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Daily Real Estate News  |  August 24, 2010  |   Businesses Save by Cutting Space Per Worker
Businesses that trimmed staffs during the recession are signing leases for less square footage.

As more businesses go digital, they also are eliminating filing rooms and cutting space for unneeded support personnel. Over the long haul, commercial practitioners say, this could have a significant impact on the office market.

Boston Properties President Doug Linde said in a conference call with analysts last month that their clients – in particular, law firms – were seeking to reduce the amount of space they leased by 10 percent to 15 percent.

President Barack Obama told the heads of federal agencies in June to reduce the cost of their real estate usage by $3 billion by the end of 2012 by consolidating space and increasing the number of people assigned to an office.

Andrew Garnar-Wortzel, a principal at architecture firm Gensler, said many companies plan to reduce the amount of space assigned to an employee to less than 200 square feet. Ten years ago, he said the typical workspace in most firms was 300 square feet.

Source: The Wall Street Journal, Anton Troianovski (08/24/2010)

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