4/10/2023 0 Comments Commercial real estate managementHowever, if half the employees work from home at any given time, a 5,000-square-foot office could provide plenty of space at a decidedly better cost. By this calculation, for instance, a company with 70 employees will need 10,500 square feet of office space. However, as a general rule of thumb, plan for 150 square feet of space for every on-site employee. How many people come into the office regularly? Do they have dedicated desks, cubicles, or offices? Are people meeting in groups, and do those groups include clients?įiguring out what’s necessary and what isn’t gets a company closer to the right number of square feet. The next question is this: What’s the minimum square footage we need for office space? The answer requires a close examination of what the on-site team looks like at this point. In short, gather input from all business unit leaders so no detail or requirement is overlooked when it comes to your corporate real estate space requirements. Ask IT what technical requirements an office, warehouse, or store must have, especially as technological needs morph and grow. Consult with HR about what the staff needs in terms of space and personal work preferences. Ask the C-suite what image it wants to project through real estate and how much money there is to spend. Instead, seek input from throughout your company to help the real estate team make the right choice. Your company’s key players in real estate planning should ask themselves this question: What’s the primary goal of our leasing strategy, and does our current real estate portfolio serve that strategy?ĭon’t expect an obvious answer. All these reasons and more will result in a wave of relocations and portfolio rebalancing in 2021 and beyond. Or your firm might need a space that’s smaller or less expensive than what you currently have. Leadership might see better opportunities to expand to new markets to attract customers or staff members located elsewhere. Your company might need a space that allows for social distancing or serves as a gathering space rather than a sea of cubicles. The most obvious sign that it’s time to seek out new corporate real estate is having more staffers than space to seat them.ĭuring and after the COVID-19 pandemic, however, other concerns might necessitate a move. Planning for Growth: It’s Time for a New Corporate Real Estate Strategy? With that in mind, here’s everything you need to know about developing a commercial leasing strategy that truly works. Regardless of whether corporate occupiers are upsizing, downsizing, switching locations, or rethinking their existing ones, commercial real estate will be an important subject in the coming months and years. Great locations take a lengthy search to find, and there are unmistakable consequences for choosing the wrong one. Unfortunately, the right location doesn’t have a massive arrow above it. With office vacancies not predicted to return to peak pre-pandemic levels until 2025 and commercial landlords more willing to negotiate lower rents, there’s an unparalleled opportunity to find a great deal. Every indicator suggests companies are reevaluating their office footprint, but that raises a host of difficult questions: How much space is necessary? What’s the ideal location? Which amenities are most important? What’s the market price point for rent? Many commercial spaces aren’t working as intended because they no longer meet the needs of staffers looking for a flexible work situation or enhance a company’s ability to attract talent. But that doesn’t make workplace strategy any less relevant to a company’s success. However, keep this in mind: Companies might need less square footage than they did before many people will continue working remotely after the pandemic the idea of shared workspaces will never be the same again. Offices emptied, and companies discovered they could make do without them - at least temporarily. That might sound counterintuitive given the unprecedented shift to remote work we saw due to the COVID-19 pandemic. A corporate real estate strategy has never been more important.
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