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Houston Falls in Rent Growth Rankings – Maintains Absorption Dominance

August 9, 2015 Leave a comment

Blame stunted oil prices or the tsunami of deliveries: Houston office rent growth fell out of the top 10 in North America, according to new data by Colliers.

But there’s good news: our leasing activity is still among the best on the continent.

 

Houston was fifth on the continent for CBD office rent growth in Q4, with more than 10% year-over-year increases.

That’s dropped considerably; Colliers recorded only 1% growth in Q1 ’15. San Francisco held onto the No. 1 slot, growing rates 14% from Q1 ’14 to Q1 ’15.

On the other hand, Houston’s absorption is still nearly the best in North America.

Last quarter, we soaked up 1.3M SF of office space, only slightly second to Dallas.

That’s not much of a drop from 2014, when we absorbed 6.8M SF, or about 1.7M SF on average each quarter.

 

 

One huge difference from last year is how that absorption is broken down—last quarter, Houston had the fourth-highest CBD absorption in North America.

This quarter, all 1.3M SF of positive net absorption came from the suburbs, and most of it’s from Exxon.

The Bayou City held onto the top slots in new supply and space under construction again—no surprise, since we’re still working through our record pipeline.

In Q1, we delivered 3.5M SF of office space, well above the second-closest city (NYC Midtown, 2.3M SF).

Amid that, our overall vacancy rose to 12.6%. We still have 14.5M SF underway, still nearly double the runner up (Seattle, 8.3M SF).

Check out the Q4 North American comparison here.

https://www.bisnow.com/archives/newsletter/local-real-estate/houston/4810-houston-falls-in-rent-growth-rankings-maintains-absorption-dominance/

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Dear New Tenant

May 27, 2015 Leave a comment

Dear New Tenant…

 


You could just hand your new tenants the keys, but it’s a good idea to put together a welcome kit to help them get settled in. Your locality may also require you to provide them with information about the landlord-tenant relationship and how housing disputes are addressed.
Getting Ready to Move In
Give your tenants the numbers they need to contact service providers to have utilities, telephone, and cable turned on. Let them know how to schedule their move in date and if there are any restrictions on how or when to reserve the elevator. If you require a certificate of insurance from their moving company, let them know the information needed: the amount of coverage, the names of the additional insured, and where the certificate should be sent.
Policies
You may have discussed your  policies with the tenants when they looked at the property before signing the lease, but chances are they won’t remember them. Putting the rules in writing means there won’t be any misunderstanding and will help protect you if there’s any dispute.
Garbage and Recycling
Let the new tenant know how you handles garbage and recycling. The rules vary from one location to the next, and every property manager has their own approach.
Keys
What happens if a tenant loses their key or is locked out? Whether you provide emergency access or the tenant needs to call a locksmith, let them know how to obtain access when they are locked out. Also let tenants know if they are required to provide keys to you when they change the locks or if there is a limit on the number of keys allowed.
Laundry Facilities
If you manage a building and it has shared laundry facilities, let your tenants know how the machines operate, who to call if there is a problem, and the hours the laundry room is open.
Packages
Let tenants know if packages will be held for them, how long they will be held, and how they should claim them.
Common Spaces
Specify the hours and any regulations for using the pool, gym, and similar facilities that may be available to the tenants, and whether these amenities are restricted to residents or can be shared with their guests. If you have facilities like a party room or barbecue grills, let the new tenants know how to reserve them.
Privacy
While tenants have a right to privacy, you have a right to access the rental to make necessary repairs, show the property to prospective tenants when the lease is ending, or in case of emergency. Let tenants know the circumstances in which you’ll need access and how you’ll inform them you were in their home.
Repairs and maintenance
Let tenants know how to report problems with the home or on the property, and how to request repairs.
Rent
Will you provide a reminder each month, or are tenants expected to submit payment without prompting? Do you take credit cards, checks, or cash? Tell your tenants where, when, and how rent payments are to be made.
Add other topics to your welcome pack depending on your location, your property’s features, and your building’s policies. Help your new renters settle in easily and happily, and you’ll increase the chances of turning them into long-term tenants.

