Consulting firm Deloitte will cut back on its office space in London as it embraces hybrid work arrangements.
Deloitte is exiting one of its locations at New Street Square, bringing its total amount of abandoned office space in the city to nearly 250,000 square feet.
This news comes after Deloitte revealed it would not be reopening another New Street Square location last year. Last summer, it also closed its two-floor space in Clerkenwell.
However, the firm did extend its largest building in its New Street Square campus until 2036.
In addition to Deloitte, other major accountants in the UK have also closed their London offices, citing that they were no longer needed due to hybrid working. For instance, BDO did not renew its office on Aldersgate Street after initial pandemic lockdowns.
Although the long-term damage the pandemic has had on the commercial real estate industry is still uncertain, the continued disruptions with returning to the office has led to a permanent shift to flexible and remote work policies.
As a result, firms have begun leaving behind their offices in city centers as their staff become increasingly distributed. This has left landlords with an unprecedented amount of vacant space, leading some to pivot gears and incorporate flexible offices and coworking spaces to attract new tenants.
“We are constantly reviewing our office space requirements to reflect changes to our ways of working and our sustainability objectives,” said Stephen Griggs, UK managing partner at Deloitte.
