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Space Case

Underutilizing office space is frustrating and costly, but there are ways to minimize the impact.

October 1, 2009

Long rows of darkened offices and cleared-out cubicles are not only bad for morale, they're bad for the bottom line. Today, many companies find themselves with as much as 50% of their office space going to waste, according to Kevin Farrell, CEO of corporate-real-estate advisory firm Northmarq. Even more frustrating, most are locked into rents that are much higher than current asking prices, as rates in major cities like New York and San Francisco have dropped about 10% in the past year. While it's hard to get out of leases entirely, experts say there are some ways to mitigate the drag of excess space. Read more...

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