– See more at: http://www.landlordstation.com/news/dear-new-tenant/?utm_source=LandlordStation+Newsletter&utm_campaign=18ab9ea6d6-Wednesday_Email_95_21_2015&utm_medium=email&utm_term=0_48fc91a5cf-18ab9ea6d6-80858001#sthash.qvkIKQ31.dpuf

Multifamily Apartment Marketing: Ten Tips for Finding Great Residents

February 16, 2015 Leave a comment

Multifamily Apartment Marketing: Ten Tips for Finding Great Residents

by Ryan Green on December 23, 2014

Here is the scenario: You have a great opportunity to boost your income by introducing your rental property to the real estate market. The research is done, the investments are made, and now a vacancy is primed for amazing tenants to make it their new home. The problem you now face is; how do you find these amazing Residents?

Many landlords, property managers and real estate agents find themselves in this situation time and time again where the rental market competition is fierce.  Statistics have shown that one-third of the population are rental Residents and the common mindset is shifting to this living scenario being a preferable option. Furthermore, Residents are not just the college age demographic with little to no credit. There are nearly as many Residents age 30-65 years old as there are renters who are under the age of 30. This now begs the question; “How can one of these potential applicants become my new, great Resident?

With such a broad span of ages regarding potential Residents, there should be an equally diverse range of methods to attract them to your vacancies.

Here are some of the most successful methods for filling a vacancy:Word of Mouth. This is not the old game of telephone you played as a kid, where you give someone information, they pass it along to someone else, and you hope it returns to you the way you intended. Today, leveraging technology can turn anyone’s voice into the most effective megaphone you can imagine.  Some of the most trustworthy Residents can come from those you know.  Tell everyone you can about your vacancy through every channel at your disposal.

1.  Check your phone contacts and text people who might know a potential applicant.

2. Use every social media network you have at your disposal.  Post the rental advertisement on Facebook, Twitter, Instagram, etc. Be sure to include photos.

3. Incorporate your vacancies into small talk conversations as you go about daily activities. A simple “. . . my day has been going well, I’ve been looking to fill a vacancy. . .” can open the door to finding your new Resident.

4. With any method you use do not forget the old adage, “a picture is worth a thousand words.” Keep multiple photos of your rental property on your cell phone and share the photos any time you promote the vacancy online.

5. Know Your Target Audience.  Is your vacant property close to schools, malls, business parks or other areas of interest in the city? Look at this information and use it to your advantage to find some high-quality applicants. If a college is in the vicinity, post flyers on campus and highlight features of the house that might be attractive to renters who may not have much experience living on their own. Do not just consider advertising in locations close to shopping, as a perk to consumers. Anywhere with a large number of businesses have employees who likely would be excited to have a short commute.

6. Know Your Policies. There is more to filling a vacant rental than just finding someone to occupy it. The ultimate goal is find well qualified renters who will treat the property with care and pay their rent on time. You will want to filter out the riff-raff that can waste your valuable time trying to rent a property for which they are clearly not qualified. Worse, they could end up creating additional, unnecessary costs for the property. To establish a set of clear, concise and most importantly legal rental policies, there are a few steps you can take:

7. Begin by educating yourself on jurisdictional rental laws. These can be found by doing a search online and referencing a state’s government (.gov) guide and the city website. For example, California released an online guide to outline the responsibilities of landlords and tenants.

8. Once you know the essentials of what is legal and illegal when renting a property, the next step should be writing a set of criteria to be consistently applied with each applicant. This should be a ‘go-to’ document that can be easily read by applicants to know whether they are qualified before they request your time to view a property. Common elements of these criteria include: A base credit score for acceptance; status of rental history (prior evictions, poor payment habits, etc.); minimum, provable income per month; and specific criminal convictions that will result in a denial.

9. Make sure policies you create are compliant with federal regulations, set forth by the Fair Housing Act and also state and city regulations. Many of these requirements ensure no discrimination takes place during the application process –both intentional and unintentional.

10. When a clear, concise and legally permissible rental policy is available for applicants, they can decide before they apply whether your vacancy is a viable option. This alone not only protects you, but will help bring in more qualified applicants to view your rental property.

Don’t Schedule ‘Interviews’, Plan ‘Viewings’

It is in our nature as people and within our society to know and trust people. This is a good thing, but when it comes to renting a property it can pose some potential problems. The ‘interview’ stage of filling a vacancy is based on perception and opinion by the renting agent. This type of subjective reasoning can get the best of us in trouble and even eliminate the greatest potential tenants.

