LATEST NEWS

Shrinking Offices Space Leads To Opportunities For Innovation

A new report shows just how dramatically companies are reducing their office footprint in major cities.

By Jeff Vasishta March 23, 2017

More people are working from home or at their local coffee shop. That means there’s plenty of office space in cities collecting dust. It’s not all bad news in the short term for companies tied into leases, though. If they are doing well, the extra space means they can expand without having to rent more office space. Great for the company’s bottom line, not too good for the brokers’.

It’s even worse news for brokers when long-term office leasing statistics are analyzed. Many offices are shrinking faster than an iceberg in the Sahara. City planners and developers are having to think on their feet to accommodate the decreasing office footprint.

Related: How The Offices Of The Future Will Do Wonders For Your Health

According to research by City Observatory, the boom and bust cycle of economies stretching back to 1999 showed most businesses ramped up their square footage per employer in the good times. During the late 2000s, each additional worker resulted in about 125 square feet of space. Over the last decade, that allocation had fallen to just 50 square feet per new employee.

REIS concludes the trend towards less space is a permanent adjustment to new economic realities, which City Observatory believes has a massive impact on how we should think about economic development. As companies become leaner, cities should plan more innovation hubs in an effort to create more industries, such as Sunset Park’s Industry City, which is located in thirty-five acres of former warehouse space on the Brooklyn waterfront.

Related: IKEA Wins Design Award For Its Innovative Refugee Shelter

Just as office space has shrunk, so has retail space as online ordering has delivered a one two punch to commercial leasing. One notable casualty appears to be 124 E. 14th St’s P.C. Richards near Union Square where a city-funded tech hub waits to redevelop and occupy the 15,000 square foot lot which has the capacity for more that 80,000 buildable square feet.

“The opportunity… is just one example of EDC finding creative uses for the assets we have in a city where space is harder and harder to come by,” EDC president President Maria Torres-Springer said in a statement.

Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

Jeff is a writer, husband and father but not necessarily in that order. As a music journalist he counts Prince, Beyonce and Quincy Jones amongst those he’s interviewed. He's also owned and flipped homes in Brooklyn, NJ, CT and PA.

  • AGORAFY
    Stefano Boeri, the architect mastermind behind the famous plant-covered skyscrapers, is now designing Forest Cities in Liuzhou, China. #ForestCity #China https://goo.gl/PsTUwv
  • AGORAFY
    Auction is the second scheduled in a month for a One57 unit and it could set a NYC foreclosure record. #BillionairesRow #Foreclosures https://goo.gl/NZ3zqD
  • AGORAFY
    Once a couch-surfing website, Airbnb moves on to luxury properties, further disrupting hospitality industry. #Airbnb #Luxury https://goo.gl/7TpLk6
Four Countries To Retire In With $200K In Savings—And How Much Real Estate Costs There
Ever dreamed of retiring abroad? You know, affordable healthcare, better climate, more positive news—becoming an expat seems like an enticing option, especially one you no…
While Other Real Estate Platforms Start Charging Agents $3-Per-Day Exposure Fee, Agorafy Remains Accessible To All
Real Estate searching platform are always finding news ways to diversify their revenues models. Case in point—on Tuesday July 18, Streeteasy, one of New York…
Is Real Estate Crowdfunding The Fix That Urban Housing In America Really Needs?
Saving money for a down payment? One can only hope. Most millennial in their twenties or thirties are mortified that they might never be able…
Brooklyn And Queens’ Real Estate Sub-Markets Continue Their Ascent To The New Heights
So, the sales prices in Brooklyn and Queens hit record highs. Again. Just like they did in December 2016 and at the end of this…
The Economy Of Car Services And Delivery Apps Might Be Making NYC Less Eco-Friendly
Living in an eco-friendly neighborhood is a good thing. And, as it always the case with the good things, it also costs more. High rents…
Building Communities: What The U.S. Developers Should Learn From Soho China
As our world emerges into the new period of globalization and technology, some of the most important by-products of this process are buildings that have…
Five Reasons Why All Entrepreneurs Must Keep Their Eyes On China
It is hard to overestimate the importance of Chinese influence on the modern global economy. Carving out a place in Chinese market and winning over…
Airbnb Up Their Game With A New Luxury Tier Featuring Mansions And Villas
Airbnb is about to seriously up their game. First, the company started testing a new service called Select in an attempt to push accommodation listings…