PASADENA, CA—Just as the recession was a record-breaker (e.g.: the biggest since the 1930s), no one can dispute that the recovery that followed was—is—also appropriately among the oddest on record. Nevermind the joblessness of the early years of the uptick or the length of time it took us to even realize a recovery was at hand.
It seemed as if overnight (though certainly it wasn't), we as an industry ceded the dominance in office direction to a new generation of worker—the millennials. In short, Baby Boomers are retiring to the comfort of their back porches as a new crop of workers enters, a crop of workers described in a previous GlobeSt.com story as "fundamentally different from previous generations." (Click here for the full story.)
Oddly, that tectonic shift also came at a time when corporate America was getting comfortable with the idea of doing more with less, an idea clearly born in the depths of the downturn. But, according to R. Scott Martin, SIOR, EVP of NAI Capital here, the two trends have dovetailed very nicely. (SIOR is a GlobeSt.com Thought Leader.)
"Baby Boomers are aging out of the workplace," he says, and with them the private offices. "Millennials, which are the fastest growing population, are open and collaborative occupants. The net result per person is the use of less space." And corporate America translates that into tighter spaces and the attitude that, "they can do more with less." In fact, he puts the reduction per employee, depending on the industry, at anywhere from 20 to 40 square feet.
But smaller, fewer office spaces no longer means a cramped stifling environment as a new age of design emerges, with shared creative workplaces designed for impromptu brainstorming. This in addition to Google-inspired amenities geared for stress relief as well as employee retention.
"The true growth in office space is from the small to mid-cap companies," Martin says, "particularly in technology, where finding quality talent is becoming more difficult. This has forced larger companies like Apple, Google and Amazon to create office environments that are filled with amenities to attract and retain that talent." And this in turn has resulted in "more rent for tenant buildout allowances as well as policies driving LEED accommodations or sustainability, or healthy spaces that offer gym/workout areas, walking areas or even volleyball courts."
As Millennials surge, technology does as well and in some degree the two go hand-in-hand. And Martin notes the impact miniaturization and digitization are having on the traditional office. "Within the last five years," he tells GlobeSt.com, "wireless technologically, rapid access of data, streamlined computing have all made connectivity to the workplace very simple. Coupled with the fact that digital natives—read Millennials—are the greatest population in the workforce and their upbringing and education are enforcing greater freedom of thought and the abandonment of time limits. Millennials work from home or the local Starbuck's, or they zip into a conference room for a meeting. Shared desktops, benching and even doubling up on private offices is further cutting down the need for more office space."
The critical question here—after health and wellness, of course—is productivity, and Scott notes that research on that question is ongoing. On the assumption that workspaces designed for how the new generation works will improve results in all three of those categories, the EVP is optimistic about the direction of the American office.
"The world still needs legal, accounting and engineering firms," he says, adding that that certainly won't change. But "every industry is experiencing further adaption and occupational knowledge that continues to evolve the workplace. It might not be in that traditional steel-and-glass structure, but the important thing is that the environment offer an opportunity for productivity, wellness and teamwork."
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