{"id":1004748157,"date":"2025-02-27T13:23:18","date_gmt":"2025-02-27T21:23:18","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004748157"},"modified":"2025-03-11T07:20:49","modified_gmt":"2025-03-11T15:20:49","slug":"suburban-surge-in-the-office-market","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/suburban-surge-in-the-office-market\/","title":{"rendered":"Suburban Surge in the Office Market"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004748182\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/suburban-surge-in-the-office-market\/medley_rendering_credittorodevelopment\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg\" data-orig-size=\"1200,676\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Medley_rendering_creditToroDevelopment\" data-image-description=\"&lt;p&gt;Medley_rendering_creditToroDevelopment&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Medley, a mixed-use property rising on the site of the former State Farm Insurance campus in Johns Creek, Ga., will feature retail and residential components after Toro Development Co. demolishes most of the existing 500,000 square feet of office space. Image courtesy of Toro Development Co.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg?w=1024\" height=\"577\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg?w=1024\" alt=\"Medley_rendering_creditToroDevelopment\" class=\"wp-image-1004748182\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg?resize=300,169 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg?resize=768,433 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Medley_rendering_creditToroDevelopment.jpg?resize=1024,577 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Medley, a mixed-use property rising on the site of the former State Farm Insurance campus in Johns Creek, Ga., will feature retail and residential components after Toro Development Co. demolishes most of the existing 500,000 square feet of office space.<em> Image courtesy of Toro Development Co.<\/em><\/figcaption><\/figure>\n\n\n\n<p style=\"font-size:20px\">Suburban office properties and parks are generally weathering the office sector\u2019s heightened vacancy rates, slumping property valuations and lagging sales volumes reasonably well in comparison to most of their downtown counterparts.<\/p>\n\n\n\n<p>The average suburban office vacancy rate was 17.1 percent in the fourth quarter of 2024, 50 basis points below the national average of 17.6 percent, according to Colliers\u2019 quarterly office market <a href=\"https:\/\/www.colliers.com\/en\/research\/nrep-usofc-us-office-market-outlook-q4-2024\">report<\/a>. CBD vacancy stood at 100 basis points above the national average. Class A suburban office spaces also saw significant rent growth, up 1.4 percent year-over-year on average, as CBD rents moved 2.4 percent in the opposite direction.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-fl-body-text-color has-text-color has-background wp-element-button\" href=\"https:\/\/mydigitalpublication.com\/publication\/?i=842016\" style=\"background-color:#1bb1ae\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>READ THE MAGAZINE<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Employee demands for shorter commutes, the downsizing of office space and corporate relocations are among the key drivers of suburban office\u2019s comparative resilience. In the post-pandemic period, suburban office investment is a mix of bargain-hunting with renovation and space activation in mind, along with possible adaptive reuse. Ground-up development, on the other hand, bears little resemblance to the corporate office parks of the 1980s and 1990s, and is taking a page out of the <a href=\"https:\/\/www.commercialsearch.com\/news\/cbds-get-new-life\/\">mixed-use<\/a> playbook.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004748186\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/suburban-surge-in-the-office-market\/2-presidents-plaza-lobby\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg\" data-orig-size=\"1200,800\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1567030433&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"2. Presidents Plaza Lobby\" data-image-description=\"&lt;p&gt;Presidents Plaza Lobby feature&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Office. Image courtesy of Glenstar&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg?w=1024\" height=\"683\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg?w=1024\" alt=\"Presidents Plaza Lobby feature\" class=\"wp-image-1004748186\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg?resize=300,200 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg?resize=768,512 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/2.-Presidents-Plaza-Lobby.jpg?resize=1024,683 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">In October 2024, Glenstar acquired Presidents Plaza, a four-building, 831,442-square-foot office campus northwest of downtown Chicago. The firm plans to spend at least $16 million on amenity upgrades, including a new lobby, spec suites and common areas, and a fitness center. <em>Image courtesy of Glenstar<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-new-preferences\">New preferences<\/h2>\n\n\n\n<p>To become future-proof, an investment and development strategy for suburban office requires more attention to changing work habits, employee preferences and lease terms.