A recent article in The Wall Street Journal (WSJ) discusses the move by investors to purchase modern office buildings in residential areas. Commercial property investors are betting that office space closer to home will be a real attraction for both employers and their employees.
Post pandemic, many employees still prefer working remotely or splitting their workweek between home and the office (hybrid model), while many companies favor in-person work. Commercial property space in suburban areas may be just one of the solutions in getting workers back behind their at-office desks.
Closer to Home an Attraction
The suburban office sector was hit hard by the pandemic, which sent everyone home for the better part of 2020 and 2021. According to the WSJ article, vacancy rates rose during this period, with some developers turning properties where office buildings once stood into warehouses or apartments.
Now investors are scooping up modern commercial properties in suburbia that are close to residential areas, shops, and restaurants. Plus, there is little to no commute for employees, which is also a big draw to attract and retain workers. These buildings are even seeing rising rents.
According to stats provided by global commercial real estate company Colliers, suburban office markets are attracting the most investment today, with buyers putting $23.5 billion into suburban assets in the first quarter of 2022.
What Does This Mean for Insurance Agents and Brokers?
As an insurance agent or broker, you have an opportunity to expand your footprint in the commercial property insurance market beyond the traditional urban areas where, at one time, only high-rise towers attracted employers. With Seneca Insurance Company as your partner, you can provide insurance for commercial property with a Commercial Package Policy (Property and Liability insurance) that includes specific coverage enhancements and capacity of up to $75 million for your clients.
In addition, Seneca also insures vacant property and properties undergoing renovation. We are available to assist you and your clients with their insurance needs whether the property is occupied, vacant, being renovated, or under construction.