IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v42y2005i4p751-764.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980500060350
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420980500060350?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sivitanidou, Rena, 1996. "Do Office-Commercial Firms Value Access to Service Employment Centers? A Hedonic Value Analysis within Polycentric Los Angeles," Journal of Urban Economics, Elsevier, vol. 40(2), pages 125-149, September.
    2. Blackley, Paul R., 1985. "The demand for industrial sites in a metropolitan area: Theory, empirical evidence, and policy implications," Journal of Urban Economics, Elsevier, vol. 17(2), pages 247-261, March.
    3. Edwin S. Mills, 1992. "Office Rent Determinants in the Chicago Area," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(2), pages 273-287, June.
    4. Boarnet Marlon G., 1994. "The Monocentric Model and Employment Location," Journal of Urban Economics, Elsevier, vol. 36(1), pages 79-97, July.
    5. Schmenner, Roger W., 1981. "The rent gradient for manufacturing," Journal of Urban Economics, Elsevier, vol. 9(1), pages 90-96, January.
    6. Kowalski, Joseph G. & Paraskevopoulos, Christos C., 1990. "The impact of location on urban industrial land prices," Journal of Urban Economics, Elsevier, vol. 27(1), pages 16-24, January.
    7. Thomas P. Brennan & Roger E. Cannaday & Peter F. Colwell, 1984. "Office Rent in the Chicago CBD," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 12(3), pages 243-260, September.
    8. William C. Wheaton & Raymond G. Torto, 1988. "Vacancy Rates and the Future of Office Rents," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 430-436, December.
    9. Dean H. Gatzlaff & Marc T. Smith, 1993. "The Impact of the Miami Metrorail on the Value of Residences near Station Locations," Land Economics, University of Wisconsin Press, vol. 69(1), pages 54-66.
    10. John L. Glascock & Shirin Jahanian & C. F. Sirmans, 1990. "An Analysis of Office Market Rents: Some Empirical Evidence," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(1), pages 105-119, March.
    11. Wayne R. Archer, 1981. "Determinants of Location for General Purpose Office Firms within Medium Size Cities," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 9(3), pages 283-297, September.
    12. Webb, R. Brian & Fisher, Jeffrey D., 1996. "Development of an Effective Rent (Lease) Index for the Chicago CBD," Journal of Urban Economics, Elsevier, vol. 39(1), pages 1-19, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garcia-López, Miquel-Àngel & Hémet, Camille & Viladecans-Marsal, Elisabet, 2017. "Next train to the polycentric city: The effect of railroads on subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 50-63.
    2. Padeiro, Miguel, 2013. "Transport infrastructures and employment growth in the Paris metropolitan margins," Journal of Transport Geography, Elsevier, vol. 31(C), pages 44-53.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. V. Atilla Oven & Dilek Pekdemir, 2006. "Perceptions of office rent determinants by real estate brokerage firms in Istanbul," European Planning Studies, Taylor & Francis Journals, vol. 14(4), pages 557-576, May.
    2. V.Atilla Oven & Dilek Pekdemir, 2004. "A comparison between office rent determinants of Istanbul and other major metropolitan areas," ERSA conference papers ersa04p166, European Regional Science Association.
    3. Martijn Dröes & Philip Koppels & Boris Ziermans, 2017. "Information Asymmetry, Lease Incentives, and the Role of Advisors in the Market for Commercial Real Estate," ERES eres2017_250, European Real Estate Society (ERES).
    4. Maarten G.J. Jennen & Dirk Brounen, 2009. "The Effect of Clustering on Office Rents: Evidence from the Amsterdam Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 37(2), pages 185-208, June.
    5. V. Öven & Dilek Pekdemir, 2006. "Office Rent Determinants Utilising Factor Analysis—A Case Study for İstanbul," The Journal of Real Estate Finance and Economics, Springer, vol. 33(1), pages 51-73, August.
    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. Allen C. Goodman & Brent C Smith, 2023. "Medical Service Quality and Office Rent Premiums: Reputation Spillovers," The Journal of Real Estate Finance and Economics, Springer, vol. 66(3), pages 680-708, April.
    8. Barrett A. Slade, 2000. "Office Rent Determinants during Market Decline and Recovery," Journal of Real Estate Research, American Real Estate Society, vol. 20(3), pages 357-380.
    9. John L. Glascock & C. F. Sirmans & Geoffrey K. Turnbull, 1993. "Owner Tenancy as Credible Commitment under Uncertainty," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 21(1), pages 69-82, March.
    10. Gunnelin, Åke & Söderberg, Bo, 2002. "Term Structures in the Office Rental Market in Stockholm," SIFR Research Report Series 6, Institute for Financial Research.
    11. Prescott C. Ensign & Shawn Roy & Tom Brzustowski, 2021. "Decisions by Key Office Building Stakeholders to Build or Retrofit Green in Toronto’s Urban Core," Sustainability, MDPI, vol. 13(12), pages 1-31, June.
    12. Sofia Dermisi & John F. McDonald, 2010. "Selling Prices/sq.ft. of Office Buildings in Downtown Chicago – How Much Is It Worth to Be an Old But Class A Building?," Journal of Real Estate Research, American Real Estate Society, vol. 32(1), pages 1-22.
    13. Eugenio Figueroa & George Lever, 1992. "Determinantes del Precio de Mercado de los Terrenos en el Área Urbana de Santiago," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 29(86), pages 99-114.
    14. Jean-Jacques Grannelle, 1996. "Le marché des bureaux. Une revue des modèles économétriques," Revue de l'OFCE, Programme National Persée, vol. 59(1), pages 167-211.
    15. Jonathan A. Wiley, 2014. "Gross Lease Premiums," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(3), pages 606-626, September.
    16. Charles-Olivier Amédée-Manesme & Francois Des Rosiers & Philippe Grégoire, 2017. "Commercial leases, terms and options in the light of game theory," ERES eres2017_175, European Real Estate Society (ERES).
    17. Peter F. Colwell & M. Shahid Ebrahim, 1997. "A Note on the Optimal Design of an Office Building," Journal of Real Estate Research, American Real Estate Society, vol. 14(2), pages 169-174.
    18. Ahlfeldt, Gabriel M. & Wendlan, Nicolai, 2008. "Spatial Determinants of CBD Emergence: A Micro-level Case Study on Berlin∗," MPRA Paper 11572, University Library of Munich, Germany.
    19. Abadie, Alberto & Dermisi, Sofia, 2008. "Is terrorism eroding agglomeration economies in Central Business Districts? Lessons from the office real estate market in downtown Chicago," Journal of Urban Economics, Elsevier, vol. 64(2), pages 451-463, September.
    20. Gaston Tchang, 2016. "The impact of highway proximity on distribution centres’ rents," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2834-2848, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:42:y:2005:i:4:p:751-764. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.