A survey of 500 corporate real estate leaders by law firm Irwin Mitchell and YouGov found that almost half of large companies, and some 39% of medium-sized businesses, plan to change their office space requirements – whether by upsizing, downsizing or relocating. Close to two-thirds of large occupiers plan to make their move within the year.
One in five respondents from large businesses plan to increase their office space, with the same proportion looking to reduce space. Some 11% expect to reconfigure their existing space, while 37% plan to stay the same.
Pressed for the reasons behind the change, one-third of large businesses cited cost savings, with a slightly larger number (35%) saying they are responding to the changing ways their employees work following the pandemic.
Adrian Barlow, partner and director of legal services for real estate at Irwin Mitchell, said: “Spending money cautiously appears key to all, but there also appears to be a divergence of attitudes among companies according to size.
“Larger companies appear more able to progress change to their space to reflect current or projected needs, accommodate new methods of hybrid working, to nurture and retain staff and to follow the ESG agenda. Smaller companies appear to be pursuing a more cautious strategy and sitting tight amid the economic uncertainty.”
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