Asking rent levels for office space near transit has increasingly demanded a premium, reflecting the value that transit provides in terms of accessibility. That premium has steadily increased over the past 20 years, and the gap now stands at over 30 percent. Sale prices have been a bit more volatile, ebbing and flowing with the market, but the premium exists there as well. Since the recovery began in earnest in 2012, prices for office space near rail transit have been about a third higher.
Figure 1: Offices near transit sell for more
Figure 2: Rents near transit reflect value of good access
This trend is true across time at the regional level, but it also manifests at a local level. Figure 3 compares commercial building sales prices within a quarter mile of certain CTA or Metra rail stations against the real estate submarket they’re located in. A submarket is generally defined as a city neighborhood or suburb. In all cases, the locations close to transit outperformed the broader submarket.
Figure 3: Transit affects sales prices at the local level
Promoting the connection between transit investments and business in Chicago
Since 1934, the Metropolitan Planning Council (MPC) has worked to make the Chicago region a better place to live and work by partnering with businesses, communities and governments to address the area’s toughest planning and development challenges. MPC is dedicated to achieving a resilient, thriving, equitable and healthy region. Join us in implementing our 10-point action agenda to ensure our region’s drinking water systems and supplies remain sustainable.
©2018 Metropolitan Planning Council. All rights reserved.
Designed and built by Webitects