A new report released by Colliers International suggests that the completion of Ottawa’s new Light Rapid Transit (LRT) line will have a positive effect on nearby office, residential and retail properties.

The new Confederation LRT project, which is planned for 2018, will connect the east and west ends of the city with the core. The report predicts that its completion will lead to rising lease rates, and increased demand for office and retail space along the line.

The report suggests that the federal government, Ottawa’s largest office tenant, may also prioritize leasing office spaces in close proximity to the new line. The Ottawa LRT may also lead to a migration of high-tech companies located on the fringe of the city to more central locations.

“Although Ottawa’s downtown core is already condensed with very limited opportunities for new developments, the availability of a new transit line that brings riders from both ends of the city is going to have an impact on the area,” says Kelvin Holmes, managing director with Colliers International in Ottawa.

Holmes also says that the impact the new line will have on commutes to and from the suburbs may also spur businesses in the fringe market to re-evaluate future locations.

As the Confederation Line will affect commuters, Colliers’ analysis also suggests the line will have a positive impact on traffic congestion into the city. This may lead to a shrinking demand for parking spaces, affecting parking lot operators. The LRT is also expected to decrease demand for office space in Class B and Class C buildings located further from the line.