Bus Rapid Transit and Office Rents

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.
• Authors:
  • Nelson, Arthur C
  • 0000-0003-2578-3884
• Conference:
  • Transportation Research Board 97th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2018-1-7 to 2018-1-11
• Date: 2018

Language

• English

Media Info

• Media Type: Digital/other
• Features: References; Tables;
• Pagination: 21p

Subject/Index Terms

• TRT Terms: Bus rapid transit; Commercial buildings; Office buildings; Property values; Real property; Rent; Transit oriented development
• Geographic Terms: Cleveland (Ohio); Eugene (Oregon); Kansas City (Missouri); Las Vegas (Nevada); Pittsburgh (Pennsylvania); Springfield (Oregon); United States
• Subject Areas: Finance; Planning and Forecasting; Public Transportation;

Filing Info

• Accession Number: 01658038
• Record Type: Publication
• Report/Paper Numbers: 18-00334
• Files: TRIS, TRB, ATRI
• Created Date: Jan 26 2018 9:47AM