Statistical analysis of effects of access, traffic exposure, and frontage parameters on sale price of commercial real property in Kansas

Abstract

Past research has demonstrated the effectiveness of access management in improving or preserving the safety of the traveling public and the capacity and quality of the flow of traffic and supporting and sustaining economic activity. Nevertheless, fear of economic hardship that is perceived to arise from effective implementation of access management remains a barrier to implementation. Work in NCHRP Report 420: Impacts of Access Management Techniques showed how effective access management at the network level preserves or restores the market penetration of commercial activities in a given area. Work done in Florida (1991), Iowa (1997), and Texas (1999) studied the effects of access management retrofits at the corridor level, and found minimal to positive changes in economic activity overall. Small studies of economic impacts on individual sites were conducted in Kansas (1999) and Minnesota (2006), and demonstrated impacts ranging from little to positive on the highest and best use arising from access management retrofits. The site-level (microscopic) studies were of individual corridors or smaller data sets and were largely qualitative analyses of the economic effects of access at the microscopic level. Quantitative analysis is needed on a large data population to examine the factors that most affect the sale price of income-producing properties. This paper presents the effects Of access and other transportation characteristics on the sale price of income-producing real property, and a model that shows which variables contribute to sale price, the interactions of those variables, and the effectiveness of the model.