With shorter business cycles and with technological advancements and markets becoming more unpredictable than ever, occupiers will continue the shift to agile real estate strategies. Workplace environments and lease structures must be adaptable to support organizational objectives that are highly dynamic and to ensure talent retention.
- The historically low levels of unemployment are creating some challenges for companies. Tenants are reevaluating their real estate as a result. The most successful companies are using their office space as an asset to attract top talent rather than merely an expense.
- Another trend is the drive toward efficiency. For a growing number of office tenants signing new leases, workplace strategies are being used to optimize space needs.
*Nationally the average range is in the 150-225 RSF per person.
- Typical private office locations: Additionally, there has been a shift in the location of private offices. Companies are moving away from offices located at the exterior in lieu of designating their offices in the interior of the space. The main benefit being allowing more natural light into the space.
*Tip: The first step toward effective space management is to gather and analyze demand forecast data at the business unit level. Ideally, this should include the current state of seat occupancy and vacancy, as well as business unit growth projections.
- Planning ahead: Strategic use of forecast data is essential for making proactive real estate decisions. But effectively planning for future requirements requires more than that: It also requires buy-in and coordination between a company’s leadership, HR, finance and real estate teams. With the goal of minimizing the gap between space supply and demand to directly support business success. Working across business units in this way, executives can factor in long-term organizational needs, goals and planned projects to create fact-based strategies for future real estate needs.
Key takeaway: When done correctly, rather than merely reacting an organization can proactively respond to changing business needs and priorities. The most common Cost Savings & Cost Avoidance opportunities include reducing seat vacancy, trimming square footage, increasing space efficiency and tightening seat density.