The value of access to highways and light rail transit: Evidence for industrial and office firms

This research examines the importance of access to light rail transit and highway systems in estimating office and industrial property rents. The analysis improves our understanding of the role played by transport facilities in locational decisions for the firm. Hedonic price analysis is utilised on longitudinal data for 520 office properties and 500 industrial properties collected from the San Diego metropolitan area over the period from 1986 to 1995. Results indicate that access to highways is a significant factor in estimating office property rents in the San Diego area, while access to light rail systems is not significant for office properties. Industrial firms in the San Diego area are not paying rent premiums to locate near highways or light rail transit.