Today's office environment is more mobile

Pasadena Star News

By: Cynthia Kurtz

Posted: 8/6/2014 

There is cautious optimism about the economy. We have achieved six months of job growth averaging over 200,000 new jobs per month. The housing market is slowly recovering. Without the fear of job losses looming, home owners are ready to move into larger homes freeing up homes for first time buyers.

Industrial space is scarce, especially in the San Gabriel Valley. Vacancy rates dropped to 3.3 percent in 2013 the lowest in the Los Angeles region and almost a full point below the Los Angeles County average.

The holdout in this good news story is the commercial office market which is recovering at a much slower pace. Vacancy rates in the San Gabriel Valley have dropped from the 2009 peak of 18.4 percent, ending 2013 at 16.2 percent.

The essence of what workers are looking for in office space has been set on its ear. Just 10 years ago the individual 250 square foot office was considered standard and everyone eyed the carpeted "corner office" with the double doors - preferably with a view. 

The office was where you kept everything you needed to do your job - files, phone, contacts, computer, books, and an ergonomic chair. It was literally a home away from home.

The recession and technology have changed everything, partially due to necessity and partially because it is possible. 

As workforce numbers contracted and extra overhead became a drag on the bottom line, leases were re-negotiated for less space. Workers adapted to taking conference calls in their cars, meetings in coffee shops, and working from home. 

As the economy rebounds, the demand for office space is not keeping up. Why not? Don't we all want our large offices back? There are several factors that are influencing the office market. Certainly the recovery is not strong enough to throw caution to the wind. Many businesses are still holding on to cash rather than committing to long-term leases.

But there is a change in what workers want and need as well. Recent trends are toward non-dedicated work space with more amenities like natural light, on-site cafes, open floor plans, and sound control. Younger workers want more flexibility, common space and an environment that is conducive to team projects. 

Wireless technology, mobile devices and less paper are trumping large desks and private offices. Computers and phones fit in the palm of our hands. And our contacts and files? Well, they reside in the "cloud." 

Companies are finding that is more important that their employees be able to work anytime from anywhere than it is to come to the office every day. The average office size has dropped to 185 square feet and it may go lower yet.

The commercial office market is already adjusting. New companies that lease "shared co-op" styled space are popping up. Smart developers and architects are retrofitting and reconfiguring existing buildings to respond to the changing demand. Some are even adding residential units.

It isn't as easy as taking down walls. More employees in a building mean more parking, more restrooms and more elevators. But it is clear that offices of the future are going to look very different.