Luxembourg's forward-thinking approach to public transportation, including its free-to-use network and strategic expansion, has fundamentally reshaped the commercial real estate landscape. For businesses seeking prime office space, understanding this dynamic is crucial for making informed decisions on location, cost, and long-term value.

 

The undeniable link between connectivity and office value

 

A comprehensive study by JLL Luxembourg underscores a clear correlation: office spaces situated within a 10-minute walk of a tram or train station command significantly higher value. Rents for these well-connected properties are, on average, 30% higher compared to those not directly served by public transport. This trend isn't just about convenience; it reflects a broader market shift. Since 2020, an impressive 71% of all office transactions – spanning over 1.3 million square meters – have occurred in these strategically located buildings.

 

Furthermore, the average transaction size for offices within these public transport corridors is a staggering 210% larger than for less accessible properties. This indicates a strong preference for integrated locations, often housing modern, high-quality, and sustainable new developments which naturally attract premium rents.

 

Beyond the City Centre: new business hubs emerge

 

The impact of enhanced public transport extends beyond traditional central business districts, breathing new life into secondary areas that were once considered less desirable. Districts like Howald and Findel Airport have experienced a remarkable transformation, becoming increasingly attractive for businesses. These areas have seen a notable decrease in rental vacancy rates and a significant surge in rents – for instance, properties around Findel have witnessed a 28% increase in rental values since 2020 alone. This growth positions them as serious contenders, competing effectively with central zones for businesses seeking excellent connectivity and modern facilities.

 

Strategic considerations for your next office move

 

For businesses evaluating their next office or warehouse location in Luxembourg, proximity to public transport is no longer just a perk; it's a strategic imperative. Choosing a well-connected location offers numerous advantages, from improved accessibility for employees and clients to aligning with sustainability goals. The market clearly demonstrates a preference for buildings that combine strong public transport links with quality infrastructure and sustainable design, influencing both demand and rental values.

 

The profound influence of Luxembourg's public transport infrastructure on its office market is undeniable. As businesses continue to prioritize connectivity, employee well-being, and modern facilities, strategic locations near tram and train lines will remain prime real estate. Understanding these dynamics is key to securing an office space that offers both immediate operational benefits and long-term value.

 

Source: virgule.lu