Waste Not, Want Not: Analyse your space needs for better utilization
August 22, 2016
- As we enter the second half of 2016, many of our clients are considering lease renewals or considering relocation in 2017.
- Your commercial lease is a significant commitment for your business. In fact, real estate is one of the top two expenses for a company, second only to salaries and benefits, making more efficient use of space can significantly impact the bottom line.
If you are considering making significant changes in your commercial real estate in the coming year, I’d like to share some questions you should consider.
Does the space you are considering truly meet your needs? Does it allow for expansion as your company grows? Is the layout of the space congruent with the daily needs of your company?
Here’s an example that shows how important it is to analyze the efficiency of your space allocation:
Meeting space is only used 39% of the time
The utilization rate of meeting space is only 19%, which means that the remaining 80% is unused.
So, what does this actually mean? Imagine you have a dedicated conference room that seats 20. In the typical business, it would be scheduled for meetings 16 hours per week, or 39% of a standard 40 hour week. During those 16 hours that the conference room is used, there are four people in the meeting for a 20% space utilization rate.
The next question is obviously, how can the space be utilized so that it generates more value and still meets our business needs?
As professional tenant representatives, we have a knowledge base that can help you generate more value from the space you occupy. As you start to plan for 2017, give us a call to discuss how to put our expertise to work for your business.
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