Density

Today we’re launching the State of Tech Industry Workplaces, together with international design practice Hassell. This next edition of our Workplace Benchmark research series examines utilization, RTO policy and design by looking at a full year’s usage of 1.4M sqft of tech workspaces. Once the vanguard of workplace innovation, tech workplaces are still catching up to new work patterns. Catch our three headline findings in this 1-minute video with Density Analyst, Darshan Shah, AIA, EIT. Request the report now to get ahead of the curve. https://hubs.la/Q02BK0Zb0

Let's talk RTO policies. You'd think enforcing a 3-day in-office hybrid policy would significantly boost workplace utilization versus giving employees full flexibility. But the data shows only a 17% increase in peak utilization, from 29% to 46%. This suggests RTO mandates aren't being consistently followed or may be impacting workplace presence less than expected. Get the full findings in the State of the Tech Workplace Report: https://hubs.la/Q02DWMkq0

Of course employees choose meeting rooms primarily to enable their collaborative work. But let's face it - when you have multiple options, the little perks can sway your decision. ⚖

Flexible policies may foster in-office face time. Density and Hassell found that employees who get to choose their working location spend 48% of their in-office time in meeting rooms, roughly double the time that employees with 2 days a week (23%) and 3 days a week (29%) hybrid policies spend. Policies influence more than just how much time people spend in an office—they also influence the activities they do there. Ideally, workplace policies and design should be in harmony. However, as this study showed, and as Density has seen across its network, workplaces are still struggling to catch up to the wholesale reimagining of where and how work gets done. Get the full findings in the State of the Tech Workplace: https://hubs.la/Q02CjPQy0

Cheers to Bandit's new digs - looks like the flagship is off to a running start 👟. Excited that we get to measure all that action!

If the office was a business, it would be out of business: - In 2023, 50% of offices sat empty 7+ hours a day! (Source: Density) - Since March 2020, approx. 200 million square feet of vacancy has hit the market (Source: CoStar Group) - Office REIT stock performance is in the crapper Companies needed way less space pre-covid, but it was impossible to predict how much faster covid would correct the market. North America’s hottest pre-covid submarket (Toronto’s Entertainment District) tells the story for us: - Vacancy Rate in March 2020: 3.4% - Vacancy Rate in April 2024: 28.4% (Source: CBRE Canada) Blaming this spike in vacancy on the economy is asinine—it’s because of a revolution surrounding workplace flexibility. Big companies are more awake but still less awake than young companies because: - Many big brands are talent magnets regardless of poorly executed approaches to hybrid work - Entrenched cognitive biases and sunk costs are at play - Real estate costs don’t matter as much Most are operating their offices in a binary way (ppl come in on Tuesdays and Thursdays…otherwise, they sit vacant). So yeah, if the office was a business, it would be busto… If going to the office had to be profitable…it would require better coordination...not mandates. The size of plane an airline flies is based on assessing the number of ppl who have proven they want to fly CONSISTENTLY to that place. What is the consistent demand for an office? And how do we better coordinate teams so the office is always getting used? It’s time for the office to shift from a hobby to an actual business… Agree?

Density is at Realcomm Events #IBCon2024 this week to show you the money 💲💲💲 https://hubs.la/Q02CLwN90

When it comes to planning office space, desk sharing ratios are the magic number, right? 🚫 Wrong. In the new world of hybrid work, there’s a new secret sauce of smart occupancy planning. Spoiler alert: It's NOT about cramming more people into less space. It's about creating a workspace that's: ✔️ Efficient ✔️ Collaborative ✔️ Actually used (gasp!) Want to know how some companies are saving MILLIONS 💰without turning their offices into sardine cans? 🐟 👉 https://hubs.la/Q02CHr4d0 #FutureOfWork #OccupancyPlanning

Once known for their innovative offices, tech workplaces are still catching up to new work patterns. In fact, Density and Hassell found that even on peak days 66% of office space is going unused, wasting up to $40M per year on underused space. Get the full findings in our State of the Tech Workplace report: https://hubs.la/Q02Ck0Dx0

In my role at Density, I get to work with some of the most innovative companies in the world and share insights that guide their workplace strategies. Many of these companies are leaders in the tech industry, which has been known for being pioneers of workplace design. With new ways of working, are tech companies’ offices still on the cutting edge? That's what we wanted to find out in our new Workplace Benchmark report, The State of Tech Workplaces. Our team at Density had the privilege of partnering with the international design practice Hassell, and I got to team up with my former colleague Daniel Davis. We examined a full year of data across 1.4 million square feet of tech office space. The headline: tech companies are struggling to keep up with new work patterns just like everyone else. Our key findings uncovered some startling realities about today's tech workplace utilization: ➡ Average peak utilization in tech offices doesn't exceed 34%, wasting up to $40 million per year on underused space. ➡ The impact of return to office (RTO) policy isn't as significant as expected. Going from an "employee decides" policy to a mandatory 3-day in-office hybrid policy only increased peak utilization by 17%. ➡ Employees spending twice as much time in meeting rooms when they can choose to come in, which may suggest a preference for in-person collaboration. ➡ An over-optimization for open offices has led to a shortage of spaces supporting virtual meetings and focused work. As thought leaders, the tech industry is poised to solve for this workplace utilization crisis plaguing offices globally. With annual rent costs exceeding $8,000 per employee and buildings accounting for 39% of CO2 emissions, the financial and environmental tolls are staggering. The opportunity? Rebooting workplaces for the realities of hybrid work - giving employees the spaces they need for virtual meetings, collaboration, and focused work. I'm excited to discuss the findings further and hear perspectives from the community. Download our State of Tech Workplaces report for the full findings: https://hubs.la/Q02BC8Zg0