Businesses moving from suburbs back to cities

Some CEOs anticipate shift

Steve Hawley, May 21, 10.

Prompted by cultural and demographic shifts, a number of major companies are relocating from the suburbs back into the central city, according to the Harvard Business Review. The companies include United Air Lines, Quicken Loans, and Walgreens.

The article states:

These companies are getting a jump on a major cultural and demographic shift away from suburban sprawl. The change is imminent, and businesses that don’t understand and plan for it may suffer in the long run.

It notes that both young workers and retiring Baby Boomers increasingly want to live in cities instead of suburbs. This shift has been driven not just by changing tastes, but also by the diminishing quality of life in the suburbs, including lengthening commutes and rising obesity rates.

The article reports:

In the last U.S. census, almost two-thirds (64%) of college-educated 25- to 34-year-olds said they looked for a job after they chose the city where they wanted to live. That suggests that businesses like Quicken Loans are on to something: Move in and help build up urban neighborhoods, the argument goes, because that’s what will draw the talent.