How to Affordably Renovate and Right-Size your Office
V Three Studios | October 2021
Workplace design has changed for good as a result of the COVID-19 pandemic, and now may be the perfect time to pursue an office renovation.
Given the booming real estate market and availability of compact, affordable technology, many office renovation projects can essentially pay for themselves through reduced rent and operating costs. We typically see a 2-3 year payback period on our clients’ investments in office renovations.
Beyond simply renovating, many companies are taking the extra step of “right-sizing” their offices to take full advantage of every square foot.
Stop Paying for Space You Don’t Need
With much previously needed space no longer necessary, many companies are re-evaluating their use of physical office space. 74% of Fortune 500 CEOs anticipated reducing office space this spring, and 21% of CEOs surveyed by KPMG are still planning to downsize or consolidate as of August 2021.
Across nearly all industries, fully remote or hybrid work has drastically reduced the need for physical offices. Computing power being either more compact or located completely in the cloud means fewer on-premises machines. And less reliance on paper printouts means fewer file cabinets taking up valuable space.
It is time to start thinking strategically about what to do with that extra space.
Put Your Extra Space to Work
With the booming real estate market currently driving up rent prices, the cost of a one-time renovation or relocation might be similar to rent and utility costs for a larger space over time. This means that your company could effectively pay back the cost of a renovation through these savings.
Depending on your specific lease agreement, there could be landlord dollars allocated for new build-outs or tenant improvement (TI) projects. If you’ve already leased space for a period of time, another option would be to give some of your occupied space back to your property’s landlord so they can take advantage of currently higher rent rates with newer tenants.
Don’t just Downsize, Right-size
Instead of simply cutting square footage to reduce the cost of rent, many companies take the opportunity to reevaluate their space plan and adjust the size of various spaces to better meet their needs. This is referred to as “right-sizing.”
Right-sizing your office will prevent you from paying for extra space, thereby reducing your overhead and potentially offsetting the costs of any needed renovations. It will also optimize your space for increased productivity and job satisfaction among your employees, in addition to upgrading any outdated infrastructure or safety features.
Develop a Detailed Plan
Working in a smaller space means that every design choice will have a bigger impact than it might in a larger office, in terms of both aesthetics and efficiency. With many possible office configuration options, Implementing a workplace strategy means carefully considering your options and making sure each decision is fully thought out, considered, and executed effectively.
Ideally, office renovation and/or consolidation projects should start with an experienced designer producing a test fit to determine the best office layout and space utilization plan. This is by far the most affordable phase of the process and requires little to no commitment to move forward into a full construction phase.
Consolidating an office space is often misconstrued as “cramming more into a smaller box,” but this should not be the case. A test fit from a designer will consider how each company’s footprint can be reduced given current staffing and technology needs, with future plans for growth/expansion taken into account as well.
To make up for lost space, many office layouts are starting to incorporate dedicated coworking spaces and “hotelling,” or sharing the same workstation among multiple employees on different shift schedules. The number of private offices is often reduced as a result.
It is also crucial to consider the mechanical systems and specifics of the building. For any potential design, the designer should verify that the existing infrastructure can be modified to accommodate the needs of your company.
Finally, timing is key, and a detailed construction/buildout schedule should be included in your office renovation/consolidation plans. A design team can help with accurately estimating the amount of time each phase of the project will take, allowing your company to plan accordingly in terms of staffing and equipment.
Case Study: Small but Mighty Chicago Media Facility
V Three Studios recently worked with a national media company to downsize and fully renovate a three-floor broadcast facility inside one of the tallest buildings in downtown Chicago. The renovated facility, now occupying just two floors with a communicating stair providing a crucial new connection point, fulfills all of the same needs while resulting in 33% lower rent.
Conceptual rendering
Finished space
Despite its affordability, this space was updated both technologically and aesthetically to represent the next generation of both the broadcast industry and workplace design. The new layout includes several features, including a collaborative cafe and flexible conference rooms, designed to improve the openness and visibility of the space while promoting collaboration and staff interaction.
Lower level
Upper level
This speaks to the broader philosophy of post-pandemic workplace design, which we believe should encourage employees to come back to the office by facilitating social interaction, a sorely missed component of office for those working from home. By allowing employees to naturally gather in open, flexible spaces, this layout actively develops a sense of community and promotes the spontaneous sharing of thoughts and ideas.
With adequate planning and involvement from an experienced design team, these concepts of smart design and space optimization can be applied to offices across any industry.