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Smart Growth Makes Money: Transit Oriented Development Slide 2 Smart Growth Adds Value to Real Estate Around Transit Stations [Picture of TOD] Ballston Metro Station in Arlington, VA Portland Streetcar & Mixed-use TOD Images courtesy of EPA Smart Growth 1 Slide 3 Smart Growth Adds Value to Real Estate Around Transit Stations 2 A summary of the findings on transits impacts on land values: Slide 4 Denver, CO: Home Values Increase near Transit 3 Slide 5 Smart Growth Adds Value in Rail Station Areas 4 Price premiums within mile of rail transit stations Slide 6 Smart Growth Adds Value to Commercial Property near Transit Santa Clara County, CA: Commercial land value within mile of commuter rail stations increased 120%; for light rail, values increased 23%. Dallas: Office building values increased within mile of DART increased 24.7% in Value. Washington D.C.: Commercial property value increased $2.30/sq.ft. with each 1,000 ft. reduction in distance to a rail station. San Diego: Commercial properties near Coastal Commuter Rail Stations command a 91% price premiums. Premiums for condominiums and single family homes are 46% and 17%, respectively. 5 Slide 7 Smart Growth Adds Value to Commercial Property throughout the Region Properties near transit in the suburbs were found to have a 12.7% higher net income, 16.2% higher market values, 0.3% lower cap rates, 1.1% higher annual appreciation and 0.9% higher annual total returns. Properties near transit in Commercial Business Districts had 4.5% higher net incomes, 10.4% higher market values, and 0.2% lower cap rates. 6 Slide 8 Case Study: Streetcars Private Returns on Public Investment Start of Service Initial Track Miles Initial System Cost Per Track Mile* Initial System Cost* Development Investment* Return on Investment Kenosha20002.03.16.21502319% Little Rock20042.57.8419.6200920% Tampa20032.420.1348.310001970% Portland20012.420.1348.310461795% Portland Ext. 20051.214.8317.813537501% *in millions of dollars Source: Street Smart: Streetcars and Cities in the Twenty-First Century, The American Public Transportation Association and the Community Streetcar Coalition (2009). 7 Slide 9 Case Study: Streetcar All Types of Properties Gain Value 8 Slide 10 Smart Growth Adds Value Transit in Rural Areas The estimated annual impact of rural public transportation on the national economy as of 1998 was over $1.2 billion. Rural counties with public transportation service were found to have 11 percent greater average growth of net earnings compared with counties without it. 9