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Recent court cases and news reports on transit projects have focused on the effects of construction on business revenue and survival, yet the topic remains underexplored in the scholarly literature. This thesis examines whether transit construction negatively affected businesses’ revenue and survival along the second segment of the Los Angeles Metro Rail Red Line under Vermont and Hollywood Boulevards. Using regression analysis on National Establishment Time-Series data, the author finds that business survival was lower along the corridor than for the county as a whole, and significantly lower around stations, where cut and cover construction was used. Location near stations was also correlated with revenue decreases during the early construction period and with revenue increases following construction. These findings suggest that revenue loss from transit construction occurs but may not be the main mechanism by which businesses are displaced and that further research is needed to understand the source of community concerns.

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