In chatting about the office sector and how it has evolved over the last 15 years in terms of space use and demand, Chris Macke, managing director of research and strategy at American Realty Advisors, said that in general, space use has become more efficient as the focus on collaboration led to reductions in the number of private offices, among other changes.
That focus, he says, was driven, in part, by a belief in the benefits of collaborative environments, as well as by the cost/benefits associated with the reduction in space requirements.
“It is interesting that while, on the one hand, technology is creating greater space between employees as they work remotely, and on the other, when they are in the office employees are moving closer and closer to each other,” he says.
“When companies transition to space that is more collaborative, the shift can spur an arm wrestle between the introverts and extroverts,” says Heidi Hendy, CEO at H. Hendy Associates. “It is important for leadership to invest in change management training so that employees can learn how best to operate in their new space, and find a healthy balance between impromptu collaboration and heads down focus. With the right technology and programming, and zones for different kinds of work, teams can quickly strike that balance, and reap the benefits of their new space.”
As for what current trends are driving demand in the sector, Macke says that location, location, location is changing the way space is used today and is being driven by technology, millennials, and investors.
“Technology is creating efficiencies in the workplace that are impacting demand in different ways across industries (for example, law firms have experienced significant efficiency gains greatly reducing their space demand requirements),” he says.
Equally important, technology companies are an ever-growing source of office space demand and often seek out non-traditional space requirements with non-traditional buildings in non-traditional locations, he tells GlobeSt.com. “They are the artists of office demand, leading the moves, as a result, solidifying up and coming locations.”
Millennials seeking vibrancy are influencing location decisions at firms highly dependent on them, he explains. “This can mean both locating to and expanding CBD locations, as well as occupying newer buildings in newer submarkets even within a CBD. The influence of technology, technology companies, and millennials are impacting investors as they see these trends and are investing accordingly.”
