DEFINING EXCELLENCE IN OFFICE SPACE

Is TMT setting the new agenda for offices?

@BCO_UK

#bcoconference

Nicola Gillen – Aecom

BCO / TMT research findings

How are the TMT sectors impacting office design?

This is a desk. Work has left the building. With more people working away or from home, or even in the garden, the workplace is freed to function differently aecom.com

Nicola Gillen

May 2014 November 2014

• Highly Diverse cluster

• Influence by 3 factors

– 5 sub sectors

– Life-cycle maturity

– Function

• Pace and growth

• Demographics & young leaders

• Work itself has changed

• Workplace drivers – talent war &

innovation

• Pick up trends and develop solutions

faster

• Change will impact all sectors

Overview

MEDIA + TELECOM TECHNOLOGY,

WHAT WE DID

• Developer funded research

• AECOM + Cushman & Wakefield

• Existing databases and research

• Desk tops research

• Expert Peer Group

• Industry interviews (start-ups to

established firms)

The

ECOSYSTEM TMT

The

SUB SECTOR TMT

Life Cycle Headcount Characteristics Size of space sq ft

Stage 1: Co-

working/shared

1-10 Creative/open

Low cost

500-3,000

Stage 2 :First office 10-100 Creative but with limitations

Higher rental obligation

relative to funding/revenue

3,000-20,000

Stage 3: Headquarter 100-500 Trying to preserve start up

feel but less

creative. Focus on building

amenities

20,000-100,000

Stage 4:

National/International

company

500+ More corporate space and

focus on amenities

Significant real estate

expenses

100,000 plus

Source: Cushman & Wakefield

LIFE-CYCLE

Core

Services

Sales +

Marketing

Corporate

Function

Customer

Service HQ

•Software developers, creative teams, etc. •Both focused & collab. •Flexible, informal

• High collab. • Informal, fast-

paced

• Process-driven • Informal

• Both collab. & confidential

• Formal & informal

• Flexible

• IT, HR, Finance etc

• Both focused & collab.

• Flexible, informal

Function

MEDIA + TELECOM TECHNOLOGY,

IN THE WORKPLACE FOUR GENERATIONS

Ages of freedom: discovery, education, entertainment, exploration Prefer learning and socialising in the office

Ages of responsibility: children, mortgages, fixed-base Prefer flexibility, working from a range of locations

The

GAP GENERATION,

The digitisation and

mobility of work

The

IN WORK KEY TRENDS

Consumerisation of IT,

‘Bring Your Own Device’

The

IN WORK KEY TRENDS

Socialisation and domestication

of the workplace

The

IN WORK KEY TRENDS

OF PLACES A NETWORK

• Out-of-town process or R&D site

• City centre physical hubs of activity

• Off-shore process centres

• Regional sales office

• A new form of HQ building based around collaboration and providing a community centre

OVER ARCHITECTURE INTERIORS + LOCATIONS

IN EXISTING REAL ESTATE ACCOMMODATING GROWTH

Workplace density (square metres per workplace)

Population density (square metres per worker/FTE) Effective density (workplaces per worker/FTE) Buildings rarely occupied to maximum capacity. Maximum number of workplaces in use is significantly below the number provided.

• Density varies considerably by function

• Most buildings are not being used to the design limits

• Scope to work current densities harder

DENSITY BUILDING

NIA

Workplaces

NIA

People planned

Workplaces

People present

OFFICE DESIGN DRIVERS FOR

• Type of space: more collaborative spaces.

• More amenities : e.g. cafes, restaurants, wellness, external terraces/roof gardens, etc.

• Density: is levelling out (10m² average, 8-12m² range NIA)

• Increase Occupancy

• More flexibility and variety of spaces

OFFICE DESIGN DRIVERS FOR

• Shell and Core vs Fit-out: shift of spend from Cat A to Cat B/C interiors, increasingly “disposable” interiors

• Technology: increased use of cloud/thin-client and mobile technologies

• User Control: windows and light

• Increased demand for cycling facilities

• Aesthetic trends

BUILDING SPECIFICATION FACTORS IMPACTING

• Perception of space use vs standards set down by building regulations

• Overdesigning buildings

• The rise in demand for soft services

The

PERSPECTIVE OCCUPIER

• Shorter leases

• Flexibility

• Global standards

• Over-designed buildings

• Driving occupancy harder

• Building a sense of community

• Enabling productivity

• Attracting and retaining staff

The

PERSPECTIVE DEVELOPER

Objectives:

• Retain value for as long as possible

• Location and quality of fit-out increasingly prioritised over base build

• Address challenge of selling something you cannot see

• Service provision (eg. wellness, entertainment, concierge)

• Shift from a m² per person charge to a per person/service charge?

The

PERSPECTIVE DESIGN

• Creating meaning from space

• Rise in disposable interiors

• Applying global corp standards in a locally relevant way

• BCO standard relevant for some, not known to others

• Designing for worst case scenario v working buildings harder

• No silver bullet

• Changes are more related to life cycle, demographics and the changing nature of

work

• Challenging traditional attitudes to work, next gen leadership

• It is more corporate than many think

• Demand for more variety of space and soft services

• Greater emphasis on quality of interiors and location

CONCLUSIONS

• Trend towards stripped back aesthetics

• On going demand for flexibility

• Can accommodate growth in existing real estate

• Densities are levelling out while more space is allocated to collaboration

• Demographics and growth are showing changes faster across TMT but these

changes will soon affect all

CONCLUSIONS