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Abstract
City governments across the country invest in rail transit to provide localized access to vital facilities for vulnerable groups of their populations, and to encourage development around transit lines and stations (Transit Oriented Development). Such developments however might pose a risk for smaller independently run businesses that could be unable to compete when saddled with increasing rent premiums, or culturally fit in with an influx of new residents. Such a phenomenon is often referred to as transit induced commercial gentrification. The main question addressed in this dissertation is what kind of changes do newly constructed light rail stations create for the existing local commercial environment? This question is addressed through analyses of three US cities that constructed their first light rail lines at approximately the same time, experienced similar influxes of new residents, and experienced similar economic growth patterns: Charlotte, NC, Phoenix, AZ, and Seattle, WA. A mixed qualitative and quantitative research design was adopted to gain a more comprehensive understanding of transit retail developments. The results of the study illustrate that commercial development around transit is sensitive to the local geographic context but the results are also consistent with existing empirical evidence and retail location theories. Results reveal some evidence of an increase in creative-cultural establishments such as art galleries around TODs in each of the three cities. Overall, however, the location of the light rail did not play a significant role in inducing a higher risk of retail establishments leaving when located in close proximity to transit stations as compared to similar locations elsewhere in the metropolitan area. Rather, the age and size of the establishment were significant indicators. Nonetheless, interviews with small business owners in new transit locations revealed more challenges than opportunities associated with their location. The results of the study are important for informing policies as cities investing in light rail should consider budgeting for the unintended consequences for local businesses.