The issue of open office trends, and the downsizing of office spaces, has been an interesting phenomenon in the commercial real estate industry since 2014. Some have questioned whether the pendulum has swung too far, as fully open floor plans – used in approximately 70% of offices, according to the International Management Facility Association—are now the go to floor plans.
“There are different ways to look at this,” said Michael Cornicelli, executive vice president of BOMA/Chicago. “From the tenant’s standpoint, I think most of them would tell you it’s a pretty good idea. Although it does depend to some extent on what business you’re in. I think it’s a question of dosage and degree—how much of this is optimal for you and whatever business you’re in?”
For example, Cornicelli noted, that if your business is trying to encourage collaborative work space the way that technology companies do, or ad agencies, the open office concept would have clear advantages for your business.
“Some businesses are just out to cut costs,” Cornicelli added. “Which, we saw a lot of this trend begin with cutting costs, and it evolved into something very different. On the other end too, you might see call centers, or businesses that are traditionally cubicle based, where a big open environment is counterproductive. It’s a matter of acoustics, and focus, for the person the phone. So in a business like that I don’t know how beneficial it is to cut further into the square footage per employee.”
According to Cornicelli, the gold standard number historically has been 250 square feet per employee. Now some companies are cutting it down to 180 square feet or less.
“You’ll always have some businesses where there is more of a premium placed on private office space,” he said. “We’re seeing this trend transition into fields like law practices that have been traditionally sold on private and corner offices. It’s an operative phenomenon, even in law firms.”
Technology and healthcare companies seem to be the biggest beneficiaries of the open office concept, but Cornicelli noted that he’s seen the trend outside of those realms with very large, national companies.
“For example, CBRE here in Chicago currently moved into a new office space that has an open-office concept. There are private work spaces, work stations, and a lot of open space. I have a friend who’s in a senior position there, and he doesn’t have a private office. He takes whatever space is available, or books what he needs—and he likes it.”
Telecommuting, Cornicelli pointed out, is an interesting counterpoint, as he’s seeing a little less of it than expected.
“Partly, I think that’s less based on the need to cut costs, and more out of the decision to encourage collaborative work styles, and respond to a different kind of workforce that wants that,” he said. “I think we all know our employers don’t always give us what we want. But this is very much a trend that’s driven as much by the workforce, as it is by management.”
Cornicelli also noted that he’s beginning to see things like people working in open spaces with headphones. “That’s to keep out distractions more than anything else. As it becomes something more commonly observed, that’s a signal that that’s a worker who doesn’t have enough isolation, if you will, for his or her work environment. So they either have a higher need for isolation than their colleagues, the environment isn’t as quiet as it could or should be, or the space wasn’t designed with enough areas for available quiet spaces. I think people are beginning to figure those things out and adapt to them.”
Overall, Cornicelli pointed out that it all depends on the business you are in, and what your employees are actually doing. “What setting does she or he need to function most effectively? What do they want? Finally, what can you afford?”
Cornicelli noted that there is a lot of investor emphasis on what the new workforce wants in their environment.
“We’ve all seen, and heard, stories of beer taps in the office, as well as ping pong tables, amongst other things,” he said. “Those aren’t traditional amenities like a workout room for example. The ping pong tables and beer taps require additional space. People have to realize that along with the allocated square feet per employee, they have to have a place to put these amenities as well. So for the employer, that’s more square footage they have to lease for the employer who wants those kinds of amenities.”
So what is the next step in the evolution of the open office concept? Cornicelli noted that he does not know how much further companies can reduce the square footage per employee, but he does think the industry will start to see the concept spread.
“I think we’ll start to see some normalization of what’s expected with open office concepts,” he said. “It’s going to spread and proliferate among industries.”
