Over half of property companies considering axing own office space

More than half of real estate companies have predicted they will slash their own office footprints as a result of Covid-19 disrupting traditional working patterns, new research shows. According to a report by EY and the Urban Land Institute, which surveyed 555 real estate professionals, 53% said they anticipate decreasing their own office space, with 37% stating no changes needed to be made to their office footprint. Just 10% said they were looking to take more space. Nearly all (96%) respondents said they expect remote and home working to increase post-Covid, with 67% expecting to use satellite offices on the edges of cities more. The majority of respondents expect more than 60% of employees will be spending more than 40% of their time working remotely, in comparison to 20% of staff working 20% of their time remotely pre-pandemic. Meanwhile, 96% said they expect a rise in demand for flexible office space and 60% said large corporate occupiers will be making more use of co-working facilities. EY consulting associate partner Vincent Raufast said: “While the total office space is likely to decrease, the quality of real estate will be even more critical. The physical office space will play a key role in preventing a loss of corporate culture, less effective talent management, a higher staff turnover and a loss of creativity.”   To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette