Corporations Favoring Urban Settings Over Suburbs

Corporations Favoring Urban Settings Over Suburbs

David Harrison
CoreNet Global
(410) 804-1728
david@harrisoncommunications.net

Press Release
October 18, 2016

ATLANTA (October 18, 2016) — A new survey comparing the priorities of corporate CEOs and corporate real estate (CRE) executives has identified a strong trend in which corporations are locating facilities and offices away from suburban business parks and to central business districts and creative urban environments.

More than 250 respondents in the survey, conducted in early 2016, represented a spectrum of industries from North America, Europe and Asia. Fifty-six percent of financial services firms and 46 percent of technology, media and telecommunications firms reported they were migrating back toward urban areas. In North America, 40 percent of the firms surveyed preferred a central business district compared to 24 percent that preferred a suburban park. These trends were similar across Europe and Asia.

"In addition to these survey findings, we have learned from talking with end users (occupiers) of corporate real estate that the need for access to talent is driving the return to urban areas/cities. That is where the prized young technology workers prefer to live and work," said Tim Venable, Senior Vice President of CoreNet Global.

"Corporations have to simultaneously address an increasingly complex talent agenda whilst remaining under sustained cost pressure. The surprisingly high rate of agile workplace adoption is addressing the need of employers to provide more central offices besides a more engaging environment and keeping cost down by better space utilization." Said Tamás Polster co-head of Strategic Consulting EMEA Cushman & Wakefield.     

Globally, cost is the leading driver of location decision-making, followed by public transportation, and the availability of talent.

In the workplace itself, agile or innovative approaches to work are taking over, with 60 percent of firms in North America, 89 percent of firms in Europe and 78 percent of firms in Asia introducing or testing new concepts, including desk-sharing, collaborative and co-working spaces.

Other conclusions reached in the survey:

  • CRE budget ownership and centralization is the factor that drives alignment with the overall corporate strategy
  • Co-working is seen as a fundamental element of portfolio strategy by 20 percent of the respondents
  • A modern workplace Is increasingly seen as critical for attracting and retaining talent

About Cushman & Wakefield

Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm's 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation, and valuations & advisory.

About CoreNet Global

CoreNet Global is the world's leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers. CoreNet Global's more than 10,000 members, who include 70 percent of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit CoreNet Global.