Article submitted by Larry Dietz, CCIM,  Associate Broker at Saurage Rotenberg Commercial Real Estate

Written by Norman G. Miller and Roger J. Brown, CCIM CIRE Magazine May/June2013

No company ever seems to have the right amount of office space. Firms grow and shrink throughout the years for many reasons; however, they must contract for space over a set lease term of five, 15, or even 20 years. Typically this situation results in about 20 percent to 25 percent more space per worker than the stated goals of space planners. So firms with a goal of 200 square feet per worker will likely end up closer to 250 sf per worker.

Yet, in last year’s CoreNet Global survey, corporate executives indicated they expect to reduce the amount of space they lease in the next five years to less than 100 sf of dedicated space per worker. Since the current average rentable building area in the U.S. is about 300 sf per worker, does this mean we have three times as much office space as needed?

Current Space Trends

Looking at square feet per worker on new leases, the U.S. national average in late 2012 was 185 sf per worker, according to CoStar lease data. This number reflects new leases in major markets and a fairly tight economic environment. Company executives do not want to lease too much excess space even though they may find current rental rates are attractive. Comparing utilized space by industry (see chart) reveals consistent differences that are reflective of an industry’s compensation level and need for work space.

To read this article in its entirety click HERE.

To view this week’s Featured Property click HERE.

Larry Dietz, an associate broker with Saurage Rotenberg Commercial Real Estate, has over 30 years of Sales, Marketing and Public Relations experience.  He is a Designee member of the Certified Commercial Investment Member Institute (CCIM) and CCIM Louisiana Chapter; a member of the Commercial Investment Division of the Greater Baton Rouge Board of REALTORS® (CID); as well as an affiliate member of the National Association of REALTORS® (NAR).  He is a licensed real estate broker in Louisiana and Mississippi.

Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).