Study suggests home working and hot-desking will become the norm

The social-networking generation will rely on mobile technology, remote working and 'pop up' offices to get their jobs done, according to a new study backed by public sector think tanks and the Institute of Directors.

The focus of corporate IT departments will shift from supporting dozens of workers in a single office space to facilitating home-based and remote working, and ensuring that staff in temporary, shared offices can get the job done.

"Companies will be a bit more aggressive with how much office space they need," said David Coplin, national technology officer at Microsoft, which contributed to the report.

"The savings in the short term will be around office space. At best 55 per cent of office space is used at any one time, leaving 45 per cent unused," he told Computer Weekly. "That is 45 per cent of your office costs."

The study suggests the companies will benefit from allowing staff to use online collaboration tools and social networks to carry out their work. Knowledge-sharing and collaboration will be made easier by the knew generation of cloud-based computing services and communications networks.

"There is a message here for organisations that block tools like Twitter at the firewall," said Coplin. "You can't do that any more because you are restricting people's activity. Be confident in your security and let go a bit of your control.

"We have talked for a while about the death of the desk phone. Now we are talking about the death of the desk. Its not just about working from home. There are compelling reasons for working from a variety of locations."

Source: Telegraph

In our office space Blog we have discussed a great deal in the past about how troubling of a time it is for the Commercial Real Estate market thanks to overly abundant unemployment and the recession.  With every challenge there is usually an opportunity.  In this case, a down markets is a great time to buy commercial real estate.  The old adage of buy low and sell high can be applied to this time period. Of course, it is always scary to get into an investment in a down market, but if you can do it now, you will undoubtable be near the bottom of the market with no where to go but up.

One of the best ways to get into commercial real estate is to buy property that your company can use. One of those ways is to buy a commercial condo. The SBA may even be able to help too with a loan guarantee that would allow you to only put 10% down. A great use of leverage.

Here is a primer from CommercialCondos.com to get you started in understanding the  concept.

"Many people understand what a residential condominium is because the concept has been around for generations. In order to understand commercial  condos (also called "non-residential" condos), we can apply many of the residential guidelines, but with the added benefit of potentially increasing profits for your business.

Following is a simple list of frequently-asked questions that will give you a quick and thorough education about commercial condos.

As a business owner who currently leases my workspace, how would I benefit from buying that space?

The most obvious benefit is that you'll own the property rather than rent it, so over time it will gain equity and become a valuable long-term asset. If you leased your 1000 square-foot work space for $30 per square foot for 10 years, you would spend $300,000 (excluding any annual increases) during that time, but all that equity would go to your landlord instead of you. If you'd purchased the space, each year you would be paying yourself and increasing your equity in the property. You could also have multiple tax benefits that you'd not be able to take as a tenant, such as mortgage interest, property tax deductions and deductions for repairs and depreciation. As an owner rather than a tenant, you'll have complete autonomy and freedom to create the exact space you need for your work. You can redesign and remodel to your heart's content.

What are some of the less obvious benefits?

If you're moving into a new location, a lease option (leasing now with an option to buy later) can lock in the purchase at today's price. And if you purchase more space than you need, you can rent out the remainder. Those rental units will pay for themselves while building equity for you.

How do I purchase a commercial condo?

Many business owners don't realize that while commercial banks are hesitant to make loans, the Small Business Administration (SBA) is actively offering up to 90% financing to established businesses for the purchase of office, industrial and retail space. There are many financing options available, but the financing can be complicated because the lender won't necessarily understand what type of property it's dealing with. Is it residential? Commercial? Retail? What kind of loan is it? That's why we suggest that you work with a trusted banker or broker who can bring in a team of experts (accountants, lawyers, architects, as needed) to help you find the best loan and the best property.

Will I have to pay property taxes?

Yes, because you are the owner of a piece of property. But like a home loan, the property taxes can be rolled into your monthly loan payment.

Some residential condo complexes have homeowners associations and dues to pay. Is this true with commercial condos?

Yes, there will be an HOA (homeowners association), and there will be monthly dues. But these dues pay for property maintenance, landscaping, insurance, professional management, and more. If you owned a house, you would also be paying for these things. One advantage of an HOA is that it guarantees that these maintenance issues will be addressed and that the property will be well cared for.

How are the common areas like parking lots, lobbies and walkways maintained?

Property maintenance will operate the same way it did when you were a renter. The developer, or owner of the property, will turn the management responsibilities over to the HOA and the board of directors (which is usually made up of individual owners like yourself). Usually a property management firm will be hired and paid from the HOA funds.

What does the board of directors do, and how involved will I need to be?

