What’s to Become of America’s Corporate Campuses?
In the suburbs, headquarters for major companies like McDonald’s, Motorola and Ameritech now stand almost vacant. As corporate culture has shifted towards co-working spaces, and millennials are less likely to seek living in suburbia, massive commercial real estate projects exist with potential for new life.
Although property managers once tried to fill the vacancies with office tenants, it seems as though plan B must take effect. For example, New Jersey’s Somerset Development has outlined plans to redevelop the AT&T campus into a self-contained city. With the existing buildings, they plan for 1.2 million square feet of offices, 80,000 square feet of conference space and 60,000 square feet of retail. Then, they’ll add 375 apartments and 175 townhouses, with the potential for a 200-room hotel, as well.
Other options for such campuses include senior housing and medical office buildings. Given that municipalities and school districts take a hit when corporations move out, architects and real estate professionals believe that these renovations will be beneficial for the cities and their residents, too.
Industry experts believe these ideas have solid ground (no pun intended), but they also question whether or not there is enough office demand to fill the space. JLL’s Lauren Tilmont says, “I think it’s going to work. It may take time. I think it will bring good energy to those areas.”
For comments, questions or concerns, please contact Daniella Soloway
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