A recent report from Newmark, Grubb, Knight and Frank, one of the largest commercial real estate firms in the world, showed that traditional office parks do not “offer the experience most of today’s tenants are seeking,” and the suburban office market is confronting “obsolescence” on a “massive scale.” The report stated that more than 7.5% of all office space nationally may no longer be salvageable, though a number of those buildings can be saved with some changes.
One of the five areas examined in the report is Reston, Virginia. The authors noted that office space in the immediate vicinity of Reston Town Center were competitive (i.e., ones located in the kind of community we’re trying to create in the Pike District) but properties away from metro and in buildings without amenities like gyms are not leasing well.
Some other key findings from this report include:
Obsolescence is just a part of the normal life cycle but technology has accelerated the pace of obsolescence.
There are six factors of obsolescence: amenities, age, parking, location, floor plate size, and building size.
Convenient location and access to building and neighborhood amenities are critical factors.