“We watched how they made plans and decisions and accessed information relative to what was happening to see if they could be strategic in their thinking and we found really dramatic effects even from minor changes to the indoor environment,” Allen said.
When developers build building they are focused on what they can rent them for; and they should be focused as that is how they make money and stay in business. The reality is the cost per square meter for rent is TINY compared to the cost per square meter for salaries and benefits of the employees. Even in city centres like Auckland and Wellington. As the author says “But the salary and benefits of the employees could cost well over $300 per square foot (That’s $4500 per square meter rent). So a big challenge is overcoming the first cost in order to invest in better buildings. If we can design buildings that affect performance … that could make a big change in the company’s bottom line.”
From Capital Realty Wellington Office Market Report the cost is “Quality office suites in the (Wellington) CBD are now leasing at rentals in the $450 – $550+ per square metre per annum range” but salaries and benefits can often exceed $8000 per square meter. 10 times the rental. Once that sinks in a ‘better’ office space that increases productivity by 3% can cost 50% more and be a net WIN for the tenant.
Content by The Harvard Gazette.