Commercial Real Estate News Brief: June 2017

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Every month, JLL’s regional team curates the top commercial real estate industry articles to keep you in-the-know. In this month’s edition, JLL spotlights the impact of transit hubs, catering to the liquid workforce and the rise of fringe neighborhoods.

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Transit Hubs Become the Center of Commercial Real Estate Development

As more young professionals opt to walk or take public transportation to work, major cities, such as Cleveland, Columbus, Detroit and Pittsburgh, are directing efforts to revamp their public transit systems.

Approximately 87% of public transit trips have a direct impact on the economy as they deliver a larger talent pool and customer base to the city center. As the millennial workforce gravitates toward the urban core to work and live, cities are redesigning their public transit systems for enhanced comfort and convenience.

Improvements to public transit infrastructure have stimulated economic growth and commercial real estate development in the CBD as businesses buckle down to secure office space along the route. An increasing number of businesses are relocating to reap the benefits of social networks formed around the renovated hubs.

Young Professionals Demand Flexibility and Off-Site Work Spaces

As the workplace becomes increasingly digitized, employees are demanding more flexibility in their schedules. Changes in the work dynamic have reshaped the real estate landscape, as offices must now compete with off-site spaces, which offer more freedom for employees to work when they want.

To accommodate a liquid workforce, employers are focusing less on space allocation, and more on investing in a variety of flexible spaces, such as co-working, incubator and accelerator spaces.

Fringe Neighborhoods are on the Rise

As the race for space persists in the CBD, fringe neighborhoods are beginning to emerge on the outskirts of major cities. By transforming former industrial buildings into creative workplaces, companies can customize workspaces as they please.

Located just outside of downtown Columbus, The Short North Arts District is continuing to draw the attention of young and established professionals. The desirable 14-block strip is lined with retail shops, art galleries, trendy restaurants and an animated nightlife scene. The area is expected to expand with redeveloped properties.

Fringe neighborhoods continue to revitalize once underutilized spaces and provide competitive amenities for younger companies and companies looking to get the most for their money.