Value-added effects of transit-oriented development: The impact of urban rail on commercial property values with consideration of spatial heterogeneity

This study investigates the impact of the Austin MetroRail on commercial property values. Spatial Durbin models (SDM) suggest a modest price premium associated with rail transit across the study area. A premium gradient is also presented at different distance tiers from stations. When it comes to transit-oriented development (TOD), a synergistic effect in enlarging the premium is found: with additional $9.0/ft(2), $8.6/ft(2) and $5.3/ft(2) at 0.25 mi, 0.25-0.5 mi and 0.5-0.75 mi, respectively. Furthermore, geographically weighted regression shows the premium is significantly higher in central business district (CBD) and TOD areas. Such recognition of the heterogeneous price effect is of use in the design of project financing and TOD strategies.