In China, Space Per Workstation Now is Only Half That of Europe and US
October 21, 2015, Shanghai – Organizations are now under pressure to drive down costs by increasing their workplace ‘static density’—the space per sq. ft. per workstation. In many parts of Asia, this has already reached a point where further reductions will impact productivity, performance and retention. CBRE’s latest report, Space Utilization: The Next Frontier, looks into how companies can use workplace density and utilization data to drive efficiency and business performance.
In mainland China and Hong Kong, workplace density has increased sharply
by 50% over the past decade, and space per workstation has shrunk from 100 sq.
ft. per desk to 50-60 sq. ft. per desk. This figure is nearly half that of
Europe and the US, where density norms are around 150-200 sq. ft. per desk. Elsewhere, in Australia and New Zealand, standards also remain more generous at around 90-150sq. ft. per desk.
Less space in the workplace implies reductions in shared collaborative and isolated work settings, and more
generally cramped space—impacting teamwork, decision making and ability to focus.
CBRE regards below 60 sq. ft. per desk as a clear productivity danger zone;
reducing space below this level places staff productivity, performance and
retention at risk. Tight desk space leads to lack of privacy, increased levels of noise and potential for distraction from neighbors, the negative
impacts of which can lead to decreased productivity.
In line with higher workplace static densities, the study also shows that the
average utilization in mainland China and Hong Kong, at 73% on average, is comparatively
higher than other markets. In other
words, the percentage of
unutilized workspace in China averages 27% while the global average is
40%. CBRE surveys have found that the higher
utilization rate in China is likely due to cultural working practices such as
presenteeism (the practice of persistently working longer hours due to the
feeling that being seen in the office by your manager is essential for career
progression) and also the absence of alternative
workspace options such as
collaboration areas and meeting rooms.
“The latent underutilized space (roughly 20%) of total utilization in China, if utilized
more effectively and dynamically, can translate to cost savings
of US$240,000 (approximately RMB 1.5 million) per annum for a business of
around 200 employees. Besides the cost savings, companies can also boost space
efficiency and business performance by using the space more effectively. We
propose organizations to implement new and dynamic ways of working, including
more focused and more collaborative settings that are easily accessible through
enhanced employee mobility within the workplace. Workplaces are expected to go through significant transformational
changes over the next 15 years. Increasingly, employees, particularly younger
generations, are looking to dynamic and collaborative work environments that create a strong sense of
happiness and fulfillment in what they do at work,” comments Helmut Weih, Executive Director, Global Workplace
Solutions, CBRE China.
In July 2015, CBRE’s Chengdu office completed an
innovative fit-out leveraging the
company’s industry-leading strategy for future workplaces. As the first initiative of its kind across CBRE’s China business
network, the 535
sq. m new office featuring over 10 different work
settings with 51 workstations is a clear example of how businesses can encourage
collaboration within work environments by cost-effectively responding to new trends in workplace
transformation.
“Benchmarking metrics such as workplace density
and space utilization are becoming more critical in helping
corporate occupiers make informed workplace and real estate
decisions, and manage their real estate as a strategic asset.
Corporate occupiers must develop a complete understanding of how
their people work, and what their organizational objectives and imperatives
are. After all, aligning these two fundamental perspectives
is above everything else for companies to plan and implement a cost-effective
workplace strategy,” Helmut Weih concluded.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
