Citation

Drennan M, Brecher C. Access 2012; (20): 29-33.

Copyright

(Copyright © 2012, University of California Transportation Center)

DOI

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PMID

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Abstract

Investing in public transportation can make an economy more efficient by providing employers with a larger pool of potential employees at lower transportation costs. Businesses that produce advantages that are shared by other businesses in the area result in agglomeration economies. It is hypothesized that office rents, as indicators of efficiency gains from the presence of urban agglomeration economies, will be higher in areas better served by mass transit. This research found that in downtown areas with more than 30% of the office space in a given region, there is a small but statistically significant increase in rents; public transit appears to increase rents, but only where there is a high concentration of office space.