Are our offices a waste of space?

Researchers have delivered us a double whammy about how badly we are using office space in New Zealand. And it’s got me worried.

Colliers researchers have found that premium office space in Auckland is costing around $10,000 per staff member. Although these staff may be working in open plan areas, the number of breakout rooms, meeting rooms and other spaces has pushed the space being used per person way over the top.

By my reckoning, a sensible cost per staff member for accommodation should be around $4,000.

The issue here is that for the average business, the accommodation costs at the top end of the market are way out of reach. And one has to ask how long even the larger corporates can really afford what I consider to be an excess when it comes to space.

It is certainly not doing anything for productivity in this country.

Now, couple this with further research from Colliers that suggests it is virtually impossible to put up a new office building in Auckland and we have some serious issues to consider about how we use office space.

The costs of financing, construction, cap rates and rent make the cost of building new office space way over the price that existing vacant space can be picked up for.

And it is still very much a tenants’ market, with lots of space available.

So adding up the excesses of some corporate offices with the high costs of new developments and the continuing tenants’ market, there is some serious thinking required about how to get smarter with our office work spaces.

It can be done. All that’s required are clear strategies to get real about what is really needed, and matching the needs of the business to the commercial space to be occupied.

No egos about flash locations or acres of space. Simply smart, creative thinking about the best use and refurbishment of existing spaces to match business needs.

As we head into the Christmas break, my wish for anyone thinking about their business plans for 2012 is to dig a little deeper when it comes to considering work space.

As I have long said, property is still very much an overlooked place for cost savings, and at the same time offers so much to build engagement and productivity in an organisation.

Merry Christmas, and all the very best for 2012.