Myths of Space Utilization

Image via WikipediaNews Detail: "In a recent White Paper titled, “Are the Myths of Space Utilization Costing You More Than You Know,” Jones Lang LaSalle, the leading integrated financial and professional services firm specializing in real estate, reveals that there is oftentimes a significant difference between how much vacancy corporate real estate executives think they have within their portfolios and the actual amount, and how this disparity is costing companies millions.

For its occupancy study, Jones Lang LaSalle examined the portfolios of eight major companies representing a cross-section of industries – technology, consumer products, professional services and financial – as well as its own real estate portfolio. The combined measurement was nearly 42 million gross square feet of corporate office space across the globe in 583 buildings.

Jones Lang LaSalle found that by dividing vacant seats by the total number of seats yielded one of the most significant findings: a 26 percent average actual vacancy rate – 13 percent in reported vacancies and another 13 percent in shadow vacancy (office areas reserved for reasons including new hires). This is in marked contrast to the typical estimations of all vacancy at seven to 10 percent."

Related articles: An expert opionion on the credit crisis and How to come out on top in a tough market