Metro Vancouver office buildings that are within a close walk to a Skytrain or Canada Line transit station have vacancy rates half as low as those buildings more than 0.5 kilometres from a station, a new study suggests.
The recent survey by Jones Lang Lasalle reveals that the direct vacancy rate in transit-linked offices averages 4.8 per cent, but rises to 12.3 per cent in buildings not close to a transit station. As well, offices close to transit were able to charge more for leases, at an average of $18.63 per square foot, compared to $17.26 per square foot for transit-challenged offfices.
Transit links are most important in Surrey. The Jones Lang LaSalle survey found that Surrey’s vacancy rate for offices close to Skytrain is 0.4 per cent, compared to 25 per cent for space further from transit, and the rental rates for transit-linked space are about 33 per cent higher.
Some analysts point out that many offices close to transit are often newer buildings, which may make them capable of attracting higher rents and lower vacancies.
For more on the Metro Vancouver office market, watch for the January 2012 issue of Western Investor.
