June 27, 2018 Busting Commercial Real Estate Myths
Newmark Knight and Frank (NKF) researchers throughout the country recently contributed to a study published by the company, with the goal of examining popular beliefs about commercial real estate and determining their validity.
Among the misconceptions they address is the belief that suburban office locations have become less desirable, and that companies have found that they must be located closer to the urban core in order to attract and retain young talent.
NKF researchers dispel that myth, noting that “Mixed-use, suburban environments that can replicate [urban environments’] ease of access and mobility remain popular with today’s office tenants,” especially those in the tech industry.
Since 2013, absorption in suburban office markets has outpaced absorption in central business districts in the 56 major markets tracked by NKF, according to the study. They note the example of the Denver metro area, where the Southeast Suburban submarket led the market for absorption in the period from Q1 2010 to Q1 2018, and is home to seven of the nine Fortune 500 companies located in Colorado. Absorption has been driven largely by corporate tenants’ vigorous growth.
Download and read the full report at www.ngkf.com