DLR Group’s Art Bloodworth is marking the Gen Z migration as the trend to watch in 2025. The young workforce is exploring new and sunny horizons at record speeds.
As we enter 2025, attention is focused on the southern Sun Belt states, particularly Texas and Florida, where data reveals significant post-pandemic employment growth. Gen Z’s migration south highlights the factors attracting them to these cities, revealing how these factors align with workplace trends boosting employee satisfaction and productivity.
The promise of abundant opportunities and the excitement of a fast-paced urban lifestyle have historically drawn young workers to big cities. However, in the past five years, there has been a dramatic shift in where corporations and recent graduates are choosing to settle.
Southern cities, like Austin, Texas, with its 17.5% jump in employment since February 2020, have expanded significantly, attracting those seeking milder winters, more outdoor activities, a more affordable lifestyle, and slower-paced urban settings. Gen Z and millennials are moving to Sun Belt cities in record numbers, drawn by a holistic approach to lifestyle factors for work and life.
The factors driving younger generations to these regions align with three key trends in workplace design that they prioritize. These practices, when implemented, will result in the highest levels of employee satisfaction and productivity for employers.
More Bang for your Buck
Lower living expenses are among the primary reasons behind Gen Z’s southern migration for work and life. As a generation that’s notably more selective in choosing what they experience, quality will outweigh quantity every time. In many southern cities, people are able to maximize their earnings, enabling them to enjoy their interests to a greater degree.
This rule also extends to their work experience. The last five years have proven that employees want more from their work environments. For employees to return to the office and be motivated, the benefits must outweigh the drawbacks.
Providing well-designed spaces for different work styles is key to maximizing employee productivity in the office. A recent study found that employee satisfaction increases when offices offer various spaces for different work styles, such as well-equipped meeting rooms for in-person and virtual teams, private areas for focused work, and social spaces for informal gatherings. As Gen Z desires richer experiences from their cities, offices must adapt and offer a variety of spaces that foster both work and a strong office culture.
Greener Pastures
One key draw to states like Florida and Texas in the Sun Belt is that the outdoors are more accessible all year. Milder winters and ample open space allow residents to enjoy the benefits of nature, seeking out areas rich in green spaces for living, working, and recreation.
The impact of accessible and well-designed green spaces on city desirability is consistently supported by data. Workplace design is equally important, as Gen Z and millennials prioritize spaces that not only aid productivity but also foster well-being through restorative elements.
Workplace culture, not just output, is becoming a key metric for success.
Biophilic design, which integrates nature-inspired elements within, continues to gain traction in the best office spaces as studies show overwhelming evidence demonstrating their positive effects on occupants.
More than just adding a green wall, effective biophilic designs creatively implements these principles throughout. Mass timber, an alternative building material, is gaining popularity as a replacement for traditional steel and concrete. Our new T3 ATX Eastside office development, recently completed in East Austin, Texas, exemplifies this. Using natural materials, such as mass timber, in the workplace can contribute to improved mental and emotional health among employees.
From FOMO to SLO-MO
Younger millennials and Gen Z are more interested in living in the moment, putting health and well-being first, and blending work and life together instead of separating them. The slower pace of life in Sun Belt states encourages residents to focus on their interests and maximize their time, a contrast to the fast-paced nature of large metropolises.
As companies mandate more in-office work, fostering a strong office culture and experience becomes increasingly important. The first stage in establishing a thriving office environment is to assess employee satisfaction, identify areas for improvement and work towards desired outcomes.
Well-designed office spaces, through renovation or relocation, boost productivity, enhance collaboration, and reduce work-related stress, studies reveal. A thriving office culture can be built by prioritizing employee needs and streamlining the workplace to focus on essentials.
Across the board, younger generations expect top-notch experiences and won’t settle for anything short of their ideal.
Even though these design trends draw younger generations to the Sun Belt, these simple practices can be used in any office, regardless of location. Prioritizing employee health, well-being, and creating a culture of inclusivity through workplace design will lead to a substantial return on investment for employers in 2025.
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