Reconnecting America People * Places * Possibility

The Value In Investing In Properties Near Transit

Pair of Best Practices explore profits of investing in properties near transit and the effect of housing near transit on vehicle trips

The profits of investing in properties near transit and the effect of housing near transit on vehicle trips are explored in a pair of documents added to the Best Practices.

Investment Returns From Responsible Property Investments: Energy Efficient, Transit‐Oriented And Urban Regeneration Office Properties In The US From 1998‐2007 (2008)

The application of responsible investing and corporate social responsibility to the property sector has come to be called responsible property investing. Responsible property investing includes investing in Energy Star labeled properties, investing in properties near transit stations and investing in properties in urban regeneration areas. This paper by Gary Pivo and Jeffrey D. Fisher shows that an investment portfolio consisting solely of RPI office properties had performance over the last 10 years that was as good if not better on a risk-adjusted basis than a portfolio of properties without RPI features.

"Since RPI can produce social and environmental benefits and fulfill fiduciary duties, it would be economically irrational in social welfare terms and ethically unjustifiable to not engage in Responsible Property Investing," the paper concludes.

The Effect Of Housing Near Transit Stations On Vehicle Trip Rates And Transit Trip Generation (2007)

Legislation adopted by California voters in 2006 (Proposition 1C) tasked the Department of Housing and Community Development with providing local assistance for the development of transit-oriented development with the goal of increasing public transit ridership and reducing private vehicle use.

In order to show the ridership benefits of TOD, Richard W. Lee and Robert Cervero examined empirical information available for adjusting vehicle trip generation rates and estimating transit ridership. The resulting resource paper pulls together the best empirical evidence available demonstrating how different elements of the 5Ds -- density, diversity, design, destination accessibility, and distance to transit -- are associated with two or three key travel-demand metrics: transit modals splits; vehicle trips (per 1,000 households); and VMT per household.