59% Of Businesses Expect To Slash Their Real Estate Footprint By Half

A new survey from flexible office platform Robin shows that hybrid offices could help businesses cut costs during economic downturns. 

The findings showed that companies could save over $10,000 per employee by opting for flexible workplaces, validating the concept of cutting down their real estate footprint.   

According to respondents, 83% shifted to hybrid models as a way to save money, while 73% agreed they would turn to this arrangement to cut costs before taking more drastic measures, such as layoffs.   

While this provides a sense of relief for companies nervous about a potential recession, it leaves landlords in a predicament. 

Over the last few years, offices have shrunk as occupants realize they are using just half of their available space. In fact, 46% of respondents said they have plans to cut their space, with a staggering 59% expecting to reduce at least half of their current square footage.

This is alarming to the already-struggling real estate industry. However, understanding the demand for flexible offices could present an opportunity for building owners and operators to partner up in order to address demand and weather the recession together.