Although indicators are pointing toward a slow recovery in the office market, this seems to be affecting primarily the downtown areas, while suburbs are losing tenants, according to WSJ reports that b office buildings in many city downtowns have stopped losing tenants or are filling up again even as the office space in the surrounding suburbs continues to empty.b
This is an interesting trend given that in 2003 and 2004—another post-recession recovery time for the commercial real estate industry—office buildings in the suburbs recovered faster than their downtown counterparts. Suburbs appealed to businesses as they offered lower rents and a shorter commute for many workers, but now companies are seeing a trend that younger workers may prefer more vibrant downtown areas.
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Image: Bloomberg News via WSJ
Tags: commercial real estate, downtown, office buildings, office market, rents, suburbs, trends
