the streetcar effect - analyzing real estate values in tucson
TRANSCRIPT
The Streetcar EffectPE R FO R MA NCE O F R E SIDENT IA L R E A L E STAT EWIT HIN ½ MILE OF T UCSON ST R EETCAR R OUT EVS T HE T UCSO N MSA
©2015 Kent Simpson
Prepared for Senator Bob WorsleyAZ Senate Transportation Committee Chair
Performance Metrics:
• Rate of Transaction Growth/Decline
• Rate of Average Value Growth
• Rate of Value Growth marked by periods in timeline
Percentage Growth In Transactions:
Numbers of Transactions “Spike” At Each Stage of Development T R A N S ACT IO NS J U MP ED 5 2% B E T WE E N 20 0 6 & 20 0 7 A F T E R
R TA PA S S E S WIT H S T R E E TCA R A S PA R T O F PACK AG E
A NNO U NCEMENT O F T IG E R G R A NT (CO MPLET ING FU ND ING O F S T R E E TCA R) F O L LO WED B Y 23 .4% J U MP IN T R A N S ACT IO NS
CO N S T R UCT IO N O F S T R E E TCA R L IN E B R IN G S 1 4.4% R IS E IN T R A NSACT IO NS
***D ATA ON TR A N SAC TI ONS TOO E A R LY F OR R E SU LTS A F TE R B E GI NN ING OF SE R V I C E
Property Values Rise & Outpace Tucson Market
Average Value Very Similar Prior To RTA Vote
2000-2002 Almost Identical
Values rise quicker during
“boom” period
Values gained are held stronger
through “bust” and beginning
of recovery.
Since Announcement, Value Performance Has Outpaced The Rest of The Market
©2015 Kent Simpson All Rights Reserved
DURING CRASH, VALUES FELL AT A RATE 88% LESS THAN THE REST OF TUCSON MARKET
DURING EARLY STAGES OF RECOVER, THE STREETCAR MARKET DOUBLED THE PERFORMANCE OF THE TUCSON MSA
Commercial Development
Student Housing, Market Rate Apartments &Downtown Core Showing Earliest Returns:
Nearly 3000 beds in private student housing projects alone (The District on 5th – 760 beds – built for $33MM, sold for $67MM within 1 year of completion).
The Herbert - 144 apts1 North 5th – 96 apts & retail1 E Broadway – 24 luxury apts & retail
212 New Businesses in Downtown Core opened since 2008
Marriott AC Hotel breaking ground in MayMarriott Residence Inn proposed next to University Marriott
20+ Story Retail/Office/Residential project in proposal at northern end of streetcar
Rio Nuevo/NorGen deal across from convention center just signed
The RenaissanceOf Downtown
Development Spurs Development
Conclusion:The Tucson Modern Streetcar has brought about a marked benefit to the Residential Real Estate Marketplace.
The numbers just don’t lie.
©2015 Kent Simpson
For More Information Contact:
Kent SimpsonNAR® & AAR® Board of Directors
Simpson/Basch Partners ofTierra Antigua Realty-Downtown
216 E Congress StreetTucson, AZ 85701