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Mass Transit Drives Rent Growth in Major US Metros
The national average rent in transit-accessible office buildings was 65% higher than the average market rent in early 2018, according to a report by Transwestern. And examination of 15 major metros shows average rent in Central Business Districts was $43.48-per-square-foot NNN for transit-accessible buildings versus $26.01-per-square-foot NNN for car-dependent buildings.
Transwestern researchers also found transit-accessible office space was at a premium in the suburbs, with average rent of $33.43-per-square-foot NNN being nearly 50% higher than rent in car-dependent buildings.
Brian Landes, director of GIS/Location Intelligence for Transwestern, says, “Not surprisingly, vacancy for transit-accessible buildings is lower than overall vacancy, which makes these buildings extremely attractive to commercial real estate investors.” He notes, workplace amenities have become increasingly important to companies in attracting and retaining talent, which includes accessibility to mass transit.
Nationally, Denver, New York/New Jersey, Washington, D.C., and the San Francisco Bay Area are rated the highest on the transit-accessibility scale, with roughly half of the office market’s inventory or greater qualifying as transit-accessible.
*Pictured: San Francisco’s Transbay Center
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