Like many other parts of our economy, the office market is going through seismic shifts in demand usage. Private offices are out, and open workspace is in. Some of the causes for this shift are technological.
Twenty years ago, no one used email; instead they fielded or made about 70 to 100 phone calls a day. Today, most people field or make around ten phone calls a day and send, respond, or read 100 emails. Hence, the need for private space–either in offices or workstations–has radically decreased.
Digital storage has lessened the need for physical storage. Cloud based computing allows one to work anywhere. The result is fitting more people into less space and thereby reducing the demand for office space. Companies are figuring out that they can reduce real estate costs and, at the same time, create a more contemporary environment. Office owners must focus on making their space more productive to be more competitive.
The higher density in office space movement exhibits the following:
1. Working in open environments with less walls and partitions.
2. More shared collaborative spaces: conference rooms, meeting rooms, break rooms, bigger kitchens and informal meeting areas. Some of these areas are also used for focused work or making phone calls for those who need private space at variable times throughout the day.
3. Amenities and Break areas: coffee refreshment areas, ping pong table, and Foosball.
Below is an as built plan of the West Los Angeles 10951 Pico Boulevard Third Floor, excluding the mezzanine, which is roughly about 8,000 square feet. The plan shows 20 private spaces and room for about 12 workers in the open area.
This next space study shows an extreme move to density with five enclosed areas, including a conference room and room for a 115 workers in open areas.
A more optimal plan for a software company would involve a max density of 10 people per 1000 square feet. This would include more disbursed private spaces such as a small conference rooms and workrooms with computers and phones. Some open area would be converted to informal meeting and recreational areas that would bring density down to 5 to 6 per 1000, but still allow temporary scaling of people if required.
For an example, click on the link below:
Creative space helps alleviate the impact of this density, as volume and natural light give the sense of greater space despite the density.
Read the full story on changing office trends from the CoStar Group’s website here.
Developers have begun to build micro-apartments to appeal to Gen Y looking for affordable housing in the City’s most amenity filled neighborhoods. For example, NMS recently complete in downtown Santa Monica the Luxe@Broadway, which is composed of 300 square foot singles and 420 square foot one bedrooms. These units incorporate boat and trailer interior technologies to create very efficient floor plans. Surprisingly, developers also built many 300 to 500 square foot single and one bedroom units in the early 1900s in Hollywood, Northeast LA, and around Downtown Los Angeles. Many of the units could be re-purposed with more efficient floor plans and contemporary features. This activity is all part of the emerging creative multifamily movement.
To learn more about micro-apartments, click here.
It was the Economy Stupid. During the recession, many pundits pronounced the exurbs dead and likely to become ghost towns filled with obsolete McMansions. Everyone was downsizing and moving back to the City center. Not so fast. In one of the first economies to boom since the recession, housing in the San Francisco Bay Area exurbs are making a comeback driven by commuters looking again for affordable single family homes. Read this article below:
Silicon Beach in Los Angeles is once again enticing more tech and media companies to relocate their offices, or possible add another branch to this emerging hotbed.
Check out the latest article from the Los Angeles Business Journal to see what tech and media mogul will be joining the Silicon Beach ranks.
Read all about it here: Patched In | Los Angeles Business Journal.
Read about the changing trend that Premier Property Management Group has discovered:
Single family home tenants are 18 percent more likely than apartment tenants to stay in their current homes five years or longer, suggesting that demand for single family homes, the fastest growing rental category, will be more stable than multifamily demand.
Check out the entire article from Real Estate Economy Watch here: Single Family Renters More Likely to Stay in Place | RealEstateEconomyWatch.com