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Last Updated: Apr 20th, 2005 - 18:45:27 |
Space efficiency is a fundamental determinant of real estate costs. A new survey of engineering firms shows how large sums can be saved with small reductions in office space.
Engineering firms, like many service businesses, find that real estate is their second or third highest cost of doing business. Two offices of the Alliance of Tenant Representatives, CoRE Partners of Denver and Gola Corporate Real Estate in Philadelphia, conducted a national survey to find out why some engineering firms used space more efficiently than others.
The survey determined that the average space per employee at larger engineering firms is 226 to 250 rentable square feet. However, there was quite a bit of variation. For instance, firms that delegate the responsibility for leasing space to the heads of their local offices tend to use around 50 square feet more per employee, 20 percent more than average. Firms with space guidelines use 50 to 75 square feet less than those without. And firms that charge their local offices for real estate use around 50 square feet less space per employee.
All of these factors are important because they affect space efficiency by 50 square feet or more per employee. For a company with 1,000 employees that pays on average $20 per square foot for its office space, this amounts to savings of $1 million each year.
For a more detailed look at the survey results and advice on how your company's space utilization can be more efficient, give our office a call.
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