There is currently a war for talent that is keeping executives up at night. In today’s fast-moving, technology driven economy, companies gain competitive advantage through their ability to innovate and create new products and services. Without the right workforce to accomplish this, businesses will quickly lose market share and find themselves unable to compete. A widening talent gap exists in today’s economy. Every year, the number of employees in the workforce shrinks. There is simply not enough skilled labor to match the needs of today’s highly competitive global corporations.
To address this critical issue, occupiers are re-evaluating their location strategies to accommodate the changing trends in labor demographics. For sure, corporations need access to young talent and tapping into the millennial generation is big part of their recruitment strategy. They also need to access the best and brightest talent across the entire demographic spectrum. For those companies that are heavily dependent on an innovative, creative and more “hip” work force, urban core areas offer a solution.
We have seen a dramatic shift in focus to urban infill locations for many corporate occupiers. This focus has not been to the traditional CBD office tower or submarket, but rather to peripheral areas that are close to the urban core but that offer more choices for workers to live, work and play in the same area. Over the last 12-24 months, occupier activity has dramatically increased in markets such as Boston’s Seaport, Chicago’s River North, San Francisco’s SOMA and in New York’s Midtown South. These areas are trendy, non-traditional and are marked by significant developments in residential, retail and transportation that make them attractive places to live for today’s creative and innovative workers, occupiers and now investors are making significant bets that this trend will continue.
As corporations consider location strategies, as well as interior workplace design strategies, tapping into the next generation of talent will drive decision-making. Real estate, from a location, design and amenity perspective is being used like never before to recruit and retain workers. Occupiers across all industries- not just technology- are incorporating these strategies as they consider changes to the work environment they offer employees.