Auckland, 9 February 2015 – New Zealand companies stand to be more productive and add more to their bottom line if they occupy the right office space and optimise their office environment, with the bottom line benefits more than offsetting any costs involved in doing so, according to the latest CBRE research report.
In creating the just-published New Zealand Office Occupier Major Report, CBRE surveyed 160 office space occupiers across Auckland, asking them about their locational and building preferences and requirements, as well as the changes they adopt to utilise space better and attract talent. The participants’ overall Auckland office footprint is close to 600,000sqm, which is about 20% of the total Auckland office market.
Key findings from the survey include:
- Most office occupiers expect to increase employee numbers on the basis of their organisation’s business prospects over the next two years - and growth is the most influential factor in shaping their real estate strategy
- If taking new accommodation, the majority would like to occupy new Prime grade space, even when taking price into account
- Workplace transformation techniques have been implemented but often lack a strategic approach
- Office space quality upgrade and comprehensive workplace change had an average productivity increase of 8%, and can add 4% to the bottom line.
Zoltan Moricz, Senior Director of New Zealand Research for CBRE, says: “The survey can be summarised in a simple statement: occupying the right space plus optimising the way work is undertaken in that space result in increased efficiency and productivity, and the costs of change can be more than offset by the gains of improved performance.
“Increased productivity is the result of a flexible workplace and the use of the latest technology to support flexible working - and in this respect we believe that unassigned seating has a pivotal role.”
CBRE Research Manager Gergely Gaspardy says that effects of workplace-related changes include:
- More collaboration with colleagues - which results in better information flow and cooperation
- Employees choosing the way they work to match the type of work they are doing at any given time
- A positive workplace image that attracts and retains the best talent.
Gaspardy cites a hypothetical case study in the report that shows that the costs of implementing an office quality upgrade including a comprehensive workplace change programme can be offset by the efficiency and productivity gains.
“We examined a hypothetical professional services company moving from a Grade B building to a high quality Grade A building, including a new fit out and technological upgrade to enable the implementation of a workplace change programme.
“Subtracting the costs from the annual productivity increase shows that a net gain can be achieved. In this case study, a top line increase of 8% results in an approximate 4% bottom line gain.”
About CBRE
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 approximately 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 370 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.
