A new report shows the amount of office space in the City of London allotted for each worker has been slashed to just 10 sq. m.
The DTZ study found space efficiency drives have led to a 7.3% drop in occupancy costs in the City.
Occupants of office space in the City of London are sure to be feeling the squeeze from the economic downturn – a new DTZ study has found that businesses in the Square Mile have slashed the amount of office space allotted to each employee.
A new space efficiency drive has seen the average workstation size drop from 11 sq m in 2010 to just 10 sq m today. This figure falls in direct contrast to workstation size in New York which currently stands at double the average City figure at 20.9 sq m per worker.
While the average worker in office space in the City of London receives around 10 sq m of office space, the report found employees in the banking and insurance sectors have been worst hit by the cost efficiency initiatives – their average workstation size now stands at just 8 sq m per employee.
In addition to limiting the amount of office space per worker, the report also found that consolidation of office space in the City of London has led to a 7.3% drop in occupancy costs. DTZ report that the average occupancy cost in the City, including maintenance, rent and property taxes, now adds up to around £8720 per workstation.
Commenting on the report, head of occupier research at DTZ Karine Woodford said: “Cost-cutting has returned in a big way, with occupiers awaiting developments in the Eurozone and looking to reduce space per employee. Consolidation has been a theme, particularly within the banking and insurance sectors.“
Another possible reason for the squeeze could be down to competition over available office space in the City of London. The availability of space is limited and companies are prepared to deal with a bit of a squeeze in return for the perfect office in their preferred location.
Although it may not be an ideal solution for employees it seems as though consolidating office space in the City of London is the best way for businesses to deal with the latest economic issues while continuing to trade at a profit.