Nearly half of global corporate real estate professionals polled in a recent survey conducted by CoreNet Global and Cushman & Wakefield said that their company had recently moved a business operation from a suburban or rural area to an urban environment. The rate of migration toward urban areas was highest in the telecommunications industry.

The trend toward urbanization was strongest among larger companies (those with 100,000 or more total workers), with 60 percent saying that they had moved an operation to a city. The overall rates of moving to cities was highest in the Americas (46 percent), followed by Europe/Middle East/Africa (42 percent) and Asia Pacific (30 percent). 

Among the larger companies, many avoided paying a rent "premium" either through public-sector incentives, or – more often – through a strategy of "densification" to make the business case for the move.

One of the main factors driving urban location decisions is the search for creative, tech-savvy talent. The workforce is increasingly made up of millennials, who respondents believe strongly prefer living in an urban environment, according to the survey. Other factors include the availability of innovative spaces, customer relationships, flexibility of occupation, image/branding and employee satisfaction.

However, companies still prefer suburban locations for certain types of operations where cost is a bigger concern. "Office space usually is less expensive in the suburbs," said Tim Venable, Senior Vice President at CoreNet Global.

"Suburban markets are increasingly focused on 'urban-esque' offerings in a pursuit to attract and retain employers and their employees," said David C. Smith, Senior Director, Occupier Research, Americas, Cushman & Wakefield. "Key components of these developments are proximity to multiple transportation options, creative office designs with natural light and collaborative work spaces, and access to a variety of amenities."