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Landlord/tenant matters include addressing the urban-suburban gap

Many investors who own office buildings in New York and elsewhere are pondering how exactly to deal with the gap that exists between suburban and urban life. In light of this, a new concept has come to the forefront among investors dealing with landlord/tenant matters: urb-suburban. Urb-suburban essentially refers to the fusion of suburban offices in urban-like settings.

With these suburban offices, it is typically possible to access housing, mass transit, retail shops and restaurants by walking. If developers and owners of suburban offices do not capitalize on the current urb-suburban trend, it might be difficult for them to keep attracting tenants. In turn, it may be challenging for them to justify a new project.

The benefit of the urb-suburban trend for developers and office owners is that they can purchase properties at much lower prices in locations poised for growth in the future. The benefit for tenants is that they can secure spaces at lower rents. A nearby example of an established submarket is New Jersey's Hudson River waterfront. Examples on the other side of the country include Santa Monica (near Los Angeles) and Palo Alto (in the San Francisco Bay Area).

Commercial real estate remains a constantly changing industry in New York and other parts of the country. As a result, handling landlord/tenant matters -- such as determining how to draw new tenants, especially with many millennials preferring urban over suburban settings -- can be confusing. At the same time, figuring out how to navigate a commercial real estate deal can be challenging. A real estate attorney in New York, however, can offer the guidance necessary to help investors consummate deals that will ultimately benefit their bottom lines in the long run.

Source:, "Do Office Tenants Prefer the City or the Suburbs?", John Egan, Aug. 16, 2017

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