With a new office development cycle underway and a buoyant market led by tenants seeking a 'flight to quality', businesses are being faced with a spending up big on office fit-out to meet demanding 21st century standards.

Research by property and construction consultants Davis Langdon has shown that two of the biggest drivers affecting building requirements in the immediate future are predicted as staff retention and environmental performance.

In a recent survey by Colliers International, 91 per cent of respondents indicated that workplace design has an impact on business success.

According to Davis Langdon national research manager Rachel Kelloway, this has changed the way business think about their modern workplaces.

“This shift in thinking has come at a time when many companies are paying increased attention to the triple bottom line – the financial social and environmental aspects of their business,” said Ms Kelloway,

“From this, a new generation of office designs are evolving that recognise the need for improved environmental performance and respond to emerging workplace and organisational behaviour.”

Davis Langdon Cost Management associate Ben Wise – co-author of the research paper Workplaces of the Future – said corporations might have to spend $1600 a square metre or more to ensure that they can provide a working environment that will attract and keep top quality staff

”Typically the cost of providing a workplace is the second largest business cost after employees, so it makes commercial sense to link office design to an organisation’s performance,” he said.

“Improved working efficiencies are now being costed to justify increases in fit-out budgets.”

Concepts currently at the forefront of building design include double glazed skin façades providing optional natural ventilation, allowing cleaner, non-recycled air to be passed through the office space.

This concept has the benefit of limiting the prospect of the ‘sick building syndrome’ with its potential to reduce staff sick days and improve productivity.

Traditionally office fit-out has been restricted by the base building design. However as tenants demand more collaborative and open environments, building are being designed to accommodate this trend to open plan indicating the future of office fit-outs.

Rachel Kelloway said building designers were now recognising this and constructing buildings to suit the flexibility desired by prospective tenants and employees.

“This generally means more open, collaborative and inviting work spaces,” she said.

“Office spaces are being designed to allow for flexibility in case of expansion or contraction of existing space, mobility, communication and environment.

“With current demand for office space exceeding supply and the imminent introduction of an emissions trading scheme, adding to the cost of conducting business, organisations will be seeking to improve productivity within the constraints of their environment..

“Moving away from the traditional cellular office to open plan systems can achieve a reduction in greenhouse gas output.

“Although current leading environmental rating systems do not credit such initiatives, the financial impact on businesses not utilising their workspace effectively and efficiently will be increasing burdened by the rising cost of energy.”

Smart employers have already recognised that providing workplace crèches as a part of office fit-outs can set them aside in attracting working mothers to remain in the workforce.

There are also predictions that the aging population will see increased need for people to care for aging relatives at home – which in turn will see more home-based workers.

In workplaces where long hours are the norm, employers are recognising that a ‘rest space’ where employees can intermittently nap can make productivity sense.

Parents of newborns who have returned to work are better armed to cope with stress and deliver better productivity given the opportunity for a lunchtime rest.

The impact of lighting is another important issue, with recognition that light at the blue end of the spectrum increases activity and stimulates, while colours at the warmer end of the spectrum increase concentration, relaxation and help soothe workers.

Aroma and sound are also being used internationally to enliven, invigorate and reduce stress.

Technology has made employees certainly less dependent on the office itself, allowing people to work in a less structured way and become increasingly mobile.

"The role of the office space itself is undergoing its own evolution,” said Ms Kelloway.

"The office has become more of a cultural centre, with workspaces, meeting spaces, private spaces and chill out spaces – everything required for employees to meet and socialise with their associates.

“Futurologists, looking into the nature of employment in 2018, are still predicting an exodus from the traditional workplace.

“However, with offices in most cases being occupied more intensely for longer periods than ever before, it remains to be seen if this is a utopian dream or the future of our workspaces.”

For further information, contact Meaghan Jones at Davis Langdon's Communications Department on +61 3 9933 8800 or email mjones2@davislangdon.com.au