A very informative article from Texas Realtor magazine about trends in Office and Retail lease space.
Might your office and retail clients be looking for smaller spaces?
TEXAS REALTOR® | Sept./Oct. 2012
Several signs point to a trend of doing more with less when it comes to office and retail space:
• Office cubes have been whittled from an average of 90 square feet in 1994 to 75 square feet in 2010, according to the International Facility Management Association.
• American corporations, which provided 500-plus square feet per employee in the 1970s, now allot less than half that amount, with one commercial real estate expert predicting that number could drop to 50 square feet by 2015.
• Many businesses that renew leases negotiate Put your real estate tech knowledge to the test for smaller spaces—often as much as a third less, according to Jones Lang LaSalle.
• Big-box stores such as Wal-Mart, Petco, Best Buy, and Target are building new locations in smaller “boxes” as much as one-fifth the size of their larger stores.
A combination of factors is driving this reduction, including advances in technology, improved logistics, Internet shopping, population growth in urban centers, desire for sustainable building design, economic pressures, and a younger workforce used to working in nontraditional office settings and team spaces.