Suburban Office Space: A Rising Star in Commercial Real Estate
"The suburban office scene is experiencing a renaissance. As companies adapt to hybrid work models and employees prioritize work-life balance, suburban office spaces are emerging as the ideal solution. With their lower costs, flexible lease terms, and convenient locations, suburban offices offer a compelling alternative to traditional downtown settings. For investors, this trend presents a unique opportunity to capitalize on the growing demand for high-quality, flexible office space."
The Suburban Office Renaissance
As the traditional 9-to-5, downtown office model evolves, a new trend is emerging in the commercial real estate market: the rise of suburban office space. This shift is driven by a variety of factors, including changing workforce preferences, technological advancements, and economic conditions.
Why Tenants are Choosing the Suburbs
Flexibility and Work-Life Balance: Suburban offices often offer more flexible lease terms and amenities that cater to modern workstyles. This can include on-site fitness centers, cafes, and outdoor spaces, which can improve employee satisfaction and productivity.
Reduced Commute Times: For many employees, a shorter commute can significantly improve work-life balance and reduce stress. Suburban offices are often located closer to residential areas, making it easier for employees to get to work and home.
Cost-Effective Solutions: Suburban office spaces can be more affordable than downtown options, especially for smaller businesses. This can help companies save on overhead costs and allocate more resources to growth and innovation.
Neighborhood Feel and Community: Suburban office parks often have a more relaxed, community-oriented atmosphere. This can foster a stronger sense of team cohesion and company culture.
Investment Opportunities in Suburban Office Space
For commercial real estate investors, suburban office space presents a compelling investment opportunity. Here are a few key reasons why:
Strong Tenant Demand: As more companies adopt hybrid and remote work models, there is a growing demand for smaller, flexible office spaces in suburban areas.
Stable Returns: Suburban office properties tend to offer stable, long-term rental income.
Appreciation Potential: As suburban areas continue to develop and attract new businesses, the value of office properties in these locations can appreciate over time.
Diversification: Investing in suburban office space can diversify a real estate portfolio and reduce risk.
Avant Group: Your Partner in Suburban Office Space
At Avant Group, we specialize in helping clients navigate the complex world of commercial real estate. Whether you're a tenant seeking the perfect suburban office space or an investor looking for profitable opportunities, our experienced team can provide the expertise and guidance you need.
Contact us today to learn more about how we can help you achieve your real estate goals.
Finding Office Space for Startups.
How to find and secure office space as a startup.
How to Find and Secure Office Space as a Startup
For many startup companies, searching for office space can be a challenge:
Where to Start:
When searching for new office space, it’s important to understand the growth you foresee over the next 12 -36 months. This will help determine your plan of attack when searching for space. Most commercial office space leases require a minimum term of 36 to 60 months. If your new space needs modifications, the landlord may give a tenant improvement (TI) allowance, for these modifications. The amount given is usually based on credit worthiness and term. Being a new business, having great credit established is slim; therefore, the alternative is giving more term for TI dollars.
How to Navigate:
There are ways to navigate these situations and take the adequate amount of space when needed. First find a qualified Tenant Representation Broker in your market who has experience working with startup companies. A knowledgeable Tenant Rep Broker will also be able to help identify the amount of space you will need.
When working with startup companies in high growth industries, below are a few points to consider:
Have your Tenant Rep Broker search for sublease options. Subleases are cheaper than direct space and have shorter term leases and may come with furniture.
If there are no available sublease options that fit your needs or desired area and you have to look at direct space options, you can protect yourself by having your broker negotiate expansion options within your lease. Expansion options help as they enable you to take the adequate amount of space needed now with an option to grow into bigger space when needed.
For companies with 1-4 people who do not need individual offices, co-working space can be a great option. They are usually, month-to-month leases giving great flexibility. They also lend well to companies looking to connect with other startups as they are a haven for entrepreneurs and people looking to connect.