The savings are in the leased area, not the furniture
For the CFO: 1 m² avoided is worth 10 times 1 m² optimised, the real trade-off is on the leased floor area
Over a 9-year lease, furniture accounts for less than 8% of the real estate TCO: focusing the CFO/HR Director trade-off on fit-out CAPEX is a framing error. The real levers are the leased floor area (60-70% of TCO) and regulatory energy consumption (15-20%), not the choice of seating. CFOs and HR Directors co-pilot a project involving an average floor area of 850 m² and a 12-week construction period. Kytom, founded in 2006, has delivered 1200+ projects from its 11 agencies in France and Spain, using a 4-step design and build methodology. Three requirements structure the decision: TCO over 9 years (standard 3-6-9 lease term), compliance with the regulatory obligation requiring a 40% reduction in energy consumption by 2030 compared to the reference year, and employee experience measured against NF X 35-102 ergonomics and acoustics according to the NF S31-080 standard of January 2006, which defines the acoustic performance levels and criteria for offices and associated spaces (CIDB).
CFO reframing. Real estate is the 2nd or 3rd largest budget for a tertiary company, behind payroll (INSEE Tableaux de l’economie francaise 2024, corporate accounts). At 450 €/m²/year of rent in a dense tertiary zone (real estate brokers 2023), every square metre avoided through a calibrated flex office generates a recurring annual saving, whereas a square metre simply reconfigured only reduces marginal charges. The hierarchy of levers is therefore: 1) reduce floor area, 2) lower consumption, 3) optimise furniture.
- Usable floor area ratio: the normative references in force set a minimum of 10 m² per employee in an individual office, 11 m² in a shared office and 15 m² in an open space.
- Actual occupancy rate: observed between 50 and 65% on badge readers, which validates flex office calibration.
- 9-year TCO: rent, charges, energy, furniture amortisation, maintenance, to be compared between the status quo and the project (Kytom internal framework). In this model, furniture accounts for less than 8% of the total.
- Tertiary regulatory trajectory (ELAN law art.175): a reduction in energy consumption of 40% by 2030, 50% by 2040 and 60% by 2050 compared to the reference of the 2010 decade.
The shared CFO/HR Director governance then frames a project of 850 m² on average and a 12-week construction period. The working environment is among the top criteria for employee retention, which justifies not reducing the floor area beyond the team’s tolerance threshold.
When this framework does not apply. The 8-12 m² per workstation framing and the 9-year TCO lose their relevance below 30 employees or on short leases (< 3 years): the dispersion of fixed costs makes furniture amortisation insignificant and TCO modelling becomes a theoretical exercise. For these organisations, Kytom recommends a simple 5-year CAPEX approach, with no target (buildings < 1,000 m² outside the declaration scope).
Kytom design and build method: 4 steps within the standard timeframe, compliance included
Contrarian position on sequencing. The industry orthodoxy places furniture choices at the end of programming, just before the works. Across 120 projects observed in 2022-2024, Kytom instead locks the usage mapping and target ratio in as early as week 2: deferring these trade-offs beyond week 5 generates 60 to 80% of the change orders observed during the works phase. The design and build methodology brings together programming, design, works and furniture under a single contract, with a dedicated project manager over the project’s three-month average (median duration of the project schedule for the average floor area). Four steps structure the delivery.
- Usage audit (2 weeks): footfall counting, badge reader analysis, CFO and HR Director interviews, mapping of target ratios from the Kytom 2023 reference framework.
- Costed programming (3 weeks): 3 budget scenarios to the nearest CAPEX, 9-year TCO impact, assumptions traced against 2022-2023 sector references.
- Technical plans and certifications (2 weeks): BREEAM In-Use certification is valid for 3 years, unlike the New Construction and Refurbishment versions which have no expiry date, HQE for the building, targeted wellbeing reference framework, detailed schedule.
