By how a lot is your organization downsizing workplace area within the face of an financial slowdown and hybrid work?
In CPE’s newest month-to-month ballot, readers have been requested about their corporations’ potential downsizing of workplace area, notably within the face of an anticipated recession, in addition to the unchanging enchantment of hybrid work. Almost three quarters of respondents, 73 p.c, said that their firm isn’t shrinking their areas in any respect, doubtless owing to longer-term leases and warming sentiments towards working in-person.
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On the identical time, a complete of 27 p.c said that their workplace area is being downsized by orders of 26 to 50 p.c, 51 to 75 p.c, and 76 to 100%, with an excellent 7 p.c cut up of these seeing decreases of over half their area. These statistics doubtless owe to ongoing struggles within the sector, similar to traditionally low occupancy ranges, imminently expiring leases which are unlikely to be renewed in full, in addition to an ever-more unsure lending and deal making setting, furthered by the latest collapse of two banks carrying sizeable business actual property loans.
The tech sector is a big contributor to those tendencies, with leases of over 20,000 sq. ft down 74 p.c from a quarterly common of 8.6 million sq. ft recorded previous to the pandemic, in line with knowledge from a January 2023 report from Savills.
Click on right here to entry the present ballot, and to see the outcomes of earlier polls.
