Does fixed-route mass transit have an effect on real estate values? In Tucson it does. This study shows a direct relationship between the Tucson Modern Streetcar and increased performance in the real estate marketplace. To get a baseline value, analysis starts in the year 2000, with comparisons between the Tucson Metro market and the area within 1/2 mile of the streetcar route - highlighting different points during time periods from proposal to completion of the project. Conclusion: this mass transit project has had a significant positive impact on real estate values in Tucson, AZ.

1. The Streetcar Effect
PERFORMANCE OF RESIDENTIAL REAL ESTATE
WITHIN ½ MILE OF TUCSON STREETCAR ROUTE
VS THE TUCSON MSA
©2015 Kent Simpson
Prepared for Senator BobWorsley
AZ SenateTransportation Committee Chair

2. Performance Metrics:
• Rate ofTransaction Growth/Decline
• Rate of AverageValue Growth
• Rate ofValue Growth marked by periods in timeline

3. Percentage Growth In Transactions:

4. Numbers of Transactions
“Spike” At Each Stage of
Development
 TRANSACTIONS JUMPED 52% BETWEEN 2006 & 2007 AFTER
RTA PASSES WITH STREETCAR AS PART OF PACKAGE
 ANNOUNCEMENT OF TIGER GRANT (COMPLETING FUNDING
OF STREETCAR) FOLLOWED BY 23.4% JUMP IN
TRANSACTIONS
 CONSTRUCTION OF STREETCAR LINE BRINGS 14.4% RISE IN
TRANSACTIONS
***DATA ON TRANSACTIONS TOO EARLY FOR RESULTS AFTER
BEGINNING OF SERVICE

5. Property Values Rise & Outpace Tucson
Market

6. 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.

7. Since Announcement, Value Performance
Has Outpaced The Rest of The Market
©2015 Kent Simpson All Rights Reserved

8.  DURING CRASH,VALUES FELL AT A RATE 88% LESSTHANTHE REST OF
TUCSON MARKET
 DURING EARLY STAGES OF RECOVER,THE STREETCAR MARKET
DOUBLEDTHE PERFORMANCE OFTHETUCSON MSA

9. 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 apts
1 North 5th – 96 apts & retail
1 E Broadway – 24 luxury apts & retail
212 New Businesses in Downtown Core opened since
2008
Marriott AC Hotel breaking ground in May
Marriott 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

11. The Renaissance
Of Downtown
Development Spurs Development

14. Conclusion:
TheTucson 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 Simpson
NAR® &AAR® Board of Directors
Simpson/Basch Partners of
Tierra Antigua Realty-Downtown
216 E Congress Street
Tucson, AZ 85701
Kent@SimpsonBasch.com
520-302-5368