Capturing the Value of Transit
This guide was developed by the only national nonprofit that is dedicated to provideing the best practices, research and tools to support market-based transit-oriented development. This guide:
- Summarizes the findings of previous studies that measure the impact of transit on nearby property values
- Provides a detailed discussion on how property owners and developers can capture the value associated with being near transit
- Offers examples of tools currently used by transit agencies to capture the value of transit to help defray capital costs
- Provides a framework for thinking about what kinds of value capture strategies are possible in a given situation
This document highlights the primary ways in which transit can benefit development. Transit is a desirable amenity that can improve the marketability of new residential units, office space and other property types and thus result in higher revenues for the developer. The introduction of transit can make valuable new sites available for development. Proximity to transit can improve the likelihood that high-density development will be allowed and make it easier to obtain development entitlements. Transit can improve the financial feasibility of higher-density development. Transit-oriented development (TOD) can promote partnerships between the private and public sectors that result in a direct subsidy for the project and/or other beneficial neighborhood investments.
This is a worthwhile document for promoting, and educating the public and the development community about the viability of, transit-oriented development. The document is an ideal communication tool for agencies that desire to speak the same language as the development community. The information and approaches identified in this report will enable more effective advocacy for transit-oriented development, especially public-private ventures.
