From bigger cities to better
by Paula C. Squires
Virginia Business
Forget the Big Apple. These days, companies and people are moving to small- and medium-size apples — to places such as Richmond, Charlottesville, Blacksburg, Virginia Beach and the rural counties in between.
At least that’s the theory behind “penturbia”— a term coined by Jack Lessinger, a retired professor of real estate and urban development at the University of Washington, to describe the fifth significant migration trend in America’s history. Penturbia refers to areas he believes will experience significant property value increases over the next 20 years as corporate America continues its movement away from major metropolitan areas.
The frantic pace, high cost of doing business and traffic congestion are some reasons why companies leave big cities. “It’s a quality of life issue,” says Petch Gibbons, president and CEO of Advantis/GVA, a commercial real estate company in Washington, D.C. “People are getting fed up. They have no time for themselves, their family life,” Gibbons said at a recent real estate conference.
The terrorist attacks in 2001 were another blow for big cities, says Gibbons. The dwindling number of Fortune 500 companies in New York City supports the penturbia trend. “Locating in New York used to be critical for retailers. Now not one of the nation’s top retail companies is there,” he says. Even the suburbs of major urban areas don’t offer solace, he says, because many have the same problems, namely traffic gridlock and crime. Thirty years ago the suburbs of Washington extended just a few miles out to Arlington County and Bethesda, Md. Today, Washington commuters are fighting traffic from as far away as Manassas and Fredericksburg.
Philip Morris USA’s relocation from New York City to Richmond is a good example of the penturbia movement, Gib-bons says. He sees plenty of opportunity for the migration to take hold in Virginia, “from Virginia Beach to Central Virginia and all the way to Blacksburg.” Cities in the mid-Atlantic and South-eastern states with temperate climates, good medical facilities, airports and schools will be prime targets for corporate location. Other hot spots for the trend: revitalized factory towns, resort towns near the beach or mountains, such as Charleston, S.C., and Santa Fe, N.M., and college and university towns that typically offer many cultural events.
If a penturbian paradise doesn’t grab a company’s fancy, there’s always exurbia, a reverse migration back to trendy urban areas. Who knows, it may be enough to create “disturbia” — the attitude big cities will develop if all their companies leave.
by Paula C. Squires
Virginia Business
Forget the Big Apple. These days, companies and people are moving to small- and medium-size apples — to places such as Richmond, Charlottesville, Blacksburg, Virginia Beach and the rural counties in between.
At least that’s the theory behind “penturbia”— a term coined by Jack Lessinger, a retired professor of real estate and urban development at the University of Washington, to describe the fifth significant migration trend in America’s history. Penturbia refers to areas he believes will experience significant property value increases over the next 20 years as corporate America continues its movement away from major metropolitan areas.
The frantic pace, high cost of doing business and traffic congestion are some reasons why companies leave big cities. “It’s a quality of life issue,” says Petch Gibbons, president and CEO of Advantis/GVA, a commercial real estate company in Washington, D.C. “People are getting fed up. They have no time for themselves, their family life,” Gibbons said at a recent real estate conference.
The terrorist attacks in 2001 were another blow for big cities, says Gibbons. The dwindling number of Fortune 500 companies in New York City supports the penturbia trend. “Locating in New York used to be critical for retailers. Now not one of the nation’s top retail companies is there,” he says. Even the suburbs of major urban areas don’t offer solace, he says, because many have the same problems, namely traffic gridlock and crime. Thirty years ago the suburbs of Washington extended just a few miles out to Arlington County and Bethesda, Md. Today, Washington commuters are fighting traffic from as far away as Manassas and Fredericksburg.
Philip Morris USA’s relocation from New York City to Richmond is a good example of the penturbia movement, Gib-bons says. He sees plenty of opportunity for the migration to take hold in Virginia, “from Virginia Beach to Central Virginia and all the way to Blacksburg.” Cities in the mid-Atlantic and South-eastern states with temperate climates, good medical facilities, airports and schools will be prime targets for corporate location. Other hot spots for the trend: revitalized factory towns, resort towns near the beach or mountains, such as Charleston, S.C., and Santa Fe, N.M., and college and university towns that typically offer many cultural events.
If a penturbian paradise doesn’t grab a company’s fancy, there’s always exurbia, a reverse migration back to trendy urban areas. Who knows, it may be enough to create “disturbia” — the attitude big cities will develop if all their companies leave.