With the unemployment rate at 4%, employees have choices. And amid the multitude of office revamps these days, such as eliminating company cafeterias to encourage restaurant patronage and one would assume simply walking outside, many companies are taking a cold hard look at just what employees want in office space.
“With unemployment below 4%, companies are focusing on making smart decisions about their space– decisions that keep their employees happy and engaged,” said Revathi Greenwood, Americas head of research at Cushman & Wakefield. “Landlords are playing a critical role as well–ensuring their buildings stay competitive with a good mix of amenities and affordable parking, and of course concessions where necessary to attract top tenants.”
And not surprisingly, Millennials are driving a bulk of those decisions. Now the largest generation in the workforce, Millennials are driving the agendas of how companies operate, what workplaces look like and what technology is expected.
“Young workers are drivers of this focus on amenities and services that integrate work and life,” David C. Smith, vice president, Americas head of occupier research at Cushman & Wakefield, tells GlobeSt.com. “Digitals, the generation after Millennials, who are now entering the workforce, have never known a world without smartphones and technology connectivity. They expect their workplaces to have integrated technology that allows them to work effectively, collaborate easily, and seamlessly bounce between teams and tasks. This includes high-quality WiFi, room booking capabilities, service apps for work and personal needs, and direct connection with maintenance for quick response to service needs. The Bay Area is both the birthplace of technology companies and home to a disproportionately large Millennial/Digital population, so employees will have even greater technology expectations of employers in San Francisco.”
Cushman & Wakefield’s report, Space Matters, explored four areas of importance to today’s tenants and landlords. It analyzed the national trends behind office density, amenities, parking and concessions, and provides market-by-market comparisons of vital benchmarks.
In general, occupiers have been allocating less square footage per employee, but that trend is starting to slow down as businesses grapple with the right balance of personal, private, communal and break space.