Another indicator moving in the right direction is the national office vacancy rate.  During the last quarter of 2011 the overall office vacancy rate dropped to 17.3 percent from 17.6 percent a year earlier, according to New York-based property research firm, Reis Inc.

Technology companies contributed to the improving numbers in the office market by adding headcount.  This growth helped offset contractions in the government and financial services sectors.  Business capitals like New York and Washington, D. C. had the lowest vacancy rates in the fourth quarter and were well below the national average.

Despite the encouraging news, the office sector still needs years of economic prosperity to help restore pre-recession vacancy figures.  “The U.S. office market is rebounding from a loss in occupied space of 137 million square feet – more than the inventory of office building in Boston – from 2008 to 2010,” said Victor Canalog, head of research and economics and Reis.

The reality is landlords have lost some tenants forever.  A growing number of companies have altered their workplace strategies and are committing less to traditional office space.  Telecommuting, office sharing and third party workplace providers are now viable alternatives to conventional office space.  It will be interesting to see how landlords respond.

Another indicator moving in the right direction is the national office vacancy rate.  During the last quarter of 2011 the overall office vacancy rate dropped to 17.3 percent from 17.6 percent a year earlier, according to New York-based property research firm, Reis Inc.

Technology companies contributed to the improving numbers in the office market by adding headcount.  This growth helped offset contractions in the government and financial services sectors.  Business capitals like New York and Washington, D. C. had the lowest vacancy rates in the fourth quarter and were well below the national average.

Despite the encouraging news, the office sector still needs years of economic prosperity to help restore pre-recession vacancy figures.  “The U.S. office market is rebounding from a loss in occupied space of 137 million square feet – more than the inventory of office building in Boston – from 2008 to 2010,” said Victor Canalog, head of research and economics and Reis.

The reality is landlords have lost some tenants forever.  A growing number of companies have altered their workplace strategies and are committing less to traditional office space.  Telecommuting, office sharing and third party workplace providers are now viable alternatives to conventional office space.  It will be interesting to see how landlords respond.

January is the perfect time to audit your workspace, de-clutter and start the new year free of distractions.  Over the course of the past 12 months, we have all collected stuff that slowly begins to transform our workspaces into chaotic piles of periodicals, reports and notes.   A good purge will make you feel better and could boost your productivity as well.  Take the time to shred, electronically file and recycle.  Be sure to recycle paper as well as your mobile devices.

Millions of new technological gadgets were exchanged during the holiday season resulting in millions of obsolete devices.

According to the Environmental Protection Agency (EPA), there are approximately 790 million “junk” mobile devices that are ready to be recycled.   However, a low percentage, only 11 percent of these devices make it to a recycling facility.  As an alternative to recycling, old devices can be donated to charities or soldiers in the armed services, which helps reduce the number of devices making it into our landfills.

So as you clean up and get ready to 2012, take a look around and see if you have anything that can be recycled.

Facebook recently unveiled the company’s high-priced renovations made to its Menlo Park, California campus.  The social networking giant spent $250 million to enhance its one million square foot headquarters.  The objective was to create a space that reflected the culture of the company.  Without question, tech giants like Twitter and Facebook are on a mission to design “creative spaces” that will not only support their growth but provide an environment conducive to creativity for the employees.

According to Dan Fasulo, managing director of Real Capital Analytics, “A new generation of corporate leaders is looking at space-planning as a core part of business to increase productivity and keep people in the office. The old guard looked at it as an expense.”

Tech firms are thinking outside-the-box and transforming stale spaces like corridors, nooks and kitchen areas into places where workers want to linger and collaborate with colleagues.  Major cities in the US are seeing a rising demand for this type of space, including New York, Boston, San Francisco and Seattle.

Obviously, not every company can spend $250 million like Facebook on their office space but it does reinforce the role that office space has in defining a brand.

The next big leap businesses are taking towards boosting productivity is allowing employees to have more autonomy over their work schedules.  New research is out there to support this trend.

A study by two University of Minnesota sociology professors is challenging the traditional 9-to-5 work model.  They examined the impact of a “Results Only Work Environment” (ROWE) on an employee.  This approach empowers workers to set their own schedules while being held to specific deadlines and results.  Their study tracked 659 Best Buy employees based in the company’s Minnesota headquarters who were taking advantage of a more flexible schedule.   The data revealed healthier, more invested workers.   “Participants described both a sense of freedom and greater responsibility for actually accomplishing results,” the study noted.  This is just one example of how the flexibility movement is affecting all aspects of work – for the better.

Do you think your performance would improve if you had more control over your work day? 

