Current Challenges in Downtowns & Occupier Location Strategies

The rise of urban centers in the late 20th and early 21st centuries demonstrated that downtowns were not only safe but also rich in amenities, making them an increasingly desirable alternative to the sprawling suburbs for living and working. This momentum created opportunities for companies seeking young talent in vibrant business hubs as a counterpoint to established suburban office campuses that became the norm during the 1970s and 1980s. Like so many things, the pandemic changed how we use office space and consequently affected downtown office hubs.   

Driven by lower office utilization brought on by the now common hybrid working model, the daytime population of office workers in major cities remains below 60% of pre-pandemic norms. The diminished office population, coupled with public safety concerns, reduced transit services, and fewer quick-service lunch options, has driven the conversation about overall downtown health in boardrooms and the media. Company leadership is paying attention. 

This paper examines the decision factors and considerations corporate occupiers should think about when deciding to remain or relocate. Cushman & Wakefield advocates for a balanced, objective evaluation of any potential relocation decision, weighing current environment concerns against company success drivers.