A growing trend in commercial property is businesses moving away from the traditional central business districts (CBDs) to smaller commercial nodes in residential and retail districts. This wave of decentralisation, fuelled also by normal business expansion, has prompted more developers to build commercial projects in more traditionally retail and residential nodes.
Among the businesses moving from core to non-core, or even less mature sub-markets, are many large national companies.
As people are working longer hours, the shorter commutes due to less traffic congestion and closer proximity to their residential homes make these new mixed use nodes appealing. Add in more affordable rentals, larger communal areas and better green opportunities makes these new commercial office districts appealing to businesses.
Property developers in the new business districts have fully embraced opportunities brought about by the decentralisation trend. A great example of this is HQ Bedfordview, a new commercial office development in the heart of Bedfordview. With great access to shopping centres, close to schools and residential areas help create a live work lifestyle for busy executives. Bedfordview has been a predominately residential area and with A grade premium green office space being developed in the heart of the area, the trend will no doubt continue.
“Looking forward, decentralisation will be driven by the completion of new quality green buildings, improving infrastructure and amenities in non-core areas and rising rents in the central business districts,” says Jonathan Kay from Knight Frank.
For more details on office opportunities contact our Knight Frank team to chat to an area specialist.