Areas of cities with a variety of restaurants, cafes, shops and offices have long been locations for companies looking to attract top talent.
But the benefits have taken on a new meaning amid the push to encourage employees back into the office.
“Companies are recognizing the value in high-quality offices and premier locations, not just for recruitment and retention advantages, but also to motivate return-to-office strategies,” says Jacob Rowden, U.S. Office Research Manager at JLL. “And more frequently, these places are emerging in peripheral regions of the urban core.”
Indeed, in the U.S., prime office corridors are migrating away from core central business districts (CBDs), according to JLL research. Peripheral, urban neighborhoods are becoming more dominant and now account for 54% of the most expensive U.S. streets. The report found that while the likes of California’s Sand Hill Road and Hudson Yards in New York still command the highest office rents, interest in mixed-used environments is rising as consumer habits evolve.
Activity levels in areas with a more diverse distribution of property types among commercial, residential and entertainment uses have recovered more quickly than commercially dominated cores.