Here’s a conversation that’s happening in boardrooms across the energy sector right now: Where should we actually put our office?
It sounds simple. It’s not. Because what you’re really asking is: Who do we want to attract? And who are we willing to lose?
The divide has become pretty stark. On one end, you’ve got the tree-lined streets of Chestnut Hill—the traditional suburban headquarters with parking lots and proximity to good schools. On the other, you’ve got Fishtown’s converted warehouses, walkable blocks, and craft coffee shops. Same city. Completely different visions of what work should look like.
“What we’re seeing in the energy industry is a generational collision of workplace expectations,” said Jim Hickey, President Managing Partner at Perpetual Talent Solutions, Philadelphia executive recruiters. “Senior executives who built their careers commuting to suburban campuses are now hiring successors who want walkable neighborhoods, public transit access, and the cultural amenities that come with urban locations.”
And that collision? It’s not going away anytime soon.
The Return-to-Office Push Is Real
Let’s talk about what’s actually happening. More than three-fourths of CEOs now expect employees back in the office full-time within three years. That’s a massive shift from earlier in 2024, when only a third of CEOs were predicting that kind of return. The pendulum has swung hard.
But here’s the question nobody’s asking enough: Return to which office?
Energy companies have always loved suburbs. Lower rent. Plenty of parking. Close to the neighborhoods where employees could afford a house with a yard. Houston’s Energy Corridor, Denver’s Tech Center—these became the default power centers for the industry. But a recent industry analysis found something interesting: energy companies are now consolidating into premium buildings with better amenities, often in more urban locations.
The suburban default isn’t so default anymore.
“The talent war in energy has reached a critical point,” Hickey explained. “Companies are spending two to three times their normal recruiting effort just to fill open positions. When candidates have multiple offers on the table, workplace location and flexibility often become the deciding factors.”
Think about that. You might lose your top candidate not because of salary or title—but because of where you’re asking them to show up every day.
You’re Not Just Competing with Other Energy Companies
This is the part that catches some energy executives off guard. Renewable energy now accounts for 93 percent of U.S. capacity additions through September 2025. The clean energy sector employs 8.5 million workers. That’s a lot of people—and a lot of them could just as easily work at a tech company or an AI startup.
Which means energy companies aren’t just competing with each other for talent. They’re competing with everyone.
The data here is pretty clear: 64 percent of U.S. employees would prefer remote or hybrid roles over being in the office every day. And 64 percent of remote workers say they’d quit or start looking if their employer stopped allowing flexibility. For energy companies trying to attract younger talent from tech, a rigid suburban-only policy is a real liability.
“Energy companies are competing with tech firms, construction companies, and even AI startups for the same technical talent,” Hickey noted. “A 28-year-old software engineer helping optimize grid operations doesn’t want to spend ninety minutes commuting to a suburban office park. They want the option to take the train downtown, grab coffee at the corner cafe, and collaborate in person when it matters most.”
That 90-minute commute isn’t just inconvenient. It’s a dealbreaker.
But Wait—Suburbs Still Have a Case
I don’t want to make this sound one-sided, because it’s not. Suburban locations still have real advantages, especially for certain kinds of executives.
Surveys show 62 percent of Americans prefer living in the suburbs. They cite affordability, safety, schools. For executives with kids, a 15-minute drive to a nearby office beats an hour on the train to downtown—every time.
And the financial math has changed. Houston’s office vacancy rate hit 26.4 percent in Q3 2024. That’s a buyer’s market. Companies can lease high-quality space with great amenities at rents way below pre-pandemic levels. Some energy companies are using this moment to upgrade their suburban facilities rather than pay urban premiums.
There’s also this: companies with strict return-to-office mandates experienced 13 percent higher turnover than those offering flexibility. But—and this is important—the location of that office can soften the blow. A modern suburban office with shorter commutes and good amenities can hit high attendance numbers without the downtown price tag.
It’s not as simple as “urban good, suburban bad.”
The Smartest Companies Are Doing Both
Here’s what the most forward-thinking energy companies have figured out: you don’t have to choose.
They’re calling it hybrid geography—and it’s basically maintaining presence in both suburban and urban locations for different purposes. Your deal-making teams work from a downtown innovation hub where they can meet investors and partners. Your technical operations stay at the suburban campus where there’s room to grow and infrastructure already in place.
“The smartest energy companies aren’t choosing between Chestnut Hill and Fishtown—they’re creating ecosystems that include both,” said Hickey. “They’re putting their deal-making teams downtown where they can meet with investors and partners, while keeping their technical operations in suburban facilities with room to grow.”
This tracks with broader trends. The share of homebuyers purchasing in urban or central city locations rose to 16 percent in 2023—the highest since 2014—even as suburban demand stays strong. People want different things at different stages of their lives and careers. The either-or framing misses that.
What This Means When You’re Hiring
If you’re running an executive search right now, office location has to come up early. Not as an afterthought. As a core part of the conversation.
A Heidrick and Struggles analysis warned that the energy industry faces a looming talent crisis. Traditional sources of executive talent are drying up. Baby boomers are retiring. Younger professionals are choosing other industries. The pipeline is thinning.
Renewable energy companies have been especially aggressive about rethinking workplace strategy. When Intersect Power—backed by major investors—opened its first headquarters after years of operating virtually, they chose downtown San Francisco. And here’s the kicker: no mandates about coming in. Employees, especially younger ones, had asked for an in-person option. They just didn’t want it forced on them.
That distinction matters more than most leaders realize.
“Executive candidates in energy are asking different questions than they did five years ago,” Hickey observed. “Before, they wanted to know about the corner office and the parking spot. Now they want to know about work-from-home policies, the neighborhood around the office, and whether their teams can collaborate effectively across different locations.”
Corner office and parking spot. That’s not the conversation anymore.
So Where Does That Leave You?
Look, there’s no perfect answer here. The Chestnut Hill to Fishtown divide isn’t really about geography—it’s about what kind of company you want to be and who you want to work there.
About 53 percent of companies now require employees in the office at least three days a week. When you’re asking people to show up, the quality of that experience matters. Where that office sits, what the neighborhood feels like, how easy it is to get there—these aren’t peripheral concerns. They’re central to whether your return-to-office policy actually works.
The companies that will win the talent game aren’t the ones who pick the “right” location. They’re the ones who understand their workforce well enough to create environments where people genuinely want to collaborate.
Maybe that’s a leafy suburban campus. Maybe it’s a converted warehouse in a walkable neighborhood. Maybe it’s both.
The point is: workplace decisions are talent decisions now. And in a market this competitive, those decisions have never mattered more.
