Howard E. Greenberg, SIOR, President of Howard Properties, Ltd. recently moderated a panel entitled “Increasing Occupier Densities Challenge Landlords and Buildings” for the Westchester-Fairfield Chapter of NAIOP.
NAIOP (formerly known as the National Association of Industrial and Office Parks) is a national organization formed in 1967 devoted to education, career and professional development, political activity and research in the field of commercial real estate.
The panel consisted of professionals including a space planner, building owner/manager, land use attorney and a real estate broker representing office tenants, looking at the issue from varied viewpoints. It dealt with the increasingly common trend known as “densification.” Since 1970, office space has shrunk from 500 SF per person to about 175 SF per person. Major corporations, financial services firms and technology companies are increasingly adopting densification in new space designs, and in reconfigurations of existing spaces.
The drivers for the tenant companies are many: cost-cutting, a workforce increasingly comprised of Millennials, increased technology and mobility, and corporate cultures that encourage collaboration in the workplace.
This trend of increasing density has significant impacts on office buildings and their ownership and management. Densely packed office environments require more parking, HVAC system capacity and rest rooms. Elevators are subjected to greatly increased usage. Owners need to address all of these issues, as well as the increased traffic in their parking lots and buildings, the impact on air quality, and the necessity for more intensive day to day property management. It impacts the costs of operations, capital expenditures, and the capacity of the buildings, which can be constrained due to the increasing parking requirements.
Mr. Greenberg has previously moderated or participated in panels for the Building Owners and Managers Association, Westchester County Business Journal, RealShare Westchester and the Westchester County Association. He is available for speaking engagements for corporations, professional and trade organizations on current real estate topics.
Howard Properties, Ltd., which is headquartered in White Plains, NY, specializes in tenant representation and real estate consulting. Founded by veteran commercial broker Howard Greenberg in 1998, Howard Properties has completed space acquisitions, dispositions, lease renegotiations and consulting assignments in 20 states.