- All-trades works (5 weeks on average): Qualibat 5311 coordination, weekly reporting to the CFO, 12-month defects liability guarantee.
| Step | Duration | Main deliverable |
|---|---|---|
| Audit | 2 wk | Usage mapping |
| Programme | 3 wk | 3 CAPEX/OPEX scenarios |
| Design | 2 wk | Plans, targeted certifications |
| Works | 5 wk | Handover, file |
The applicable normative frameworks (NF X 35-102 ergonomics, NF S 31-080 acoustics) and sector recommendations frame each deliverable, with a compliance file ready for inspection.
Limitations of the design and build format within the standard duration. This calendar compression assumes a vacated site, furniture choices settled by week 5 and a signed lease. On projects > 2,500 m², on occupied sites with phasing, or on ABF-classified buildings, the schedule extends to 18-26 weeks: standard design and build then ceases to be applicable and a separate macro-lot for Project Management / All Trades becomes preferable.
For the HR Director: 15 satisfaction points, 1 to 2 absenteeism points, a cold reading of an extra-financial ROI
HR Director reframing. A fit-out is not an HR project, it is a real estate project whose HR effects are measurable at T+6 months. The distinction is strategic: the HR Director carries neither the CAPEX nor the lease, but the usage charter, occupational health (2021 references on the 10 key questions relating to workspaces) and post-delivery satisfaction monitoring. Across the internal portfolio delivered since its inception, Kytom measures effects that converge for both CFOs and HR Directors.
- Real estate optimisation: a 20 to 30% reduction in leased floor area thanks to flex office calibrated at a ratio of 0.7 workstation per employee, i.e. up to 180,000 € in annual savings for a team of 80 people in a dense tertiary zone (assumed rent 450 €/m²/year Paris CBD, 2023 market references).
- Energy performance: a 25 to 40% reduction in consumption with controlled LED lighting, variable air volume HVAC and connected BMS, aligned with the regulatory obligations applicable to the tertiary stock.
- Human capital: employee satisfaction up 15 points on Kytom’s internal post-delivery barometers, absenteeism down 1 to 2 points based on Kytom feedback on the working conditions observed in 2022, employer attractiveness strengthened over the 12 months following the move.
The ROI sits between 3 and 5 years depending on the chosen scenario, excluding extra-financial value (CSR, employer brand, environmental certification efforts).
Frequently asked questions
What is the real weight of furniture in the 9-year real estate TCO?
Less than 8% of the total TCO over the term of a 3-6-9 lease (Kytom internal modelling). Rent accounts for 60 to 70%, charges and energy for 15 to 20%. The CFO’s priority trade-off therefore concerns the leased floor area, not furniture CAPEX.
What penalties apply in the event of non-compliance with the obligations to reduce the energy consumption of the tertiary stock?
An administrative fine of up to 7,500 € per building for a legal entity (decree no. 2019-771 of 23 July 2019), after formal notice and publication on the State’s website. Mandatory annual declaration, with targets of -40% final energy consumption by 2030, -50% by 2040, -60% by 2050.
What floor area per employee ratio should be used in flex office?
0.7 workstation per employee across the Kytom 2022-2024 portfolio, with a usable floor area ratio of 8 to 12 m² per workstation in open space. This calibration is based on actual occupancy rates measured between 50 and 65% on badge readers.
What is the typical ROI of a tertiary fit-out project?
Between 3 and 5 years depending on the chosen scenario, excluding extra-financial value. The return combines rent savings (up to 180,000 €/year for 80 people in the Paris CBD), a 25 to 40% reduction in energy consumption and 15 points of employee satisfaction post-delivery.
When is the standard-timeframe design and build format not applicable?
On projects > 2,500 m², on occupied sites with phasing, or on ABF-classified buildings, the schedule extends to 18-26 weeks. Below 30 employees or on leases < 3 years, the 9-year TCO modelling loses its relevance: Kytom then recommends a simple 5-year CAPEX approach.
