Measuring the value of commercial real estate

We all know that after staff, office space is the next biggest cost for most businesses.  The most obvious next question is therefore, how do we measure that cost?  Historically you would divide the total space by the number of people sitting in it and that would give you an indication of how effective that cost is.  The reality is now that we need to rethink how we do that.

Andrew Mawson, co-founder and director of Advanced Workplace Associates was quoted in FM-world

“Primarily what we need to be doing is creating workplaces and workplace managers that have at their heart the desire to maximise the performance of every individual, team and community. Workplace management should be as much about these things as space efficiency and cost. An agile office might mean fewer desks and more people sharing work stations rather than renting more space or relocating the office,” he points out. “This might allow existing space to be used for collaboration areas: training areas, a kitchen, a crèche, a prayer room; storing stock, or a staff gym, or it might enable an organisation to sublet an entire floor.”

In today’s world, the ability for the workspace to add value to a business and deliver in terms of productivity are more tangible than at any time in the past.  By working to create productive and vibrant working environments, organisations can experience shifts in productivity, increased staff attraction and retention as well as improved client engagement.