Rent allocations and chargebacks can incentivize departments to use space efficiently.
In many corporate workplaces, rent allocations are a common practice in which departments and business units are internally billed for their allotted use of space. These spaces can be clearly identified on a floor plan in Wisp and may include workstations, circulation space, conference rooms, and a prorated portion of amenity spaces. Charging back this real estate can help deter departments from laying claim to space that they don’t really need.
When space usage is optimizing across all departments in a large organization, it can have a significant impact on the total amount of real estate needed in a corporate portfolio.
5 Considerations for Allocating Space to Business Units
- Transparent reporting: The methods for allocating square footage to organizational units should be clear and easy to explain to stakeholders.
- Equitable data: Allocations should be based on calculated or reconciled square footage, such as negotiated lease amount.
- Automation: Streamline processes by applying financial values and calculate space charges on a determined schedule.
- Levels of proration: The average organization uses four to six categories of spatial allocation, but consider your organizational needs. Wisp allows for up to 26..
- CAD floor plan updates: Maintaining CAD floor plans assures that allocations are applied consistently.
Wisp has revolutionized the way our company internally charges our departments rent for their space usage. Making rent allocation changes is so easy now and the export and reporting features are in real time as well.
-Frank, Senior Manager of Moves and Renovations
As companies look towards the future of work and utilize space differently, finding a flexible and equitable way to bring transparency into rent allocations and chargebacks can instill confidence in business units and deter departments from claiming more space than they really need.
Learn more about the future of work and 5 Trends Driving the New Post-Pandemic Workplace.