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Make every trip count when looking for office space

We’ve made an interesting discovery analyzing workplace strategy decisions. Clients have been impressed by the ability of Aenvision software to predict the viability of office programming in specific locations before test fits are created.

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The Challenge

A broker, Carl, gave us two office programs as Excel spreadsheets along with a usable area drawing for each. The challenge was to generate test fits to guarantee the locations were suitable for his clients. But Aenvision software identified a potential problem area. Before even attempting to create a test fit, it appeared from the analysis that only one program was going to fit into the proposed location without modification.

When we presented the news to Carl, he smiled and said, “That’s it, that’s the answer!” In Carl’s mind we had, in fact, succeeded. There was no need to waste resources doubling the workload unnecessarily. We had essentially performed a Location Fit Test.

Suitable Location

To understand what happened, it’s important to know that the total usable area for a workplace consists of two parts:

  1. Net Area

  2. Circulation Area.

Net Area is explicitly defined by office programming and represents the sum of the areas of all of the various features in a program, like workstations, conference rooms, coffee bars, etc. We won’t divulge Carl’s programs, but we can illustrate our discovery using a program that consists of six groups of six 25 square foot “open office” features (FIGURE 1). Net area in this case is 900 square feet.

Circulation Area is the total usable area minus the net area, as shown by the hatching in FIGURE 1. Circulation area is dedicated to the movement of staff and accounts for many factors that influence workplace design, like pathway widths and the obstacles posed by structural elements. In FIGURE 1, where the total usable area is 1,250 square feet and the net area is 900 square feet, the circulation area is 350 square feet. Circulation is commonly defined as a percentage of the total usable area, so in this example the circulation is exactly 28%.

FIGURE 1 – SUITABLE LOCATION

FIGURE 1 – SUITABLE LOCATION

“As a rule, net area needs to be 2 to 3 times the circulation area.”

The Significance of Circulation

Circulation provides a measure of ‘suitability’ for an office program when considering the usable area in any specific location. As a rule, for a location to be considered a ‘good fit,’ the net area needs to be approximately 2 to 3 times the circulation area, which means circulation should be roughly between 25% and 33%.

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In FIGURE 1, the net area is 2.57 times the circulation area. In this case, 28% circulation means the location is comfortably within the ‘suitability range,’ but it’s worth noting that circulation values between 30% – 35% are more likely for open plan features of this type.

According to GSA Circulation: Defining and Planning, “When a floor plan is comprised of mostly open workstations, the circulation area will typically be a greater portion of the total usable area than a plan made up of primarily enclosed office spaces.”

Low Circulation

For Carl’s second design option, the net area came too close to the usable area. In ‘low’ circulation conditions like this the office program may either 

  1. Not fit in the location

  2. Create unreasonable challenges for the design team

  3. Require compromises that could adversely affect the business.

FIGURE 2 illustrates a work environment with 11% circulation. Low circulation can mean narrow walkways and a sense of claustrophobia. At the other end of the spectrum are the challenges posed by high circulation.

FIGURE 2 – LOW CIRCULATION

FIGURE 2 – LOW CIRCULATION

High Circulation

We did not get an example of ‘high’ circulation from Carl, but often see office environments where the net area is significantly smaller than the usable area. In cases like this programming will comfortably fit in a location, but resources will likely be wasted on space that is not needed.

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In FIGURE 3 the circulation area is 1.45 times larger than the net area, which is 59% circulation. As a result, this location will have reduced space efficiency. The lease will be almost twice the cost of the same net area shown in FIGURE 1.

While each of the figures here represent an incomplete office environment, FIGURE 3 in particular illustrates that things are not always as they seem. Circulation is generally considered in the aggregate across the entire usable area and may vary in different regions depending on office openness. There may appear to be a comfortable, if not abundant, flow to the circulation in FIGURE 3 that might suit some business cultures, but the added lease costs should be considered as a strategic decision, not the result of miscalculations.

Generally, high circulation means reduced space efficiency and in most cases provides a good opportunity to amend office programming with useful features that can more fully satisfy business cultures, especially in highly desirable locations.

FIGURE 3 – HIGH CIRCULATION

FIGURE 3 – HIGH CIRCULATION

“Added expense from high circulation should be a strategic decision, not miscalculation.”

Location Fit Tests

Having a reliable mechanism to determine the viability of workplace strategy for any specific usable area simplifies location searches. Using circulation analytics, businesses can confidently and quickly narrow the field of location candidates to those with the greatest likelihood for success.

As Carl discovered, location fit tests are possible from workplace strategy decisions, alone. While location fit tests are not test fits and won’t show, for example, who will get a window office, they will allow tenants to save precious time and resources.

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How it Works

There are three basic steps using software for location fit testing: (1) Outline Workplace Strategy, (2) Find Suitable Location Candidates, and (3) Choose Winners. 

1. Outline Workplace Strategy

Office programming is the deliverable from the first phase of the workplace development process. To quickly achieve results, find business type examples from the Aenvision Office Program Database. Define key performance indicators (KPIs) using analytics to dramatically reduce workplace development time. Consider several net area alternatives to accommodate a wide variety of location types, business culture models, and growth projections.

2. Find Suitable Location Candidates

Brokers and landlords often have several office size, location, and cost options for tenants to consider. To find suitable locations, examine circulation in each according to the metrics previously described. Prioritize candidates where circulation is from 23% to 35%, which includes plus and minus 2% margins. Temporarily sideline candidates out of this range knowing that scenario planning can reestablish prospects in highly desirable locations, if needed.

3. Choose Winners

Choosing an ideal location should be a strategic decision, not a compromise based on uncertainty and deadline pressure. Carl has always emphasized starting the process early, not in the last six months of a lease when any leverage a tenant may have is all but gone. Consider making site visits and getting test fits only for suitable locations.

“Scenario planning can reestablish prospects in desirable locations.”

Benefits

Carl discovered that he doesn’t always have to wait for test fits to know whether locations are suitable for his clients or not. He realized that, among other things, location fit testing can save him time and money by eliminating unnecessary site visits and unneeded test fits. 

  • Reliably estimate the viability of office programming for proposed locations without test fit floor plans.

  • Eliminate unnecessary site visits.

  • Accelerate leasing cycles.

  • Dramatically reduce office program development times and provide guarantees that programming satisfies specific business needs.

  • Encourage “what if” thinking to accommodate highly desirable locations using creative office programming alternatives.

Are you interested in learning more about location fit testing? Is your business currently redefining a workplace or planning to soon? Contact us today!

You can find out more about the advantages of data driven workplace strategy in the tutorial on our website.

Do you have experiences of your own to add? Please leave a comment.

Applied AnalyticsHenry Villadiegoworkplace strategy, CRE Brokers, Location Fit Test, Test FitComment