Occupancy Costs Will Start Growing in U.S.

CHICAGO, IL- GlobeSt.com reported on Tuesday that DTZ just released its 16th annual Global Occupancy Costs-Offices survey and found that costs for office space in Asia and the United States were trending in very different directions. North Asian costs increased by 6.3% but American costs went down by 10.9%. The primary driver of that decline was the search by American tenants for greater efficiencies in the workplace. Employers have generally found that younger workers especially don’t need or want as much space as their elders.     

But Karine Woodford, the head of occupier research at DTZ, a London-based company, tells GlobeSt.com that American costs will probably rise over the next two years. “We do forecast occupancy costs growing at a slow rate because rents will steadily increase as job growth begins in earnest,” she said. That does not, however, mean that the search for efficiency has ended. American workplaces still have more space for each employee than other nations and “tenants here have not taken advantage of all the efficiencies.”