Are the Millennials Driving Downtown Corporate Relocations?

[dougskiles]

I love it!

Are the Millennials Driving Downtown Corporate Relocations?

Christopher Leinberger
June 9, 2011 | 5:33 pm

In spite of the U.S. Census data for the past decade showing continued job de-centralization, there is now much anecdotal evidence for the just the opposite. The Chicago Crain’s Business Journal reports that companies such as Allstate, Motorola, AT&T, GE Capital, and even Sears are re-considering their fringe suburban locations, generally in stand alone campuses, and may head back to downtown Chicago. The irony of Sears possibly moving back to downtown could not be greater, having abandoned the country’s tallest building for an equally huge, though horizontal, building 45 miles from the Loop over 20 years ago.

The New York Times has been reporting this week that UBS, the huge Swiss banking firm, is considering moving their U.S. headquarters back into New York City, possibly to the next World Trade Center building, from Stamford, Connecticut. Even downtown Detroit, the basket case of American downtowns, has seen four major corporate arrivals in recent years … most recently the headquarters of the parent company of Quicken Loans.

The reason in nearly every case? The millennial generation is demanding it. Highly-educated young workers, the life’s blood of many industries, have been flocking to center cities in recent years. Trying to recruit this talent to Stamford, Conn., or Hoffman Estates, Ill. is exceedingly difficult. They are voting with their feet for a hip, high-density walkable lifestyle and a reverse commute to the ‘burbs is not in the cards for most of them.

The companies moved out to the suburbs to attract their baby boomer parents, raising their kids in suburban isolation. The millenials are doing what many generations have done in the past; they have rejected how they were raised. This once again shows that building a high quality residential base will lead to the attraction of jobs…only this time it is back to the future.

http://www.tnr.com/blog/the-avenue/89745/are-the-millennials-driving-downtown-corporate-relocations

[fsujax]

hopefully, this will catch on in Jacksonville. Where you at Addeco???

[Overstreet]

It seems to be a truth here. The youths, most of the posters here, want to be downtown. 

[dougskiles]

I think we are seeing it with the EverBank deal.  What I'm hearing, is that they want to relocate from the suburbs.  The current location is not working for them.  It is not only about incentives.

[Lunican]

Downtowns Get a Fresh Lease

Suburbs Lose Office Workers to Business Districts, Reversing a Post-War Trend

As the market for office space shows signs of recovery, the suburbs are getting left behind.

For decades, the suburbs benefited from companies seeking lower rent, less crime and a shorter commute for many workers. But now, office buildings in many city downtowns have stopped losing tenants or are filling up again even as the office space in the surrounding suburbs continues to empty, a challenge to the post-war trend in the American workplace and a sign of the economic recovery's uneven geography.

Even some forlorn cities are showing signs of revival. In Detroit, Health insurer Blue Cross Blue Shield of Michigan next spring will start moving thousands of suburban employees into the downtown.

Full Article:
http://online.wsj.com/article/SB10001424052748704058704576015660618563654.html

[Tacachale]

This is a good trend, but I'm not very impressed by those numbers. The bottom line is that suburban office vacancy rates increased 2.3% since 2005, while downtown office vacancies remained stable (meaning, they didn't increase). The total vacancies are still similar: 14.9% for downtowns and 19% for the suburbs. Considering that something like 2/3 of all office workers still work in the suburbs, it would be a long time before we'd see much overall difference across the board.

And in Jacksonville it's even worse. Downtown has a 22% vacancy rate, including 25% vacancy in the Northbank. And as of April the vacancy rate continues to get worse downtown, even though it's improving slightly in the rest of the city.

http://www.bizjournals.com/jacksonville/news/2011/01/05/jacksonville-office-vacancy-up-to-22.html

Hopefully, though, this modest national trend has some legs to it, and will really take off when the economy improves. And even more hopefully, we'll see it happen here.

[north miami]

I think we are seeing it with the EverBank deal.  What I'm hearing, is that they want to relocate from the suburbs.  The current location is not working for them.  It is not only about incentives.

... I was wondering about that.

