Downtown cores

It took a global pandemic to convince American businesses that their employees could work productively from home, or a favorite coffee shop. Post-COVID-19, employers are struggling to find the right balance of in-office and remote work. However, hybrid work is likely here to stay, at least for a segment of workers. This shift isn’t just changing lifestyles – it’s also affecting commercial spaces. Office vacancy rates post-COVID-19 shot up almost overnight, and they remain near 20% nationwide, the highest rate since 1979 as tenants downsize in place or relocate. This workspace surplus is putting pressure on existing development loans and leading to defaults or creative refinancing in a market already plagued by higher interest rates. Office tenants with deeper pockets have gravitated to newer and larger buildings with more amenities, often referred to as Class A or “trophy” buildings. Older Class B and C buildings, which often have fewer amenities o...

The U.S. has a car-centric culture that is inseparable from the way its communities are built. One striking example is the presence of parking lots and garages. Across the country, parking takes up an estimated 30% of space in cities. Nationwide, there are eight parking spots for every car. The dominance of parking has devastated once-vibrant downtowns by turning large areas into uninviting paved spaces that contribute to urban heating and stormwater runoff. It has driven up housing costs, since developers pass on the cost of providing parking to tenants and homebuyers. And it has perpetuated people’s reliance on driving by making walking, biking and public transit far less attractive, even for the shortest trips. Why, then, does the U.S. have so much of it? For decades, cities have required developers to provide a set number of parking spaces for their tenants or customers. And while many people still rely on parking, the amount required is typically far more than mos...