JLL Investigates Open vs. Closed Office Space (Take the Survey Today!)

In the past year, there has been an evident shift nationwide in office space trends.

Businesses large and small have moved from private, traditional office spaces (i.e. your average cubicle) to more open, collaborative spaces. Some made the update for employee recruitment and retention, while others firmly believe that the office space is a reflection of business culture.

While the open office does encourage a more engaged community, not all organizations agree that open spaces are the winning method. One BBC reporter even called the controversy, “the great office space debate.”

Over the past two years, this “debate” has captured the attention of national publications. The New Yorker took a negative stance, saying the open office had negative implications on cognitive performance and health; Fast Company didn’t agree, reporting that employees want more “energy and buzz.”

Here at JLL, it got us to thinking: What office space structures are working best for our local clients and businesses?

So, we are investigating. Instead of assuming, we’d like to hear your firsthand opinion on the workplace debate. JLL’s regional office is conducting a survey for local business professionals in OH, PA & MI. 

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Calling All Local Business Professionals in Ohio, Michigan & Pennsylvania 

We’re hoping to discover what local professionals prefer when it comes to office space. What’s working and what’s not? How has your space shaped culture and collaboration?

From survey results, JLL would also like to identify a few model office spaces that showcase leading trends, and uncover how that space impacts bottom-line business results.

Two lucky survey recipients —located in OH, PA or MI—will each receive a $100 gift card to Amazon.

Take JLL’s survey today! (It will only take 3 minutes of your time.)

Would you like to share your story with us? Please contact us if you’re willing to be interviewed about your office space.

 

NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN.  A PURCHASE WILL NOT INCREASE YOUR CHANCE OF WINNING.   Open only to legal residents of the States of Michigan, Ohio and Pennsylvania, 21+.  Begins at 9:00AM CDT on September 23, 2014 and ends at 9:00PM CDT on October 10, 2014.  Void where prohibited.  Prize: Two (2) $100 Amazon gift card.  ARV: $100.00.  Subject to Official Rules. Sponsor:  Jones Lang LaSalle Americas, Inc., 200 East Randolph Drive, Chicago, Illinois 60601.

How To Determine Your Law Firm’s Real Estate Strategy [VIDEO]

By: Andrew Batson, Senior Research Analyst, JLL Great Lakes Region

Are you a leader in the legal field? Before making a decision about your law firm’s real estate, make sure you’re in the loop on the latest industry trends.

From office layout to city preference, the legal landscape is shifting. Below are a few top trends to consider before structuring your own real estate strategy.

  • Budget Allocation: Most U.S. markets are moving in favor of landlords. Rents continue to increase, and available space will continue to diminish. By 2015, only 7 percent of national markets will be in tenant-favorable territory.
  • Location Strategy: Despite a tight market, we’re still seeing growth for law firms. Hot spots for new offices include Houston, Palo Alto, Miami and Minneapolis. And, firms in gateway markets, like New York, Chicago, Washington DC and Los Angeles, are remaining stable.
  • Space Design: JLL also reported a trend toward more efficient workspaces. The average workspace has condensed—from as much as 900 square feet to as little as 550 square feet.

Check out JLL’s video for a full recap of the latest industry trends, originally reported in JLL’s Law Firm Perspective.

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About the Author

Andrew BatsonAndrew Batson is Senior Research Analyst for the Michigan and Ohio region of Jones Lang LaSalle and is responsible for the publication of quarterly and annual research. Mr. Batson ensures that our clients receive the most thorough, timely, and strategic market information in a way that guides decision making and identifies risks and opportunities. View Andrew’s bio or connect with Andrew on LinkedIn.

Commercial Real Estate News Brief: August 2014

Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

CRE Gets Techy with Hightower 

JLL CRE News BriefIt’s no secret that the commercial real estate (CRE) industry has generally taken a more traditional approach to day-to-day business operations. According to a recent Forbes article, that’s about to change: “It’s time for commercial real estate to get the tech startup treatment, ready or not.”

Enter, Hightower—a tool used by brokers and owners to “manage almost all of the aspects of leasing their buildings,” says TechCrunch.  The Hightower command center makes it easy to track all activity around current negotiations or deals. Plus, there’s an app for on-the-go brokers too.

