Moving to the Suburbs: The Urban Exodus
Now, more than ever, people are leaving their condos and apartments in the city and opting for larger suburban homes with more room. With families spending more time at home remote working or learning, people certainly feel the effects of living in small urban spaces. Discovering more living space to do work, school, and find solitude is near impossible in apartments and condos. Therefore, families are packing their belongings and moving to the suburbs.
How does this impact your hunt for commercial real estate?
Millennials care deeply about a healthy work-life balance. Since many people are moving away from cities, businesses could benefit greatly from following the trend and moving with them. Ditching the large downtown office and opting for large commercial office space in the suburbs can transform your employee's work-life balance. Businesses can offer easier commutes, more opportunities for hybrid office scheduling, increase employee morale, and more.
Suburban offices are less costly than urban offices
Owning or renting property downtown is not as cost-effective as properties in the suburbs. You often get more space at a lower price when moving away from the urban buildings and settling into suburban neighborhoods. Having more commercial real estate space during the pandemic is crucial for you and your employees a safe return-to-office experience.
Currently, the Federal Reserve has drastically cut interest rates, which makes now the ideal time to migrate to a larger office building in the suburbs for less. We see more trends of larger offices ending their long-term leases or searching for subletters to find suburban commercial real estate to move away from urban life.
Getting ahead of the trend
Purchasing or leasing in the suburban areas is starting to pick up causing the commercial real estate industry to flourish. As the trend continues to go upward, we will see that suburban real estate availability will be limited. Getting ahead of this trend can ensure you can get real estate space in the suburbs before more companies follow and face finite options.
The future of commercial real estate
Although we see many people and businesses fleeing the city, it seems this will be a short-term struggle for downtown commercial properties and could benefit those looking to purchase commercial real estate in the suburbs. The economic challenges in urban areas may create a once-in-a-generation investment opportunity for businesses currently looking for a commercial real estate property.
To learn more about commercial real estate in the suburbs, contact LB Andersen. Our team of experts are on top of the latest commercial real estate trends and here to help you find the perfect property.
Posted on 5/13/2021