Commercial Building Design- A Changing Environment
Posted on Jan 18, 2012 under Uncategorized | No CommentCommercial builders and designers are well aware of one particular fact affecting their professions- The demands of the commercial world are changing, and changing rapidly. The rise of the New Economy is starting to bite deep into the old patterns of building use and demand. Like the end of the industrial economy before it, the old service economy is now becoming much less dependent on location and physical space.
Ironically, the demand for commercial space is itself undergoing a major change. New Economy businesses are much smaller, but they need commercial space to operate, and there are a lot of these businesses. Traders like ecommerce businesses and outsource businesses are also very cost-conscious. Their big commercial advantage is their combination of low overheads and minimal use of traditional business employment structures like administration, which is also often outsourced.
The fact is that the new commercial spaces are going to have to be very different, and much more flexible than their predecessors. The New Economy businesses are communications-based. They need smart buildings and low cost accommodation. These businesses are fussy about how they spend money. They choose their commercial spaces based on quality and cost. They don’t need penthouse offices or massive amounts of retail space.
Demand for Commercial Space in the New Economy
What the New Economy businesses want, however, isn’t that hard to define. They want value. A New Economy commercial space is a place for doing business, not simply operating a business. The typical New Economy business is just a business unit, usually related to sales and production. It’s a “virtual factory”, producing its services.
The New Economy business model is a very streamlined, ultra-professional thing. There are no amateurs in the New Economy, and the bottom line is the top line for any sort of tenancy. Commercial space in the New Economy is a business to business arrangement. The commercial space deal must make financial sense.
New Economy businesses won’t touch the murderous commercial space rates of the past. These businesses can and do operate out of any premises they can find. To attract them to commercial spaces means striking a balance between commercial property costs and their needs.
The Equation- Commercial Space Cost vs. Revenue
The good news for commercial property building companies and designers is that the New Economy businesses do actually need commercial space, and there are a lot of them. They don’t need big “offices”. They do need dedicated communications, computer and server space, and good quality premises with high quality amenities like good modern commercial flooring and similar good environments.
The likely equation for New Economy commercial space, therefore, is:
More tenants, but using less space.
This can work out very well for commercial property owners, if they’re prepared to adjust to a very different environment. The fact that the New Economy businesses don’t need as much space could be a blessing for commercial property owners relying on one or two major tenants for their main revenue. Where they once had twelve tenants, they may have a hundred.
This is a typical New Economy model- Low cost, high revenue. It will work for commercial properties.
Author Bio: Tom Mallet is an Australian freelance writer and journalist. He writes extensively in Australia, Canada, Europe, and the US. He’s published more than 500 articles about various topics, including