<\/p>\n\n\n\n<p>During the suburban office markets\u2019 last heyday in the 1990s and early 2000s, a history of high occupancy by credit tenants was enough to justify purchasing properties down to the B and C classes. Now, a flight to newer, smaller offices with appealing amenities has permeated suburbia.<\/p>\n\n\n\n<p>CBRE research found that the <a href=\"https:\/\/www.cbre.com\/insights\/briefs\/us-sees-uptick-in-office-lease-signings-but-for-less-space-on-average\">average size of office leases<\/a> decreased 27 percent during the first half of 2024 compared to 2018 and 2019. Amenity-driven \u201cprime\u201d buildings generated terms that averaged 21 months longer than Class B and C buildings.<\/p>\n\n\n\n<p>The tenant mix is evolving, as well. Today\u2019s new suburban tenants are likely to be such companies as medical practices, professional services companies and law firms, rather than the back offices, call centers and corporate campuses that were more typical of suburban denizens in earlier decades. The new wave of tenants often seeks to consolidate their workforces in locations that are easier to access on a more consistent basis than downtown.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004748189\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/suburban-surge-in-the-office-market\/downtownnexton_-aerial1_creditsharbelldevelopment\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg\" data-orig-size=\"1200,926\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"DowntownNexton_ aerial1_CreditSharbellDevelopment\" data-image-description=\"&lt;p&gt;Downtown Nexton_ aerial_CreditSharbellDevelopment&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;By building a series of smaller, modular office buildings with ownership options at Downtown Nexton in Summerville, S.C., Sharbell Development Co. expects to cater to a larger variety of potential tenants. Image courtesy of Sharbell Development Co.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg?w=1024\" height=\"790\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg?w=1024\" alt=\"Downtown Nexton_ aerial_CreditSharbellDevelopment\" class=\"wp-image-1004748189\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg?resize=300,232 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg?resize=768,593 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/DowntownNexton_-aerial1_CreditSharbellDevelopment.jpg?resize=1024,790 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">By building a series of smaller, modular office buildings with ownership options at Downtown Nexton in Summerville, S.C., Sharbell Development Co. expects to cater to a larger variety of potential tenants. <em>Image courtesy of Sharbell Development Co.<\/em><\/figcaption><\/figure>\n\n\n\n<p>\u201cIf you look at suburbia, you look at the carcasses of former headquarters,\u201d said Mark Toro, CEO of Toro Development Co., which is developing a $<a href=\"https:\/\/www.commercialsearch.com\/news\/350m-mixed-use-development-moves-forward\/\">560 million mixed-use property<\/a> on the former site of the State Farm campus in Johns Creek, Ga., a suburb northeast of Atlanta.<\/p>\n\n\n\n<p>Also influencing the picture are suburban tenants that are shrinking their footprints and opting for better-quality, higher-priced space. For example, a tenant might move from 100,000 square feet in a Class B building to a Class A space less than one-third that size.<\/p>\n\n\n\n<p>\u201cCompanies willing to invest and wanting their workforce to be in person are looking at high-quality space,\u201d commented Jeff Koukol, an executive director at Glenstar. Such trends are impacting investment strategies.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-color has-link-color wp-elements-d6a9589217d418754f18b6496fef9169\" style=\"color:#9842c9\">We are always looking for a property with another component to it, one where we may be able to develop some ancillary spaces. Our eye is always on the vacant land that may come along with it.<\/p>\n<cite>\u2013 Paul Gaines, Chief Asset Officer, Accesso Partners<\/cite><\/blockquote>\n\n\n\n<p>Accesso Partners, which owns and operates 52 suburban office properties in the South and Midwest, would once buy older, high-quality Class B assets that offered an attractive price point for tenants. \u201cWe felt that there was always going to be a market for that,\u201d said Paul Gaines, the firm\u2019s chief asset officer. But, he added, \u201cthere are assets that we may have (once) looked at that we have taken off the list because of age.