Читать книгу The Workplace You Need Now - Sanjay Rishi - Страница 14

As workplaces have evolved – or should evolve – to more closely address the needs and preferences of employees, location has become part of the workplace strategy, too.

Over time, the location preferences for corporate offices have shifted, depending on the value equation, or the balance between the cost of real estate and the opportunities of a location in terms of the quality of the space, convenience, safety, and proximity to talent, customers, and jobs.

In the United States, for example, central business districts (CBDs) were the growing focus for decades as the centers of commerce and industry. Yet, many US urban areas lacked vibrancy and were perceived as challenged by crime and lack of cleanliness.

By 1960, the interstate system had opened the suburbs to urban workers, allowing them easy access to affordable and spacious housing, green space, and safety. Suburbia created a compelling value proposition for aspiring families throughout the 1970s and 1980s. Employers soon followed, establishing campus settings within easy drives to convenient suburban locations, often near highway interchanges.

The preference for the suburbs persisted until the 1990s and 2000s, when enterprising mayors and civic organizations revitalized urban areas with 24/7 amenities and a greater sense of safety. Cities once again became attractive to residents and employees, especially younger generations looking for a dynamic urban “vibe,” cultural amenities, the convenience of public transportation, and a compact, high-density, live-work-play environment.

Employers were quick to follow employees back to the urban environment, as evidenced by the rush of corporate campus relocations and expansions in CBD and emerging urban locations during the past 20 years. Prime examples include Google’s offices in Manhattan, GE’s location in Boston, McDonald’s downtown Chicago headquarters, and Amazon’s facilities in Seattle and Washington, DC’s near-suburb of Crystal City, Virginia. Urban areas became more dynamic and competitive, offering the best overall value for corporate employers seeking to attract the next generation of workers.

Now, the value equation is shifting again. Urban environments and big gateway cities have grown increasingly expensive, with housing costs rising more quickly than the wages of the average worker. In the pandemic environment, cities became less desirable – albeit perhaps temporarily – and the remote working option made it easier for employees to live and work far from their corporate homes.

Thanks to the combination of the natural aging of the giant millennial generation – creating new households and families – and the newfound flexibility of remote working, Sun Belt cities and suburban (or “outer urban”) environments are seeing growing popularity, at least temporarily. Sun Belt and suburban markets outperformed traditional CBDs in terms of commercial real estate rents and occupancy during the pandemic. Many of these new “growth markets” enjoy demographic tailwinds and other advantages that make it likely that they will continue to prosper. But have no doubt, the great urban gateway cities will rise and prosper once again, filled with great companies and young talent. As evidenced by population shifts from cities to suburbs and back again, future changes are likely inevitable over time.