Abstract
The arrival of High Speed Rail (HSR) often gives rise to a development of office and corporate real estate programs around the central station where firms are expected to locate. But the question is to know if HSR is, in itself, a location factor or if it induces an indirect effect by triggering a supply of business real estate, which then explains the location of firms. The aim of this paper is to identify the exact role of HSR in firms’ choice of location, and on real estate supply, at the time of opening of HSR services and during their development.We analyzed the case of Reims, a city served since 2007 by the Eastern Europe High Speed Line. Its district near the central station has been transformed into a so-called business district. Two surveys interviewing firms were conducted in 2008 and 2014 respectively. The results of the first survey clearly show that use of HSR does not directly explain the location, but the image effect it generates real estate investments. Such programs quickly find real estate buyers and tenants, mainly local ones, but less from companies outside the city. The second survey makes it possible to identify whether the dynamics noticed in the short term, where strong expectations existed, are still relevant seven years later. Interviews with developers and investors make it possible to identify the reasons why they have invested in this district. This last survey shows the importance of local developers, local public stakeholders and of land availability, but also that HSR becomes, for some firms, a direct location factor.
Highlights
High-Speed Rail (HSR) arrival induces urban renewal and the creation of a business district around the station
Why do firms locate there and what is the role of HSR in this location choice? Does HSR have an impact, in itself, on firm location choice or does it have an impact on real estate decisions? Do firms use HSR services or just need new offices compliant with the current standards? What is the main location factor of these firms and why do developers and investors choose to build and invest in these areas? The aim of this paper is to identify the exact role of the High-Speed Rail Line and the HSR services in the location choice of firms and in the decisions of real estate stakeholders, on opening of the HSR services and subsequently
One hundred firms are located there and 43 firms responded to a quantitative and qualitative survey aimed at identifying the types of businesses located in the area, their location factors, the HSR impact on location choice and their current use of HSR
Summary
High-Speed Rail (HSR) arrival induces urban renewal and the creation of a business district around the station. It often gives rise to significant development of office and corporate real estate programs especially around the central station where, in many cases, business services firms choose to locate. Why do firms locate there and what is the role of HSR in this location choice? Does HSR have an impact, in itself, on firm location choice or does it have an impact on real estate decisions? The aim of this paper is to identify the exact role of the High-Speed Rail Line and the HSR services in the location choice of firms and in the decisions of real estate stakeholders, on opening of the HSR services and subsequently. Two surveys have been conducted, the first in 2008 and the second in 2014
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