350 Multinational Companies Plan to Cut Office Space by 10-20%

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What’s going on:      

A survey published by Knight Frank, a U.K.-based real estate firm, reveals that 50% of major multinational corporations intend to downsize their office space in response to the growing adoption of hybrid work models.  

The data shows that a majority of the 350 multinational companies examined are currently in the process of shifting towards hybrid work, according to Reuters. It was found that only 31% of these companies have chosen to adopt an “office-first” or “office-only” strategy. 

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Why it matters:         

The widespread change in work patterns, accelerated by the COVID-19 pandemic, has led to a reassessment of office space needs for businesses all over the world. Knight Frank published that companies with more than 50,000 employees intend to reduce office space by 10% to 20% in the next three years. Interestingly, smaller companies with up to 10,000 employees are planning to increase office space.  

How it’ll impact the future:      

The reduction of traditional office spaces being utilized by major companies will impact working professionals by forcing individuals to rethink how they organize their work environment and maintain productivity. The switch will also impact the way coworkers interact with each other during the work week. 

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The data reveals a growing trend of large corporations leveraging flexible workspaces over traditional office spaces. This trend could influence the commercial real estate market in major cities around the world.  

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