Deloitte, a New York-based company with dozens of offices in the US and many more spread around the world, entered into the world of office hoteling very early, soon after the concept began being discussed. Today, they continue to save big money by continuing to utilize an office hoteling reservation system in many of their offices. The company provides accounting, financial advisory, auditing, consulting and other services related to finances involved in doing business.
Adversity Drives Change
Deloitte leased office space consisting of three complete floors of the World Trade Center in NYC when it was initially attacked 1993. Due to problems resulting from the bombing damage, the CEO decided to break the lease and moved their staff to the World Financial Center, just one block west.
The 2001 attack on the World Trade Center also collapsed the World Financial Center, resulting in 3,000 employees being dislocated. One employee was killed and several injured. Everyone involved was injured emotionally. During this trying time, many Deloitte employees became teleworkers, learning they could do their jobs outside the traditional office workspace.
The Mother of Invention
Needless to say, even with a huge operation, the destruction of a single office and cost of rebuilding records from back-ups, as well as the fact that office space was at a premium in the Financial District of New York due to the loss of the World Trade Center complex, saving on real estate by reducing the footprint only made sense. Reviews revealed that only around 60 percent of many worker’s productive time was spent working with clients in their office spaces.
Officers at Deloitte decided the best way to address the empty space and high square footage cost of office space was to organize the workplace by implementing office hoteling through a reservation system. The plan was to share workspaces by placing a reservation, much like making a reservation for a hotel accommodation. The plan involved employees each having standard gear: a cell phone, a blackberry and laptop computer. This equipment allowed employees to work from any location: a client’s office, a coffee shop, at home, or even sitting in a park. This same equipment worked well in the office as well.
The Details Define Success....or Failure
When Deloitte designed their office hoteling reservation plan, they too into account their design would affect employee motion, comfort, creativity and productivity. The shared workspaces and open workspace concepts had to benefit professional who traveled extensively as well as those who worked locally. Each employee must have a storage space of their own, perhaps roll around file cabinets to keep their on-going work in and maintain file records.
Central copiers, perhaps fax machines and, when appropriate, support staff should be available. Conference rooms should be available but also should have multiple uses; a mobile workstation can be placed in the room when no meetings are planned.
A properly planned office hoteling reservation system can save money and increase productivity. Deloitte saved 40% as soon as the plan was instituted. When fully deployed in all their locations, the Chicago office was able to give up an entire floor and that’s a lot of money saved.
Contact us so we can get you started finding out how Office Hoteling might work for your company.
The CCIM Institue has come out with their market analysis of the commercial real estate sector and it calls for very modest growth in the office space sector (full discussion below). Slower employment growth, as would be expected is the main culprit.
"Office Space: Office markets are showing only modest improvement. Office employment has increased 2.2 percent during the past year, compared to average growth of close to 3.0 percent during the past cycle and well over 4.0 percent during second half of the 1990s. Moreover, firms continue to find ways to squeeze more workers into fewer square feet. Even with modest growth, net absorption has risen for five consecutive quarters, but growth is exceptionally modest by past standards. With little new construction, vacancy rates have edged lower, falling 0.4 percentage points over the past year to 17.2 percent, according to Reis.
While the overall market is seeing only modest gains, there are a few pockets of strength. Major technology centers, including the San Francisco Bay Area, Seattle, Austin, and Raleigh, N.C., all continue to see strong demand. Rents have grown the most in the San Francisco Bay Area and New York, which is also increasingly driven by the tech sector.
Despite the sluggish pace of recovery, office property sales have increased this year. Properties in key technology centers, areas with a great deal of exposure to healthcare, and a few major energy markets, such as Houston, continue to outperform most other major markets. New York appears to be successfully navigating the slowdown in the financial services industry and is seeing an influx of technology jobs. Washington, D.C., however, has seen demand for space and buyer interest wane as continued anxiety and uncertainty about the federal budget has sent chills through market. The suburbs of Washington, D.C., are faring better with the tech sector fueling gains in northern Virginia and healthcare driving gains in suburban Maryland and Baltimore."
We are pleased to welcome our newest Office Business Center member to OfficeFinder. Silver Suites is located in the newest of the World trade Center Buildings to be coming on line this Summer, WTC 7. Located on the 46th floor of 7 World Trade Center, our Class-A five-star executive suite center will feature 60 pre-built, business-ready offices and multi-room suites of varying sizes, many with breathtaking panoramic Manhattan and river views. In addition, we will be offering a variety of services and amenities, including receptionist and concierge services, state of the art IT infrastructure, fully equipped meeting rooms designed to impress your clients, a beautiful event space and many other professional services.
Over the past week we have tweeted quite a few times on the improving office space market. While we all like to hear news of an improving economy, what good news for the office space market means is that the office space market is in the process of beginning its transition from a tenant market to a landlord market. As has happened with economy in general (and will hopefully continue), this process will take a couple of years for the transformation to complete. The process will not be even from market to market, but we will see markets such as New York, Washington DC and San Francisco lead the way in declining vacancy and increasing rental rates. As employment continues to improve other primary and secondary markets will follow. The general consensus is that this will take a couple of years to happen, but most are in agreement that most markets have hit bottom and rental rates will begin to climb.
For tenants who have been on the fence as to whether or not to renew or relocate their office, now is a good time to get started to ensure a low rental rate for a long-term lease.
Manhattan Office Property Surges Bolstered by a
stronger-than-expected recovery in hiring http://ow.ly/a7NMm
Coworking is the
latest trend to hit the Office Space market. I thought it would be interesting
to find out what they think they are selling. To do so I decided to track down
the tag lines many coworking spaces are using. Here is a sampling of them. As you can
see, the ideas that permeate are that "It's The People" who you can collaborate with and an "Alternative to the traditional workplace" are the most important ingredients.
Love Where You Work - Select Office Suites NYC
Individuality Without Isolation – Office Nomads Seattle
A Physical Social Network - WeWork NYC, SF & LA
Community Center for Independents – New Work City NYC
Where Entrepreneurs Work and Connect – Green Space NYC
Where Change Goes to Work – The Hub SF
The Workplace for the New Economy – NextSpace SF
Collaborative Office Space to Think, Work and Innovate – Co-Spot SF
A Nicer Place to Work – Citizen Space SF
Building the World We Want to Live In – Hub Seattle
A Coworking Boutique – The Mill Seattle
Space. Work. Network. – The Yard Brooklyn
Work. Learn. Make. – 3rd Ward Brooklyn
Rethinking the Workplace – WorkBar Boston
Better Work Starts with Better Coworkers - Independents Hall Philly
A Workspace Retreat from Traditional Office Monotony – Work/Playce Philly
You name your passion and we will help you find a way to make it grow – Spice Factory Chicago
Neighborhood coffee house built for mobile professionals, freelancers, creatives and anyone else who would like to get work done – Topics Chicago
A clubhouse for entrepreneurs, designers, and geeks – The Speak Easy Indy
A Place to Work & A Place to Grow – 151 Locust Atlanta
You know how you always wonder where all the cool kids hang out? Well, wonder no more - Lightbulb Charlotte
work FOR yourself, not BY yourself - Blankspaces LA