The Impact of APMs on Property Value

Landside airport APMs that go "off" airport property typically require multiple landowners and government agencies to agree on a multitude of elements—no easy feat. One of the most important of these elements is project finance and one of the most important components of project finance is the real estate value enhancement that a landside APM provides. The positive impact of transit on property values has been well documented over the last four decades. A strong correlation between property value and proximity to fixed guideway transit (rail or APM) has been found for properties that are within walking distance of a transit station. That enhanced value of transit access is due to a number of factors, two of which are the relative cost and convenience of the private-auto transport option. Thus, increases in gasoline prices and in roadway congestion help to increase the value of transit access. This paper helps define and quantify the positive impact that landside airport APMs can have on real estate property value and how that value enhancement can be "captured", to help improve a project's financial picture.