If you’re wondering why workspace investors are betting on suburban neighborhoods, you’ve come to the right place. There’s a post-pandemic surge in the demand for work space in these neighborhoods. Let’s take a look at some of the trends and sources that are guiding the trend.
Investors are betting on a post-pandemic surge in interest in workspaces located in suburban neighborhoods
The recent influenza pandemic has changed the way many people think about living in and around a city. Cities like Chicago and San Francisco saw their office markets undergo massive changes after the pandemic. The ‘city that never sleeps’ reputation took a break as tens of millions of people went on furlough or started working from home. Suburban neighborhoods were impacted too. As a result, commuting habits changed as well. Many people now want to be closer to nature and desire more land.
Some suburban neighborhoods have seen their population rise. Some are booming with young and college-educated professionals. But others are experiencing declines in the quality of life and are falling behind. Suburban neighborhoods are also increasingly becoming the preferred place for families and children to live, owing to the proximity to better schools and affordable housing.
The real estate land grab that’s sweeping cities downtown could pivot into a sprawling suburban rush. That’s because it’s easier to enforce social distancing in suburban areas. One company transforming retail spaces in suburban areas is Daybase. While the company is not trying to replace traditional corporate headquarters, they do aim to provide a more flexible work environment. The Wall Street Journal recently highlighted the benefits of this type of space.
Since the early-2020 housing pandemic, demand for suburban homes has changed dramatically. As more Millennials seek to live near employment centers and other amenities, the demand for suburban McMansions has increased. This increased demand has resulted in price hikes. The rising prices make homeownership out of reach for many people. This has made investors bet on rental property in suburban areas, believing that renters will settle for a lease if they can’t afford a home.