JLL currently uses Hightower with its clients, among other tech tools.

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Detroit and Pittsburgh Selected Among JLL’s Top High-Tech Hubs [REPORT]

By: Robert Kramp, Vice President and Director of Research, JLL 

In the latest High-Technology Office Outlook, JLL researchers ranked the top 34 high-tech markets in the U.S. Researchers selected cities based on traditional metrics, such as wage growth, intellectual capital, and venture funding—as well as nontraditional metrics, like amenities.

It’s no surprise to see cities like Boston, New York, and Silicon Valley on the list. But, this year, JLL was able to uncover several new emerging tech frontiers—including Detroit.

What’s Happening in High-Tech?

The high-tech industry has played a starring role in the office recovery. Nearly 22 percent of the 65.4 million square feet currently under construction in the United States is in tech-focused markets. And, the industry continues to drive job creation. At the end of July, there were an astounding 3.3 million high-tech positions.

At the center of market recovery, the high-tech industry has—in the process—revolutionized the design of the modern office space. From JLL’s report: 

“Never before has an industry single-handedly shaped the way we work together and how we configure space more than the high-tech industry. This has had broad implications on location choice, investment strategies, and market performance.”

Location, in particular, is key for high-tech success. As companies compete for talent, they look beyond traditional real estate in the hopes of creating a certain lifestyle for employees. Surprisingly, popular high-tech markets aren’t always urban. JLL research found that most high-tech hubs offer a mix of urban and suburban qualities. The suburbs are not dead. In fact, the high-tech industry is bringing more opportunity to markets outside of downtown areas. (See page 14 of the report for details.)

With ongoing innovation, JLL expects the upturn in high-tech to continue throughout 2014.

Detroit & Pittsburgh Make the Cut 

In our region, both Detroit and Pittsburgh made JLL’s list of high-tech hubs. Detroit was given a market score of 28.5, while Pittsburgh was graded at 35.7. According to the report, “This score is not a ranking per se, but it does quantify market position relative to the others based on employment growth, high-tech office employment concentration, market dynamism, innovation, and investment trends.”

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When you think high-tech, you might not think Detroit. But, you’d be wrong.

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JLL Covers Employment Trends in Cincinnati, Cleveland & Columbus

By: Andrew Batson,  Senior Research Analyst, Great Lakes Region

Cleveland has been labeled an up-and-coming city by various national media outlets. Cincinnati’s market is gaining interest from outside investors, like Hines Interest LP. And, in Columbus, industrial space is a hot commodity.

Ohio’s three most popular cities are all making a comeback for different reasons. As a result, things are looking up for the local economies.

Below, I’ve included an overview of employment trends, based on JLL’s most recent Office Employment Updates released in July 2014.

Employment Update: Cincinnati

Cincinnati’s unemployment rate sits at a full percentage point below the national average. And, to put that into perspective, the national average (6.1%) is at “the lowest level since September 2008.

Economists are calling for a 1.4% increase in jobs through the rest of the year.

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Download the full report for details.

Employment Update: Cleveland

Cleveland’s unemployment rate decreased 0.6 percentage points year-over-year (sitting at 6.6%). Most new jobs have been added in the professional and business sector. However, because we are seeing a trend toward condensed spaces, “more job growth will be necessary to spur office demand and absorb the supply of vacant space.”

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Download the full report for details.

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Taking A New Approach To Workplace Productivity (SlideShare)

By: JC Pelusi, Market Leader, Managing Director, JLL 

Leading companies look to the workspace to accelerate employee productivity and happiness. Take Google for example: The tech company’s office in Pittsburgh includes sectioned off cubicles, group meeting areas, a cargo net hammock, an indoor garden and raised catwalks. (Check out all the tour on Business Insider).

While all offices can’t be quite that cool, we can look for ways to make the workplace an efficient, desired destination for employees.

It all starts with workplace strategy. And unfortunately, many businesses miss the mark when it comes to focusing on the right objectives for corporate offices. For example, executives are focusing on how much work is getting done, without necessarily measuring the amount of work that actually has an impact on bottom line success.

