How Will Changes in Technology Affect Future Demand For Office Space?

Current Office BuildingAccording to Jim Young, CEO of RealComm, a commercial real estate and technology advisory firm, “A growing number of corporate property owners say they have up to 50 percent excess leased office space and their goal over the next five to seven years is to eliminate that space”

Mobile technology is not only making these changes possible it is driving office culture.  According to an international study by Cisco, three out of five office workers say they no longer need to be in an office to be productive anymore.  More and more companies are beginning to adopt a “shared seating” approach in which employees “share” seats.  This essentially means they are only in the office for face to face collaberative meetings and spend the rest of their time at their customers or at their homes.

What does this mean for office space utliization in the future?  There are predictions that by 2015 the amount of office space per employee could drop by as much as 75%.  It seems as if the “great recession” is accelerating the adoption of new technologies to lower cost and that the office of the “almost here” future will look very different form the office of the “almost gone” past.

 

The information for this posting came from an article in the Certified Commercial Investment Journal entilted “Resizing or Rightsizing?”.  If you would like a copy of the article, please contact me at craig.johnson@nweire.com

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