit (BRT) systems may become a dominant form of fixed guide public transportation in the next few decades. From three lines serving one metropolitan area before 2000—Pittsburgh, by the end of 2015 nearly 100 lines were operating or planned serving nearly 30 more. Lower costs and greater design flexibility relative to rail transit options are a key reason for their growing popularity. But how does the real estate market respond to them? There are very few studies associating proximity to BRT systems with real estate premiums internationally. Only two studies in the US address this question in the context of residential property. There are no studies associating proximity to BRT systems with commercial property values. As a proxy for property value is rents, this study addresses the question in the context of asking office rent premiums with respect to location within one-half mile if BRT lines in Cleveland, Eugene-Springfield, Kansas City, Las Vegas, and Pittsburgh. Regression analysis using CoStar asking rent data for the first quarter of 2015 are used for analysis. In all cases, BRT proximity confers an office space asking rent premium ranging from $1.57 per square foot (Pittsburgh) to $4.81 per square foot (Las Vegas) representing 9 percent to 30 percent of the variation in asking rents, 41 respectively. That all five real estate markets studied apparently capitalize BRT proximity into higher rents may lend support to efforts that expand existing systems and build new ones. Implications are offered.

Supplemental Notes:

This paper was sponsored by TRB committee AP050 Standing Committee on Bus Transit Systems.

Report/Paper Numbers:

18-00334

Language:

English

Authors:

Nelson, Arthur C

ORCID 0000-0003-2578-3884

Pagination:

21p

Publication Date:

2018

Conference:

Transportation Research Board 97th Annual Meeting

Location: Washington DC, United States
Date: 2018-1-7 to 2018-1-11
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

References; Tables

Subject Areas:

Finance; Planning and Forecasting; Public Transportation

Source Data:

Transportation Research Board Annual Meeting 2018 Paper #18-00334

Files:

TRIS, TRB, ATRI

Created Date:

Jan 8 2018 10:06AM