The Economic Value of End of Trip Facilities for Cyclist Commuter in an Office Building

Abstract

The benefits of cycling as a sustainable transportation mode are widely recognized. Cycling to work offers numerous advantages for individuals, employers, the environment, and society, ranging from improved physical health, wellbeing, and productivity to enhanced public health and reduced carbon emissions. Many governments around the world have implemented various policy measures, interventions, and initiatives to promote cycling. Some cities and towns have encouraged workplaces to provide bike-friendly amenities, such as secure bike parking/storage and shower and changing facility (referred to as end-of-trip facilities), to accommodate cyclists and motivate more employees to embrace sustainable transportation options. However, the presence or absence of such amenities has been found to both positively influence cycling behavior or deter some individuals from cycling to work. Despite the desirability of these amenities, the number of office buildings equipped with bike storage and shower/changing facility remains small, and their economic value is not well understood. In this paper, we aim to investigate whether the presence of cycling-supportive facilities could add value to office buildings. Specifically, we conduct a study using data from office buildings across England as of the end of 2021. We employ hedonic techniques to examine whether office buildings with bike storage and/or shower facility command a rent premium and whether the existence of a rent premium for bike storage and/or shower facility vary by location and across regions in England, independently from any premium associated with BREEM certification. We find that the buildings with bike storage and shower facility secure rent premiums respectively. The level of rent premiums varies with location and regions. The variations of premium are driven by the shortage of the supply of these facilities.