Smart Growth Makes Money:Transit Oriented Development

Smart Growth Adds Valueto Real Estate Around Transit Stations

• [Picture of TOD]

Ballston Metro Station in Arlington, VA

Portland Streetcar & Mixed-use TOD

Images courtesy of EPA Smart Growth

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Smart Growth Adds Valueto Real Estate Around Transit Stations

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A summary of the findings on transit’s impacts on land values:

Denver, CO: Home Values Increase near Transit

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Smart Growth Adds Valuein Rail Station Areas

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Price premiums within ½ mile of rail transit stations

Smart Growth Adds Valueto Commercial Property near Transit

• Santa Clara County, CA: Commercial land value within ¼ mile of commuter rail stations increased 120%; for light rail, values increased 23%.

• Dallas: Office building values increased within ¼ mile of DART increased 24.7% in Value.

• Washington D.C.: Commercial property value increased $2.30/sq.ft. with each 1,000 ft. reduction in distance to a rail station.

• San Diego: Commercial properties near Coastal Commuter Rail Stations command a 91% price premiums. Premiums for condominiums and single family homes are 46% and 17%, respectively.

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Smart Growth Adds Valueto Commercial Property throughout

the Region

• Properties near transit in the suburbs were found to have a 12.7% higher net income, 16.2% higher market values, 0.3% lower cap rates, 1.1% higher annual appreciation and 0.9% higher annual total returns.

• Properties near transit in Commercial Business Districts had 4.5% higher net incomes, 10.4% higher market values, and 0.2% lower cap rates.

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Case Study: Streetcars

Private Returns on Public Investment

Start of Service

Initial Track Miles

Initial System Cost Per Track Mile*

Initial System Cost*

Development Investment*

Return on Investment

Kenosha 2000 2.0 3.1 6.2 150 2319%

Little Rock 2004 2.5 7.84 19.6 200 920%

Tampa 2003 2.4 20.13 48.3 1000 1970%

Portland 2001 2.4 20.13 48.3 1046 1795%

Portland Ext.

2005 1.2 14.83 17.8 1353 7501%

*in millions of dollarsSource: “Street Smart: Streetcars and Cities in the Twenty-First Century,” The American Public Transportation Association and the Community Streetcar Coalition (2009).

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Case Study: StreetcarAll Types of Properties Gain Value

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Smart Growth Adds ValueTransit in Rural Areas

• The estimated annual impact of rural public transportation on the national economy as of 1998 was over $1.2 billion.

• Rural counties with public transportation service were found to have 11 percent greater average growth of net earnings compared with counties without it.

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