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The following article is sponsored by Coldwell Banker Commercial.
For decades, suburban business parks have been a reliable fixture in commercial real estate. They were sprawling office clusters with ample parking and easy highway access. In a pre-pandemic world where five-day commutes were the norm, they offered companies a cost-effective alternative to downtown high-rises.
That model is now breaking down, as the rise of work-from-home and hybrid work has reduced the demand for large, single-use office spaces. Vacancy rates are climbing, and many business parks sit underutilized for part of the week. This is more than a cyclical market dip; it represents a structural shift in how and where people work.
A Shift Toward Mixed and Adaptive Use
The future of the business park will be defined by its ability to adapt. Those that remain solely focused on office space will face growing challenges. The most successful examples will embrace diversification, evolving into environments that integrate residential buildings, retail, dining, and green spaces. By introducing elements that keep the property active beyond weekday office hours, owners can transform a commuter-only site into a true live-work-play destination.
Some parks will find opportunities in completely different sectors. Properties near major transportation corridors may be ideal for flex, light industrial, or logistics uses, especially as e-commerce and same-day delivery continue to grow. Others may attract life sciences, research and development, or technology tenants that require infrastructure capacity, flexible floorplans, and room for expansion. These adaptive uses can breathe new life into sites that once relied solely on traditional office leases.
While the long-term demand for traditional office space remains uncertain, there are signs of stabilization. The NAIOP Office Space Demand Forecast for Q2 2025 shows positive net absorption in recent quarters, with 5.6 million square feet in Q1 and 7.3 million in late 2024, bringing the national vacancy rate down to about 11.8%. Forecasts anticipate nearly 25 million square feet of net absorption through the remainder of 2025, suggesting that well-positioned properties can still capture market share.
Designing for the Hybrid Era and Smarter Land Use
Even parks that keep an office focus will need to respond to hybrid work realities. Smaller, more flexible floorplans will replace the large, static layouts of the past, echoing McKinsey’s 2025 finding that successful workplaces are shifting toward adaptable, collaborative spaces that “earn the commute” with experiences employees can’t get at home. Amenities like fitness centers, cafés, and outdoor collaboration areas will help make the commute worth the trip. Accessibility and sustainability will also be central, with features like bike paths, shuttle services, and EV charging.
At the same time, the land-intensive nature of many business parks will be reconsidered. Vast surface parking lots and wide landscaped buffers, once seen as selling points, are increasingly viewed as inefficient. Structured parking, higher-density development, and integrated sustainability features such as renewable energy generation and stormwater management can help these properties make better use of their acreage while aligning with ESG priorities.
Collaboration Will Define the Next Chapter
Transforming the suburban business park into something more resilient will require cooperation between owners, developers, municipalities, and community stakeholders. Zoning changes, infrastructure upgrades, and coordinated planning will be essential. Public-private partnerships can unlock financing, streamline approvals, and ensure redevelopment aligns with community goals.
Investor activity is already showing signs of confidence in properties with strong fundamentals. The Wall Street Journal reports a 20% increase in U.S. office building sales volume in 2024, with investors targeting high-quality assets, some of which are being converted into apartments. This interest showcases the importance of adaptability and quality as competitive advantages in a market that remains in transition.
A decade from now, the most successful business parks will look very different from their predecessors. They will operate as multi-dimensional economic hubs, offering a mix of housing, employment, entertainment, and green space. They will be flexible enough to pivot with market needs and inviting enough to attract people whether they work there or not.
The work-from-home era may have disrupted the traditional business park, but it has also created its greatest opportunity. By rethinking their purpose and evolving beyond single-use, these properties can secure their place in the next chapter of commercial real estate.
Sources referenced:
https://www.wsj.com/real-estate/commercial/office-market-return-to-work-rebound-8b8d42c7
https://www.cbcworldwide.com/blog/from-vacant-to-vibrant-the-adaptive-reuse-movement-in-cre
