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Thursday, June 13, 2024

Half of big international firms to cut office space in next three years


Half of the most important worldwide employers are planning to chop their workplace area within the subsequent three years, based on a survey, as they battle to handle the complicated nature of the post-Covid office.

The survey of 350 companies by property consultants Knight Frank and industrial actual property agency Cresa discovered that fifty% the most important companies they questioned – these with greater than 50,000 staff – anticipate to shrink their international workspaces, though most are solely planning to scale back by between 10% and 20%.

Nevertheless, this contrasts with the expectations of smaller corporations surveyed – these with as much as 10,000 staff – simply over half of whom mentioned they have been anticipating to extend their international workplace area.

The deliberate strikes come because the overwhelming majority of corporations have chosen office-centric working patterns following the pandemic, with greater than half favouring a hybrid mannequin, the place staff break up their time between their desks and residential or one other distant location.

Nevertheless, nearly a 3rd of companies surveyed mentioned they have been selling an “workplace first” or “workplace solely” method. Simply 12% of corporations are planning for his or her groups to work absolutely flexibly, that means employees would work predominantly or fully remotely.

Because of this, the vast majority of corporations anticipate managing their office to develop into extra or far more complicated over the following three years, as they attempt to steadiness workplace and distant working, whereas assembly different calls for.

The Knight Frank Cresa survey, which questioned companies collectively using greater than 10 million individuals, highlighted the variety of workplace strikes anticipated within the coming years.

The need to search out the correct company headquarters is a key motivator for a lot of organisations, the survey discovered, as corporations look to implement their post-Covid methods of working, whereas additionally offering extra facilities for his or her employees and hitting their sustainability targets.

Almost half of companies mentioned they deliberate to switch their company HQ throughout the subsequent three years, up on 40% in 2021.

Lee Elliott, the worldwide head of occupier analysis at Knight Frank, mentioned: “Now that we’re in a really post-pandemic world, company decision-makers are ‘eradicating the blinkers’ and making clear selections round their future company actual property technique primarily based on a broader array of enterprise points than simply the pandemic.”

He added: “Companies wish to work their places of work more durable, however nonetheless supply some flexibility to employees.”

Whether or not taking over extra of much less workplace area, or searching for a brand new headquarters, organisations are planning to maneuver into totally different buildings and can principally be searching for higher high quality workplace area after they do. That is resulting in elevated demand for greater high quality and extra sustainable workplace area world wide.

Tim Armstrong, the worldwide head of occupier technique and options at Knight Frank, mentioned many companies realised they wanted to adapt their workplaces to swimsuit a extra versatile working atmosphere.

“Many occupiers will conclude that their present workplace buildings can not meet their necessities,” Armstrong mentioned.

“An increase in each the purposeful and bodily obsolescence of buildings will drive occupiers to greater high quality, extra sustainable and amenity-rich area, however the provide of this area is coming beneath rising stress in international markets.”


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