If an applicant has found your property, they know your rental policy, and they are still interested in it; the next step is to use methods that can keep all applicants on a level playing field. The most common of these is performing a background check that will provide the same type of non biased searches on all applicants. These checks will provide objective information that can be backed by credible data so the decision does not fall on any kind of ‘gut instinct’ that can lead to an applicant feeling they were discriminated against. This is the time when many sections of your rental policy can be checked off to ensure the applicant is a good fit for the property.

Be Patient and Proactive

Finding great tenants can be a game of patience, but the more pre-planning that goes into it, the better you can expect the end result to be. If you can begin the process the right way, you can build the type of relationship that makes re-listing properties few and far between.

This post is intended to spark your thinking on the topic.  Please add your comments and suggestions. I am always willing to update articles with thoughts, suggestions and new ideas from our loyal readers.

Mr. Wilhoit is the author of two books: How To Read A Rent Roll: A Guide to Understanding Rental Income and Multifamily Insight Vol 1 – How to Acquire Wealth Through Buying the Right Multifamily Assets in the Right Markets.

For 50+ hours of property management audio training, 3 books and live weekly leadership academy–surf here, http://powerhour.com/propertymanagement/booksandcourses.

What can you do if a disabled renter asks to make changes before moving in?

April 13, 2014 Leave a comment

The owner of a property I manage has a prospective tenant who is disabled and in a wheelchair, but the property he wants to lease isn’t ADA compliant. The prospective tenant wants to build a ramp to the front door and widen two bathroom doors. He also wants to install grab bars in the bathroom, which would require reinforcing the walls with blocking between the studs to affix the grab bars. What modifications is the owner required to make to accommodate the tenant?

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If the prospect becomes a tenant, the landlord must reasonably accommodate him to avoid discrimination allegations. In this case, the landlord must permit the accommodations described because they’re reasonable. To protect both parties, the lease that they sign should address who will arrange for the modifications, who will make decisions regarding workmen and materials, and who will pay for the modifications.

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For example, the lease may provide that the tenant will pay the cost either directly to any contractor or by reimbursement to the landlord; or the lease may provide that the landlord will make the modifications in exchange for a concession, such as an increase in the rent based on the cost of the modifications.

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The parties may also agree on whether the property will be restored when the tenant moves out, which should be covered in the lease along with the cost of any restoration. However, any required restoration must be reasonable. A test for reasonableness is whether an ordinary subsequent tenant would be affected by the modifications. For example, the removal of grab bars in the bath and removal of the ramp would be reasonable requirements.

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However, it would be unreasonable for the landlord to require the tenant to remove the blocking for the grab bars, since the reinforced walls will not interfere in any way with the landlord’s or the next tenant’s use and enjoyment of the property. Also, the restoration of wider doors to more narrow doors is likely not to be reasonable if the doors were increased from 24 inches to 30 inches, or something similar.

Reprint from Texasrealestate.com   Texas Association of Realtors

5 steps to stop sloppy screening

March 31, 2014 Leave a comment

Choosing a bad tenant isn’t the only trouble you’ll face if you don’t follow the rules.

If you handle lease applicants for rental properties, you should know the important steps to follow that ensure your compliance with applicable rules and regulations. Following these measures to the letter will make your job—and your client’s life—as stress-free as possible.

What to have in place before you accept applications

The Texas Property Code requires that two items be made available to applicants:

  1. The landlord’s tenant-selection criteria
  2. A list of reasons for which an application may be denied.

The tenant-selection criteria may include the applicant’s criminal history, previous rental history, current income, or credit history—any of which may be grounds for rejection if a negative outcome is found. The Texas Property Code also states that an applicant’s failure to provide accurate or complete information on the application form can result in rejection.

In addition, state law requires that a real estate brokerage office that performs leasing or property management services must have a privacy policy in place and must make the policy available to prospective tenants upon request.

Application basics When a prospective tenant is interested in leasing a landlord’s rental property, give the applicant a copy of the Residential Lease Application (TAR form 2003) to complete, sign, and return.

Use the information gathered from the application to determine whether the applicant meets the landlord’s tenant requirements and whether the applicant poses any risk (e.g., criminal history or poor rental history).

A signed application authorizes you as the landlord’s agent to obtain certain types of background information, such as credit reports or employment history.

