Hedonic Evaluation of the Effects of EmX Routes on the Value of Commercial and Mixed Use Properties

Investment in public and mass transit can be viewed as amenities for adjacent and proximal businesses and commercial properties thereby increasing their sale value. Bus rapid transit is a cheaper alternative to light and heavy rail, requiring fewer modifications of existing transit infrastructure. Lane Transit District (LTD) located in Eugene/Springfield, Oregon has operated a BRT system known as the Emerald Express (EmX) for the past 6 years. Currently, LTD has plans to expand service to West 11, but has met harsh criticism from local businesses located along the proposed extension, stemming from concerns regarding revenue disruption, decreases in property value, and increases in congestion. The effect of the presence of the EmX and associated stations on local commercial and mixed use property sales along the Franklin corridor was tested and was found to have a positive base effect on property values in addition to an effect that was distance dependent within the corridor. These effects were used to forecast gains in commercial property value that may be realized along the West 11 corridor. It was then found that commercial and mixed-use properties along the West 11 corridor are expected to see gains in property value due to the proposed extension but at a depressed rate relative to the rest of Eugene.