This year’s list of cool offices will inspire even the most cynical among us who believe the “office” is obsolete.  The cutting-edge workspaces featured in the magazine prove that the days of the cookie-cutter office cubicle are gone.  21^st Century office design has become more functional, is intended to foster collaboration among workers and is now part of a company’s culture.

Inc.com chose San Francisco-based Obscura Digital as this year’s winner whose office design is extraordinary.

No question, some of the offices that made the list are extreme and most small businesses will never have the money to invest at such a high level.  However, businesses of all sizes can certainly benefit from a work environment that is in step with today’s business needs and has different spaces that can adaptable and flexible.

An article in Entrepreneur revealed one professional’s opinion about office space and the importance of matching office space to a business’ identity.  It’s all about striking the right balance.

“When I go into a start-up burning $300,000 a month, and they’ve got posh offices with great furniture, I immediately think the leadership team’s priorities are in the wrong place,” says Mark Montgomery from a Nashville, Tenn.-based VC firm.  “On the other side, I don’t think you should have your people sitting on cardboard boxes at a card table. It really is a matter of being practical.”

So what should your office space look like?  First and foremost, it should project a professional image for clients and prospects.  It needs to be functional and provide a number of work environments to suit different needs where employees can thrive.

Montgomery looks back at a recent visit to Google’s Mountain View, Calif. headquarters and says the company’s culture is perfectly reflected in their workplace design.  “There were areas where it was small and tight and closed-off, and that was where the coders lived, and that was right next to big, open spaces.  It was just a great mix of how they tend to operate the business.”

Obviously, office space needs to serve a business; but don’t forget it also should be a place where creativity can be limitless and workers want to invest long hours.

5th Avenue in NYC is #2!

A recent report by Jones Lang LaSalle (JLL) confirms the old adage, “location, location, location.”  In the wake of a shaky global economy, JLL’s list of the Top Five Most Expensive Streets for Office Space indicates businesses are willing to pay a premium for tony business addresses.

“Rents for office space in these streets were almost 90 percent higher than the average rents in the same metropolitan area,” said John Sikaitis, Senior Vice President of Research at Jones Lang LaSalle. “Location is everything in real estate and this study proves it.  Despite economic conditions, demand for these prime and often prestigious addresses continues to be high.”

Rounding out the top five street addresses are:

1. Sand Hill Road, Menlo Park, Calif., $114.00 per square foot
2. Fifth Avenue, Midtown Manhattan, New York, $97.00 per square foot
3. Greenwich Avenue, Greenwich, Conn., $90.00 per square foot
4. University Avenue, Silicon Valley, Calif., $83.00 per square foot
5. Pennsylvania Avenue, Washington, DC, $80.00 per square foot

In a separate report, JLL did a half-year assessment on the health of the overall office market.  Nationwide, vacancy numbers were down to 18.1% and the data showed a recovery in demand and activity.  However, the recovery is not happening across the board.  Central business districts are outperforming suburban markets in terms of lower vacancy rates and higher prices per square foot.

How the office market ends the year is uncertain and most experts don’t expect activity to be as strong as the first half of the year.

Today’s modern offices and its workers are on a path of constant transformation.  Many employers, aware of how work patterns have changed due to technology and globalization, are looking to proactively align their office environments with the needs of 21^st century workers in order to maximize performance.

As a result, the potential of office design and its role in impacting productivity and creativity is limitless.   Cost containment is also driving changes in the workplace.  Companies looking to reduce their fixed real estate costs are embracing alternative workplaces like shared office environments, which because of their flexibility; enable businesses to hone in on property costs.  Office fluidity is as important as an agile business plan and designers are stepping up their game.

And, while more open spaces and floor plans are being incorporated to fuel collaboration, it may not be preferred workspace for everyone.  There is a quiet debate brewing about four walls versus an open plan.  So are you the type of person that finds comfort behind four walls or in an open plan?

Let us know where you do your best work.

Researchers at Ohio State University and the National Institute of Mental Health studied white-collar workers at a government facility in the central U.S. and found varying levels of stress for workers who were placed in different environments.  After one year, the scientists found that individuals assigned to work in the older office building, rather than the newer renovated space, were significantly more stressed even when they weren’t at work.

Alternatively, a carefully planned, well-equipped workspace does help people focus and can encourage creativity.

At some point, businesses will go through the process of securing office space.  Here are some things to consider before signing a new agreement:

• Location:  What does the address say about your business?
• The building:  Does it enhance your image?
• Space:  Does the layout work for your business?  Can it be adapted as needs change.

Choosing the right office space is not a decision that should be taken lightly.  “Getting the right office space is so important because your business will have to live with it for the life of a lease,” says Paul Kelly, head of marketing for Morgan Lovell, a UK-based company that does office build outs and design.

Today’s businesses are dealing with so much uncertainty that a solid office plan will give them the competitive edge they need.