Suburban office demand spikes as working from home continues

Interest in Connecticut ‘burbs surged more than 40%, according to flex-office provider

National /
Nov.November 04, 2020 11:15 AM
Deals in southern Connecticut offices has surged more than 40 percent (iStock)

Deals in southern Connecticut offices has surged more than 40 percent (iStock)

Interest in small suburban offices is picking up as more people continue to work from home, and relocate outside of major urban centers.

For IWG, the short-term office company, deals for its downtown New York offices have collapsed by 30 percent since the virus outbreak, while activity in southern Connecticut has surged more than 40 percent, according to Bloomberg. Similarly, sales of small offices accommodating one to two people have jumped 19 percent.

IWG recently indicated that it would close up to 20 percent of its flex office spaces in Manhattan, as its Regus subsidiary puts locations throughout the city into Chapter 11 bankruptcy proceedings.

Still, the suburban migration is happening, and office landlords are responding. “This shows the current trend of buyers wanting more space — inside and outside of the house,” London-based analyst Iwona Hovenko of Bloomberg Intelligence told Bloomberg.

Few employees have returned to their offices in New York City: In Manhattan, just 10 percent of workers have so far made a comeback. Experts originally projected that 26 percent of employees would return to their offices by the end of the year.

[Bloomberg News] — Sasha Jones


Related Articles

arrow_forward_ios
Darien First Selectman Monica McNally and Great Island in Darien, Connecticut (Darien Republicans, Google Maps)
Fairfield County town nears purchase private island for over $100M
Fairfield County town nears purchase private island for over $100M
Adam Neumann with 515 West Avenue (Wikipedia, Realtor, iStock)
No buzz, but Adam Neumann will take the $293M
No buzz, but Adam Neumann will take the $293M
(iStock)
Banks, tech among departures sinking Midtown office market
Banks, tech among departures sinking Midtown office market
From left: Metro Loft Management founder Nathan Berman, Silverstein Properties chairman Larry Silverstein, and 55 Broad Street (Metro Loft, Silverstein Properties, LoopNet)
Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
777 Summer Street in Stamford and Toll Brothers Apartment Living president Charlies Elliott (Silverback Development, Toll Brothers)
Toll Brothers plans 355-unit apartment complex in Stamford
Toll Brothers plans 355-unit apartment complex in Stamford
Savills' Jim Wenk (LinkedIn, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Office space up for sublease back on the rise
Office space up for sublease back on the rise
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Developer sentenced to 3 years for blowing investors’ money on himself
Developer sentenced to 3 years for blowing investors’ money on himself
645 Madison Avenue (Google Maps, iStock)
Private equity firm tightens grip on distressed Madison Ave building
Private equity firm tightens grip on distressed Madison Ave building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...