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Jones Lang LaSalle issues new Vancouver Rapid Transit Office Index
In the robust Metro Vancouver suburban office market, proximity to rapid transit has become a key market driver. Office locations within 0.5 km of rapid transit stations have a vacancy rate almost one third of areas which are not served. Office landlords have the upper hand in the well served locations and developers are looking to build more transit-oriented suburban office complexes says the inaugural Vancouver Rapid Transit Office Index, issued today by Jones Lang LaSalle.
“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 km of a rapid transit station is 4.8 percent compared to 12.3 percent for the rest of the suburban market, and the average asking rents are approximately 8 percent 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. Some new developments such as Broadway Tech Centre are serving this growing demand and more are planned including The Brewery District and Merchant Square in New Westminster and Phase II of the Renfrew Business Centre in Vancouver Outlying.
“We expect to see continued interest in these developments, particularly from employers with back-office operations that do not need to be located Downtown,” said Ahrens.
“Not only do office occupiers derive direct benefits from being close to rapid transit, but office buildings located near SkyTrain or Canada Line stations also achieve higher rents than other locations,” said Jones Lang LaSalle Research Associate Scott MacDonald. “Our research shows that tenants are willing to pay a premium for daily access to public transport and we have seen this throughout Suburban Vancouver. Office building owners are not only able to achieve higher rents, but also lower vacancy rates in local markets, contributing to higher overall real estate values. A great example of this is fully-leased Central City in Surrey.”
About the Vancouver Rapid Transit Office IndexJones Lang LaSalle’s Vancouver Rapid Transit Office Index is the result of an in-depth study on trends in Metro Vancouver vacancy rates and occupancy costs for suburban and Vancouver outlying buildings within half a kilometer of a SkyTrain or Canada Line station.
Jones Lang LaSalle has operated in Canada for the past 10 years. With its Canada headquarters in Toronto, the firm also operates in Mississauga, Montreal, Ottawa and Vancouver. Jones Lang LaSalle offers tenant and landlord representation, project and development services, investment sales, mobile engineering services, corporate retail solutions and integrated facilities management services to owners and tenants in Canada. Jones Lang LaSalle manages 27 million square feet of facilities across Canada.
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $45.3 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
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