Demand for transit-accessible offices remains strong
Net absorption by transit proximity
- Jacob Rowden
- Irrespective of building age and class, offices closest to mass transit stations have continued to generate strong demand in gateway market CBDs, with buildings within one block of transit generating positive net absorption over the past 12 months as less accessible assets saw occupancy loss.
- Only 8% of gateway market office inventory is located within one block of transit, driving rental premiums for proximity, particularly in quality assets such as the newly-delivered One Vanderbilt in Midtown Manhattan, which has set new record office rents for the United States.
- As more employees return to the office, transit ridership post Labor Day in New York, San Francisco, Boston and Washington, DC is up 30% relative to 2021 levels.
- With time lost to commuting a common downside cited by remote workers preferring to remain at home, offices closest to transit will continue to generate outsized interest within CBDs, particularly when coupled with other tenant preferences of newer-vintage efficient design with high-quality finishes and amenities.