\u201d<\/p>\n\n\n\n<p>Assets offered at a discount provide low-hanging fruit and give tenants an opportunity to rent space in locations they\u2019d otherwise be priced out of. \u201cOur main focus today is on acquiring suburban offices at a discount to what we think it would cost to rebuild, and (using) the lower basis as a means to re-lease to tenants that may not have been able to afford higher market rents,\u201d noted Chris Loeffler, CEO of Caliber.<\/p>\n\n\n\n<p>Proximity to retail and dining offerings, alongside amenities and the potential for future additions, is a big priority for avoiding the pitfalls that caused many suburban office properties to become abandoned during the pandemic. A shorter commute may not be enough to compensate for the need to make a 15-minute drive for the nearest cup of coffee outside the building\u2019s cafeteria.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004748192\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/suburban-surge-in-the-office-market\/atrium-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg\" data-orig-size=\"1200,799\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Atrium\" data-image-description=\"&lt;p&gt;Atrium at Broken Sound&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;To boost the appeal of Atrium at Broken Sound, a three-story, Class A office tower in Boca Raton, Fla., Accesso Partners refreshed the lobby and added a new tenant conference center and Wi-Fi lounge. Another plus: The 92,000-square-foot property is located less than a mile away from a row of retail options. Photo courtesy of Accesso Partners&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg?w=1024\" height=\"682\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg?w=1024\" alt=\"Atrium at Broken Sound\" class=\"wp-image-1004748192\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg?resize=300,200 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg?resize=768,511 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/Atrium.jpg?resize=1024,682 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">To boost the appeal of Atrium at Broken Sound, a three-story, Class A office tower in Boca Raton, Fla., Accesso Partners refreshed the lobby and added a new tenant conference center and Wi-Fi lounge. Another plus: The 92,000-square-foot property is located less than a mile away from a row of retail options. <em>Photo courtesy of Accesso Partners<\/em><\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group has-fl-body-text-color has-text-color has-background has-link-color wp-elements-94ad351fc286ddc78e6ed70cb18c7d39\" style=\"background-color:#9842c91a\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading has-fl-body-text-color has-text-color has-link-color wp-elements-88169adc21cb602e75b19abe1063d5c9\" id=\"h-starting-from-scratch\">Starting from scratch<\/h2>\n\n\n\n<p>Though ground-up suburban office development is relatively rare these days, it can be a fruitful undertaking. Some projects bypass the commuting problem by integrating office buildings within suburban mixed-use. That\u2019s how Toro Development is reinventing the former State Farm Insurance campus in Johns Creek, Ga., a holdover from the golden age of suburban office parks.<\/p>\n\n\n\n<p>The company started out by demolishing most of the site\u2019s original 500,000 square feet of office space. At full build-out, Toro\u2019s Medley project will include 200,000 square feet of retail, 110,000 square feet of office space and 900 multifamily units.<\/p>\n\n\n\n<p>\u201cWe created these spaces in the public realm for those employees to gather, mix and mingle with the general populace,\u201d said CEO Mark Toro. \u201cThat energy exchange is what we are seeking, and that cannot be found in a suburban office park.\u201d<\/p>\n\n\n\n<p>As for making the office spaces more appealing to tenants, building with the intention of selling the property to potential tenants may be effective. \u201cIt\u2019s the best response to the granularity in the market today,\u201d asserted Tom Troy, president of Sharbell Development Corp. His company is developing Downtown Nexton, a mixed-use district northwest of Charleston in Summerville, S.C. \u201cPeople are looking for maximum flexibility, maximum utility of the space that they\u2019re renting, and also an opportunity to build equity.\u201d<\/p>\n\n\n\n<p>In addition to making some vacant sites in the district available for sale, Sharbell is offering 4,000- to 5,000-square-foot office condominiums to appeal to smaller businesses. \u201cWe still have the latitude to retain the assets and their pieces and stay true to our motto as a landlord and bring in additional market segments to participate,\u201d said Troy.<\/p>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-future-proof-investments\">Future-proof investments<\/h2>\n\n\n\n<p>Also at the top of the list for smart suburban office strategies: redevelopment potential, partly due to the age of much of the nation\u2019s existing stock. That can mean anything from a vacant site that could be used for new amenities to a new ground-up project.