The applicant should also sign an acknowledgement indicating that you made the printed tenant-selection criteria available. The Residential Lease Application contains the necessary language to meet this requirement and a place for the applicant’s signature acknowledging that he has had the opportunity to review the tenant-selection criteria.

You may collect an application fee from potential tenants to offset the cost of conducting a screening. Applicants should understand that this money will not be refunded, even if their application is rejected.

The landlord may also require an application deposit from a prospective tenant in connection with a rental application. Under the Texas Property Code, this money is refundable to the applicant if he is rejected as a tenant.

Checking an applicant’s credit Once a prospective tenant has provided a signed lease application, you may wish to check his credit to determine if he meets the tenant-selection criteria. The federal Fair Credit Reporting Act (FCRA) requires you to have an applicant’s written permission to run a credit report. The Residential Lease Application (TAR form 2003) gives you this permission.

If the applicant’s credit check turns up an unfavorable result, the landlord may wish to reject his application or may instruct you to take steps to guard against potential risk. Any action that is unfavorable to the interests of an applicant is known as an “adverse action.” Examples of adverse actions include:

  • Denying an application
  • Requiring a co-signer on the lease
  • Requiring a deposit that wouldn’t be required for another applicant
  • Requiring a larger deposit that might not be required for another applicant
  • Raising the rent to a higher amount than for another applicant.

If the landlord rejects an applicant because of information in his credit report, including his credit score, you must provide certain information to him as required by the Fair Credit Reporting Act. The Adverse Action Notice and Credit Score Disclosure (TAR form 2212) meets the FCRA’s requirements.

Background-check don’ts You should discuss the findings of any background check generally with the landlord; however, you should be aware of two don’ts:

  • Don’t give the applicant’s credit report to the landlord without permission from the applicant and the credit-reporting agency that furnished the report.
  • Don’t give the application to the landlord without either removing the applicant’s Social Security number or ensuring that the landlord has a privacy policy in place and that the landlord is aware of the required disposal method.

An applicant must be notified of whether he has been accepted or rejected within seven days from the time the completed application is received or from the time a deposit is received if an application wasn’t provided. According to the Texas Property Code, an applicant will be deemed rejected if he isn’t notified of his status within this seven-day period.

Approving or rejecting an applicant If the applicant is accepted as a tenant, he may be notified within the seven-day period by phone or mail. Notices sent by mail must be postmarked on or before the end of the seven-day period. If the date of required notice of acceptance is a Saturday, Sunday, or federal holiday, this deadline is extended to the next business day.

Once the prospective tenant is notified, he and the landlord can enter into a lease agreement, such as the Residential Lease (TAR form 2001).

If a prospective tenant is rejected because of his credit report or credit score, you should use the Adverse Action Notice and Credit Score Disclosure (TAR form 2212) to notify the applicant of the decision. If a prospective tenant is rejected because he failed to meet one or more of the tenant-selection criteria, you may use this form as well.

Remember that you may have to refund the applicant’s application fee, depending on whether you made the tenant-selection criteria available. In either case, refund any application deposit to a rejected applicant.

If the applicant is rejected for any other lawful purpose, you or the landlord may notify him in writing or orally. However, if you or the landlord do not give him notice of acceptance on or before the seventh day after he submits a completed rental application or the seventh day after the landlord accepts an application deposit, the applicant will be considered rejected.

Reprint from TexasRealEstate.com   The Texas Assn. of Realtors

Tenant selection criteria Form

January 17, 2014 Leave a comment

Texas Property Code Section 92.3515 requires you to make available to a residential tenancy applicant a copy of your printed tenant selection criteria and the grounds for which a rental application may be denied.

While you do not have to provide a copy of the policy every time you receive an application, you are required to have a copy of your selection criteria available in the event an applicant requests it.

Failure to make a copy of the tenant selection criteria available to an applicant who is rejected could result in the landlord’s forfeiture of any application fee and application deposit.

Tenant Selection Criteria Form – disclosure – click here

Sec. 92.3515.  NOTICE OF ELIGIBILITY REQUIREMENTS.  (a)  At the time an applicant is provided with a rental application, the landlord shall make available to the applicant printed notice of the landlord’s tenant selection criteria and the grounds for which the rental application may be denied, including the applicant’s:

(1)  criminal history;

(2)  previous rental history;

(3)  current income;

(4)  credit history; or

(5)  failure to provide accurate or complete information on the application form.

