Why Do Suburban Offices Cluster

The clustering of suburban office space in “office parks,” as well as the larger activity nodes of polycentric cities, has been widespread in recent years. The reasons for this clustering are not well understood, as the footloose nature of firms suggests a variety of patterns might evolve. This paper explores three traditional explanations: economies of scale in the supply of space, demands for access, and face-to-face contact needs of firms. Finding that those explanations do not completely explain the clustering pattern, an alternative explanation is considered, the demand for image or prestige.