Urban vs Suburban Office
What is everyone’s thoughts on this? are we going to see occupancy rise in the best suburban office buildings as people try to avoid crowded urban centers?
[{"id": "fulppvp", "text": "I think the shift is overstated. The trend of moving to urban centers is driven by companies need to attract a young well educated workforce (McDonald\u2019s relocation, for example), and young people still want to live downtown. They still don\u2019t want to commute an hour to the suburbs to work.", "replies": [{"id": "fulqfj4", "text": "Makes sense. I suppose i wanted to focus more on the suburban office market though. For those that are well located (and are of high quality) in suburbs that have acted as bedroom communities for major cities, do you think they are going to reap some benefits as time goes on?", "replies": [], "depth": 2}, {"id": "fumkmnx", "text": "Empty suburban office parks are cheaper and offer more psf to make social distancing easier.  \n\nExecutives ive talked too have stated they simply don't want to take the train into high density offices. For young workers, its hard to beat the amenities of a city but some will get tired of living in a 900sqft unit and want more space.  \n\nIt'll be interesting to see which markets and industries lead the suburban charge.", "replies": [{"id": "fumm1cq", "text": "Executives don't want to commute downtown, but there are fewer executives than lower level employees. You can pay for a few people's parking downtown easier than convincing hundreds to give up two additional hours a day.\n\nYes, suburban office parks are cheaper, but there is a reason, lower demand.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fulrboy", "text": "High quality and especially transit connected suburban office may benefit. The challenge is the best product often had a ton of amenities with on/site gyms, restaurants etc. how that holds up under social distancing remains to be seen", "replies": [], "depth": 1}, {"id": "fuluvsg", "text": "As a broker in the NYC area I have big buyers (billionaires) who usually ask me for large office in Manhattan, telling me that if I see any suburban office to send it to them immediately\nI think many are scared that people will get used to working from home and will not want to go that far to go to work and so a sub urban office will kind of meet in the middle.", "replies": [{"id": "fum0u4n", "text": "This is more along the lines of what i was thinking. I don\u2019t think companies will go full time WFH, but perhaps more flexible schedules (i.e in the office 2-3x per week), which will work better with offices nearby employees homes, especially those with families that are a bit more settled down.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fulxi52", "text": "There are very few businesses that actually need to be in the CBD. The main driving force for businesses being there is young human capital. I was speaking with a client in Bethesda MD and their lease was coming up and they were highly considering moving maybe a half mile from their current location just so they would have a DC address for recruiting. \n\nNow, I have heard discussions of office tenants taking up more space in the future for social distancing. It\u2019s no surprise that it would be more cost effective in the suburbs. \n\nIt\u2019s also expensive to move", "replies": [], "depth": 1}]