(b)  If the landlord makes the notice available under Subsection (a), the applicant shall sign an acknowledgment indicating the notice was made available.  If the acknowledgment is not signed, there is a rebuttable presumption that the notice was not made available to the applicant.

(c)  The acknowledgment required by Subsection (b) must include a statement substantively equivalent to the following: “Signing this acknowledgment indicates that you have had the opportunity to review the landlord’s tenant selection criteria.  The tenant selection criteria may include factors such as criminal history, credit history, current income, and rental history.  If you do not meet the selection criteria, or if you provide inaccurate or incomplete information, your application may be rejected and your application fee will not be refunded.”

(d)  The acknowledgment may be part of the rental application if the notice is underlined or in bold print.

(e)  If the landlord rejects an applicant and the landlord has not made the notice required by Subsection (a) available, the landlord shall return the application fee and any application deposit.

(f)  If an applicant requests a landlord to mail a refund of the applicant’s application fee to the applicant, the landlord shall mail the refund check to the applicant at the address furnished by the applicant.

Added by Acts 2007, 80th Leg., R.S., Ch. 917, Sec. 8, eff. January 1, 2008.

Sec. 92.352.  REJECTION OF APPLICANT.  (a)  The applicant is deemed rejected by the landlord if the landlord does not give notice of acceptance of the applicant on or before the seventh day after the:

(1)  date the applicant submits a completed rental application to the landlord on an application form furnished by the landlord;  or

(2)  date the landlord accepts an application deposit if the landlord does not furnish the applicant an application form.

(b)  A landlord’s rejection of one co-applicant shall be deemed as a rejection of all co-applicants.

Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996.  Renumbered from Property Code Sec. 92.332 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.

Sec. 92.353.  PROCEDURES FOR NOTICE OR REFUND.  (a)  Except as provided in Subsection (b), a landlord is presumed to have given notice of an applicant’s acceptance or rejection if the notice is by:

(1)  telephone to the applicant, co-applicant, or a person living with the applicant or co-applicant on or before the required date;  or

(2)  United States mail, addressed to the applicant and postmarked on or before the required date.

(b)  If a rental applicant requests that any acceptance of the applicant or any refund of the applicant’s application deposit be mailed to the applicant, the landlord must mail the refund check to the applicant at the address furnished by the applicant.

(c)  If the date of required notice of acceptance or required refund of an application deposit is a Saturday, Sunday, or state or federal holiday, the required date shall be extended to the end of the next day following the Saturday, Sunday, or holiday.

Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996.  Renumbered from Property Code Sec. 92.333 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.

Sec. 92.354.  LIABILITY OF LANDLORD.  A landlord who in bad faith fails to refund an application fee or deposit in violation of this subchapter is liable for an amount equal to the sum of $100, three times the amount wrongfully retained, and the applicant’s reasonable attorney’s fees.

Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996.  Renumbered from Property Code Sec. 92.334 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 917, Sec. 9, eff. January 1, 2008.

Sec. 92.355.  WAIVER.  A provision of a rental application that purports to waive a right or exempt a party from a liability or duty under this subchapter is void.

Added by Acts 2007, 80th Leg., R.S., Ch. 917, Sec. 10, eff. January 1, 2008.

Will Co-Working Erode Demand for Office Space

May 30, 2013 Leave a comment

Co-working—the latest trend in workplace strategies—could be the catalyst that shakes up the staid office market.

The tradition of “one worker, one desk” may soon be a thing of the past. Companies across industries are eliminating offices, private work stations and cubicles in favor of team-oriented and shared workspaces.

“I think there is going to be a dramatic shift in how we use space,” says Chris Zlocki, managing director of strategy and innovation for corporate solutions at Colliers International in Denver.

Despite employees’ ability to work from anywhere, companies, especially knowledge-based companies, are refocusing on the importance of collaboration to foster ideas and innovation. Yahoo brought the issue front and center when it announced earlier this year that it would call its remote workers back to its company offices. Other tech companies, such as Google and Apple, have thrived on the mantra that “innovation doesn’t happen in isolation,” says Richard Kadzis, a vice president at CoreNet Global, an Atlanta-based association for corporate real estate professionals.

