A new forward thinking technology firm
specializes in setting up networks on
proprietary platforms while serving their
The leaders of the technology firm realized that
on any given day over 45% of their employees
were out of the office servicing clients, and
that percentage was increasing every year. The
existing 80,000 sq ft layout of their space
facilitated 100% of their employees.
An alternative and strategic plan was in order
to facilitate the needs of their employees. A
hoteling concept allowed individuals to
reserve, in advance, the type of space required
to complete their in-house tasks. Components of
their existing office were studied and
Conference type 2 for (8-10) people 40'-0 x
20'-0 = 800 sq ft
Conference type 1 for (5-6) people 20'-0 x
20'-0 = 400 sq ft
Team Office for 2-3 people 20'-0 x 15'-0 =
300 sq ft
Individual Office 12'-0 x 10'-0 = 120 sq ft
Workstations 6'-0 x 6'-0 = 36 sq ft
The net rent rate was approximately $19.50 sq ft
with taxes and operations approximately $5.50 sq
ft. The gross rent rate was approximately $25.00
sq ft with an escalation of 3.5%.
The new lease rendered approximately 60% of the
80,000 sq ft or about 48,000 sq ft total.
The savings per year in rent was $800,000 with
the total savings in rent for the term of the
(10) year lease $8,000,000.
Case Study 3