CBRE analyzes impact of Silver Line Metro expansion
The 11.4-mile expansion of the Metrorail is expected to drive population and employment growth in the Tysons area of Northern Virginia.
CBRE has released its analysis of the expansion, which will bring the opening of four new stations by this summer. According to projections from the Washington Metropolitan Area Transit Authority, the Silver Line is expected to attract about 740,000 riders per month in its first year of operation.
Some of CBRE’s observations on the metro’s impact:
Spurred by employment growth and Metro access, CBRE estimates an average of 200,000 square feet of net office demand annually through 2017 in Tysons Corner.
High-quality office space development will increase rental rates for the Tysons Corner submarket and reduce value-priced options. Rates already have risen 9 to 11 percent on average in 2013 for buildings near the Greensboro, Spring Hill and Tysons Corner Stations. The increases from 2012 to 2013 were $45 to $49.26 per square foot in Tysons, $27.74 to $30.65 in Greensboro, and $29.46 to $32.21 in Spring Hill.
Nearly 75% of all Tysons’ development will be within a 10-minute walk of a Metrorail station, transforming it into a walkable and livable urban center.
Developers will need to focus on building multifamily projects and cultivating community programming that will appeal to young, urban professionals.