{"id":1004186738,"date":"2017-08-11T02:24:51","date_gmt":"2017-08-11T10:24:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004186738"},"modified":"2022-12-08T19:05:00","modified_gmt":"2022-12-09T03:05:00","slug":"how-does-the-liveworkplay-shift-impact-office-trends","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/how-does-the-liveworkplay-shift-impact-office-trends\/","title":{"rendered":"How Does the Live\/Work\/Play Shift Impact Office Trends?"},"content":{"rendered":"

By Gail Kalinoski<\/em><\/p>\n

\"Scott<\/a>

Scott Marshall, executive managing director, Advisory & Transaction Services|Investors Leasing, CBRE<\/p><\/div>\n

Don\u2019t write off those suburban office markets as unappealing to Millennial workers, occupiers or investors. A new report from CBRE notes that suburban office markets that provide an urban-like live-work-play environment\u2014the so-called \u201curban-suburban submarkets”\u2014are in a good position to be in high demand, particularly as rents climb and supplies dwindle in downtown locations.<\/p>\n

\u201cSteep rental rates and an increasingly limited supply of quality office space, especially in large blocks, in downtown submarkets will continue to lead more tenants to look for space in suburban markets. Moreover, as more Millennials age and begin families, many will eventually move to the suburbs. Office locations that can provide the urban characteristics this pool of workers has grown accustomed to will be in the highest demand,\u201d<\/em> Scott Marshall, executive managing director, Advisory & Transaction Services|Investors Leasing, CBRE, said in a prepared statement.<\/p>\n

\"Cross<\/a>

Cross Andrea, Americas head of office research, CBRE<\/p><\/div>\n

The North American Suburban Office Trends Report, Summer 2017<\/em>, notes established urban-suburban submarkets offer investors and occupiers a \u201crelatively low-risk alternative\u201d because the fundamentals in these submarkets tend to be strong and often outperform or rival those of the CBDs.<\/p>\n

\u201cAlternatively, emerging\u00a0 urban-suburban markets offer those with longer-term strategies an opportunity to secure space in up-and-coming areas while there are still options to choose from and purchase prices and rents are more affordable,\u201d<\/em> Andrea Cross, Americas head of office research, CBRE, added in a prepared statement.<\/p>\n

Lower rents<\/strong><\/h2>\n

The report notes that first quarter 2017 rents in emerging urban-suburban submarkets at $27.46 per square foot were significantly below rents in established urban-suburban markets where rents averaged $31.90 per square foot and were essentially the same as overall suburban rent averages of $27.79. Vacancy rates also favored emerging urban-suburban submarkets at 15.3 percent as of the first quarter and 13.8 percent for the established locations.<\/p>\n

Common attributes of the urban-suburban submarkets, both established and emerging, are the presence of employment opportunities along with abundant retail, office and housing options, according to a survey of CBRE Research professionals in the nation\u2019s 25 largest suburban markets. Established submarkets like the New Jersey Waterfront and Palo Alto and Santa Monica in California also have more entertainment, recreation, restaurants, grocery stores and public transportation. Emerging submarkets like Glendale, Calif., a Los Angeles submarket, or the Central Perimeter in Atlanta, are more likely to be in transition with mixed-use developments and public transit projects planned or under way. The report states emerging submarkets are also more likely to use government incentives, zoning changes or other public commitments to spur development.<\/p>\n

Emerging submarkets account for 22 percent of total square footage under construction in those 25 submarkets and established submarkets had about 30 percent of the suburban office construction occurring in the first quarter. In markets like Sacramento, Calif., Minneapolis\/St. Paul, Kansas City and Austin, Texas, those numbers are as high as 100 percent. CBRE states the amount of office space under construction in urban-suburban submarkets of Phoenix, Los Angeles and Orange County, Calif., is between two and four times the share of inventory. In emerging submarkets, mixed-use projects that include office space often serve as a catalyst for increased development in the area to help grow the neighborhood.<\/p>\n

CBRE\u2019s spring suburban office trends<\/a> report looked at 58 suburban makers and found 50 markets recorded positive absorption in 2016, including 15 that had more than 1 million square feet of absorption. Suburban markets with the highest absorption included Dallas\/Fort Worth, Phoenix and Los Angeles. The spring report found that submarkets with high-quality amenities and efficient buildings were likely to perform the best. A main takeaway from the spring report was while downtown markets were still outperforming suburban office markets in some metrics, the gap in vacancy was shrinking.<\/p>\n","protected":false},"excerpt":{"rendered":"

So-called \u201curban-suburban\u201d submarkets that offer mixed-use developments are in the best position to capture demand from occupiers and investors looking to leave CBDs, according to the latest CBRE market report. <\/p>\n","protected":false},"author":1068,"featured_media":1004186748,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21783,23891,21742,21747],"tags":[32789,32826],"class_list":["post-1004186738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-investment","category-national","category-latest","category-office","tag-cbre","tag-millennials"],"acf":[],"yoast_head":"\nHow Does the Live\/Work\/Play Shift Impact Office Trends? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/how-does-the-liveworkplay-shift-impact-office-trends\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Does the Live\/Work\/Play Shift Impact Office Trends?\" \/>\n<meta property=\"og:description\" content=\"So-called \u201curban-suburban\u201d submarkets that offer mixed-use developments are in the best position to capture demand from occupiers and investors looking to leave CBDs, according to the latest CBRE market report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/how-does-the-liveworkplay-shift-impact-office-trends\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-08-11T10:24:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T03:05:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/08\/Scott-Marshall.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-does-the-liveworkplay-shift-impact-office-trends\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/how-does-the-liveworkplay-shift-impact-office-trends\/\",\"name\":\"How Does the Live\/Work\/Play Shift Impact Office Trends? 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