3. Office fitout guidelines and benchmarks

Fitout density: The definition of workplace density is the total net lettable area (NLA) divided by the total number of work points in the office. Work points can include traditional desk space, quiet rooms, collaborative working areas, and offices. A target benchmark for workplace density has been set and is applicable to each separate office tenancy. A tenancy can consist of a part floor, a whole floor or several floors in a building. The current office accommodation workplace fitout-density benchmark target for agencies is contained in the supporting reference office accommodation workspace and fitout standards.

Occupancy density: The definition of workplace occupancy density is the total net lettable area (NLA) divided by the total number of full time equivalent (FTE) staff. A target benchmark for workplace occupancy density has been set and is applicable to each separate office tenancy. A tenancy can consist of a part floor, a whole floor or several floors in a building. The current office accommodation workplace occupancy density benchmark target for agencies is contained in the supporting reference office accommodation workspace and fitout standards.

There are two basic cost benchmark targets:

1. Maximum cost rate for fitout per square metre. This rate is calculated as:

   Maximum cost rate for fitout x the square metres of space to be fitted out = maximum fitout cost per square metre.

   This rate includes the cost of fitout construction, alterations to building services and provision of workstations and loose furniture. The rate does not include professional fees, statutory charges and GST.

   The benchmark-cost target ranges reflect the typical cost ranges and upper-target cost limits applicable to fitout alteration projects and are based on cost rates per square metre considered reasonable for the extent of work involved including:

   • new fitout projects
   • projects involving substantial rationalisation and/or refurbishment including some new furniture
   • projects involving minor accommodation and furniture changes only.
2. Maximum cost of fitout per person. This rate is calculated as:

Maximum cost rate for new fitout x the number of FTE’s = maximum fitout cost per person.

• new fitout projects
• projects involving substantial rationalisation and/or refurbishment including some new furniture
• projects involving minor accommodation and furniture changes only.

The benchmark cost-target ranges for the above types of projects for both cost per square metre and cost per person are contained in the supporting reference office accommodation workspace and fitout standards (PDF, 1.6 MB) .

If the current maximum benchmark target is bettered (i.e. less area per person is achieved), then more people are being accommodated in a particular area (than at the maximum benchmark target) due to better planning and/or functional efficiency (such as is routinely achieved in most modern buildings and in call centres). Because more people are being accommodated in the given area, more workstations, furniture and technology are generally required. Consequently, the cost of fitting out that particular area will increase by the cost of additional workstations, furniture and technology.

Therefore, the effect of achieving this better efficiency is an increase in the fitout cost rate per square metre compared with benchmark targets. However, the cost rate per person will not increase because the same amount of fitout, furniture and technology is being provided for each person. When this better efficiency is achieved, area requirements can be reduced.

Increasing workplace density can be an effective approach to achieving space and rental savings and should be considered for new fitouts and for rationalising space in existing offices. Expert advice should be sought in the implementation of this approach in order to ensure that functionality is retained, legislative compliance requirements are met, and a quality workplace is provided.

The outcome is that every percentage point improvement in workplace density translates directly into a 1% recurrent saving in rent and building-services costs at no additional cost per person in fitout costs.

In some cases, fitout costs in regional centres can be higher than in the Brisbane CBD and metropolitan areas. In such cases, a cost index 'multiplier' can be applied to the approved fitout cost benchmarks to establish an appropriate benchmark for that centre. Please contact EPW for advice.

The cost of office fitout can vary slightly due to the characteristics of different types of buildings. For example, some heritage-listed buildings have inherent planning inefficiency due to structural constraints or other factors that cannot be altered because of heritage significance. In such cases, fitout benchmarks may need to be exceeded. Similarly, in newer office buildings with highly efficient floor plates, fitout benchmarks can frequently be bettered. Please contact EPW for advice.