In a recent survey, JLL found that 74% said “thinking, talking and brainstorming create the most value,” but only 24% actually spend a majority of their time on these behaviors.

We suggest taking a new approach, which begins with determining what kind of work brings the most value for individual organizations, and then planning an office space to support those activities. 

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Commercial Real Estate News Brief: July 2014

Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Office Recovery Spreads Beyond Gateway Cities  

JLL CRE News BriefThe U.S. office sector hit a significant milestone in the second quarter of 2014, reported GlobeSt.com. Aside from notable activity across big cities, experts reported an upturn in office markets “far beyond the gateway cities.”

John Sikaitis, JLL’s managing director for local markets and office research, explained that some of this positive growth can be attributed to secondary, Midwest markets, including Cincinnati, Cleveland, Columbus and Detroit. Sikatis specifically called out growth opportunities in Detroit:

“Healthcare, tech and creative companies, among others, have set up shop in the CBD seeking to attract all the millennials that want to live and play downtown.”

For an in-depth overview of real estate trends in our region, visit JLL’s Q2 market highlights:

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New SVP Reflects on First Three Months at JLL (Q&A)

In April, JLL was excited to announce that local expert, Bill Leone, would join its Pittsburgh leadership team. With more than 30 years of experience in commercial real estate, Bill was a perfect fit.Bill Leone JLL

As Senior Vice President, Bill specializes in tenant representation, landlord representation and investment sales for both local and national JLL clients. Now that Bill has been with the firm for three months, JLL’s marketing team wanted to check in and see how he’s doing in his new position. We sat down with Bill to ask a few questions about his decision, and ultimately, his outlook as a newcomer to the Pittsburgh team.

Here’s what he had to say.

Q&A with JLL SVP in Pittsburgh, Bill Leone

Q: How did you decide that JLL was the right career choice?

A: There were many factors that weighed into the decision, and over the past three months, I’m convinced that all my reasons for coming to JLL were the right ones.

In Pittsburgh, JLL is thought of not only as the leading service provider, but the people are highly sought after as well. All employees genuinely enjoy what they do, they keep the client’s interest, and they always maintain their integrity.

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Attention Law Firms: Better Space Utilization Cuts Operating Expenses [Infographic]

By: Andrew Batson,  Senior Research Analyst, Great Lakes Region

Like many businesses today, law firms are looking for ways to increase productivity and reduce spend. In 2013, many were able to do so through better, more efficient real estate strategies.

In the 2013 Law Firm Perspective, JLL researchers saw a trend toward smaller spaces. Those that moved last year relocated to offices that were 7.1% smaller. Plus, square footage per worker decreased significantly, ranging from 900 square feet to 550 square feet.

From a cost standpoint, those that move to more modern, and more efficient layouts can shrink their real estate occupancy budget by more than 15%.

Check out JLL’s full graphic for more on workspace trends we’re seeing in the legal space. 

A space to suit law firms – An infographic by the team at JLL

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Commercial Real Estate News Brief: June 2014

Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Workplace Trends: Does Your Space Measure Up? 

JLL CRE News BriefIn a recent article from JLL’s newsroom, Richard Kadzis (@IndustryTracker) posed the question: “Does your workplace give you a competitive edge?”

Employee retention, recruitment, and ultimately, production is linked to workplace structure and culture. Your office can drive (or destroy) your culture. So, back to Richard’s question. Does your space give you an advantage? If not, below are five trends to keep in mind as you rework your own real estate strategy.

1. Gaming at work? Millennials enjoy video games. So, businesses are looking for ways to use high-powered, 3D tech to gamify (and speed up) decision-making.

2. Let workers decide. Given the freedom to decide where they will work (i.e. private vs. collaborative space), employees are happier.

3. The end of command-and-control. The “bottom-up” approach cultivates a sense of community. It’s critical that all employees are given a voice.

4. Soaring demand for health and wellness. Sitting all day does not make for a healthy lifestyle. Companies are looking for ways to proactively encourage movement, like staggered elevators.

5. Return to the city. Young pros are looking to downtown areas for vibrant spaces to live and work.

Read Richard’s full post for details.

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