Building Communities from the Ground Up

What Is the Third Space?

The “third space” is anywhere people go that isn’t home (first space) or work (second space). Coffee shops, community centers, parks, bookstores, bars—places where people gather casually without a specific transaction or agenda.

Coined by sociologist Ray Oldenburg, true third spaces share key traits: they’re neutral ground, accessible to all, conversation-focused, have regular patrons, maintain a relaxed atmosphere, and feel like a home away from home.

Over the past three decades, third spaces have diminished in the American landscape.

Economic pressure: Commercial rents have skyrocketed. Low-margin gathering places get priced out.

Car-centric development: Suburban planning separated everything with homes in one zone, shopping in another, offices elsewhere.

Digital displacement: The pandemic turbocharged this shift, and many habits stuck. We’ve become a nation of hermits, interacting through screens rather than shared spaces.

This isn’t just nostalgia for the end of an era. The disappearance of third spaces has created measurable impact: including a loneliness epidemic. The U.S. Surgeon General has declared social isolation a public health crisis. Depression, anxiety, cardiovascular disease, and cognitive decline all correlate with social isolation.

Fractured communities: Without casual gathering places, we’ve lost the “weak ties” that knit neighborhoods together like the familiar faces, the brief conversations, the sense of belonging somewhere beyond our front door. These connections matter more than we realized.

Civic disengagement: When people don’t gather in neutral spaces, they don’t build the trust and relationships that enable community action. Participation in local government, volunteering, and neighborhood organizations has plummeted.

Increased polarization: Without neutral ground where diverse people encounter each other casually, we increasingly interact only with people exactly like us, like engage with different viewpoints solely through combative social media. We’ve lost the humanizing effect of shared physical spaces.

The disappearance of third spaces has left a void in communities across America. As real estate developers, we have both the opportunity and the tools to fill that void by intentionally building community centers into our projects.

Next time you question why we need a clubhouse, wonder about the purpose of a leasing office beyond transactions, or ask whether retail centers really need all those tables and gathering spaces, remember that they’re intentional social infrastructure investments to rebuild the third spaces the greater community has lost.