Rightsizing is about looking at the efficiency of your office space and your new relationship with workplaces (remote and HQ). It’s about identifying ways to scale and optimise the operating cost of your spaces and form a workplace strategy. We do this by adopting an approach to three formats for spaces: 1) Lease Space - Looking at your existing lease arrangements: • Identifying your NEW relationship with spaces. • Outsourcing office functions including remote strategies for meeting rooms, collaborative areas (special projects) and WFH / location hubs (Hub & Spoke). • Space planning and recalibrating your lease agreements (including a review of net internal rented areas). 2) Flexible - Switching to Flexible Spaces with remote strategies. 3) Hybrid - A combination of leasing and Flexible arrangements. Scaling both options and striking the right balance to meet your business model.

Rightsizing We use a Desk Rate for comparing costs between leasing and flexible spaces. The desk rate is an important metric and is arguably more relevant than traditional methods of comparing costs and spaces. A rate per square foot only relates cost for space . It doesn’t tell you if that space is the right fit for your business and if you don’t know if the space is right, how can you tell if you’re getting the best value for your space ? A ‘load’ rate per desk goes further by relating cost to use and function . The distinction is an important one if you want to know how relevant your space will be and how much it will benefit your business. You need to know how to cost the space in order to make informed decisions about how much space you really need. Flexible spaces are ideal because they scale to your business and not the other way round. Moreover, a lease rate per square foot based on net rent will not include the business rates and running costs for that space. The rent may only be 40% of the total cost for your space with the remaining costs being less obvious to the untrained eye. The Desk Rate is the best metric for determining value for space and use, for the following reasons: 1) It is an inclusive cost. 2) It indicates the efficiency of the space. 3) It offers a powerful comparison for alternative options when space planning or considering flexible spaces. The desk rate that we use for leasing represents more than the immediate space around the workstation. It represents all of the spaces that comprise and serve the office environment. We call this the ‘area load’ and we express this as a desk rate to reflect the value of the entire office space and its efficiency. These ‘load’ areas include receptions, meeting rooms, lounges, circulation zones, and amenity spaces. The area load will vary between businesses and will depend on your business model and how you use your space. Because a desk rate relates cost to use, the focus is to optimise the office space to deliver efficiency and value. It also ensures that letting fees are driven DOWN by efficiency and value rather than driven UP by the size of the office or deal ! This means a service driven approach to agency and a better outcome for the customer. Our Rightsizing Service is based on our analysis and appraisal system, which has been carefully calibrated to provide a more rigorous and cost driven assessment. This helps our customers achieve the best value for the right space.

This is the ratio between a full time office worker and the office space. Traditional Leasing involves a quoting rent per square foot (psf). However, the rent only represents ~ 40% of the total cost to the occupier. A rate psf is great if you’re fitting a carpet but it doesn’t really tell you how efficient or appropriate the space is for your business model. This is why we use a method based on a desk rate and area load . We use this method for tailoring the space and estimating ALL COSTS rather than relying on just rent per square foot. We call our method Rightsizing . An explanation of this approach and its benefits can be demonstrated.