Size, design of office space focus on flexibility

Last winter, banking-software firm Andera Inc. moved into a new 15,000-square-foot headquarters in downtown Providence’s Gateway Center to accommodate its growing workforce.
Like many young computer-sector companies, Andera wanted contemporary-looking offices that would appeal to talented technology workers while encouraging a collaborative, flexible work environment.
So instead of laying out a traditional grid of cubicles surrounded by private offices in the new space, Andera opted for an open concept with large common areas and smaller “break-out” meeting rooms. Where employees 20 or 30 years ago might be anchored to their desktops and land lines, workers in the new-style office gather around large tables with their laptops or hold teleconferences in the smaller meeting rooms.
“We’re not tied to our desks,” said Andera Vice President of Marketing Laurie McLachlan. “As a result, we can dedicate a lot less space to private desks and offices. The overall result is a more collaborative and productive working environment that’s less costly than a traditional office set up.”
Specifically, Andera estimates the open-concept offices use about 30 percent less space than traditional offices for the same number of workers, a significant cost savings to go along with a more contemporary look.
And that kind of savings is popular beyond the technology sector.
As it has with stores and factories, the digital revolution continues to slim down office spaces across industries.
Breaking down cubicle walls is one example of the forces shrinking offices, but others include smaller equipment, employees working from home and utilization of off-site or cloud-based services.
“What I see is not necessarily less people working in corporate offices, but less space needed per person,” said Karl F. Sherry, partner at Hayes & Sherry Real Estate Services in Providence.
While the amount of room dedicated to traditional offices may be shrinking, many in commercial real estate and the workplace-design world say they don’t necessarily see a drop in demand for space.
“Ten years ago I went to a commercial real estate conference in Boston and someone said: ‘in 10 years you will not be leasing office space any more – people will all be working from home,’ ” said Neil Amper, vice president of Capstone Properties in Providence. “Obviously that hasn’t happened. Some are downsizing while others are expanding.” Patricia Germani, a sales representative for chair maker Herman Miller who helps design offices in conjunction with Creative Office Pavilion in Providence, said even when companies reduce the amount of space dedicated to offices, they often use what was freed up for other purposes.
For every few cubicles torn down, she said, there is a new company coffee bar, Ping-Pong table, roof deck or other unconventional enticement to get workers to put more time and effort into the job.
“It doesn’t mean the company doesn’t need as much space, it just means it will look different – they may choose to keep it and redistribute it,” Germani said.
Germani has personal, as well as professional experience with the contemporary office setup: like many salespeople, she works from different locations, including shared space at Creative Office Pavilion’s East Side offices.
In her consulting with local companies over their space needs, Germani said she has seen examples of firms utilizing contemporary office concepts to avoid larger real estate investments.
Although senior executives are happy to avoid the cost of new construction, Germani said there is often pushback among middle management to losing the privacy of traditional offices.
“They are going floor by floor bringing departments closer together and ending silos,” Germani said. “People are talking more and getting more done, which has been nice for them, but there is also some kicking and screaming. Some people like their privacy.”
With many companies scaling down their office-space demands, it will be essential for “Knowledge Economy” firms to pick up the slack if Rhode Island is going to fill empty buildings and develop areas such as the former Interstate 195 land in Providence and Warwick Station District in Warwick.
Like the residential market, commercial real estate in Rhode Island has been slow to rebound since the recession.
In recent years, the nonprofit education sector has carried new development in the state, but even universities are seeing their needs shift in complex ways as online education grows.
“Maybe they are not going to be building lecture halls like they used to, but instead libraries, dining halls and residence halls,” Germani said. •

No posts to display