July 31, 2006—The overall density at which buildings are occupied is rising according to new research by Knight Frank LLP in association with Ramidus Consulting Limited.
Occupiers in the South East office market are making more intensive use of space with the historic standard 140 to 190 square feet, now reduced to 120 to 130 square feet per person. The M25 Office Market Demand Research Paper says this change is a consequence of flexible work styles, new technologies and companies “sweating” their assets to accommodate more people in less space as increasing emphasis is being placed upon cost efficiencies.
Catherine Penman, head of research, Knight Frank said: “The increasing focus upon cost efficiencies and the more intensive use of space will ultimately impact upon the requirement for an adaptable property portfolio. For example, growing numbers of companies are moving towards a core and periphery strategy whereby they retain a core of buildings on long-term commitments to accommodate stable demand, with additional capacity provided through more flexible arrangements that might be short leases or serviced office space.”
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