TRANSIT STATIONS AND COMMERCIAL PROPERTY VALUES: A CASE STUDY WITH POLICY AND LAND-USE IMPLICATIONS

Abstract

This article develops a theory on commercial property value with respect to both transit station proximity and the role of policies that encourage commercial development around transit stations without discouraging commercial development elsewhere. The theory is applied to the universe of commercial property sales in the area of Atlanta known as "Midtown", which is located about 1 kilometer (.6 mi) north of the downtown edge. Midtown is served by three heavy rail transit stations operated by the Metropolitan Atlanta Transit Authority (MARTA). To encourage development around MARTA stations, Atlanta waives parking and floor area ration requirements in Special Public Interest Districts (SPIDs) located around rail stations. Research shows that commercial property values are influenced positively by both access to rail stations and policies that encourage more intensive development around those stations. The article explores both theoretical and policy implications.