The economic value of end-of-trip facilities for cyclist commuter in an office building

Abstract

ABSTRACT The paper aims to investigate whether the presence of cycling-supportive facilities could add value to office buildings. 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. However, the absence of secure bike parking and storage and shower and changing facilities (referred to as end-of-trip facilities) at workplace is identified as one of the hindrances to prevent more people from cycling to work. In this paper, we investigate whether office occupants are willing to pay rent premium for the end-of-trip facilities in an office building. The study uses data of office buildings across England as of the end of 2021. Hedonic technique is employed to examine whether office buildings with bike storage and shower facility command a rent premium. It is found that the buildings with bike storage and shower facility secure rent premiums, irrelevant of size and age of building and independently from any premium associated with BREEM certification. The level of rent premiums varies with location and region and is mainly driven by the shortage of the supply of these facilities.