Transit Hubs: Engines of Office Demand
This report explores how proximity to New York City’s major commuter transit hubs has become a critical factor in office market performance. As hybrid work models evolve and companies prioritize accessibility, transit-adjacent office buildings are outperforming the broader Manhattan market across key metrics such as vacancy rates, net absorption, rental growth, and employee visitation. The resurgence in commuter rail ridership and increased foot traffic near these hubs further reinforce their role as engines of office recovery and workplace resilience. The findings reveal that location near transit has become an even more powerful driver of tenant demand and employee engagement in the post-pandemic era.
Key findings from the report include:
- Transit-Adjacent Office Performance: Buildings within a quarter-mile of major transit hubs show lower vacancy rates, stronger net absorption, and rising asking rents
- Return-to-Office Momentum: Mobile device data reveals higher employee visitation rates in transit-adjacent offices
- Commuter Rail Ridership Rebound: LIRR, Metro-North, NJ Transit, and PATH have all seen significant ridership increases since 2020, supporting office demand
- Importance of Accessibility: As congestion pricing and infrastructure investments reshape urban mobility, transit-oriented buildings are positioned to lead Manhattan’s next phase of workplace recovery.
