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Why Companies Aren’t Cutting Back on Office Space. - Sun and Planets Spirituality AYINRIN
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Summary.
As knowledge workers have shifted to hybrid, we’re not seeing an equivalent drop in demand for office space. New survey data suggests cuts in office space of 1% to 2% on average. There are three trends driving this: 1) Workers are uncomfortable with density, and the only surefire way to reduce density is to cut person days on site without cutting square footage; 2) Most employees want to work from home on Mondays and Fridays, which means the shift to hybrid affords only meager opportunities to economize on office space; and 3) Employers are reshaping office space to become more inviting social spaces that encourage face-to-face collaboration, creativity, and serendipitous interactions.
In our monthly surveys of 5,000 American workers and 500 U.S. employers, and in our numerous conversations with managers, a huge shift to hybrid work is abundantly clear for office and knowledge workers. An emerging norm is three days a week in the office and two at home, cutting days on site by 30% or more.
You
might think this cutback would bring a huge drop in the demand for
office space. But our survey data suggests cuts in office space of 1% to
2% on average, implying big reductions in density not space. We see
three reasons for this.
First,
high density at the office is uncomfortable. Many workers dislike
crowds around their desks, much more so now that infection risks are top
of mind. Discomfort with density extends to lobbies, kitchens,
canteens, and especially elevators. The only sure-fire way to reduce
density is to cut person days on site [cut “person”?] without cutting square footage as much. Discomfort with density is here to stay according to our survey evidence.
Second,
most employees want to work from home on Mondays and Fridays. Faced
with tight labor markets and the ever-present challenge of attracting
and retaining talented workers, many employers have opted to meet this
demand. Working from home on Mondays and Fridays is becoming accepted
practice at many leading firms. As a result, the shift to hybrid affords
only meager opportunities to economize on office space.
Third,
because employers are hard pressed to attract and retain talent — and
to bring that talent onsite — the office of the future must be more
inviting. Tightly packed cubicles are out. Spacious, lounge-style, open
seating plans are in. So are meeting rooms that accommodate a mix of
in-person and remote participants. Sound-proofed cubicles to handle Zoom
and Skype calls and the like are also on the rise.
In short, employers are reshaping offices to become more inviting social spaces that encourage face-to-face collaboration, creativity, and serendipitous interactions. A recent report
by CBRE, a global real estate services firm, highlights many of these
trends, including the shift to office layouts that foster collaboration.
Accenture, for example, has introduced tech-free “reflection zones,”
yoga and wellness areas, and comfortable, lounge-like conference rooms
with sweeping vistas. Salesforce has converted executive offices into
small-group conference rooms open to all employees, replaced desks with
couches, expanded dining areas, and installed white boards for
collaborative team activities.
It’s
also easier to bring employees to the office when the local environment
is rich in amenities — restaurants, bars, entertainment opportunities,
and cultural venues. What does all this mean for city centers? Because
they remain central to local transport networks, cultural activities,
and high-quality entertainment, established city centers are the most
natural location for the office of the future. They just won’t draw as
many office workers per day — especially on Mondays and Fridays.
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