Space Is At A Premium
Bloom, Barrero and Davis’ Stanford survey found that even if staff are spending 30% less time in the office, companies are not cutting space by the equivalent amount — the companies surveyed have cut space by just 2% on average.
“You might think this cutback would bring a huge drop in the demand for office space,” they wrote. “But our survey data suggests cuts in office space of 1% to 2% on average, implying big reductions in density not space.”
That is because companies are de-densifying the office, they argued. People don’t like being packed into a small amount of space anymore. Most people are coming in on Tuesdays, Wednesdays and Thursdays, so on those days employers still need enough space to fit a full staff. And more room is needed for collaborative workspace.
So, your tenant has decided not to cut the space they occupy in your building. But how are they going to deploy the hybrid work model in practice? The answer has big implications for real estate owners. Read on …