Thursday, December 23, 2010

Open Space Planning - The New Normal?

Open floor plans like the one above that value efficiency is a growing trend


The generation Y preference, the great recession, and a general trend towards cost savings are leading to more efficient space planning for office tenants. The average space per employee is down to 200 SF (down from 500 SF -700 SF) and this article from the LA times estimates that allocation could get down to 50 SF per employee by 2015 . There is no doubt that we are seeing a trend towards more collaborative, efficient, and open floor plans with workstations (with fewer private offices) that is leading to less space needed per employee. The real question is whether this is cyclical in nature or if this is a "new normal" for office space users. In Houston, our energy tenants do not seem to be on the same trajectory, still valuing private offices and keeping a higher ratio. One thing is for certain: No matter the ratio of employee per SF we need more employees (ie job growth is imperative for the office recovery.)

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