Businesses across industries are opting for office space that allows for greater interaction among workers. For example, management consulting firm Accenture completely revamped its offices in Minneapolis last year, replacing cubicles with a flexible floor plan that includes shared workspaces. It also increased its number of meeting rooms and added a café, all to increase collaboration between its employees. In the process, the firm downsized its Minneapolis office from about 70,000 sq. ft. to 41,000 sq. ft.

Such examples raise questions as to whether this new trend has staying power, and if so, how it will impact office tenants’ real estate decisions. Industry data shows that the physical footprint for office workers is shrinking. The amount of dedicated space per office worker has dropped from about 225 sq. ft. in 2010 to 176 sq. ft. in 2012, according to CoreNet Global.

“We have seen a trend toward what companies call a smaller, but smarter workplace,” says Kadzis.

In addition, a 2012 CoreNet Global survey of corporate real estate executives shows that companies are continuing to push for greater space efficiency. Overall, 40 percent of survey respondents said they expect the amount of dedicated space per office worker to be 100 sq. ft. or less in five years, while 29 percent expect the amount of space per worker to be less than 150 sq. ft.

Morphing office space

The shrinking office footprint supports two key trends. First, companies are striving to use real estate more efficiently to get an immediate bottom line impact. Second, it also reflects the shift in how companies are utilizing space differently to accommodate changing work patterns.

Certainly, companies have been testing alternative workplace strategies for years. Concepts such as hoteling, hot desks and home-based workers have been used for more than two decades. Yet to date, those trends have hardly revolutionized the office industry. What is different now is that advances in technology with mobile devices and cloud computing are enabling more flexibility in how and where people work. People no longer need to be tethered to their desks, notes Zlocki.

Shifting demographics also are accelerating change as companies work to accommodate a younger generation of workers. Gen Y, or the new Millennials as this group of teens, 20- and 30-somethings is often called, is a more tech-savvy, socially-centered workforce that has grown up with the concept of using technology to solve problems. Gen Y is not just driving the co-working trend, but they are also fueling a shift to a distributed work day. Unlike the traditional nine-to-five worker, younger professionals are distributing their work over the whole day, from perhaps 7 a.m. to 10 p.m. and more of that work is being done outside the office. The more flexible work schedule and telecommuting means that the number of people in an office varies more than if everyone was on the same schedule. This facilitates the sharing of space. Those trends are all influencing the continued evolution in the way people work, and ultimately the shift in demand for the type and amount of work space companies require, Zlocki adds. Those changes are creating a “triple bottom line effect,” where companies have the opportunity to use their real estate more efficiently, as well as improving the work culture and the work environment, he adds.

Staying connected

Co-working is creating demand for alternative workplaces―both in corporate settings and at third-party facilities. For example, workers can use apps such as Liquid Space to find a drop-in location. “You might not be working with anyone from your company, but you will be with like-minded people who also want to be with other people and talk about what they’re doing,” says Kadzis.

Small businesses and entrepreneurs are finding ways to connect with other workers at collaborative business centers such as Mission 50 Workspaces in Hoboken, N.J. Founder Gregg Dell’Aquila launched the collaborative business center about 15 months ago as a pilot program. The 3,000-sq.-ft. center offers a mix of open work stations and common area space along with private “phone booths.” Mission 50 currently has some 160 members who check in at different times to use the shared workspaces. The project has been so successful that Mission 50 is looking for additional space to open one or two new locations this year.

In addition, co-working is impacting how office space is configured. For example, individual workstations might have room for a bump-out where workers can have space for a one-on-one meeting, or the configuration might shift with four desks set up with a two-top or a four-top meeting space. Between different work groups, there is more focus on creating break-out spaces or cafés, or more informal areas that can be used as meeting spaces.

In addition, companies are adding more conference rooms of varying sizes, ranging from large team rooms to “huddle rooms” that can accommodate smaller groups to allow more meetings to take place within an office. “Collaborative work environments are where the work spaces of today and tomorrow are headed, but with a cautionary note,” says Kadzis.

Companies still need to strike a balance and not build too much collaborative space. It is still important to have dedicated space where people can have privacy to make phone calls or be able to concentrate on “heads-down” tasks without the distraction of other workers, he adds.

Reprint from nreionline.com          Beth Mattson-Teig

Categories: Leasing, Uncategorized
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