Many companies are reevaluating decisions concerning their New York City office space leases as employees gradually return to in-person work. Sure, enterprises of all shapes and sizes are going above and beyond to find office space in New York City with the most modern amenities, bells, and whistles.
However, what they’re also doing is looking for customized build-outs and office layouts tailor-made for the modern worker.
One of the ways they’re doing that is by seeking open office layouts.
Traditional office design is dying in the U.S. Around 70% of offices in the country now have some sort of open-space layout. While open office layouts do not work for everyone, and there are many opinions, an overwhelming majority of companies seek to lease office space with an open design.
Many saw office cubicles as associated with dreariness and blandness for years. As labor evolves and office designs change, open layouts have the opportunity to shape the future of work.
Perhaps they already have.
What are Open Office Layouts?
An open office layout is an office design utilizing a workspace without enclosed spaces such as cubicles, private rooms, or cabins. Although the layout has been familiar since the 1960s in newsrooms, it’s become a staple of the modern office.
Cubicles in 2022 are considered too restrictive, and private offices for executives are deemed too hierarchical. An open office layout aims to break these walls down, literally and figuratively.
Open office layouts foster collaboration between all employees, regardless of their focus and position. Employees can easily approach colleagues and superiors, share ideas, efficiently complete tasks, promote healthy relationships, and encourage innovation.
It also intends to increase convenience and offer more space for amenities such as game rooms and lounges. At the same time, for you as an employer and office tenant, it reduces your build-out costs and day-to-day office expenses.
Why Open Office Layouts?
We briefly ran through the purpose of open office space.
However, this list will give you a better idea of the pros of an open office layout and guide your office space leasing goals.
- More creativity and innovative thinking
- Sounder collaboration among coworkers
- Less hierarchy
- Fewer build-out costs- open-plan offices cost about 20% less than traditional layouts
- Increased physical activity and movement. Employees in open-plan offices are 32% more physically active than those in private offices and 20% more than those in office cubicles
- Greater flexibility
- More efficient- open space offices occupy 3 times less space than other layouts
- Fosters brand identity, culture, and company personality
- Comfort and convenience
Who Do Open Office Layouts Work Best For?
The first step in deciding if an open office layout fits your company is to define if you’re a TAMI or FIRE company.
A TAMI company is a technology, advertising, media, or information company. In contrast, a FIRE company is a financial, insurance, real estate, and legal company.
Although FIRE tenants play a vital role in the return to the office, an open office layout might not work well for them.
On the other hand, TAMI tenants are more creative companies reliant on collaboration and innovation. So an open layout is a better fit.
Specifically, if you are in one of the following industries, perhaps you can make the most of an open office layout:
- Graphic design and visual arts
- Content marketing, media, and news
- Software development
- Contact centers/Customer service
Some of the following statistics add further context as to why leasing office space in New York City with an open layout works so great for these businesses.
- According to Entrepreneur, an open space office boosts work-related email traffic. Employees in open layouts send 56% more business emails.
- The British Psychological Society reveals that implementing an open layout causes email and office messaging activity to surge by 67% and 75%, respectively.
- A survey of 456 employees from 20 US architecture companies revealed that 86.7% work in an open-plan office.
- Harvard Business Review reveals that offices that communicate effectively generate 47% higher profits than competitors. Effective communication is the entire purpose of an open office layout.
- 38% of employees believe that open office space encourages knowledge and sharing of ideas.
Are There Any Drawbacks?
Before considering leasing office space in New York City with an open office layout, consider the drawbacks.
First, a set floor plan with privacy and space allocation requirements may be a better fit if you’re a FIRE company. For instance, an open floor plan will not be a good fit if you’re a lawyer trying to have a confidential discussion with a client.
Additionally, many workers prefer privacy and a closed office environment. An Oxford Economics survey revealed that 68% of people ranked the ability to work with little to no interruption as one of the three most important aspects. That same Oxford Survey revealed that just 7% of respondents prioritized office amenities.
Consider how your younger employees feel, as well. Millennials prioritize a space with fewer distractions, while Gen Z prefers quiet and private spaces within an office. If they work in an open office layout, they might take steps to counter the noise, such as putting on their headphones. Around 56% of employees wear headphones frequently to avoid distractions.
That defeats the entire purpose of a collaborative open office layout.
Conclusion: Where Can You Lease the Best Open Office Layouts in NYC?
Office space in New York City has some of the most innovative open layouts in the world. Take HomeAdvisor’s New York City office space in the middle of Times Square, for instance. It features a lush green terrace with a living wall and hammocks. Inside, there’s enough open space for employees to ride around the office in scooters and play ping pong.
Digital advertising company GumGum just secured Class A boutique New York office space at 1245 Broadway with an innovative open office layout.
Other imaginative open office layouts are available for lease throughout the city too.
Many startups and small businesses need nothing more than a budget side street loft in Midtown’s Garment District with innovative open floor plans. Much of “Silicon Alley” in Midtown South has plenty of creative, airy office spaces with open office layouts tailored to creative tech companies.
Moreover, if you go further south to Greenwich Village and Hudson Square, advertising, media, and tech companies have transformed the neighborhood by leasing open office spaces.
Downtown also has a wide selection of quality 1,500-5,000 SF spaces with open layouts tailor-made for fintech, marketing, and advertising firms.
The bottom line is that open office layouts are not for everyone. But suppose your company fits specific criteria. In that case, leasing office space in New York City with an open layout or converting existing space into an open format is a no-brainer.
Are you curious if an open layout is for you? Do you want to learn more about the best office spaces for lease in New York City? Speak to a reputable New York City commercial broker and tenant representative who understands the landscape.