In 2018, ESI was retained by Montgomery County, Maryland Department of Transportation (MCDOT) to evaluate how the proposed MD355 BRT line would add value to the properties around the stations and impact future economic development. The MD355 BRT is part of the Countywide Transit Corridors Functional Master Plan and falls between Bethesda and Clarksburg, MD.
Using Montgomery County data, ESI determined the market value premium of a new BRT route along MD 355, which included:
- Estimating existing transit premia for parcels near MARC and Metro stations within the county, based on differential premia for parcels based on building characteristics, use type, and distance to line.
- Analyzing the historic pace of development and calculating the optimal density in the County.
- Identifying the change in equilibrium development resulting from the new BRT service.
- Evaluating the impacts of alternative service configurations and supportive policies to property values.
Using the information discovered, ESI determined that the implementation of the BRT will increase the optimal Floor Area Ratio (FAR), and raise the demand side factors. This would result in a slightly higher growth rate. ESI also provided recommendations for next steps.
