A new survey from the Building Owners and Managers Association (BOMA), software firm Yardi and research advisory company Brightlight Strategies offers insight into how the past few years have altered office space needs.
According to the final study of the three-part series, 36% of nearly 1,300 office decision-makers said that they would increase or maintain their footprint, while over half said it was likely they would be cutting back on office space in the future.
Of respondents who are expected to downsize, 67% said that the shift to remote and hybrid work has had a significant impact on this decision.
Curiously, the study showed that demand for telework varied by region, with workers in the Northeast and California more likely to embrace this arrangement. On the other hand, the Southwest saw its support for remote work models dwindle.
In addition to the desire for new workplace models impacting office demand, the increased cost of real estate and nearly everything related to business operations has also led tenants to hit the brakes on taking up office space.
Still, this past summer saw lease renewals approach pre-pandemic levels, a good sign for a market that thrives on in-person attendance. While 72% of respondents said they are interested in renewing their leases, 54% added they would prefer a shorter agreement.