In the robust Metro Vancouver suburban office market, proximity to rapid transit has become a key market driver, according to the inaugural Vancouver Rapid Transit Office Index, issued today by Jones Lang LaSalle.
The real-estate financial and professional services firm notes that vacancy rates are one-third higher for office locations within 0.5 kilometres of rapid transit stations than areas not served by transit.
Landlords have the upper hand in the well-served locations. Meanwhile, developers are looking to build more transit-oriented suburban office complexes.
“Transit is becoming increasingly important in Metro Vancouver,” said Jones Lang LaSalle executive vice-president Ray Ahrens.
“Our Rapid Transit Office Index shows clear evidence that office developments located within walking distance of rapid transit have a significant advantage with less vacancy and higher rents.
“The direct vacancy rate for buildings within 0.5 kilometres of a rapid transit station is 4.8% compared with 12.3% for the rest of the suburban market, and the average asking rents are approximately 8% higher.”
“As Downtown and Broadway corridor availability decreases and rents increase, our landlord and tenant clients are becoming more interested in transit-oriented suburban locations,” said Ahrens.
Ahrens also expects to see continued interest in suburban developments, particularly from employers with back-office operations that do not need to be located downtown.
Jennifer Harrison
@JHarrisonBIV