Corporate RE Trends
- Mar 19, 2014
While we are beginning to see the vacancy rate continue to decline, companies are continuing to shed space when they are able to. Corporate real estate users are looking for value per square foot and the space needs to be extremely flexible, meaning a limited number of private offices, reconfigurable cubicle areas and flexible lease terms.
Future tenants are increasingly demanding updated space. Corporate users continue needing flexible infrastructure such as the ability to have wireless throughout the office and many comfortable collaborative spaces, such as couches and tables in open areas. Naturally it depends on the specific user, but I’m seeing space per employee dropping to approximately 150 square feet p/person. This puts a greater load on the electrical system, and HVAC systems.
There is an increasing need for hoteling types of space, where employees share work areas. Desk sharing will definitely be increasing. Due to the increase of employees per useable square feet, users are requiring a higher parking stall ratio along with above standard restroom per employee ratio. This is all a result of reducing the space per employee from 250 square feet p/ person down to the 150 square-feet-per-person ratio.
Corporate real estate users are increasingly asking the question if the buildings they’re considering occupying are “future” ready. Is there a business lounge, a work-out room, game room in the building, and community conference rooms?
The net result is landlords that invest funds in their buildings, are more likely to lease to corporate users while those landlords that do not invest will have a more difficult time attracting quality tenants.