what were the tenant preferences in new construction, has that changed?
According to the theory of urban land markets (Alonso, 1964), transport costs determine land rents and therefore urban land uses. Regularly, in socioeconomically intact city centers, there is a centerperiphery with several consecutive zones of use, outward from the central business district
The bid rent theory is a geographical economic theory that refers to how the price and demand for real estate change as the distance from the central business district (CBD) increases. It states that different land users will compete with one another for land close to the CBD. This is based upon the idea that retail establishments wish to maximize their profitability, so they are much more willing to pay more for land close to the CBD and less for land further away from this area. This theory is based upon the reasoning that the more accessible an area (i.e., the greater the concentration of customers), the more profitable.
3) Thoroughly consider the future of the office market considering todays realities – not just COVID
• What were the changing aspects of the office space demand pre covid and how has COVID effected?
i. Ie; what were the tenant preferences in new construction, has that changed?
• How has technology lowered transportation costs (class discussion)
i. Zoom , online trading..etc…
4) Tenant Rep brokers are speculating that 30% of the workforce could remain at home. In the short term (1-5 years) How will that effect rents? In the long term (forever) what happens if those tenants never come back? Speculate on the future use of the buildings
There is no correct answer to 3 and 4. These are constantly evolving consideration points. Please give a thoughtful response. Reputable sources on the internet are best for opinions and trend suggestions.