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Unlocking Office Market Potential: Lessons from Suburban Success



As the office landscape continues to evolve post-pandemic, developers are grappling with record-high vacancy rates in urban centers. Yet, some suburban office buildings are thriving. Take, for example, the remarkable turnaround of 1 Tower Center, a 24-story office tower in New Jersey, which has managed to double its occupancy in just five years by focusing on location and modern amenities. At MMCG, we believe that the key to successful office developments lies in a strategic blend of prime location and innovative amenities—lessons that could serve as valuable insights for future office feasibility studies.


A Case of Transformation

When American Equity Partners acquired 1 Tower Center in 2019, the building was dated and underutilized. Lacking basic modern facilities like a gym or tenant lounge, it didn’t stand out to potential tenants. But the developer's investment of over $20 million transformed the property, adding amenities like a fitness center, a movie theater, and even a golf simulator. These additions weren’t arbitrary—they were based on direct feedback from tenants about what would lure employees back to the office.


MMCG emphasizes a similar tenant-centric approach when conducting office feasibility studies. Through thorough market research, we help developers identify not only the current needs of their tenants but also future trends that can influence leasing success. The case of 1 Tower Center is a prime example: its turnaround highlights how important it is to invest in the right amenities to improve the desirability of an office space.


Location Matters—A Lot

The other major factor in 1 Tower Center's success was its location. Nestled between New York City and Philadelphia, it offers a relatively short commute for a large suburban workforce, while still being accessible from major metropolitan areas. This location is vital for companies looking to reduce employee commute times—a critical factor in attracting workers back to physical offices post-pandemic.


When MMCG assesses potential office sites, the commute is always a central factor. We know that many workers now expect hybrid or flexible work arrangements. Therefore, the proximity of an office to major highways, transit systems, or commuter hubs can make or break a leasing strategy. The location-based success of 1 Tower Center confirms that a convenient suburban setting can still compete with urban alternatives, as long as it offers easy accessibility and modern conveniences.


The Role of Amenities in Office Feasibility

In an era where office vacancy rates are soaring—such as Manhattan’s 15% vacancy rate in 2024—developers need to think beyond just physical office space. They must create environments where employees want to spend their time. A simple gym is no longer sufficient. At 1 Tower Center, tenants have access to cutting-edge amenities like arcade games, ping-pong tables, and golf simulators—elements that make the workspace feel more like a community hub than a traditional office.


At MMCG, we emphasize the importance of integrating these kinds of amenities into office feasibility studies. It’s no longer just about square footage and location; it’s about creating a compelling value proposition for tenants that goes beyond the basics. As companies strive to attract and retain top talent, an office building’s ability to offer diverse, engaging amenities can be a critical competitive edge.


Office Feasibility for the Future

Looking ahead, office feasibility studies must evolve to accommodate shifting workforce dynamics. The future of office space will rely heavily on the lessons from successful transformations like that of 1 Tower Center. Investing in appealing amenities, picking the right location, and understanding the needs of tenants are all key factors that will determine success in this changing landscape.

At MMCG, our approach to office feasibility goes beyond numbers and blueprints. We aim to forecast tenant needs, project market trends, and advise on the kinds of investments—whether in amenities or location—that will provide long-term value for both developers and tenants. As the 1 Tower Center demonstrates, a strategic, tenant-focused approach can revitalize even the most underperforming assets, proving that suburban office spaces can thrive in today’s market when executed thoughtfully.


In conclusion, while urban office markets might face challenges, suburban locations like 1 Tower Center show us that success is possible with the right blend of location, innovation, and tenant engagement. MMCG remains committed to helping developers unlock these opportunities, ensuring their projects are not just feasible but flourishing in the future of work.

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