{"id":1004663006,"date":"2023-05-30T00:16:01","date_gmt":"2023-05-30T08:16:01","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004663006"},"modified":"2023-06-07T10:00:39","modified_gmt":"2023-06-07T18:00:39","slug":"are-suburban-offices-strengthening-their-comeback","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/are-suburban-offices-strengthening-their-comeback\/","title":{"rendered":"Are Suburban Offices Strengthening Their Comeback?"},"content":{"rendered":"
\"Ralph<\/a>

Ralph Zucker, President, Inspired by Somerset Development. Image courtesy of Inspired by Somerset Development<\/em><\/p><\/div>\n

The appeal of improved work-life balance, more cost-effective housing alternatives and the opportunity to easily access nature and outdoor spaces have all served as driving forces behind individuals’ decision to relocate to smaller cities or suburban areas.<\/p>\n

Today, many Americans enjoy the flexibility that comes with their newfound lifestyle. And although they no longer want to waste time on long commutes, they still long for in-person interactions and need dynamic office spaces that boost their productivity and creativity. This has been fueling demand for suburban offices<\/a> across the country, strengthening the sector’s comeback following the pandemic.  <\/p>\n

Commercial Property Executive<\/em> talked to Ralph Zucker, president of Inspired by Somerset Development<\/strong>, a real estate development firm with a strong focus on transit-oriented, adaptive reuse, and large-scale redevelopment projects. Zucker weighed in on why demand for modern, suburban office spaces is only building up, and provided insights into his company’s recent ventures in the suburban office sector.<\/p>\n

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READ ALSO<\/strong>: Designing the Suburbs of the Future<\/a><\/p>\n

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How has demand for suburban office space performed in the past 12 months, particularly for properties that offer flexible lease models?<\/strong><\/p>\n

Zucker<\/strong>: Since 2020, many have declared the suburban office park to be dead. Isolated properties\u2014many of which were built in the 1970s or 1980s and lack the kind of amenities or dynamic typically seen in newer assets throughout major cities\u2014were being passed over by workers. This was exacerbated even further by the pandemic.<\/p>\n

Today, the office market is a tale of two cities. While the sector overall is facing slowing leasing activity as a potential recession looms<\/a>, the outlook in the suburbs is actually a bit brighter. In fact, in the third quarter of 2022, vacancy in suburban offices was 11 percent, compared to 18 percent for CBD offices and 21.9 percent for the office market as a whole, according to a recent JLL market report.<\/p>\n

As it relates to flexible lease terms, companies today are uncertain about their current space needs, and even more uncertain about the future. The introduction to the hybrid work schedule and work-from-home alternatives have turned the workplace upside down. So, naturally, properties that offer flexible lease options, including coworking\u2014such as our Ready-to-Wear suites\u2014conferencing amenities, and other flexible lease terms are poised to capture the attention of employees and companies. The suburban office market benefits from flexible leasing as employees’ needs have shifted dramatically in past years.<\/p>\n

What are some of the key factors driving suburban office demand today?<\/strong><\/p>\n

Zucker<\/strong>: Location remains a key factor driving demand and leasing for suburban offices. For many, a commute into the city is not feasible and companies realized they were missing out on a tremendous talent pool. The modern suburban office, with its convenient location and amenity offerings, provides tenants with the best of both worlds and is exactly what today\u2019s workers are seeking.<\/p>\n

Furthermore, the suburban office is transforming large, single-tenant properties into tech-style, mixed-use campuses, offering many of the conveniences of a bustling urban locale\u2014retail, health and wellness options, dedicated green space etc.\u2014without the long and arduous commute that has prevented many suburbanites from working in the city.<\/p>\n\n\n