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The Value of Access to Highways and Light Rail Transit: Evidence for Industrial and Office Firms

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  • Sherry Ryan

    (School of Public Administration and Urban Studies, City Planning Program, San Diego State University, 5500 Campanile Drive, San Diego, CA 92182-4505, USA, sryan@mail.sdsu.edu)

Abstract

This research examines the importance of access to light rail transit and highway systems in estimating office and industrial property rents. The analysis improves our understanding of the role played by transport facilities in locational decisions for the firm. Hedonic price analysis is utilised on longitudinal data for 520 office properties and 500 industrial properties collected from the San Diego metropolitan area over the period from 1986 to 1995. Results indicate that access to highways is a significant factor in estimating office property rents in the San Diego area, while access to light rail systems is not significant for office properties. Industrial firms in the San Diego area are not paying rent premiums to locate near highways or light rail transit.

Suggested Citation

  • Sherry Ryan, 2005. "The Value of Access to Highways and Light Rail Transit: Evidence for Industrial and Office Firms," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 751-764, April.
    • Handle: RePEc:sae:urbstu:v:42:y:2005:i:4:p:751-764
    DOI: 10.1080/00420980500060350
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    References listed on IDEAS

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    2. Murakami, Jin & He, Yiming, 2018. "Highway investment in deindustrialization: A territorial analysis of office property transactions in Hong Kong, 2002–2013," Journal of Transport Geography, Elsevier, vol. 66(C), pages 200-212.
    3. Xu Zhang & Xiaoxing Liu & Jianqin Hang & Dengbao Yao & Guangping Shi, 2016. "Do Urban Rail Transit Facilities Affect Housing Prices? Evidence from China," Sustainability, MDPI, vol. 8(4), pages 1-14, April.
    4. Tan, Ronghui & He, Qingsong & Zhou, Kehao & Xie, Peng, 2019. "The effect of new metro stations on local land use and housing prices: The case of Wuhan, China," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    5. Aliyu Ahmad Aliyu & Olurotimi Adebowale Kemiki & Muhammad Umar Bello, 2018. "Transportation Accessibility Benefit and the Dynamic Pattern of Real Estate Prices: Emerging Literature," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(11), pages 1001-1016, November.
    6. Kihwan Seo & Deborah Salon & Michael Kuby & Aaron Golub, 2019. "Hedonic modeling of commercial property values: distance decay from the links and nodes of rail and highway infrastructure," Transportation, Springer, vol. 46(3), pages 859-882, June.
    7. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    8. Padeiro, Miguel, 2013. "Transport infrastructures and employment growth in the Paris metropolitan margins," Journal of Transport Geography, Elsevier, vol. 31(C), pages 44-53.
    9. Clark, David & Pennington-Cross, Anthony, 2016. "Determinants of industrial property rents in the Chicago metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 34-45.
    10. Seo, Kihwan & Golub, Aaron & Kuby, Michael, 2014. "Combined impacts of highways and light rail transit on residential property values: a spatial hedonic price model for Phoenix, Arizona," Journal of Transport Geography, Elsevier, vol. 41(C), pages 53-62.
    11. Iseki, Hiroyuki & Jones, Robert P., 2018. "Analysis of firm location and relocation in relation to Maryland and Washington, DC metro rail stations," Research in Transportation Economics, Elsevier, vol. 67(C), pages 29-43.
    12. Murakami, Jin & Chang, Zheng, 2018. "Polycentric development under public leasehold: A spatial analysis of commercial land use rights," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 25-36.

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