November 10, 2013

Office space revolution beginning

Companies looking to use space more efficiently are moving toward ‘untethered’ layouts with shared desks.

By Roger Vincent
Los Angeles Times

When he heard about a shake-up at company headquarters, Mark Sprague got a knot in the pit of his stomach.

click image to enlarge

Employees conduct business inside the CBRE Group headquarters that occupy the top two stories of a 26-story building in downtown Los Angeles. There are no assigned desks, and employees can sit wherever they want.

Photos by Mel Melcon/Los Angeles Times

click image to enlarge

Paul Steitz, right, a senior vice president at the CBRE Group, works inside a focus room at the company’s new headquarters.

It wasn’t his executive job that was at stake at the international real estate brokerage CBRE Group Inc. It was his spacious office of 11 years, his cherished file cabinets and his trophies. They all had to go.

Sprague and everyone else in the company’s 200-person office were given no choice by management. Everyone was to be part of an experiment to create the company’s first completely “untethered” office in the United States, where employees roam freely.

In the airy complex on the top two floors of an office tower, there are no assigned desks or offices. Workers doing similar tasks can join their peers in a “neighborhood” or plop down on a modernist couch. Even Chief Executive Robert Sulentic books an office by the day and shed many of his possessions as part of the big move last month.

“No family pictures, no tokens, no nothing that is mine,” he said.

Improvements in technology have made framed photos outmoded. “I have lots of family pictures on my iPhone,” Sulentic said. “Five years ago, we didn’t have that.”

When the boss leaves the office at night, he takes everything to an assigned locker or home in a briefcase.

The firm’s goal was to reduce rent costs by using its office space more efficiently and to create a template for other CBRE offices around the world.

If it worked, company officials figured, the downtown L.A. office would also be an example for other conservative white-collar firms pondering how to reorganize their workplaces to make them more efficient and appealing to young employees weaned on wireless technology.

Corporations have experimented for years with office-sharing concepts such as “hoteling,” where workers such as accountants who travel frequently “check in” to a desk when they are in the office. But examples of conventional white-collar offices where no one has an assigned desk are rare enough in the U.S. that CBRE had to look to its outposts in Europe for ideas.

After touring CBRE offices in Amsterdam, the company’s head of operations in Los Angeles and Orange counties, Lew Horne, decided to make what workplace consultants call a “free address” office in downtown L.A.

That meant everyone, including senior workers and newly hired assistants, would have to give up their private turf. As Horne was pushing the plan forward over the objections of Sprague and others, the company’s top management decided to take part in the experiment. Headquarters of the Fortune 500 firm were moved to the downtown Los Angeles office.

Individual mobility and the office’s large common areas almost force employees to interact with one another and work together more effectively, Sulentic said. “People get used to communicating aggressively and openly with each other.”

The office makeover was overseen by Laura O’Brien, head of the company’s workplace strategies group. One of her challenges was getting people ready to move by making them scan paper records into a computer or toss them straight into a recycling bin.

“We threw out 900,000 pieces of paper,” she estimated. Each employee is now supposed to have no more than one file drawer for storing paper documents.

Desktop computers were replaced with laptops that can be stored in lockers in the new office. Upon arriving, employees collect their telephone headsets, laptops and key files. They then head to one of 10 “neighborhoods” where employees doing similar tasks such as legal work or property management cluster. Or they can set up in the heart of the office near the front door, which looks like a cross between an upscale hotel lobby and a coffee bar.

(Continued on page 2)

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