Why Suburban Companies Are Moving to Downtowns

ATLANTA—For all the talk of residential, retail and hotels moving into urban cores, some industry watchers report a wave of suburban companies moving their headquarters downtown or establishing second offices in city centers to bolster hiring and enhance employee retention. Studies show Millennials, in particular, are driving the trend toward alternative transportation issues like Uber and Divvy bikes because they don’t want to own a car.’

“Growing tech companies are at forefront of recruiting young, smart talent in urban areas, and now traditional firms are following their example,” says Chad Bermingham, vice president of Cresa‘s Chicago office. “In Chicago, Mayor Emanuel has been enticing traditional companies to come downtown since he took office. Also, the City has been renovating subway stops, building new parks, and generally improving the look and feel of the Downtown area, at the neglect of outlying areas.”