Downsizing and Space Utilization

Increasing space utilization is a goal almost all of the tenants we represent have. Below is an article that discusses the inherent difficulties of attaining the perfect space and layout. At the end of 2013, tenants were space planning to 180 SF per person. As described in this narrative previously, this brings a large number of issues to the forefront, including, parking ratios, power limitations, hvac capacity, floor loads, and tenant improvements. 
 
The topic today discusses what companies are planning and actually achieving. For decades, companies have been leasing space based on projected growth. Today, we encourage our clients to really understand what they need AND how their business will likely change based on technology in the future. This includes designing for:
–Mobile workers
–Third place workers (a new term for people who work from coffee shops or other out-of-office places)
–Home based workers

A few large companies, like Accenture and P&G, have been able to increase their space utilization from 50% to 85%.  This is a huge increase indeed. Smaller companies are usually just focused on survival or growth, so utilization is less important. They look at monthly rent. How do these big companies do it? They utilize space standardization, using the cloud for data storage, and non-dedicated spaces for almost everyone.
 
Other methods for cramming people into space (ha— a technical term for space utilization) include:
–Getting natural light into the space. The more people, the more light you need to not feel claustrophobic.
–Good temperature controls. Every time I walk through an office space, I see foot heaters, fans etc. Including my own. 
–Good air quality—this is becoming more of an issue. I hope to cover this more in depth in a future narrative.
–Lots of collaborative spaces for meetings and amenities—I have covered this a ton over the past few years. 
 
Here are some interesting stats to end this discussion:
–Tenants over 75,000/SF represent only 1.8% of all tenants in the US, BUT they account for 27.9% of all space leased.
–Tenants with 2,500/SF or less account for over 50% of all transactions, but only account for 10% of all space leased.
 
I’ve included more info below with my highlights within the article.

Craig
602.954.3762
ccoppola@leearizona.com


 

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