The Impact of Traffic on Office Site Selection
The February installement of Newmark Knight Frank's Real Insights explores the impact of traffic on office site selection. This national trend is becoming an increasingly important consideration in office tenants' decision-making.
"Americans lost an average of 97 hours to roadway congestion in 2018, time valued at a cost of nearly $87 billion, or an average of $1,348 per driver. Companies feel the pain as well, since 41% of employees have left a job due to long commutes, while 60% expect their employers to help lessen their transportation woes. A tight labor market, in which skilled workers have options, reinforces the challenge a long commute presents not only to the employee but to the employer as well.
Where a company decides to establish an office location is contingent on multiple factors, including existing employee commute times, access to a skilled labor pool, parking availability, access to public transit, proximity to existing clients, surrounding amenities, the ability to expand, general real estate costs, taxes, proximity to airports and hotels, and where senior executives live. For larger companies, there is also the question of which business units a future office location will house; back office functions do not drive demand for premier locations compared to more client-facing departments."
Read the full NKF research report, The Impact of Traffic on Office Site Selection.