Is Retail – to – Office the Next Big Trend ?
Is Retail-to-Office the Next Big Trend?
The commercial real estate industry is no stranger to redevelopment. It’s common forcommercial assets to move through sector conversions where one type of property isrepurposed to fit into a new CRE module.
For example, unused big-box retail spaces areoften transformed into industrial assets toaccommodate an updated industry need. It’s pretty easy to see why. Their sprawling floor plansmake for wonderful warehouses.
But, there’s something relatively new going on.
Vacant retail spaces are being converted into offices in big cities around the country. Wehaven’t really seen this take within the commercial scene in the past, but more and moreworkspace developers are choosing to occupy storefronts along bustling commercial districts.Let’s take a deeper look at this trend and how it’s impacting commercial real estate as a whole
Retail-to-Office Creates Tons of Opportunities
It’s 2020 and tons of metropolitan areas around the United States are looking to revamp theircommercial areas with something new, exciting, and profitable.
Shopping centers, community areas, and even parks and recreation centers are being sprucedup to stay current with the evolving consumer demands for tech, accessibility, and high-qualityaesthetic experiences.
As thereconfiguration of commercial districts is well underway, businesses are getting in on theaction. Retail spaces in bustling cities such as San Francisco and Miami are becoming the new‘it’ spaces for office sector tenants
Creating the Lifestyle Office Experience
The lifestyle office trend is rewriting the script for CRE’s office arena.
Lifestyle offices are workplaces in a location that is surrounded by luxury amenities. Talk aboutimproving the employee experience! Restaurants, cafes, gyms, entertainment, parks and naturalspaces, and transportation are just some of the requirements necessary to call a workspacedevelopment a true lifestyle office.
This growing trend is giving offices a new dimension of appeal, where team members haveunparalleled access to everything they may need. Since retail spaces are usually located next toother commercial amenities, using these vacant assets for offices is bringing this trend to life.
Convenience is Key
That old saying stands true-it’s all about location. It’s not only the house hunters and businesspatrons that care where something is located-professional team members do, too.
An office that’s in awinning location is highly attractive to the contemporary workforce. Today’sprospective employees aren’t only concerned about the pay rate. They care a great deal aboutthe general experience-especially the generations that are coming of age in this changing eraof business.
There’s simply no way around the fact that out-of-the-way locations aren’t as appealing toworkers as a centralized office nestled into a commercial hub.
The Changing Cityscape
Modern cities are a seamless blend of dining, shopping, apartments, business, entertainmentand much more. People can work, learn, live and play all in the same general area.
That means people need to travel less to complete their day-to-day tasks and responsibilities.This supreme module for accessibility is attracting tons of attention for the workforce-makingoffices in these locations a highly-coveted option.
Make sure to keep your eye on the retail-to-office conversion within commercial real estate.