March 20, 2014
A new article at ccim.com discusses the trend of employees preferring to work in communities that are walkable and offer a mix of residential and entertainment options:
Research and market observations have revealed that the new generation of employees is clear on what they want out of the ideal office space — with many of the preferences manifesting outside of the company’s walls. Employees want to be in areas where there is access to other talent and work in communities that are walkable, close to transit, and offer a compelling mix of residential, entertainment, and business options. These employees don’t want to balance work and life; they want it integrated. Those cities that offer this integration will be best positioned to attract top businesses and talent.
Demand Factors
Not only have office space needs and wants evolved, but so has overall space usage — presenting companies with new opportunities. The average square foot per person in a typical office has decreased by more than 300 square feet since the 1970s. A typical company can move from a 100,000-sf class B space to 70,000-sf class A space, upgrading the environment for the same number of employees without affecting its bottom line.
Tenants’ desire to be in higher-quality buildings and better locations, combined with the recession and a general lack of new supply over the last five years, presents pockets of opportunity for new office development. Many of these development opportunities are in primary markets where fundamentals support replacing functionally obsolete buildings. However, there will also be opportunities in business-friendly, secondary markets driven by low business costs, quality labor supply, friendly regulatory environments, strong economic growth climates, and a better overall employee quality of life.
Read more at: http://www.ccim.com/cire-magazine/articles/323384/2014/01/walk-work
