"Your Office -- How to Save Space and Money"

Furniture World Magazine

How much are you paying for your office space? If you are on a long-term lease, the deal you made a few years ago probably looks good today. But if you're out shopping the market now - looking for new space or more space - average per square foot rates will alarm you. Most major market rental rates are on the way back up - way up. In just one year, average annual square footage rates have risen a minimum of four percent (New York and Los Angeles) up to an astounding 18 percent (in Orange County, Calif.) The accompanying rental rate chart shows that the four percent jumps in New York and Los Angeles are in the minority. Boston is up 13 percent, Seattle 17 percent. And most commercial real estate pundits see square foot rates continuing their climb through 1998 and into 1999. Moving Toward the "Open Plan" For years the cost of office space has been the second biggest operating expense for businesses of all sizes, just behind compensation and benefits. Companies used to calculate their needs at 275 to 300 square feet per employee. But with the emerging interior design trend toward the open plan, and the innovations in the marketplace in high density storage systems, most firms can reduce this average down to 175 to 200 square feet, or even as little as 90 if the business has employees who work mostly in groups. According to a recent survey by the Houston-based International Facility Management Association (IFMA), the average U.S. and Canadian office currently employs a mix of 52 percent open plan (partitioned work spaces with movable or partial walls), 38 percent enclosed space and 10 percent bullpen design (workstations scattered in a large room). The trend - and the lure - of open plan workplaces is that, designed properly, they can reduce space needs by at least 25 percent. Such layouts also accelerate teamwork and promote less formal, more effective information flow according to a survey the American Society of Interior Designers (ASID) released last year. This translates into increased productivity and the space savings into major gains in your operating bottom line. Moving in concert with the increased need for space conservation and the open plan concept, office furnishing manufacturers have to keep pace with innovative workstation designs and storage system improvements. The two key words that must drive high-density, product innovations and designs are "efficiency" and "flexibility." If you are changing your office space - moving, expanding or redesigning - factor the following into your long-term space planning: Buy and/or lease your furnishings and storage systems with an eye to the future. The office blueprint should be an integral part of a company's overall business strategy. Think through your firm's plan for growth before talking to a consultant, designer or furnishings supplier. Let your employees participate in major restructuring decisions. But face facts. No matter how efficient or how artistic an office environment you create, not everyone is going to love the new layout. Get wired with a five year plan. One of the biggest selling points of open plans is mobility. Make sure you lay the electronic groundwork for the future. Hiring a wiring expert to assess your current and future technological needs will save you lots of money and aggravation down the road. Buy and/or lease the most efficient and flexible workstations and storage systems you can afford. Furnishing suppliers have done an outstanding job in the last few years in revising and redesigning their products for efficiency and flexibility.