A new survey from Ernst & Young (EY) shows that 72% of office-based companies are expecting to incorporate hybrid working into their future models.
However, just 40% of over 500 respondents said they have established a concrete hybrid work strategy, creating concern about whether these companies are truly prepared for what this work arrangement will require to be successful.
“There’s a lot of big decisions to be made, and I think a lot of people are having a hard time making those decisions,” said Mark Grinis, global real estate, hospitality & construction leader at EY. “The data shows that they’re taking a wait-and-see attitude.”
This hesitancy could have a direct impact on the office market attempting to recover from record losses experienced during the peak of the pandemic.
Regions that saw the bulk of office vacancies and slowed leasing activity, such as Manhattan, are appearing to see a slight rebound, which means that some companies may be taking the next step in deciding their future workplace strategies.
Still, landlords are concerned about the uncertainty companies are expressing about their future plans. The EY survey showed that 57% of respondents found that their productivity has surpassed pre-pandemic levels, and 72% said their culture has improved.
This has led office landlords to pivot their own methods and update their spaces to focus more on hospitality, rather than just providing businesses with four walls outfitted with cubicles.