What helps lower the vacancy rate of an office building? Top-flight amenities help. So does a location in a walkable neighborhood. And equally important? How close an office property is to a train station or el stop.
The latest research from Avison Young offers evidence of this.
According to Avison Young, office properties located within three blocks of downtown Chicago’s Ogilvie and Union stations have vacancy rates that are about 400 basis points lower on average compared to office properties located more than six blocks away.
As Avison Young writes in its report, this indicates strong tenant demand for office towers and properties located close to public transit stations.
Vacancy rates within buildings located more than six blocks from these major stations have more than doubled since 2019, according to the report.
Developers seem to understand this. Avison Young reported that more than 65% of all new office construction in the last three years has taken place within six blocks of Ogilvie and Union stations. Nearly all new office construction not located within six blocks of these stations in the Chicago market has taken place in the hot Fulton Market submarket.