Declining interest in space in suburban office parks means a number of people are looking for ways to use that same space:
A report from the real-estate-service firm NGKF released late last year provides new numbers on an ongoing phenomenon: the slow, agonizing death of the American office park. The report looks at five far-flung office-tenancy submarkets—Santa Clara, in the San Francisco Bay Area; Denver; the O’Hare area of Chicago; Reston and Herndon, outside of Washington, D.C.; and Parsippany, New Jersey—and finds a general aura of decline.
Between 14 and 22 percent of the suburban-office inventory in these areas is, the report found, “in some stage of obsolescence,” suggesting that between 600 million and 1 billion square feet of office space are unnecessary for the modern company and worker. That’s about 7.5 percent of the country’s entire office inventory…
There are models that developers are using to transform older office parks throughout the country, to measured success. They mostly involve turning definitely-suburban office parks into urban-like, albeit still isolated, office “cities.” (It is worth noting that many of these projects involve extensive rezoning efforts.) A facility in the community of Edina, Minnesota, is in the midst of transforming from a sprawling office center into what one local developer called “not your father’s or mother’s office park.” In practice, that means linking the park to 15 miles of bike trails, big-box-store-free retail, and green space. Other developers managing struggling office parks are considering adding farmers’ markets, hotels, and housing.
Such efforts have been going on for a while now whether from New Urbanists trying to introduce mixed uses (office parks are notoriously empty for much of the day outside of business hours) or edge cities trying to diversify their portfolio of uses and revenues (see an example like Tysons Corner). Of course, such efforts require funds and demand for the new or renovated space and it can often be easier for developers and investors to move on to new hot locations or construct all new buildings and properties.
One other idea for these office parks: why not seriously look at converting them into housing? A good amount of the infrastructure would already be present – major roads, utilities, parking lots – and many metropolitan regions are in desperate need of more housing units (particularly affordable ones). Many of these office parks are located in existing job centers so the housing would be convenient for a number of workers. I don’t know what it would cost to renovate office space to residential space but it would be interesting to see some proposals.