Cubicle-Ridden Offices Transition to Open-Office Formats

Many of today's office designs and layouts are shifting from a sea of Dilbert-like cubes to open formats, thanks to advances in mobile technology.

"The biggest trend changing the entire work environment is technology--wireless technologies, in particular," said Bob Porter, studio director at Vocon, a commercial design and architecture firm in Cleveland. "This new generation of workers has grown up totally on computers, so they are much more mobile. Therefore, workspaces become more fluid, dynamic and flexible."

Open offices commonly house multifunctional, wireless, shared spaces. They are typically designed with lower-paneled workstations and common rooms, rather than corridors and private offices. They involve modular furniture and, often, more natural light.

While the open-office concept is not new, advanced technology offers more efficiency and inventive functions than ever before. Large public corporations and small private firms alike are clamoring for such spaces, and real estate managers are realizing the advantages of these open layouts.

THE INCREDIBLE SHRINKING OFFICE

Over the last five years, the average office space per employee has shrunk by more than 20 percent, according to surveys conducted by Marcus & Millichap Real Estate Investment Brokerage Co. According to its information, the average rentable square foot per employee is currently estimated at 190 square feet.

However, with alternative work strategies, the average rentable square foot per person might range between 100 and 150 square feet, resulting in savings for tenants, said Dan Cooke, senior vice president of strategic consulting for Jones Lang LaSalle.

Brad Blankenship, vice president of global real estate advisory firm, The Staubach Company, once helped a client save $3.4 million in real estate and operating costs over its 15-year lease term by transitioning from a 100 percent closed, hard-wall office to a 50 percent closed, 50 percent open environment. This savings came from adopting an open design and scaling down 30,000 square feet.

"The two greatest costs of any company are salaries and compensation, and real estate costs," Blankenship said. "If you can reduce your real estate costs, you're reaching into the big numbers."

Eric Beichler, managing partner at Mohr Partners, a corporate real estate services company, said most of Mohr's clients--and the office market in general--have transitioned to a one-third hard-wall and a two-thirds open-office ratio. He said the tremendous movement frequently occurring at corporations, with their hiring spurts and downsizing, spurred the need for flexibility, and in turn, open-office spaces.