Some of the larger companies with long-term growth forecasts are focusing on expansion and amenity-rich office environments for recruiting purposes. However, more people in less space continues to be the trend for companies with slower growth opportunities that are focused on efficiencies and overhead costs. The average standard amount of office space per employee dropped from 225 square feet per person to between 150 square feet and 175 square feet per person in the past couple years.
Patti Dillon, Colliers International
That being said, occupancy cost is not always the main driver in choosing an office location. There seems to be much more emphasis now on quality, functionality and conveniences. In many cases, this is based more on how we work rather than just cost savings. Open work spaces, perks like on-site dining and retail, and providing collaborative environments that foster employee interaction have proven to increase employee productivity significantly.
Design is a critical component of this type of work space. Companies are looking for workplace designs and furniture systems that offer flexibility and adaptability as technology evolves. Technological infrastructure enhances the culture and efficiency of a business and protects the security of a company’s trade information. It also saves resources like time and physical space. Many companies today rely on cloud services, which allow their employees to work on projects collaboratively in teams without ever physically meeting in the office space. Open-office furniture systems and shared work space environments that offer unassigned touchdown desk space have been adopted to provide a more social work environment where employees can work in groups and connect creatively. Many employment sectors work long hours, and the bells and whistles go a long way in reducing employee attrition to competitors, which, in turn, affects a company’s bottom line.
Well-being is another trend that’s had serious traction over the past five years. Large employers tend to look for locations that offer fitness centers, green space and healthy food options. They want places their employees can eat together, relax and stay healthy physically and mentally but, ultimately, they want to keep people at work. As such, companies continue to seek well-located lifestyle centers where employees don’t waste time driving to and from other areas of town for services. This bodes well for local projects like Downtown Summerlin, Tivoli, Town Square, Gramercy, City Center West, Green Valley Corporate Center and The HC|Hughes Center. These Class A office projects all offer immediate freeway access to and from all residential employment areas, a high concentration of amenities either on-site or within walking distance, and aggressive ownership offering creative solutions and collaborative contemporary work environments that include those much-desired wellness amenities.
But the big question yet to be answered is whether the latest trend of shared work space centers will be more attractive to Las Vegas employees and companies than traditional office space, at least in the short-term. Platforms like Regus’ Spaces and WeWork allow companies to pay only for the square footage and services they actually need and use. Time will tell whether we see this trend take flight in Las Vegas.
— By Patti Dillon, senior vice president, Colliers International. This article first appeared in the June 2018 issue of Western Real Estate Business magazine.