•Savings equate to €1.5m ($2M) a year across typical office portfolio in 10 major European capitals
•DTZ Global Occupier Metrics Tool allows occupiers to calculate total occupancy costs and identify saving potential in more than 130 global markets
UK:Companies with a typical portfolio of offices across the major European capitals can save up to 30% by adjusting their space utilisation to local market best practice, according to data from DTZ.
A typical services company occupying offices in the 10 major European capitals for 1,000 employees can save upto $2m a year– which, given cost-to-revenue ratio, equates to an EBITDA increase of around three per cent.
The growth of technology and collaborative working has been a powerful driver of change to the way in which office space is used across Europe, even in countries that have been slow to change historically. The result is that multinational occupiers may find themselves out of sync with local market best practice.
James Maddock, Head of Global Support Services at DTZ, says: “European workplace practices have evolved rapidly in recent times with companies needing fewer employees present in the office at all times. This has a knock-on effect on workplace density and occupiers often retain more space than they actually need.”
Taking time to re-examine the amount of space allocated to each employee can therefore prove a worthwhile exercise for occupiers.
Tamás Polster, Head of Consulting CEMEA at DTZ, explains: “Companies looking to make savings from their estate portfolio usually target rents and can therefore end up moving to less desirable areas in pursuit of reduced operating expenses. However, the biggest cost savings are not necessarily through changing location–in fact, quite the contrary.
“Focusing instead on workplace density allows estate managers to find the right solution to the traditional headache of ‘Cost’ or ‘Talent’. It means they can save money, while staying in or moving to a prime location to retain and attract talent.”
The figures come as DTZ launches its Global Occupier Metrics Tool which it has developed to allow occupiers to calculate total occupancy costs in more than 130 global office and logistics markets. DTZ’s unique web-based tool, providing occupancy cost simulations and more than 100 key performance indicators and benchmarks, can be accessed via: http://occupiermetrics.dtz.com.
The interactive online resource removes the need for occupiers to extract data from a number of sources and then model these based on their own specific standards in order to get meaningful information applicable to their own requirements. It also takes into account local market requirements, such as the fact that in some markets tenants are only charged for useable floor space but in others have to pay for common areas, lifts, structural columns and exterior walls.
Tamás Polster says: “Occupiers need market dynamic and readily accessible information in order to maximise the efficiency and cost effectiveness of their portfolios. However, current public property market information sources are usually strongly oriented towards landlords and also provide a very static view on any given market.
“The Global Occupier Metrics Tool gives occupiers easy online access to relevant information and data tailored to their requirements, removing the need to sift through pages of reports and information from multiple sources. By combining workplace strategy with market information, we’re providing occupiers with valuable insight into their occupancy cost and footprint, helping them to make informed choices.”
DTZ, a UGL company, is a global leader in property services. We provide occupiers and investors around the world with best-in-class, end-to-end property solutions comprised of leasing agency and brokerage, integrated property and facilities management, capital markets, investment and asset management, valuation, building consultancy and project management. In addition, our award winning research and consulting services provide our clients with global and local market knowledge, forecasting and trend analysis to make the best long-term decisions for their continuous success far into the future. DTZ has 47,000 employees including sub-contractors, operating across 217 offices in 52 countries. For further information, visit: www.dtz.com.
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UGL Limited (ASX: UGL) is a global leader in outsourced engineering, property services and asset management and maintenance delivering essential services that sustain and enhance the environment in which we live. UGL comprises three business units including Engineering, Operations & Maintenance and Property providing services across the power, water, rail, resources, transport, communications, defence and property sectors. Headquartered in Sydney, Australia, UGL operates worldwide across 52 countries employing over 56,000 people. For more information, visit: http://www.ugllimited.com/