Commercial property development companies: Suburbs Commercial Property Development Companies Turning Old Offices Into Modern Campuses
Although the economy is faltering and office vacancies in CBD locations are increasing, suburban office markets continue to perform strongly. Many of these spaces have evolved into modern mixed-use campuses offering amenities employees need in order to thrive.
Suburban commercial property development companies have begun targeting suburban markets for new office development, light industrial/R&D projects and senior living communities. Furthermore, existing suburban office buildings are being renovated to better suit modern work styles and infrastructure requirements.
Infill development
Infill development refers to the construction of new structures on underused land within already developed communities or areas, with the intent of encouraging density and environmentally sustainable urban growth, community revitalisation, better transportation links and increased property values. Projects associated with infill development may take many forms, including small-lot developments, mixed-use development projects, transit-oriented designs or brownfield redevelopment efforts.
Construction for suburban commercial property development companies involves adhering to local laws and regulations. These may include zoning laws that impose restrictions on what types of structures can be built in specific regions, as well as design guidelines designed to keep infill development consistent with the existing character of a neighbourhood.
Infill development can be a challenging and costly endeavour, often facing opposition from residents as well as financing constraints. Yet infill development remains an attractive choice for commercial real estate companies looking for ways to increase economic activity while simultaneously protecting the environment.
Office parks
Office parks have long been an essential component of suburban commercial real estate, yet with remote working and more flexible lease models becoming the norm; office parks may no longer attract tenants as easily. Developers are exploring strategies for revitalising older office parks while meeting modern business requirements while simultaneously drawing in new tenants.
These buildings are often situated close to major roads and highways, offering employees an easier commute and providing an easier work-life balance. Furthermore, these locations often allow access to numerous restaurants and shops nearby.
Office conversions
Office conversions may present unique challenges, but they’re often less expensive and environmentally friendly than demolishing and building from scratch. Office conversions also reduce waste disposal issues while meeting residential needs; however, additional plumbing, HVAC, lighting and kitchen costs must still be increased to accommodate them, and variances may be necessary to ensure compliance.
Converting vacant office space to housing may not be a popular trend in most markets, yet opportunistic developers can capitalise on current market conditions by doing just this. Urban Investment Partners recently purchased a 132,000-square-foot suburban office building in Alexandria, which they will transform into an apartment complex complete with cutting-edge amenities in a park-like environment.
As many property owners don’t possess the capital required for such large projects, many may opt to let their buildings remain vacant if nothing changes – but should COVID-19 spread and remote work become increasingly prevalent, these properties could become important sources of affordable housing solutions.
Adaptive Reuse
In urban areas, office buildings are often converted into apartments and other types of housing. One of the benefits of adaptive reuse is that it preserves the history and architectural integrity of the building. It also provides a more environmentally sustainable form of development than new construction.
In addition, many city governments provide incentives to developers to encourage the conversion of office buildings into housing. These may include freezes on property taxes or historic tax credits.
The repurposing of old buildings is especially important to the next generation of tenants. Gen Z wants to live in a place that has character and is unique while also having sustainable features. Adaptive reuse allows property owners to create spaces that meet these needs at a more affordable price.
Developers and city officials are working to make it easier to convert office buildings into residential spaces. Boston, for example, has put in place a tax abatement to encourage the projects.