<\/p>\n\n\n\n<p>In October 2024, Rubenstein Partners completed the $36 million recapitalization of Parkwood Crossing, a 1.2 million-square-foot office park located in Carmel, Ind., a suburb north of Indianapolis. The project\u2019s centerpiece is the Parkwood Amenity and Recreation Center, a 14,000-square-foot facility with a dining hall, a fitness center, conference spaces, a lounge and a deck. The property also offers outdoor recreation areas, including pickleball courts. So far, Rubenstein has invested in refreshing the building systems, entries and lobbies. Future additions may include restaurants and multipurpose green spaces.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-color has-link-color wp-elements-76bb4e40bfa301da0bd79021d72d9074\" style=\"color:#9842c9\">Our main focus today is on acquiring suburban offices at a discount to what we think it would cost to rebuild.<\/p>\n<cite>\u2013 Chris Loeffler, CEO, Caliber<\/cite><\/blockquote>\n\n\n\n<p>\u201cThe types of things that we look to buy are the things that have already been attractive to larger credit tenants, or we think (that) if we get in there and invest the capital and make the changes that we expect to make, we will draw them,\u201d shared Eric Schiela, Rubenstein\u2019s co-founder &amp; COO.<\/p>\n\n\n\n<p>Like densely populated urban areas with housing shortages, suburban neighborhoods offer options for office-to-multifamily makeovers. That also goes for suburb-like neighborhoods within big cities. In September 2024, Caliber purchased Canyon Corporate Center, a 311,706-square-foot Phoenix office property that the firm plans to convert to residential.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004748195\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/suburban-surge-in-the-office-market\/canyoncorporatecenter_creditcalibercos\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg\" data-orig-size=\"1200,800\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;FC3170&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1611737758&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;100&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Canyon Corporate Center_CreditCaliberCos\" data-image-description=\"&lt;p&gt;Canyon Corporate Center&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Adaptive reuse can be an option for suburban office properties as well as their downtown counterparts. Caliber Cos is eyeing multifamily conversion for Canyon Corporate Center, a 311,706-square-foot Phoenix office park. Image courtesy of Caliber Cos.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg?w=1024\" height=\"683\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg?w=1024\" alt=\"Canyon Corporate Center\" class=\"wp-image-1004748195\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg?resize=300,200 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg?resize=768,512 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/02\/CanyonCorporateCenter_CreditCaliberCos.jpg?resize=1024,683 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Adaptive reuse can be an option for suburban office properties as well as their downtown counterparts. Caliber Cos is eyeing multifamily conversion for Canyon Corporate Center, a 311,706-square-foot Phoenix office park.<em> Image courtesy of Caliber Cos.<\/em><\/figcaption><\/figure>\n\n\n\n<p>\u201c(For acquisitions), we\u2019re looking for those (buildings) that are long and skinny, where we can build a hallway in the middle to convert to residential, or those that have a lot of excess parking that we can use for other developments to support other uses,\u201d said Loeffler.<\/p>\n\n\n\n<p>Besides altering a property\u2019s surroundings, making space more conducive to <a href=\"https:\/\/www.commercialsearch.com\/news\/heres-a-surprising-shift-in-remote-works-appeal\/\">employee preferences<\/a> for collaboration and socialization is another common thread for suburban office properties. In October 2024, Glenstar and a private investor completed a $16 million recapitalization of Presidents Plaza, a two-building, 831,442-square-foot property northwest of downtown Chicago.<\/p>\n\n\n\n<p>The funds went to the construction of spec suites and common areas. \u201cWhere tenants are downsizing their space, they still need the facility to bring a larger group of employees back to congregate and to have larger meetings,\u201d noted Koukol.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center has-background\" style=\"background-color:#16a19a33\"><em><a href=\"https:\/\/mydigitalpublication.com\/publication\/?i=842016\">Read the March 2025 issue of CPE.<\/a><\/em><\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s wide-ranging opportunity beyond traditional downtown locations. <\/p>\n","protected":false},"author":3012,"featured_media":1004748185,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1521,21808,21747,51037],"tags":[],"class_list":["post-1004748157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","category-featured","category-office","category-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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He has a background in journalism, and is the editor of MHN's Daily and Weekly newsletters. 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