DALLAS AREA’S RAPID TRANSIT

ORIENTED DEVELOPMENT:LIGHT RAIL

By: Andrew Pagano

OUTLINE

• System overview

• What is TOD?

• Analysis Methods

• 2003 Study

• 2014 Study

• Regional Projects

• Conclusions

& Recommendations

DALLAS &

REGION

METRO City

Pop: 6.9 Mil Pop: 1.2 Mil

Density: 634/sq. mi. Density: 3,645/sq.mi.

Area: 9,286 sq. mi Area: 385.8 sq. mi.

DALLAS AREA RAPID TRANSIT OVERVIEW

• Opened June1996

• Largest Light Rail system in

North America by length (90

Miles of track)

• 62 Stations built

• Average weekday ridership:

29.5 million passenger trips

(2014)

• 4 lines: Red Line, Blue Line,

Green Line, Orange Line

THE DART SYSTEM

• Red Line: Opened 1996, 29 stations,

runs southwest to northeast from

Westmoreland station in Southwest

Dallas to Parker Road station in Plano

and through the Central Business

district.

• Blue Line: Opened 1997, 21 stations

running southwest to northeast from

Ledbetter station in Southwest Dallas

to downtown Rowlett.

• Green Line: Opened 2009, 24 stations,

runs northwest to southeast from

Buckner to North

Carrollton/Frankford station in

Carrolton.

• Orange Line: Opened 2010, 29

stations, runs from the northern end of

the region at Parker Road to DFW

airport in the west

WHAT IS TRANSIT-ORIENTED

DEVELOPMENT

• TOD: commonly defined as high-

density, mixed-use development

within walking distance (a 1/2 mile)

of a transit station.

• Provides a range of benefits

including increased transit ridership,

reduced regional congestion and

pollution, and healthier, more

walkable neighborhoods.

ANALYSIS METHODS

• Addressed the impacts of light rail stations

• Analyzed effects of DART Rail stations on

development activity

• Collected data on tax rolls of each county

• Compared development in station areas to

matching “control” areas of similar size.

• Properties were assessed and DART area

property values were compared against

control group

2003 DART TOD STUDY

• Breakdown of Market

• classes for analysis:

1. Residential

2. Office

3. Retail

4. Industrial

• Examined all market classes within

25 mile of DART Light Rail Station

• Calculated data of taxable property

values between 1997 and 2001

2003 DART TOD STUDY

Office Properties analyzed within

.25 Mile from DART Light Rail

Station and Control Group

Residential Properties analyzed

within .25 Mile from DART Light

Rail Station and Control Group

2003 DART TOD STUDY

Office Properties analyzed within .25 Mile from DART Light Rail Station and Control Group

Residential Properties analyzed within .25 Mile from DART Light Rail Station and Control Group

2003 DART TOD STUDY

Residential-Vacant units within .25 Mile from DART Light Rail Station and Control Group

Retail Units within .25 Mile From DART Light Rail Station and Control Group

2003 DART TOD STUDY

Residential-Vacant units within .25 Mile from DART Light Rail Station and Control Group

Retail Units within .25 Mile From DART Light Rail Station and Control Group

2003 DART TOD STUDY

Residential-Vacant units within .25 Mile from DART Light Rail Station and Control Group

Residential-Vacant units within .25 Mile from DART Light Rail Station and Control Group

2003 DART TOD STUDY

Change Analysis tools DART Properties Control Properties

Combined Property Valuations 1997 $1,021,275 $836,910

Combined Property Valuations 2001 $1,258,985 $1,002,745

Total Change $237,710 $165,835

% Change 21.84% 16.58%

• Properties located within areas .25 mile

received a larger increase rate of property

values than control group

• DART Properties in 1997 saw combined

property valuations of $1,021,275

• Control Properties saw combined

property valuations of $836,910

• DART properties in 2001 saw property

valuations $1,258,985

• Control Properties saw combined

property valuations

• Overall, DART properties experienced

21.84% of increased property values

• Control Group properties experienced

property growth values of 16.58%

2014 DARTTOD STUDY

• Breakdown of Market

• classes for analysis:

1. Residential Multifamily

2. Residential Single Family

3. Office

4. Retail

5. Industrial

• Examined all market classes within

.25 miles of DART Light Rail Station

• Calculated data of taxable property

values between 1997 and 2001

2014 DARTTOD STUDY

• Since 2003 study, DART’s light rail system doubled in length

• Since opening of the system, development near DART rail stations have totaled to

