Workspace optimisation could save $243 billion by reducing wasted office space

The power of workspace optimisation has been underlined by research suggesting that businesses in Europe could save up to $243 billion in reduced rental costs alone if their buildings replicated the efficient use of space achieved in a benchmark green building.

Analysis published by Philips Lighting indicates that companies would see vast financial savings, as well as reductions in their carbon footprint, if their buildings were renovated in a way that uses space more effectively.

Naturally the savings are most pronounced where companies are able to identify and reduce a high volume of empty and wasted office space.

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The report highlights Deloitte as a case study, having accomplished with smart technology a 50% reduction in the space required per employee in The Edge building in Amsterdam compared to its previous premises.

Globally, businesses could realise savings of up to $1.5 trillion if offices were optimised in this way. Asia Pacific has a potential $977 billion of reduced annual rent for commercial tenants if buildings were optimised in line with best practice; North America has a potential saving of $220 billion; and Latin America $28 billion.

In addition, the report argues that the potential rent reduction from optimising offices is just a small proportion of the total financial benefit to businesses, which also include lower utility bills and significant gains in the productivity of employees, the largest cost to most businesses.

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