Office rents 30% higher near amenity-rich transit

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January 9, 2017

By: Steve Clark, Executive Vice President, JLL

How much would a Bay Area business pay for its employees to be able to take a train to work and walk or bike less than 10 minutes to the office?

According to a recent research report compiled by JLL’s San Francisco Bay Area research team, about 30 percent more – on average – than businesses located more than a 10 minute walk from a station. The team researched rents around 31 Bay Area train stations – BART, Caltrain and VTA – from downtown Berkeley to downtown Campbell. They not only found higher rents in buildings around most “walk-to-rail” stations but lower vacancies too.

Amenities near transit stops matter

However, not all “walk-to-rail” office locations command higher rents than “drive-to-rail” areas.  Office buildings surrounding Daly City (BART), South San Francisco and College Park (Caltrain), and most VTA light rail stations are achieving rents on a par with “drive-to-rail” locations. Areas around these stations lack the number and quality of amenities – restaurants, parks, cafes, gyms and retail shops – that locations around stations in downtown San Mateo or Redwood City enjoy.

Average monthly rents around the College Park Caltrain station in San Jose are $2.15 PSF. Rents near downtown Redwood City’s station average $6.79 PSF.

Read more in the entire 2016 Bay Area Transportation report, or visit jll.com/transit.

About the author:

steve-clark-2Steve Clark combines a unique understanding of transaction management and lease negotiation with extensive construction management experience to assist corporate tenants and landlords in making strategic real estate decisions. He is a LEED accredited professional and assists his clients in understanding green building practices.

Contact Steve directly by phone at +1 (650) 480-2209 or via email at Steve.Clark@am.jll.com.

 

 

 

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