The board makes day-to-day decisions about caring for the property. For example, the parking lot may need to be re-paved, or the sprinkler system may need to be upgraded. The board prioritizes these various needs, seeks bids from vendors and makes sure the work is completed. As an owner, you may choose to serve on the board or not. It's not required."

If you are interested in finding out more, request assistance finding commercial real estate for sale from our top local buyer representatives.

Also check out our lease vs buy and financing alternatives articles.

A 2008 World at Work consortium study found that more than 17 million Americans telecommute at least part time, a number that continues to grow as companies look for ways to cut costs and increase productivity

To create a functional home office, interior designer Sharon McCormick suggests considering the following:

Location: Possible spaces include a spare bedroom, bonus room, guest bedroom, walk-in closet, unused living room, dining room, basement, attic, landing, kitchen or, as a last resort, your bedroom.

Privacy: Consider how much privacy and quiet you need and whether you hate feeling isolated.

Tax write-off: If you are looking for a tax deduction, your space will need to be dedicated to work.

Utilities and equipment: Consider whether you have, or can install, electrical outlets, phone jacks and cable in the space. Determine your equipment needs: phone, fax, printer, desktop or laptop. Consider wireless applications to minimize cords and allow for more flexibility.

Lighting: Overhead lighting is optimal and compensates for lack of natural light. Task lighting is needed for individual activities, for example, a desk lamp.

Noise: Telephone conversations with clients or co-workers require a professional atmosphere. Think about adding French doors to a living room, changing out hollow-core doors to solid doors, or adding carpeting and window treatments to muffle outside sounds.

Storage needs: Do you need bookshelves for reference manuals? Filing cabinets? Do you use many office supplies? Will you be keeping sensitive information that needs to be under lock and key?

Desk configuration: An L- or U-shaped arrangement may be best if you like to spread out your projects.
Wire management: Will you end up with unsightly wires everywhere? Sometimes just drilling a grommet hole in a desk can solve that problem.

Source: Courant.com

April 23, 2010 - Regus, the world’s largest executive suite provider, has seen a 230% increase in video communication over the last week in the UK, helping to alleviate the problem of displacement and enabling business to continue as usual.

Since the situation began last Thursday, demand for virtual meetings has been unprecedented. Across Europe week-on-week demand increased by 180%, whilst on Monday calls to Regus call centres were 450% above the daily average.

Source

National Green Office Week is focusing public attention on the need for greater environmental sensitivity at work.  But if a real green contribution is to be made, then firms need to look at their office facilities and understand the level to which they are really used.

A study by workplace solutions provider Regus has shown that around 38% of office space is not utilised at any given time.  However, from an environmental point of view, that space is being heated, lit and otherwise consuming energy, whether staff are using it or not.  Therefore office businesses in South Africa need to examine the ways in which they provide workspace facilities in order to better align facilities with actual occupancy, and eliminate the wastage of huge amounts of energy each year.

Various studies have identified that each employee in a service industry business consumes energy equivalent to two tonnes of carbon emission each year.  If the Regus study’s findings about office under-utilisation are combined with these third party statistics on employee workspace energy consumption, then across South Africa’s 3 million office workers, over 2 million tonnes of carbon is being unnecessarily emitted every year.  South African businesses are also wasting money on energy consumption for office space that simply isn’t being used Business’s rands-and-cents perspective on green issues is spotlighted by Joanne Bushell at Regus South Africa.

She notes: “Being smart about the workspace you provide delivers ‘greenback’ to the environment and into your bottom line.  How compelling an argument is that?  Good environmental practice is good business.  But it requires businesses to take a step back and strategically review how they provide employees with workspace.
 
Smart firms are already adopting hybrid solutions that relieve them from the wastage inherent in traditional long-term leases.  Traditional office property arrangements may be retained for the inner core of a company’s administration.  However, the recent global recession has taught us all that firms need to become smarter, more agile and able to morph quickly with volatile and rapidly changing markets.  We need to make sure that our workspace arrangements are totally aligned with the ability to scale and change at the rate that keeps business competitive in the 21st century.  In addition, smart, cost-effective workspace solutions cut carbon emissions, energy costs and waste.”

Bushell, Johannesburg-based Regus vice-president, Middle East and Africa, adds: “Local firms are keen to optimise the economic upturn without renting more space and adding to fixed overheads.
 
“Office space is not only a major cost, it’s also a big user of electricity, air-conditioning and heating fuel – again underlining the relationship between the carbon footprint and the bottom line.”

Source: EPROP

Bolgger's note: Although this is specific to South Africa, it can be apllied to office space everywhere else as well.