$5.3 billion

• Tax contributions from the developments

near stations have amounted to over $36 million

Property EST. Value of ALL Properties EST. Tax contributions Tax

Type DART Control DART Control Differential

Industrial $23,473,050 $19,481,050 $556,311 $461,701 $94,610

Multi-Family $751,646,900 $169,555,466 $17,814,032 $4,018,465 $13,795,567

Office $224,798,649 $45,121,010 $5,327,728 $1,069,368 $4,258,360

Retail $393,286,515 $300,039,538 $9,320,890 $7,110,937 $2,209,953

Single Family $140,960,100 $67,550,410 $3,340,754 $1,600,945 $1,739,810

Total $1,534,165,214 $601,747,474 $36,359,716 $14,261,415 $22,098,300

2014 DARTTOD STUDY

Year Average Market Rate Average TOD Premium Weighted Average Premium

2003 $15.86 $1.03 6.50%

2004 $15.76 $1.11 7.00%

2005 $16.13 $1.58 9.80%

2006 $16.44 $2.39 14.50%

2007 $16.84 $2.94 17.50%

2008 $17.58 $2.71 15.40%

2009 $17.47 $3.24 18.50%

2010 $16.98 $3.33 19.60%

2011 $16.83 $2.68 15.90%

2012 $16.66 $2.31 13.90%

2013 $16.42 $2.36 14.40%

• Analysis included determination

of office space rental rates

• Leasing rate per square foot of

office space was 13.9% higher in

Offices near DART stations

2014 DART TOD STUDY

• Xceligent real estate market database

was used to compare properties

• . Each different color represents

different property market areas

throughout the region

• Property within a .25 from LBJ Skillman

station were compared to properties

out of the .25 mile are from that station

within the LBJ corridor

2014 DART TOD STUDY

• Report findings were even more

conclusive in 2014 than in 2003

• Higher levels of developments were

occurring with .25 miles of DART light rail

stations than in other comparable area

• Properties within .25 miles from a light rail

station built within three years saw

development valuations of almost $1.5

billion as opposed to the development in

control areas at around $600 million.

2014 DART TOD STUDY

• Multifamily residential dominated

development value along .25 mile

access zones around Dart light rail

stations with $751,646,900 of

development

• Over $580 million more investment

than the $169,555,466 of Control

Group

• Office developments in DART Areas

totaled over $224 million

• Office Developments in Control

Group as only $45 million in

development along properties

REGIONAL PROJECTS

• $1.2 billion of new commercial

and residential developments constructed

walking distance from DART (2004)

• All occurred without any subsidies or TOD planning

or supportive policies by the regional planning agency

• Three projects:

1. Mockingbird station

2. The Cedars station

3. Downtown Plano station

MOCKINGBIRD STATION

• 15 minute train ride from the central

business district

• Significant growth on developments

within a .25 radii

1. 211 upscale loft residences built

2. 140,000 square feet of office space

3. 180,000 square feet of retail, theatres

and restaurants

• The total amount of construction

around the station in 2004 was $145

million of development

• Rates per unit valued over 35%

above control group market rate

THE CEDARS STATION

• Former industrial center 7.5 min from

CBD including a provision of industrial

warehousing

• Redevelopment stages focused on

building up residential base ,transit –

friendly access ,additional parking, bus

bays, and bike racks

• 1.4 million square feet of development

was catalyzed by the construction of

the station.

• Development included 455 lofts, 20,000

sq.ft of retail space, 100,000 sq.ft of

office space, and a concert venue

DOWNTOWN PLANO STATION

• 40 minutes from the Central Business

district

• Widespread retail turnover and

eventually abandonment in 1980s

• Through help of developers and city

officials a $17.7 million high density,

mixed-use project was brought to

fruition.

• 245,000 square feet of 234 apartment

buildings and 15,000 square feet of

ground-level retail spaces completed

in 2001.

• 25,000 square feet of ground-level

retail was constructed and increased

rates of occupancy within units in the

TOD, mostly driven by access to the

DART station.

CONCLUSIONS & RECOMMENDATIONS

• Properties of all types including multi-family residential, office and retail spaces saw

significantly increased rates of property values.

• Industrial areas saw decrease in property rates

• Since the opening of the system, areas around stations on DART light rail lines saw

development over $5.3 billion and tax contributions in excess of $36 million.

• Development patterns along these areas have seen continued new-urbanist mixed-

use developments with supple access for bike and pedestrian infrastructure.

CONCLUSIONS & RECOMMENDATIONS

• Benefits of continued transit Oriented Development in on the Dallas regional network

of light rail has benefited not only the users of the transit service, but also the

developers taking advantage of further business opportunities along this

infrastructure and local governments who continue to benefit from increased tax

contributions in these station areas compared to other areas.

• TOD is an effective tool for development in general, however it is best used as a tool

for generating increased rates of residential property values

• Industrial areas can also be pushed out with construction of light rail and TOD

THANK YOU

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