Growth In Secondary Cities And Suburbs Outstrips Central Business District Demand Since March 2020, According To Joint Global Study By The Instant Group And HICKEY

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Mar 16, 2021, 15:13 ET

NEW YORK, March 16, 2021 /PRNewswire/ -- Growth in secondary cities and suburbs has outstripped demand in central business districts as 57 percent of employees want an office closer to home, according to a new research report from The Instant Group and HICKEY, "The Rise of Suburbia: Can a hub and spoke model really work?"

To view the full report, please download here.

This desire is a stark contrast to existing supply in New York City, where more than 81 percent of the office and more than 85 percent of all New York City flexible workspace supply is in Manhattan.

With a dispersed portfolio model, Instant and HICKEY found that businesses can save more than 23 percent on office leases, while employees would save on average 1.5 hours a day in commuting time and in New York, $7,000 a year in mileage costs and $1,100 a year in public transportation costs.

This would mark a huge shift for people working in New York City, who have the longest average commute time in the U.S., as 59 percent of New Yorkers live in the suburbs.

"If just five percent of New York's 1.5 million office workers want to relocate to spoke locations in the suburbs, existing and planned supply would not be able to cope," said Joe Brady, CEO Americas, The Instant Group. "Change is needed. Losing talent is the number one risk for CEOs, with turnover costing tens of thousands of dollars. Based on how and where employees want to work, we believe that corporate headquarters will shrink by up to 40 percent, on average, in the coming years, as a result of this marked pandemic shift."

Secondary towns in the U.S. have seen reasonable levels of investment, with modern office options; however, most locations would currently be hard-pressed to offer an employer more than 30 desks let alone the 60 or more that are likely needed.

The report also analyzes international markets including London and Manila.

About The Instant Group
The Instant Group is a workspace innovation company that rethinks workspace on behalf of its clients, placing nearly 8,000 companies a year in flexible workspace such as serviced, managed or co-working offices providing a service to FTSE 100, Fortune 500, and SME clients. www.theinstantgroup.com

About HICKEY
HICKEY is a global leader in site location strategy, economic incentive advisory, and workforce solutions with active projects in the Americas, Asia, Europe, Australia, and Africa. www.hickeyandassociates.com

SOURCE The Instant Group