PROVIDENCE – How important is being able to walk easily from the office to a mass transit station? Enough to warrant a special mention in the market overview prepared for Rhode Island recently by CB Richard Ellis New England.
The downtown Providence office vacancy rate dropped for the third year in a row in 2017, to an average of 11.9 percent, according to the company analysis. In 2016, the downtown offices had a vacancy of 13.4 percent.
Building a Strong Data Foundation in the Age of AI
Artificial intelligence (AI) has become a key priority in the boardroom and across management —…
Learn More
The absorption was driven by smaller deals that added up to meaningful gains, according to the CBRE annual report, as well as the full occupancy of the newly built South Street Landing building, which added 265,000 square feet to the downtown office mix.
The eight downtown submarkets had vacancies ranging from a low of 1.3 percent in the Empire submarket to a high of 14.9 percent in the Promenade area, which includes the Foundry, West Exchange Center, Rising Sun Mills and American Locomotive Co. projects. About 70 percent of the available space in the submarket is located at ALCO and the Rising Sun Mills, according to CBRE.
Amenities that are driving decisions on leasing include ready access to transit, CBRE Vice President Andrew Galvin said at the recent Outlook 2018 breakfast. “Transit is critical. The buildings that are performing better have walkability to the train, access to the bus.”
Galvin cited the Providence Journal building as an example of a site that has leased well, given proximity to mass transit. The building hosts, among others, offices for Virgin Pulse, GE Digital and Tufts Health Plan on newly renovated floors. The Providence Journal newspaper now occupies the second floor.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
