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"Office workers feel the squeeze as costs are
cut"
Sydney Morning Herald 18 February 2003.
Americans like a bit of space around them, Brits
don't mind a tight squeeze while Australians are somewhere in the
middle.
Cultural issues and building costs are the two
biggest factors in determining how much workspace is allocated each
worker, according to the latest global office survey by international
firm DTZ Research.
While Australian offices stack up slightly above
average on a space basis, the most luxurious workspace allocations
are to be found in Norway and the US.
Oslo office workers get an average of 25 square
metres per person - practically a whole room to themselves - followed
closely by most of the US capitals with about 22 sq m per person.
By contrast, city workers in London, Shanghai
and Bangkok are making do with less than half these amounts, with
a mere 10 sq m each.
According to DTZ Research Australian research
manager Marc Pallisco, most Australian office workers get between
16 and 19 sq m each, with Sydney and Melbourne at the tightest end
of the scale.
Office costs were usually the second biggest corporate
expense, behind staff wages and salaries, Mr Pallisco said. So the
global trend of the "ever shrinking" office is alive and well in
most countries.
In Europe and North America, where the majority
of the top 10 most expensive cities are located, workspace ratios
have been falling for the past 15 years.
The increasing number of open plan offices had
made it significantly easier for companies to reduce occupancy costs
by using less floor space, Mr Pallisco said.
Despite the financial benefits of open-plan offices,
the trend has also necessitated a cultural shift.
Open plan, which began in the early 1980s, was
initially met with a fear of losing status, Mr Pallisco said, as
most companies had previously rewarded seniority with separate or
bigger offices.
During the past 20 years this has been gradually
worn away, particularly as more chief executives and managing directors
were also now being included in open plan environments, he said.
The difference in occupancy costs can be huge.
In Australia, for example, the difference between
a 19 sq m workstation in Adelaide and a 16 sq m workstation in Sydney
was about $6500 a year per person. Despite Adelaide having bigger
workstations, Sydney occupancy costs of up to $750 a sq m made that
city much more expensive.
On a global basis, the cost of a Sydney-sized
workstation in London's West End would push costs per person up
by more than $25,000 a year. While a large New York-sized office
in London would push occupancy costs up by a staggering $33,000
a year per person.
Despite Australia's mid-range workspace ratios
- which have steadily reduced by up to 20 per cent during the past
five years - there was still room for improvement, DTZ building
consultancy director Nick Snashall said yesterday.
Mr Snashall forecast workstations would fall to
around 14 sq m each throughout Australia in the next few years as
companies continue to try to reduce their real estate costs.
This reduction in space is expected to see a mix
of methods including "hot desking" where people share workstations;
120-degree workstations, where desks are grouped together with partitions
between them; and also mobile workstations which use a minimal amount
of floor space, he said.
Recent studies in the UK had found companies could
cut floor space requirements by up to 35 per cent by using these
latest methods, Mr Snashall said."
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