_Can we squeeze a couple more desks in?
You’ve heard the question, ‘can we not just squeeze a couple more desks in?’ am I right? On a very small scale, putting those extra two desks in could be a productive use of space. However, on a larger commercial scale, such as a multi-tenanted office tower, this can present some much more interesting considerations.
Office vacancy rates typically remain low in our CBDs and rents remain high; a motivation continues for tenants to seek cost savings. One way in which this can be done, is to reduce the cost per employee by increasing headcount within the same space or taking a smaller space for an existing number of staff. This is ‘Workplace Occupancy Densification’ and it could have crept up on you, two desks at a time and as a Building Owner you may not have even realised it
As well as the commercial drivers, the way in which workplaces are used has changed, this is well documented and understood. Predictions as to future use and occupier expectations appear generally agreed upon; placemaking, co-working, agile working and education are all embraced when considering the way forward for commercial office space. These pillars with the likes of luxury end of trip facilities and interactive building management initiatives, see building owners partnering with occupiers in their war for talent attraction and retention. These changes will inevitably create other considerations, not least Workplace Occupancy Densification.
So, what considerations should be made by Landlords and Tenants when increasing occupant densities?
Firstly, and most importantly, safety. Most specifically, fire safety. Every commercial office building will have a maximum capacity stated on the Occupancy Permit (OP) or Occupancy Certificate (OC) dependent on State. Something as simple as the width of an escape route can limit the maximum capacity of a building. If population numbers being proposed exceed the occupancy limit, then a fire engineering assessment should be the first point of call to assess the feasibility of the increase.
Outside of the safety considerations, there are a whole host of other building impacts to be mindful of, below is a concise list of key questions:
• Will there be additional pressure on building services? Outdoor air provision, air conditioning, water, ventilation, electrical capacities, sanitary and welfare provision may need to be assessed.
• Are there any lease obligations in place? Minimum building services standards and sustainability targets could require interpretation and analysis.
• Will the level of building maintenance and operation need to increase? Decoration cycles, cleaning frequency, sanitary and welfare consumables as well as management staffing may require assessment.
• How will the vertical transportation cope? Occupant waiting time changes and/or congestion will likely need consideration.
• Will the energy and water usage increase? What will the impact be therefore on NABERS ratings?
As can be seen, increased occupancy densities can give rise to numerous considerations, sometimes necessitating immediate works in order to maintain safety and compliance. However, aside from the more urgent issues, the comfort of occupants and general environment quality can also be impacted if not approached properly.
As a Building Owner, have you asked your property manager recently what the current total population of your asset is? As an occupier, have you asked your landlord the same question? When was this number last checked against the occupancy permit?
Knight Frank’s Project Management & Building Consultancy (PMBC) team have recently provided detailed consultancy and impact analysis reporting on a 60,000 sqm office building where the population increased above the original occupancy permit level, by approximately 20% overall. Our role was to advise the client on the implications and provide strategic advice and solutions to the situation.
Looking forward, we feel cases such as this will be become increasingly more common, especially in existing buildings. A ratio of one person in eight square meters (1:8) is becoming the new norm, particularly in new office tower developments overseas and whether owners like it or not, assets are being asked to work harder.
This does not present a big issue for shiny new developments, of course, a 1:8 ratio capability can merely be integrated at design stage. However, existing building stock will have to compete, especially given how well informed and advised occupiers now are. At which point, the above occupancy densification considerations will become ever more critical to understand.
For further information, please contact:
Oliver Connew MRICS
Senior Building Consultant, Project Management & Building Consultancy, VIC
Oliver.Connew@au.knightfrank.com