Boston has quickly become a major hub for flexible and remote work thanks to its burgeoning tech market. While great for the flexible office industry, the embrace of remote work has led this major government body to rethink its office take-up.ย
The Massachusetts state government is reportedly walking back on its offices in the city as Governor Charlie Bakerโs administration leans towards hybrid and remote work models for staff.ย
In spring of 2021, the government had a 900,000 square foot presence in downtown Boston, but reports suggest that could be whittled down by 355,000 square feet by 2024.ย ย ย
โMaybe incoming governor Maura Healey will have different ideas,โ wrote Jon Chesto, business columnist for the Boston Globe. โBut the Baker administration sees an opportunity to save tens of millions of dollars in rent costs in the coming years, while also attracting talent in a tight labor market, by providing more work-from-home options.โย ย
Experts have begun observing the impact that governments could have on the shift to remote work. Some argue that it could set a bad example and negatively influence employees at companies who want their employees back into the office.ย
Governor Bakerโs move is just one example of what this influence could look like, and it certainly indicates harder times for the office real estate world. Leases are down, footfalls are not falling as hard and the purpose of the office is being completely reevaluated.ย
