Preferred Office Locations

NAIOP, the trade association for developers, owners and investors in industrial, office and related commercial real estate, hosted a webinar with Emil Malizia titled Preferred Office Locations: Comparing Location Preferences and Performance of Office Space in CBDs, Suburban Vibrant Centers and Suburban Areas, which shines a light on location preference when picking an office location. The study, which combines expert opinion and accurate property-level data, provides reliable information about emerging location preferences across major U.S. office markets and the comparative performance of office space in CBDs, suburban vibrant centers — defined as amenity-rich, mixed-use, "live, work, play" locations — and typical single-use suburban areas.

The study sought to address five questions:

1. Do office tenants prefer CBDs to suburban areas?

2. Do office tenants prefer suburban vibrant centers to typical single-use suburban environments?

3. Are office properties in CBDs performing better than those in typical single-use suburban office areas?

4. Are office properties in suburban vibrant centers outperforming those in typical single-use suburban office areas?

5. Are suburban vibrant centers preferred to or performing better than CBDs in their market areas?

Overall, office tenants showed no strong preference for either downtown or suburban locations. The study did, however, reveal a clear preference for suburban vibrant centers over typical single-use suburban office environments, and demonstrated that office properties in suburban vibrant centers are outperforming those in typical single-use suburban office areas on almost all metrics.

To download and watch the webinar, click here. For more news and information visit Blumberg Capital Partners.