These New York Suburbs Will See the Biggest Surge in Homeworkers

Traditionally, the majority of companies have been headquartered in city centres. However, Instant predicts a 40% decrease in city-based corporate headquarters in the next few years.

The events of 2020 accelerated the move towards working from home, and the post-pandemic return to work gives companies the opportunity to test a new approach to workspace. Central city locations are gradually giving way to “hub and spoke” workplace models, where businesses will have smaller offices in suburban areas closer to where their employees live.

This model is designed to reduce the reliance on central city locations, in favour of more dispersed offices that make flexible hours and homeworking easier. As a result, there is a rapidly growing demand for workspace in secondary cities and suburbs.

Top Up-and-Coming NY Hub and Spoke Locations

Over 85% of all NYC flexible workspaces are currently located within Manhattan, at the heart of the metropolitan area. Research shows that providers should start setting their sights on more suburban locations in New York.

The most likely regional locations for businesses considering the hub and spoke model are:
• Huntington: 52 km (32 miles) from New York City
• Nyack: 48 km (30 miles) from New York City
• Trenton: 108 km (67 miles) from New York City

Over 175,000 of the employees working in the New York finance sector live within 30 minutes of these locations. Additionally, more than 98 US biotech and pharma companies are based nearby, in and around New York.

With 59% of New Yorkers living in the suburbs, a hub and spoke model that allows for more “work-near-home” opportunities makes economic sense for businesses and employees. The model can support people already working in the finance and pharma sectors, while also allowing for a wider talent pool when recruiting.

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Pros and Cons of Working from Home

There are numerous benefits to working from home, including:
• Lower expenses
• More work flexibility
• No office distractions
• Improved collaboration across multiple locations
• Lower rates of absenteeism and ‘presenteeism’
• Improved job satisfaction

However, there are also some notable disadvantages to working exclusively from a home office:
• Isolation
• Less face-time
• Distractions at home
• Risk of overworking
• Risk of disproportionate work-life balance

Working closer to home in a spoke satellite office can help employees to strike a better balance, without the drawbacks that come with working from home. The hub and spoke model also helps businesses to attract and retain top talent.

Key Benefits of a Hub and Spoke Approach

Businesses and employees alike can save time and expense when working closer to home in decentralised offices.

US businesses could save 23% or more on their rental rates, while employees could save more than 90 minutes a day in commuting time. This could save the average New York office worker as much as $7,000 a year in travel costs.

Read more about our predictions for the hub and spoke model.