Signal File: why location is the real RTO lever
From emerging talent hubs to sustainable builds, this week’s signals show how where work happens is becoming as strategic a decision as how it happens
This week’s signals point to organisations and governments treating location, real estate and building performance as active levers rather than fixed costs, from cities competing for talent to landlords converting excess office stock and employers doubling down on in-person mandates. Together, the shifts suggest that where work happens is once again a defining strategic question for organisations and cities.
Career growth spreads beyond the traditional hubs
New research from LinkedIn identifies the 25 fastest growing US metro areas for jobs and career growth in its second annual Cities on the Rise report. Augusta, Georgia tops the list, driven by cybersecurity and data centre investment, followed by Richmond, Reno, North Port-Bradenton-Sarasota and Harrisburg. The findings suggest career opportunity is expanding well beyond established gateway cities, as professionals increasingly weigh affordability and quality of life alongside job growth when deciding where to build a career.
In action: As economic momentum builds in secondary and mid-sized cities, organisations may need to widen their view of where to locate talent and offices.
Cities put office to residential conversion into practice
Chicago broke ground this week on a $162 million conversion of a 25-storey office tower on the Magnificent Mile into 320 homes, including affordable units, as part of the city’s wider push to reimagine underused office stock. The project reflects a broader national trend, with US office-to-residential conversions reaching a record 11.8 million square feet completed or underway last year, according to Yardi Matrix. The findings suggest conversion is moving from a niche response to vacancy towards a mainstream tool for reshaping city centres.
In action: Plan for mixed use city centres. As conversions accelerate, organisations and landlords will need to consider how offices, homes and amenities coexist within the same district.
Companies choose place to signal ambition
Geospatial data company Planet Labs opened a new office in central London this month, positioning the location as a hub for AI and analytics partnerships close to Westminster and Whitehall. The move reflects a wider pattern of companies choosing specific locations deliberately, prioritising proximity to policymakers, talent and sector ecosystems over simple cost or space considerations. The findings suggest that where a company locates is increasingly treated as a strategic statement rather than an operational afterthought.
In action: Treat location as a strategic choice. Organisations may need to weigh proximity to policy, talent and industry clusters as heavily as cost when planning real estate.
Sustainable construction becomes a competitive asset
Developer Skanska is advancing design and permitting on Bevel, a 12 storey mass timber office tower in downtown Bellevue, Washington that will rank among the tallest mass timber office buildings in the US. The project sits alongside Skanska’s recently completed office tower in the same district, which is already around 90% leased, pointing to genuine occupier demand for sustainable construction rather than a design exercise. The findings suggest sustainable materials are becoming a differentiator in a competitive leasing market rather than simply a compliance requirement.
In action: As occupiers reward genuinely sustainable buildings with stronger leasing, organisations may need to treat material choices as a leasing advantage, not just an environmental one.
Return to office rules diverge sharply by state
California’s four day a week return to office mandate for state workers, in effect since 1 July, is stricter than most other states, according to CalMatters. The policy contrasts with Texas, which reversed its own remote work ban earlier this year after productivity data showed no decline, while several other Democratic led states including New York, Illinois and Washington continue to embrace remote work in some capacity. The findings suggest there is still no national consensus on where work should happen, even among employers with similar political leanings.
In action: Expect continued divergence on RTO policy. Organisations may need to benchmark against peers carefully rather than assume a single standard is emerging.
