New research finds $1.5 trillion of wasted space in office buildings

New research finds $1.5 trillion of wasted space in office buildings

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Businesses around the world could realize savings of up to $1.5 trillion in reduced rental costs if their office buildings were refurbished to today’s most-efficient standards, according to a new study.

The analysis by Philips Lighting, a global leader in lighting, shows the impact that could be made on rents across the world’s offices if business owners replicated the efficient usage of space achieved in a leading green building, reports London Loves Business

Deloitte, for example, accomplished a 50 percent reduction in the space required per employee in The Edge building in Amsterdam compared to its previous premises, The Chrystal Tower, through effective use of smart technology. This was achieved while improving employee well-being, the report said.

Philips Lighting calls for a doubling of the renovation rate of offices in developed countries to reach 3 percent per year, which it says will be a key factor in reducing emissions and offsetting increased global demand for energy from population growth and urbanization.

Moreover, the research highlights that in addition to reducing their carbon footprint, office tenants could see vast financial savings if their buildings were renovated in a way that uses space more effectively, particularly in buildings with a high number of empty workspaces and meeting rooms at any given time.

The Edge uses smart technology, such as a connected lighting system from Philips Lighting that enables employees to personalize their lighting and temperature at their workspaces via a smartphone app, but also provides building managers with real-time data on how the office is being used to help maximize operational efficiency.

But Philips Lighting says the potential rent reduction from optimizing offices is just a small proportion of the total financial benefit to businesses, which also include lower utility bills and significant gains in the productivity of employees, the largest cost to most businesses. 

“Renovating buildings to make them more energy efficient can have a huge beneficial impact on the environment, and when they are renovated properly to encompass smart technology, the additional financial impact for businesses can also be vast,” said Harry Verhaar, head of global public and government affairs at Philips Lighting.

Topics: Associations / Organizations, Building Owners and Managers, Construction Firms, Consulting - Green & Sustainable Strategies and Solutions, Data Centers - Mission Critical Information Centers, Energy Saving Products, Great Commercial Buildings, Office Buildings, Technology

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