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Her comments came Thursday, June 6, at CREW Atlanta's monthly luncheon at The Coca-Cola Co. The program, “The Evolution of Office Space,” also featured panelist Heather Lamb, vice president at CBRE Inc., and moderator Char Fortune, director of learning and professional development at Avison Young.
With the technological ability to work from multiple platforms, such as tablets and smartphones, office tenants are looking at smaller footprints in order to cater to the demographics of a constantly changing workforce. Companies are no longer basing their space needs on the total number of employees, but rather on how many workers are in the office on a daily basis and building an office environment around that figure.
“Over the last three years there have been dramatic changes in the office sector that are driven by mobility and technology,” said Deirdre O'Sullivan, president of idea|span, an Atlanta-based design firm that provides innovative solutions to clients to improve their organizational effectiveness. “The key factors considered [by office tenants] today is the demographics of the workforce and trying to visualize what the future will be.”
Company headquarters used to account for 300 square feet per worker, but that figure has decreased to approximately 200 square feet of office space per employee in the last two years, according to O'Sullivan.
Her comments came Thursday, June 6, at CREW Atlanta's monthly luncheon at The Coca-Cola Co. The program, “The Evolution of Office Space,” also featured panelist Heather Lamb, vice president at CBRE Inc., and moderator Char Fortune, director of learning and professional development at Avison Young. O'Sullivan put her comments into perspective when she told the crowd of approximately 190 attendees to consider that if a company signs a 10-year lease today, it will be hiring employees who are currently 12 years old by the time that lease is up.
Embracing Demographic Changes
Due to a decreasing utilization rate (the actual number of employees physically present in the office on a daily basis), office tenants are demanding smaller footprints, but additional amenities. Since companies are decreasing the average square footage per employee, the panelists agreed that office tenants need to provide their workers something else in return. For example, employees are demanding fitness centers and cafes, as well as babysitting and concierge services on site.
Lamb said that this technological shift in office space preferences is driven by a generational change.
“Generation Y [generally defined as persons born between 1977 and 1994] is demanding an increased work/life balance. Companies have to be willing to adapt to that model and allow work from wherever to increase productivity.”
In order to improve productivity, companies are transitioning to “workplaces of the future,” said O'Sullivan. This means they are providing shared workspace environments that encourage employees to work together, including more rooms for private conversations and conference rooms for meetings.
Landlords are also asking tenants to sign longer leases to offset remodeling costs that cater to this new generational workforce.
“Clients are looking at buildings from a broader perspective and asking, 'How do you position yourself so you follow the workforce?' Buildings are becoming like an extension of the company's brand,” said O'Sullivan.
Lamb predicts that tenants will continue to demand open concepts for their office needs as their square footages continue to decline. The focus is shifting away from enclosed offices with doors, but more toward shared spaces.
Lamb concluded, “There's not much on the development front since costs have increased and rental rates do not justify new buildings. As we come out of the recession though, new development will come out of it too.”
— Brittany Biddy