08. Jun 2023
Photo: Freepik

About half of large multinational companies plan to reduce office space in the next three years due to the adaptation of employees to work from home, which has continued after the pandemic.

A Knight Frank survey of real estate executives in 350 companies worldwide, which together employ 10 million people, showed that the majority of companies tend to reduce office space by 10 to 20 percent, reports the Financial Times.

Intentions by major companies to further reduce office space have fueled concerns about the future of older buildings and unpopular locations as the commercial real estate market is hit by higher interest rates. Almost half of the surveyed companies also plan to change their headquarters in the next three years.

At the same time, most of the smaller companies are planning to expand their business premises. Many companies have delayed real estate decisions for the past three years, waiting to assess employees' work habits after the pandemic.

Companies use different approaches to working from home. Investment giant BlackRock last month ordered all employees to return to the office four days a week, while JPMorgan Chase in April asked staff to stop working from home and return to offices.

About 56 percent of companies opted for so-called hybrid work, which means combining work from home and in the office, while 10 percent of companies opted for remote work without coming to the office building. A study by the London real estate company Savills showed that the most empty office space will remain in San Francisco and Washington.

Source: Biznis.rs

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