As trends in commercial real estate come and go, there are two main questions those interested in commercial real estate investing have year after year. Are the suburbs dead? If not, are there truly any good commercial real estate investing opportunities in these areas?
Fortunately, if you are an interested commercial real estate investor, the answers are no and yes respectively. The suburbs are just as desirable as buildings in urban settings, despite what the media may want everyone to think.
Smaller Companies Still Want Suburban Locations
If news sources are to be believed, then urban commercial real estate is the only sector that continues to grow and everything else has died off. Not only is this idea totally impractical, it is just not true. While larger companies such as those in the Fortune 500 are relocating back to more urban environments, research on this matter suggests that most other companies still want to be located in the suburbs.
In actuality, there are more companies building in suburban locations to find a talented workforce than those moving back to the city. From a commercial real estate investing aspect, the suburbs are still a great option and have never really lost their appeal.
Talent Pool Is Continuously Changing
One of the important reasons why there are still plenty of great commercial real estate investing opportunities in the suburbs is the continuously changing talent pool. The growing number of millennials entering the workforce has been a primary factor for some companies that are investing in urban commercial real estate and looking to attract younger talent. Yet the first people in this generation have already moved on.
These same millennials who wanted to be in the city and close to everything are getting married, having children of their own, and looking for more affordable and family-friendly living. Working in the suburbs is becoming appealing once again and to the very same group who influenced the move back to the cities.
Urban-Suburbanization - Best of Both Worlds
Another thought if you are an investor considering commercial real estate investing opportunities in the suburbs is the new trend of “urban-suburbanization." Urban-suburbanization brings the desirable elements of the city to more suburban locations that allow companies to offer the best of both worlds to employees beginning to broaden their view of where they want to work.
This trend is taking shape in the form of commercial real estate investing that brings in other desirable features like public transportation, transit-oriented locations, and a variety of stores and restaurants close by for convenience.
The point is that if you are looking at urban vs. suburban commercial real estate investing, not everyone can or wants to be in the city - and for a number of reasons. There are many lucrative commercial real estate investing opportunities in the suburbs, which has not necessarily lost its appeal. The suburbs have become desirable all over again to a new and changing population.
Companies that want to take advantage of this in 2018 can decide to change with this population. If you want to build new and/or improve on existing suburban commercial real estate, you should have few problems doing so!