The desire is often strong to fill a vacant office space.
Landlords and managers always evaluate the financial viability of a tenant. But there is more to a perfect match than financial viability. We all want good tenants that pay their leases and expenses on time, who are happy, and whose business is thriving. Life is good for everyone in that scenario. The question then arises, what is the right space for your potential tenant? Location is always a question and that is the most frequent consideration. But what about the space? Does it suit your potential tenant?
The workplace itself is a very small portion of total costs of doing work at only 9% of total costs. A company’s largest cost over a 10-year period is really its people at 82%. The other 9% of expenditures go towards technology costs. Rather than just focusing on facility costs, a company’s best investment is determining workplace features that are most strongly linked to employee performance and satisfaction states Bosti Associates.
The Importance of the Right Office Space
A person’s workspace impacts productivity. Which then directly, impacts your tenant’s bottom line. Help your potential tenant pick a space or design a space that provides the best results for their company. It will serve everyone in the long run. Common among many office spaces now, is the open floor plan. In fact, more than 70% of offices space in the US have open floor plans. However, there is growing evidence this open design impacts employee productivity in a significant way. Essentially, lower employee productivity lowers company performance. No one wants that.
Special Offer from our Sponsored Link Above
One Size Does Not Fit All
Understanding how the new tenant works and their working styles will influence the space needs. Leslie Heitman of kôr inc., a workspace design firm, states, “It’s important to work with a professional who can identify how efficiency translates into a floor plan. They can give you a roadmap for what you need so you can begin evaluating spaces. Having a solid idea for office space quickly narrows down your options so the process can go much faster.”
If you are talking to potential tenants, ask them upfront if they have worked with anyone about space specifications. This will help both organizations. The type of work a company does, the type of atmosphere the employees need, the level of interactions required, all play a role in what is the right space for a prospective tenant.
The Element of Privacy and Quiet Working Space
Creating a space where employees are able to concentrate and have fewer interruptions may be fundamental to your prospective tenant’s employees. A survey conducted by Dale Office Interiors found that employees are interrupted every 11 minutes. Shockingly, it takes another 23 minutes for the same employees to regain their concentration. Clearly, this has a profound impact on a company’s bottom line.
A 2011 Harvard Business Review article spoke about the other unintended consequence of the open space workspace. These open environments led to increased reports of sickness, stress, and decreasing morale. Additionally, employees were also less likely to brainstorm ideas with other colleagues because they worried about being overheard or even interrupted.
Collaboration, Don’t Lose It
Collaboration is a big buzzword today and many companies think they must create these open, living room-like spaces. But many times, what happens is these spaces don’t get used. “It’s critical for the organization to determine what they are trying to accomplish with these collaborative spaces and then determine what they should look like, what technology should be used, where these spaces should be located and whether you even need them.” Leslie Heitman, kôr inc.
Subscribe to our Newsletter
Selecting the Right Office Space
Gain an understanding of the tools and the type of space needed to harness the talent and performance of each employee of the company that would fill the space. This will help your potential tenant reach their full potential. Every business will have its own space needs. Selecting the space that gives your tenant the best chance for employee success is in everyone’s best interest.
If you liked this blog, please share it with a friend. Also, if you want to receive regular articles to help with your asset management, subscribe here.
Find out why companies average $9 in returns
for every $1 spent on analytics.
Thank you for your visit.
- How Your Real Estate Company Can Avoid Poor Cash Flow Management - July 14, 2021
- Big Changes Proposed for 1031 Exchanges in the American Families Plan - July 6, 2021
- The Importance of Monthly Invoicing for Commercial Real Estate - June 17, 2021