"and using open-plan designs can save 20 per cent on construction"
That's all? Doesn't sound right, if you put people in offices each person gets a lot more space, so you'd need a bigger building, etc. I think it's a lot more than 20 percent.
It depends. A startup can move into a big open loft, buy $50 folding tables from Staples which are 2" too high and cause intense pain when you type, and spend nothing.
On the other hand, if you compare the cost of a typical, Class-A cubicle installation to a typical Class-A private office instalation, they're about the same. In both cases you give workers about 100 square feet of personal space; the main difference is whether you build drywall partitions, which is relatively cheap, or buy fancy cubicle systems, which is actually more expensive. The cubicle systems are supposed to be a bargain "in the long run" because you can move or reconfigure them, something which literally never happens in the real world.
Yeah, but you can depreciate cubicle systems, which is something you can't do with drywall.
Curiously, cubes count as office furniture (and hence business machines), which means that you can depreciate it much more efficiently than you can if it was a capital improvement cost, which makes it cheaper on paper. Even better, if you've got some crafty people, you can have someone else own the things and lease the cubes - which is even better from a tax point of view.
While this probably doesn't apply in a startup context, it has a significant impact if you're moving into a larger space and will be paying for the improvements yourself.
The cubicle systems are supposed to be a bargain "in the long run" because you can move or reconfigure them, something which literally never happens in the real world
Agreed. I think they mean on the cost for building the building, not the cost per employee housed in the building.
I.e. a closed-offices building might cost $1 billion and house 10,000 private offices with 10,000 employees, whereas an open-plan-offices building of the same area and volume might cost $800 million and house 50,000 employees in a bunch of open areas with a few meeting rooms peppered around.
That's all? Doesn't sound right, if you put people in offices each person gets a lot more space, so you'd need a bigger building, etc. I think it's a lot more than 20 percent.