Abstract

This paper aims to analyze the potential effects of the Brightline passenger rail system on commercial land use in South Florida. Specifically, this paper analyzes how commercial property values change in response to proximity to Brightline stations. A Bid-Rent theoretical framework is developed to model possible outcomes of changes in commercial land values in response to proximity to privately owned inter-city rail systems, like Brightline, by modeling the proximity to Brightline stations’ effects on the firm’s function. Two empirical models are specified using the Hedonic Price Model in order to capture all relevant attributes in determining property value. The models tested to assess the overall South Florida commercial land market preference for proximity to train stations, as well as the South Florida commercial land market preference for proximity to Brightline stations at the junction with Tri-Rail stations. The key findings show that there is a commercial land market preference for firms locating within proximity to Brightline stations. However, with challenges in the empirical model specification and the failure of meeting of post-regression testing expectations, an understanding of the causal relationship between proximity to Brightline Stations and commercial property value remains unclear.

Advisor

Burnell, Jim

Department

Economics

Disciplines

Econometrics | Real Estate | Regional Economics

Publication Date

2024

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2024 Lyonel J. Fritsch