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BIG PICTURE: Local Culture Drives Push To or From CBD

NEW YORK CITY-The war between CBDs and suburbs is fought in local skirmishes, with demands of native business and the locale's ability to support them drawing tenants in or pushing them away from our center cities. As a result, there is no clear-cut winner in the space race.

By John Salustri | Updated on May 07, 2001

NEW YORK CITY-There really is no clear-cut winner in the ebb and flow of tenants to and from our nation’s CBDs. In the early 90s, the call was easy as corporate tenants flocked in droves to the cheaper, more spacious, more convenient regions of the suburbs. Today, no such trend exists, and the success of any submarket is based less on national market forces–such as the pressures of a deep recession or the tech disaster–than it is on the needs of a business or industry and the locale’s ability to support that need.

That’s not to say that national forces aren’t having an effect on where corporate tenants put down stakes. Indeed, it is–in places such as Portland, where the tech industry nosedive has pummeled various submarkets. But this time around, we’re finding that users are just as apt to move into town as move out–depending on the dynamics of that firm and the amenities offered by the location.

In the last recession, New York City was the poster child for the great suburban shift as major tenants left–or threatened to leave in hopes of leveraging a major tax break from the state and city. Things are different today.

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