WiFi Could Change the Need for Office Space

With its introduction in the 1980s, business designers foresaw the personal computer as a way to reduce the overall costs and create more efficiency for businesses. The subsequent creation of floppy disks, followed by compact disks, caused the same designers to predict the disappearance of libraries and large storage facilities. The arrival of desktop-sized servers and new telecommunication systems marked lowered need for a large computer or telephone facility in an office.

To a commercial real estate professional, these breakthroughs translate into less demand for office space. The personal computer minimized the need for secretarial pools, as individuals began processing documents with their own computers. Information on disks replaced law libraries and large file rooms. This affected the size of offices that businesses require. Offices no longer needed seating areas for support staff to take dictation or long tables for large files.

At present, the average worker occupies approximately 200 square feet. At an average rate of $2.00 per foot, each employee’s space costs $400.00 every month. With the expense of employee services added in, this cost quickly triples. An average desk at a commercial real estate office in a major market city costs from $50,000 to $80,000 per year.

In the late 1980s, a number of concepts were introduced that eliminated permanent work areas. The first of these was hoteling. Rather than a permanent desk, workers were given a community workspace to plug in their computer and work. Advocates of this concept believed that utilizing each workspace with perpetual use created efficiency and cost reduction. The second concept was telecommuting. Now a frequently used buzzword, telecommuting was a dream come true for many employees. Working from home with infrequent trips to the office lessened time spent commuting and gave extra time to spend with families. It also opened up previously unfeasible jobs to those who live in remote areas. The third concept was the advent of “mobile” or “virtual” offices. This concept used the portable computer to allow workspaces to exist anywhere.

These concepts never had the impact on office space need that many had envisioned. Managers found that employees needed a physical connection to their companies. Without daily personal interaction, employees could disregard the company’s objectives. A workspace gives an employee a place to hang their hat – a space to make their own. More problems existed with mobile computing. A hard wire connection was required for mobility and connection speeds were slow. A remote connection to an office was not realistic because they were difficult to find. But these problems may now be solved with the introduction of WiFi and other wireless networks. The impact on office space needs could be dramatic.

WiFi enhances your laptop, PDA and phone with a T1 connection. There is no need for a hardwire connection. True wireless connectivity with increased speed is now possible. But how is communication with fellow employees possible? Apple recently launched Panther, a new operating system, which includes iChat AV. This program enables people to communicate visually, utilizing a web cam called iSight, and vocally. Previous attempts to create similar products were disadvantaged by slow connectivity. With WiFi, static faces on the screen will be replaced with clear connections to each iChat AV viewer. Conferences through online services like WebEx will be conventional for mobile workers. With the push of a button, visual connections between workers, managers, salespeople and clients will become a reality. This technology will limit the difficulties of finding people within the office as well. Personal contact will increase in and out of the office. A person’s location won’t matter because the mode of communication will remain the same.

This poses a threat to the need for office space. Sales offices could be reduced to a series of conference rooms and permanent workspaces may be replaced by the hoteling concept. Accounting and law firms may effect similar office planning strategies to cut costs and improve efficiency. On the other hand, new opportunities could result in the form of new businesses that meet the demand of incorporating these new technologies. As a result, the office will be revolutionized in the same way that the personal computer did upon its entry into the workforce.