For many developers and owners of office buildings in Illinois, a big question is whether to focus on real estate spaces in urban or suburban areas. Some have chosen to take advantage of both areas by tapping into the new urb-suburban vibe in commercial real estate. This concept is a way of describing the placement of suburban office properties in pedestrian-friendly settings that offer easy access to urban amenities.
The urban amenities that can easily be accessed from suburban office locations include housing, transit, retail and restaurants. According to industry experts, a suburban office submarket that has urban characteristics is in an ideal position to take advantage of occupier demand. Investors also benefit from the opportunity to buy properties at more affordable prices in locations that could see growth in the future.
Tenants benefit from the new urb-suburban push in that they may be able to obtain space at lower rental costs. In California, Palo Alto (near San Francisco) and Santa Monica (near Los Angeles) are examples of submarkets that are established. Meanwhile, an example on the East Coast is the New Jersey Hudson River waterfront.
Taking advantage of the benefits of both suburban space and urban amenities can understandably be appealing for commercial real estate developers and investors. However, getting through a real estate deal can be challenging due to the many complex aspects of a transaction. An attorney in Illinois can offer guidance at each step of the process to ensure that investors achieve their particular goals in the state’s real estate market.
Source: nreionline.com, “Do Office Tenants Prefer the City or the Suburbs?“, John Egan, Aug. 16, 2017