How To Save Money On Office Space
As the New Year begins, now is a great time to reduce your second highest operating expense. The following three questions should help you assess your current situation:
Is your space the right size? Review your current lease and divide the number of employees you currently have at that location into the amount of total rentable square feet. By 2017, North American offices will average 151 square feet per worker, according to real estate data provider CoreNet Global. That's down from 176 square feet in 2012 and 225 square feet in 2010. Does your space flow well from one department to the next? Do you have built in space for growth? Does your space design match your culture?
Does your location help recruit and retain employees? The race for talent is quickly approaching and in some markets and industries it has already become a critical component to growth and sustainability. Many tech companies in Pittsburgh offer company amenities such as game spaces for ping pong and xbox, living room lounge areas and even cater lunch every day for their employees. Many employees desire a location with walkability and want the ability to live work and play all in the same area. Is your office easily accessible? Does it have a lot of amenities nearby? According to the Center for American Progress, the cost of replacing an employee ranges from 10-30% of their annual salary, depending on the industry and length of time on the job — making employee retention strategy a top priority.
How does your price per square foot align with the changing market? Do you know how current market trends have affected your building, your Landlord or your submarket? Many times, companies believe they have a good deal and an aggressive rate. How do they really know? Unless that company executive doubles as a tenant representative in that area, he does not have the data to know what rate he should be paying, what concessions are available and where leverage could be created for his company.
Depending on how you answered each question above, money can be saved. Whether you are in the middle of a lease or the expiration date is approaching in the next couple of years, now is great time to have a no-strings-attached consultation with our team. We promise only unbiased solutions for your specific company.