Big cities across the United States of America are still the epicenter of cultural connectivity and global trade, which means these cities not only offer more job opportunities but also higher competitive standards as population density is higher. The combination of these are key for a healthy commercial space real estate activity as well as a lot of commercial space leasing.
Although the suburbs are still attractive to many, the steady growth of urban areas is way faster than ever, thanks to the people who choose these urban centers as they offer a live-work-play lifestyle that many crave. What does this mean for the ´commercial space leasing´market?
Key Economic Factors
Given that cities – whether they’re big or small — offer more jobs, it makes sense that job office sectors will grow as well. Two-fifths of the new jobs are office work-related. This raise on demand and the limited supply are causing a rise on the price of rent.
Restoring the balance in the market after “The Great Recession” has been difficult. Initially, landlords were forced to offer office spaces below the market lease standard and to offer massive concessions in order to keep tenants interested.
However, the growth of many different industries and the decline of unemployment have turned the market around. The rise of demand for office space is not only an indicator of more job opportunities but also an indicator of the commercial real estate market growing solidly.
Who Uses Commercial Office Space?
All sorts of professional services, legal and financial firms have been located in urban offices throughout history, and especially small businesses usually turn to leasing when it comes to setting up an office. And even though most modern firms go for modern, cost-efficient designs without necessarily embracing the open workstation concept.
The majority of today’s workforce is made up by millennials, and since this demographic is precisely the one choosing urban areas to live and work, the demand for renting commercial space is higher than ever in the bigger cities, meaning this is a great opportunity to those in the commercial space leasing market to provide for the workforce of the country.
The New Commercial Space
The design focus of today’s offices is high-quality and well-designed office space that can provide employees with all the tools they might need, from conference rooms to leisure space. Office space requirements are more dynamic every day, and it’s important that each office is or can be tailored to the culture of the company occupying it.
For brokers aiming to conquer the commercial space being savvy and recognizing the advantages that bring to work with retail companies, HR experts, and top designers for creating the perfect office space that will attract and retain more tenants.
If you’re interested in commercial space leasing in Westchester, NY or commercial real estate for sale in Westchester, NY, contact one of our agents at The Rakow Group today.
Call at 914-422-0100.