Office Rent Premiums with Respect to Light Rail Transit Stations: Case Study of Dallas, Texas, with Implications for Planning of Transit-Oriented Development

It seems an article of faith that because ridership catchment receives the largest share of riders within the first 0.5 mi (0.80 km), the design of transit-oriented development should be limited to 0.5 mi (0.80 km). But design of transit-oriented development requires another consideration: how the commercial real estate market responds. Unfortunately, much of the research into the commercial real estate value or rent premiums associated with transit station proximity is designed to reinforce the 0.5-mi (0.80 km) presumption. This paper reviews the literature and implications of ridership studies and research into commercial value and rent premiums with respect to distance from a transit station. The paper then reports research into transit station–related office rent premiums in the Dallas, Texas, metropolitan area. To the authors’ knowledge, this study is the largest of its type undertaken on this question. Among the findings are that the premium extends 1.85 mi (2.98 km) from transit stations, with 25% of the premium—not a trivial amount—existing to 0.93 mi (1.50 km), with higher shares closer to the stations. The paper offers a reconsideration of both worker-based ridership and research on commercial real estate premiums to suggest that planning areas for transit-oriented development may extend beyond 0.5 mi (0.80 km), perhaps to 1 mi (1.61 km).

• Record URL:
  • https://doi.org/10.3141/2500-13
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780309369558
• Authors:
  • Nelson, Arthur C
  • Eskic, Dejan
  • Hamidi, Shima
  • Petheram, Susan J
  • Ewing, Reid
  • 0000-0002-4117-3456
  • Liu, Jenny H
  • 0000-0002-9362-014X
• Publication Date: 2015

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 110-115
• Monograph Title: Planning, Volume 2
• Serial:
  • Transportation Research Record: Journal of the Transportation Research Board
  • Issue Number: 2500
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Light rail transit; Office buildings; Rent; Ridership; Transit oriented development
• Geographic Terms: Dallas (Texas)
• Subject Areas: Economics; Planning and Forecasting; Public Transportation;

Filing Info

• Accession Number: 01595999
• Record Type: Publication
• ISBN: 9780309369558
• Report/Paper Numbers: 15-4818
• Files: TRIS, TRB, ATRI
• Created Date: Apr 13 2016 2:26PM