Two-thirds of occupiers plan to cut office space
Nearly two-thirds of occupiers around the world plan to reduce their real estate footprint in the next two years, according to a survey from Cushman & Wakefield.
The agency’s What Occupiers Want report, conducted alongside CoreNet Global, found 63% of respondents expect to cut their space, with the number of occupiers targeting reductions of more than 25% increasing over the past year to a third.
The shift to further footprint reductions has been driven by stubbornly low occupancy levels, with most occupiers reporting office occupancy of less than 45%, below the pre-pandemic norm of 60-80%.
Nearly two-thirds of occupiers around the world plan to reduce their real estate footprint in the next two years, according to a survey from Cushman & Wakefield.
The agency’s What Occupiers Want report, conducted alongside CoreNet Global, found 63% of respondents expect to cut their space, with the number of occupiers targeting reductions of more than 25% increasing over the past year to a third.
The shift to further footprint reductions has been driven by stubbornly low occupancy levels, with most occupiers reporting office occupancy of less than 45%, below the pre-pandemic norm of 60-80%.
“Occupiers continue to see the office as a critical part of work efficiency, on top of being a driver for innovation, collaboration and connection,” the report said, noting that four-fifths of occupiers believe employee attendance in the office every week is necessary for work efficiency, and 40% see three or more days per week as optimal.
Many occupiers are adding amenities and services to tempt the workforce back in – 45% have added amenities and services, while another 35% plan to do so.
“Taking these factors into account, occupiers are still looking to cut their footprints – to optimise for current usage and to control for costs in this economic environment,” the report added.
The survey collected data across March this year. Responses were received from more than 12 countries across the Americas, EMEA and Asia-Pacific from firms that identify as end users, economic developers and service providers/consultants. Those surveyed represent approximately 9.6m employees globally.
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