Lean, Liquid, Less = Nimble
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The New Business Model: Lean, Liquid, Less = Nimble a.k.a. Less is More
According to the National Association of Realtors Businesses Save by Cutting Space Per Worker
As we struggle through this recession (and yes, I believe we have to exit the recession since we have yet to grow any sustainable jobs), those businesses that are surviving (and those that are growing) are taking on a new approach to doing business—a new business model. Less is more is a key theme and that theme is now appearing in the usage of office space with many firms going from using 300 square feet per employee just a decade ago to less than 200 square feet today. Even the U.S. Government is pursuing consolidation of space.
There is approximately 10.5 billion square feet of office space in the U.S. per the U.S. Department of Energy . Assuming a national vacancy rate of roughly 15 percent (Cushman and Wakefield) results in an estimated 8.925 billion square feet of occupied office space. A mere 10 percent reduction per office worker in space usage results in a net loss of absorption of 892 million square feet of office space. At an average 12,800 square feet of space per building nationwide (again per the DOE), that equates to almost 70,000 vacant buildings.
We are structurally changing our economic landscape given this downturn, and what many of us thought was normal will never be again—at least in our lifetimes. These changes are delaying full economic utilization of economic resources.
And now when you consider the 14.2 billion square feet of retail space and the impact of online shopping…well, you get it. Right? International Council of Shopping Centers