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 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.