Open for business? Effects of Los Angeles Metro Rail construction on adjacent businesses

Abstract

Recent court cases and news reports have focused on the effects of transit construction on business revenue and survival, yet the topic is underexplored in the scholarly literature. This paper examines whether transit construction negatively affected the revenue and survival of businesses along the second segment of the Los Angeles Metro Rail Red Line under Vermont and Hollywood Boulevards. Using National Establishment Time-Series business data, the research shows that business survival was significantly lower among businesses within 400 meters of stations, where cut and cover construction was used. A difference-in-differences technique was employed to determine whether revenue loss was the main mechanism by which businesses were displaced, but revenue loss was not found to be significant. The increased failure rate provides evidence that construction effects of mitigation programs for businesses should be standard practice when building new transit lines. Further research and data collection on business tenure are needed to understand the dynamics of business displacement around transit and to make such programs more effective.

Does rail transit access affect firm dynamics? Analysis of firm births and closures in Maryland, USA

“…Schuetz (2015), for example, observed that rail transit infrastructure enhances local retail activity, which is consistent with prior findings (Baum-Snow & Kahn, 2000;McDonald, 2007). Furthermore, Ray (2017) demonstrated that not just the presence of rail infrastructure but also its construction has an impact on surrounding enterprises, supporting the findings of Giuliano (2004) and Boarnet and Crane (2001). This body of research confirms the findings of Capello (2010b), Yu et al (2018), and by emphasizing the significance of infrastructure in determining firm birth and closure dynamics.…”

Opportunities and challenges for small businesses in new transit neighborhoods: Understanding impacts through in‐depth interviews

“…Thus, for future studies, it is important to explore the role of business advocacy organizations and local authority in small business retention in economically upgrading transit neighbourhoods. Speaking of limitations of the study, we contacted small businesses within a ¼ of a mile from the light rail stations, though the impacts of light rail station adjacency might spread beyond this buffer (Ray, 2017). Another limitation, or opportunity for future research, is that the interviewed group of small business owners consisted mostly of independently‐owned private businesses, with a minimum inclusion of franchises.…”

How to use Google street view for a time-lapse data collection methodology: potential uses for retailing

“…It will be considered a radius of 150 m for the analysis. This distance is based on the investigations of Tan and Tan (1995); Nikilaos et al (2011) or Ray (2017) who follow this same longitudinal criterion attending to visual, transport and visual impact elements. In the case of previously delimited areas (the intention is to study a street, district or singular area) it is recommended to create grids of approximately 900 m 2 .…”