[duvaldude08]

This is definately the truth. I was just venting to my bestfriend in ATL this morning about something similiar. It seems that the older generation resist the advancement of downtown alot in this city. They dont want to see anything change. Everything is a "waste of money" or "just stupid" to them. My parents are a prime example. Me, Im 29 and working on the Southbank for the 5 1/2 years I have became very fond of DT and an advocate for its redevelopment. When my lease is up next year Im considering moving into the core as well.

[fsujax]

what's really interesting is that my grandparents are very fond of Downtown and they want to see it come back to life. They love telling me stories of their date nights Downtown in the 1950's and all they could do with $3.00. I think there is a generation between my grandparents and mine, that doesnt really care too much about the Downtown.

[duvaldude08]

what's really interesting is that my grandparents are very fond of Downtown and they want to see it come back to life. They love telling me stories of their date nights Downtown in the 1950's and all they could do with $3.00. I think there is a generation between my grandparents and mine, that doesnt really care too much about the Downtown.

Yess!! My parents are in their 50's so they are the generation in between. My dad is actually for DT and Loves everything that Alvin Brown is about. My mom.. shes in the middle. Shes for DT, but every is stupid and waste of money to her. LOL Yesterday me and some co worker met up at the Charthouse after hours. The subject of the fountain came up. Everyone that was in their 50's said it was a waste of money, blah blah blah. And why are they wasting money on DT blah blah. But the younger ones were just sitting their quiet sippin on drinks and looking at each other like, " Whats their problem?" LOL!!

I think some people just resist change until they see the finish product. DT is in the making.

[Bativac]

Yess!! My parents are in their 50's so they are the generation in between. My dad is actually for DT and Loves everything that Alvin Brown is about. My mom.. shes in the middle. Shes for DT, but every is stupid and waste of money to her. LOL Yesterday me and some co worker met up at the Charthouse after hours. The subject of the fountain came up. Everyone that was in their 50's said it was a waste of money, blah blah blah. And why are they wasting money on DT blah blah. But the younger ones were just sitting their quiet sippin on drinks and looking at each other like, " Whats their problem?" LOL!!

You described the problem in a nutshell. I think people in their 50s were kids when their parents started moving away from downtown and don't see why anybody would want to live there, let alone dump money into it. Plus a lot of those people have seen decades of supposed advances that have never happened downtown and are probably jaded at this point.

So for those of us in our 20s (and ahem very early 30s) we either do what we can and wait to see if it turns around, or go someplace that already has the vibe and environment we're looking for.

[cityimrov]

Yess!! My parents are in their 50's so they are the generation in between. My dad is actually for DT and Loves everything that Alvin Brown is about. My mom.. shes in the middle. Shes for DT, but every is stupid and waste of money to her. LOL Yesterday me and some co worker met up at the Charthouse after hours. The subject of the fountain came up. Everyone that was in their 50's said it was a waste of money, blah blah blah. And why are they wasting money on DT blah blah. But the younger ones were just sitting their quiet sippin on drinks and looking at each other like, " Whats their problem?" LOL!!

You described the problem in a nutshell. I think people in their 50s were kids when their parents started moving away from downtown and don't see why anybody would want to live there, let alone dump money into it. Plus a lot of those people have seen decades of supposed advances that have never happened downtown and are probably jaded at this point.

So for those of us in our 20s (and ahem very early 30s) we either do what we can and wait to see if it turns around, or go someplace that already has the vibe and environment we're looking for.

Well, back then, living in downtown really wasn't the nicest place to be in their minds.  Why live in a tiny cramp little room that you have to share with hundreds of other people when you can have your very own large house, lawn, pool, etc?  It's like living the dream of those rich people in those rich mansions!  The ones with the lush green grass and the beautifully painted house.  It's your own little paradise.  What's the point of living downtown?

[hooplady]

Just going on record that I'm one of those people in their 50's who is totally onboard with urban living.

Now if someone could just help me program my VCR...

[duvaldude08]

Just going on record that I'm one of those people in their 50's who is totally onboard with urban living.

Now if someone could just help me program my VCR...

You need to find a blank VHS first. Dont want to tape over a good movie

[danem]

Just going on record that I'm one of those people in their 50's who is totally onboard with urban living.

Now if someone could just help me program my VCR...

What's a VCR?