Office Space per Worker: Evidence from Four European Markets

Most analyses of future office demand rely on employment forecasts, taking office space per worker as given. This study analyses the determinants of office space per worker. After listing a number of hypotheses, an economic explanation is developed. Office space per worker is perceived as a function of rent, expected growth of the firm and uncertainty of this growth, the lease period, substitution possibilities on the market and search and adjustment costs. Survey data from European office markets are analyzed vis a vis the hypotheses.