Unlocking the Power of Neighborhood Networks

Neighborhood assets aren’t just perks

They’re strategic levers for retention, performance, and community impact.

Today’s employees expect more than an office — they expect an ecosystem where both the workplace and its surrounding neighborhood shape their daily experience. They’re seeking spaces that support connection, deep focus, and access to the surrounding community, all with a sense of choice and autonomy. To meet these expectations, organizations must recognize that the workplace experience doesn’t end at the office door.

Let’s zoom out. According to the U.S. Census Bureau, 68% of U.S. workers—roughly 136 million people—commute to a physical workplace each day. For the majority, location is no longer just a logistical detail; it’s a lifestyle decision. Internal research from Hugo’s Hybrid Report and Residency Reshaped shows that today’s office must do more than function—it must integrate seamlessly with vibrant, walkable, engaging environments. The future of work isn’t just flexible—it’s hyperlocal.

Reshaping the Value of Neighborhoods

As of 2024, hybrid work has emerged as the predominant organizational structure, with 74% of companies reporting the adoption of hybrid programs. This widespread shift reflects a systemic evolution in progressional work culture—one that prioritizes flexibility and reduces the need for daily commutes. In fact, hybrid employees are saving an average of 67 commute hours annually and 75% of employees willing to switch jobs for a shorter commute—location has never been more influential.

Beyond the Office Walls: the Neighborhood is Now Part of the Workplace

Great offices don’t exist in isolation. The surrounding neighborhood plays a critical role in shaping the full employee experience — supporting not only daily convenience but also long-term well-being, productivity, and connection.

In a recent Corgan survey employees identified the top neighborhood amenities influencing their desire to return to the office: parking access, restaurants, coffee shops, shopping options, and green space. 

These “third places” — social hubs that exist outside of home and work — serve as essential anchors in daily life. They foster convenience, social connection, and moments of focus and well-being throughout the day. The number and variety of amenities, including shops, cafes and restaurants, can therefore be seen as essential components in creating the conditions for steady foot traffic and engagement continuously throughout the day.

And those moments matter. Social connection is one of the strongest predictors of employee well-being and performance. According to research published in the Harvard Business Review, employees with strong social ties at work report higher engagement and resilience, while loneliness correlates with lower productivity and higher burnout.

Meanwhile, Gallup data shows that having a best friend at work is linked to a 36% higher likelihood of employee satisfaction and performance. While these findings are rooted in the office environment, neighborhood assets—like walkable cafes or shared outdoors spaces—extend those opportunities for connection beyond the office walls.

These preferences aren’t just about convenience— they are linked to deeper urban dynamics. A vibrant neighborhood isn’t just lively-it’s socially intelligent. Social interactions in neighborhoods, especially in active, amenity-rich environments, influence everything from personal well-being to productivity and even wages. Role model effects, for instance, highlight how exposure to others’ behaviors—particularly in socially overlapping environments—can shape individual outcomes. This kind of social feedback loop is central to the productivity-enhancing power of well-connected urban areas.

Urban vibrancy, as defined in planning and public health literature, is a multi-dimensional indicator of liveliness and opportunity. It encompasses everything from local economic growth and cultural activity to public safety and social cohesion. Factors like the density and diversity of amenities, walkability, and proximity to the city center are consistently linked to greater urban vitality. These aren’t just features—they’re forces that attract people, promote movement, and stimulate community connections throughout the day.

Emerging neighborhood models—like the 15-minute city or innovation districts—point toward a future where everything employees need is just a short walk or bike ride away. These urban formats support equity, sustainability, and resilience, making them smart bets for long-term investment. Designing for this reality means evaluating not only office interiors, but also the sidewalk experience, street-level retail, and public space activation. It’s about creating neighborhoods where people want to linger—not just arrive and leave.

And when people linger, connection follows. Social connection isn’t just good for morale—it’s part of the bottom line. On average, employees spend about $3,035 a year on after-work hangouts like happy hours, dinners, and casual meetups. These moments do more than fill calendars—they build trust, team culture, and a sense of belonging. In fact, 80% of employees with close work friends say they feel more connected to their organizations, and 86% report higher satisfaction with their work. Even quick chats in a park or on the street add to that sense of community. It’s the spaces between meetings—welcoming sidewalks, local cafés, green spaces—that help those connections stick.

Putting It All Together: A Full Spectrum Experience

Employees don’t just work in buildings—they work in neighborhoods. A vibrant, amenity-rich area reinforces the very values that hybrid work is built on: autonomy, flexibility, and connection. Today’s workplace must deliver on all fronts—within the office walls and beyond them.

Inside the office, expectations have evolved. Functionality, comfort, and flexibility are no longer perks—they’re baseline requirements. Employees want spaces that support focused work, effortless collaboration, and moments of respite. That means strong IT infrastructure, ergonomic seating, natural light, and wellness amenities that reflect the comfort of home.

AUTHOR

Julia Calebrese, Senior Strategist — HUGO