"There is a major change underway in how office space users are looking at their future office space needs. This is a long term trend that is going to have a significant impact on office space owners, users, and investors." – Herb Tousley, UST
Minneapolis, Minnesota (PRWEB) December 30, 2013
Minneapolis / St Paul real estate data shows that the physical footprint for office workers is shrinking due to the shift in demand for the type and amount of office work space. Accordingly, per-employee office space is likely to continue shrinking, as cloud computing evolves, which in turn impacts residential home office use. The commercial real estate office space trend to accommodate teleworkers and its implications on residential homes, indicates that dedicating space for a home office may become more frequent.
"The Federal Government Telework Report of 2011 rated Minneapolis housing as #1 nationally for the number of residents who utilize a home office as their primary place of work," states Jenna Thuening, owner of Home Destination. "Whether it is a business owner whose primary office is at home or an employee with extra work after office hours, a home office is especially convenient when weather makes commuting challenging. We see more buyers indicating preference for a home office."
The Shenehon Center for Real Estate at the University of St. Thomas (UST) Opus College of Business recently highlighted a key Minneapolis trend in real estate office space use which is impacting residential housing. The Changing Office Trends Hold Major Implications for Future Office Demand December 26, 2013 article says the real estate industry should start taking a hard look at changes occurring in the office market. UST believes the sift to higher use of home offices and the downsizing of business office real estate space is relevant today in shaping Minneapolis residential housing trends as well as commercial real estate.
UST cites lead 2013 research from Norm G. Miller, PhD, professor at University of San Diego, Burnham-Moores, Center for Real Estate. Miller and other housing experts predict that the trend toward more-efficient use of office space will continue to trend towards using home office spaces and community officing. "I see office demand at the user level falling by about 20% over the next decade. This is actually a more conservative number than I have seen from a lot of other analysts," commented Cassidy Turley’s Garrick Brown. Their research makes a distinction between long-term business trends of using less office space per worker, and overall accommodations supporting work completed from a home office.
Winter 2010 began a focus on the direct benefits that telework delivers to improve continuity of operations (COOP) in the Metropolitan Washington, DC area when a lengthy snowstorm forced the closure of many Federal Government offices for a costly week. Consequently, the U.S. Office of Personnel Management evaluated the impact of businesses able to continue working via telework during and after the storm. It determined that employes who could work from home when commuting was impossible saved their agencies approximately $30 million a day that otherwise would have been lost productivity. This event triggered a White House review of metalworking's merits and the passage into law of the Telework Enhancement Act of 2010.
Colliers International released the Q3 2013 Minneapolis - St. Paul Office Market Report revealing Minneapolis office rate absorption rates, and how longer-term office space demand impacts employer engagement of supporting employment from a home office and office sharing practices. Conducted by CoreNet Global the survey found that the average space per office worker has dropped globally to no more than 150 square feet from 225 square feet in 2010. Many real estate professionals expect the typical ratio to drop to 100 square feet or less per worker within five years.
"More Twin Cities businesses are adapting to tech models that work both for maximizing business office space, support employee and freelances ease to utilize a home office, and reduce travel time," adds Thuening. "While not every area of business or trade is moving this direction, many for pure logistics sake, for others it is ideal. Overall, it is impacting the Minneapolis housing trend of increasing numbers of homeowners who seek space for a home office."
Home Destination, a Minneapolis residential Realtor, services homebuyers and sellers of Twin Cities real estate, and offers resources to make well-informed housing decisions. Call 612-396-7832.