18-Hour Cities Concept Will Get More Attention

Andy Farbman: In 2016, we’ll almost certainly see a continued focus on improving amenities for a Millennial audience. 

Part 2 of 2 Farbman Group manages office, retail, multifamily and industrial space throughout the Midwest. GlobeSt.com recently chatted with the firm’s CEO about what changes are areas for the CRE industry in 2016 in this exclusive two-part Q&A. In part one of the series, we talked about the rise of co-working spaces and the continuing influence of the Millennial generation. In part two-we chatted about GlobeSt.com: In part one of this two-part series, you talked a lot about co-working and other shared work concepts thanks to Millennials’ influence—a trend you said will continue in 2016. What other trends are you seeing? Farbman: Another emerging real estate trend is the prioritization of properties and buildings that offer Millennial friendly perks and accommodations. In 2016, we’ll almost certainly see a continued focus on improving amenities for a Millennial audience. Keep in mind, Millennials make up almost 40% of today’s workforce. In fact, some estimates project that number to grow as high as 75% by 2025. That’s a big number with big consequences. With an influential group making up such a large percentage of the workforce, business leaders and decision-makers are obviously highly focused on appealing to that demographic. Attracting and retaining millennial talent is the name of the game already. GlobeSt.com: And collaborative workspaces are a part of that? Farbman: Absolutely. But it’s also about finding convenient locations close to public transit or with direct highway access, facilities inside the building itself (such as gyms and dining options) and retail, dining and entertainment options nearby. Creativity is also important. Creative buildings and properties with unique history or character are getting more attention. In recent years, the Midwest has emerged as an appealing destination for high-tech companies and startups–and those companies (and their Millennial employees) tend to prioritize cool and distinctive office space with a story. GlobeSt.com: What else do you see on tap for 2016 for the industry? Farbman: The concept of “18-Hour Cities” is something I think will be getting more attention. With more people living and working in urban environments, cities that used to turn into ghost towns after 5:00 p.m. are developing an increasingly vibrant nightlife. 18-hour cities are becoming more diverse and are seeing a dramatic spike in retail, residential, dining, entertainment and walk-to-work offices. Downtown areas across the Midwest are transforming to this model, prompting investment and development and raising the quality of life. GlobeSt.com: So you expect the ongoing urban renaissance to continue? Farbman: I do. Ironically however, the other trend I think we’ll see more of is almost a direct response to that: it’s the growth of suburban office product. With an increasingly competitive and high-performing Midwest office market, quality office product in the region has really taken off in the last year and a half. High quality, suburban office is able to pitch more parking, more convenience and accessibility, and sometimes better amenities.